Present worldwide practice indicates that many problems related to research and innovation activity (lack of investments due to the “scientific risk,” selection mechanism for promising areas of scientific research, targeted funding system, sufficient conditions for free creative self-realization, etc.) were successfully resolved over the course of decades in other countries by means of sharing the costs for scientific and innovation-oriented research between the state and private sector. The greater the attention paid by the state to creating scientific-technical potential, the more major companies spent on research and development efforts. Therefore, state funding takes on even greater significance in our country, as there are practically no investments from the commercial sector for this purpose, thus depriving the country of an important funding source.
Regarding Chelyabinsk Oblast in general, it has been established that investments in small businesses are recouped two to three times faster than investments in large industrial enterprises. According to statistical data, labor productivity in small businesses is 50 percent higher in monetary terms than the average for the oblast. The development of small business can solve the employment problem, as this sector is more dynamic in job creation. Furthermore, the cost of job creation in the small business sphere is several times less than in large enterprises. Meanwhile, small business also solves the problem of filling the market with consumer goods and services, improving the quality of life for citizens, and promoting the political stabilization of society.
Despite the fact that small business is one of the most important economic sectors and its development affects the development of our region and Russia in general, the oblast government and the Chelyabinsk Oblast Legislative Assembly do not pay enough attention to issues connected with small business development and support. There are numerous problems affecting this sector: administrative-bureaucratic obstacles, the poorly developed nature of oblast-level legislation on small business, the tax burden, the cumbersome accounting system, the lack of the necessary social protection for owners and employees of small enterprises, the absence of financing in the oblast budget for small business support. All of this has a negative impact on the dynamics small business development. Thus, the lack of regional investments in small business development in our oblast represents a serious financial and economic oversight on the part of the oblast administration.
As for the Snezhinsk city government, the city administration and Snezhinsk City Council have chosen their own way of developing the innovation activities of small business. On the whole, small business support is provided in three main areas: regulatory, financial, and organizational.