Экономические науки/13.Региональная экономика

student Krasikova O.V.

Volga State University of Technology,

Yoshkar-Ola

Problems of development of small business in the construction complex of the republic of Mari El

1. Introduction
In our days the issue of development of small business is the most vital. The current economic situation in the country has raised the only problem that many small enterprises have to solve – how to survive. Small enterprises of our Republic are not an exception. Let’s study the statistics given below.

The Law № 88-FZ «On the State Support of Small Entrepreneurship in the Russian Federation» issued on June 14, 1995 runs that the number of small enterprises in the construction industry comprises companies of any legal form, including cooperatives with a maximum number of employees up to 100 persons where the entities’ share and founding capital may not exceed 25%.

The Number of Construction Organizations
(at the end of the year, items)

Years	Total Number of Construction Companies	Including Number of Employees up to 100 Persons
2008	512	491
2009	460	442
2010	413	392
2011	441	428
2012	461	443

As it is stated from the table the number of enterprises is decreasing year by year. That is considered to be a problem on the republican level as small business contributes to the national economy of any developed country.
2. The main part
Small businesses are traditionally focused on the current profit. They are able to react immediately to supply and demand, to meet market demand in the goods, works and services. Small enterprises are generally targeted at mass consumer in socially-oriented industries.
According to some legislators and managers, construction is less adapted to the enterprise in comparison with other sectors of the economy because due to its specification construction activities aren’t profitable at once. Coming back to our problem it should be necessary to review the tables which reflect the data about our Republic.

Lead-through of the Apartment Blocks
(thousand square meters of total area)

Built in Total	Including		Specific Gravity in Cumulating
	Cooperative Housing Society	People on Individual and Borrowed Accounts	Apartment Blocks in Cooperative Housing Society	People’s Apartment Blocks
298.8	2.4	195.7	0.8	65.5
299.9	-	210.3	-	70.1
303.6	1.1	211.8	0.4	69.8
314.8	-	218.0	-	69.3
351.4	-	220.3	-	62.7

The Amount of Works Performed by the Form of Activity “Construction”

Years	Mln. roubles	In Percentage to the Previous Year (fixed prices)
2008	9962.2	105.2
2009	6710.5	69.2
2010	9511.4	139.8
2011	11955.9	112.4
2012	12331.4	100.2

Thus, having analyzed the data of the tables we can identify several problems of the development of small business in the construction industry.  Small enterprises are more exposed to competition and bankruptcy and this trend should be considered. Many small businesses go bankrupt. The rate of profit received from various types of entrepreneurial activity varies significantly, which tells upon the financial sustainability of small business. Only fair competition increases production efficiency, stimulates reduction of prices on goods, increases the responsibility of the producers to the consumers, and expands the scope of public services. The state support of small business is carried out in accordance with the Federal program of state support of small entrepreneurship, regional (interregional), branch (interbranch) and municipal programs of development and support of small entrepreneurship developed respectively by the Government of the Russian Federation, by the establishments of executive power of the Russian Federation subjects and local authorities. As it is known, the legislation establishes a system of tax privileges, which allows to reduce considerably the amount of tax on profit at the expense of taxable benefits reduction:
Financing capital investments for production and non-production purposes, and also for repayment of bank loans received and used for these purposes;
Amounting to 30% of capital investments on environmental protection;
Organizations costs to maintain their balance of objects and institutions of healthcare, education, children's camps, housing, etc.

Contributions to charitable foundations in limits from 3 up to 10% depending on their direction;
Construction organizations with an average workforce of 200 people in addition to these benefits have the following additional ones. The Federal program of state support of small entrepreneurship in the Russian Federation is being held at present.
3. Summary. Ways of solving the problems.
Firstly, increase dramatically the number of small lots of land so they could rent or buy small businesses. Secondly, organize tenders for the subcontracted work as it is done abroad in order to include small and medium business in the system of competitive struggle for the subcontracts, which will ultimately lead to the reduction of prices on the real estate. Thirdly, organizations develop a system of measures to increase the social significance and image of the businessman with the help of public organizations.
Finally, the analysis shows that the expected large-scale development of small business has not taken place in the region. There is neither quantitative nor qualitative growth in the small business sector. Furthermore there is a tendency of reduction in the number of small enterprises. The main part of difficulties and obstacles on the way of formation and development of small entrepreneurship lies beyond the sphere of small entrepreneurship. To solve these numerous complicated problems one should look for certain strength, opportunities, political will to change the current situation.

Literature:

1. Territorial authority of Federal State Statistics Service of the Republic Mari El [electronic resource].- http://statmari.gks.ru/

2. Building portal of Chuvashia and Republic Mari El [electronic resource].- http://cheml.stroyka.ru/

3. Investment opportunities of the Republic Mari El [electronic resource].- http://марийэл.рф/invest/DocLib/150018042013.doc