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DOI: 10.15862/33FAOR425 (https://doi.org/10.15862/33FAOR425)

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Pavlikov O.A. Institutional mechanisms for stimulating small entrepreneurship in the context of poverty reduction in the Russian Federation. Russian journal of resources, conservation and recycling. 2025; 12(s4). Available at: https://resources.today/PDF/33FAOR425.pdf (in Russian). DOI: 10.15862/33FAOR425

Institutional mechanisms for stimulating small entrepreneurship in the context of poverty reduction in the Russian Federation

Pavlikov Oleg Andreevich
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: OlegPavli1@yandex.com

Abstract. This study analyzes institutional mechanisms for supporting small businesses aimed at engaging low-income individuals in entrepreneurial activity and ensuring their economic sustainability. The paper systematizes the main forms of state support for small businesses, including social contracts for starting their own businesses, preferential lending programs, guarantee mechanisms, and infrastructure initiatives within the framework of national projects. A comparative analysis of the dynamics of the number of small and medium-sized businesses and poverty rates for the period 2019–2025 was conducted, revealing a statistically significant inverse relationship between the expansion of the small business sector and poverty levels in Russia’s regions. Particular attention is paid to assessing the effectiveness of the social contract system, through which more than three million families received targeted support between 2020 and 2025, and 44,4 % of those who signed the contract were able to overcome the poverty line. It was found that regions of the Russian Federation with a higher share of employment in the small and medium-sized business sector demonstrate significantly lower poverty rates, while the SME Corporation’s umbrella guarantee mechanism secured over 1,1 trillion rubles in loan financing and increased employment among recipients of this support by 16,7 %. It was shown that by the beginning of 2026, the number of SMEs in the Russian Federation reached a historical maximum of 6,84 million, and the number of people employed in the sector exceeded 30 million, which forms a large-scale basis for further poverty reduction through the expansion of entrepreneurial activity. The practical significance of the results is determined by the potential for using them in the development of regional programs to promote entrepreneurship and targeted social support.

Keywords: small business; poverty; social contract; state support; self-employment; professional income tax; SME Corporation; regional economy; national project; employment

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