Regional Economics: Theory and Practice

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The myth of small business

Vol. 17, Iss. 4, APRIL 2019

Received: 20 December 2018

Received in revised form: 27 February 2019

Accepted: 20 March 2019

Available online: 15 April 2019


JEL Classification: L12, L22, L24, P17

Pages: 605–614

Liferenko Yu.V. Tver State University (TSU), Tver, Russian Federation

ORCID id: not available

Subject The article studies small businesses as economic units.
Objectives The research aims to determine the role of small business in the development and economy.
Methods The research relies upon a comparative analysis and statistical data.
Results I focus on view of many scholars stating that small business underlies the economy in various countries. Therefore, the State should actively support small businesses and encourage the market competition. The article presents my dissent with the above views. Small businesses can neither be the basis for modern economic processes, nor drive its growth. Small businesses tend to sluggish development due to economic monopolies subduing the market competition, dominating small and medium-sized businesses.
Conclusions As long as monopolies dominate the market, small businesses will definitely not contribute to a growth of social production.

Keywords: State, monopoly, outsider, economic center, periphery, operation, monetary reserves


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