Improvement of mechanisms of state support of service enterprises at the regional level

Introduction. The relevance of the study is due to the increasing role of the service sector in the modern economy and the presence of significant problems in the current system of state support for enterprises in this sector at the regional level, including the rigidity of the criteria for obtaining support, the complexity of administrative procedures and insufficient funding.

In conditions of economic instability and growing competition, effective government support is becoming a key factor in the sustainable development of service sector enterprises.

Purpose. Development of a set of recommendations for improving the mechanisms of state support for service sector enterprises at the regional level.

Materials and methods. The statistical data for Saint Petersburg for 2019-2022, the results of the HSE study on the factors limiting the activities of service sector organizations, and regulatory documents were used. The methods of statistical and comparative analysis, expert assessments, a systematic approach and economic and mathematical modeling are applied. The key evaluation indicator is gross value added.

Results. A significant decrease in gross value added in the key service industries of St. Petersburg in 2022 was revealed; the main factors limiting the development of enterprises were identified: the uncertainty of the economic situation (63%), high taxation (43%), insufficient demand and lack of financial resources (41% each). The key disadvantages of the existing support measures have been identified: the rigidity of the criteria of the simplified taxation system (hereinafter referred to as the STS), the limited amounts of microfinance, and the complexity of administrative procedures. The analysis showed the need for a comprehensive modernization of the state support system.

Conclusions. A set of measures has been developed to improve the system of state support, including softening the criteria of the STS, increasing the maximum amount of microfinance to 10 million rubles, creating a special guarantee fund with up to 90% coverage of obligations, introducing a unified digital platform for state support and creating an information support system for enterprises. The proposed measures will significantly improve the effectiveness of state aid and ensure the sustainable development of the service sector.

1. Rozanova L. I. Institutional factors of structural shifts in gross value added. Drukerovskij vestnik. 2020;1(33):94-100. https://doi.org/10.17213/2312-6469-2020-1-94-100. (In Russ.)

2. Alimova M. S. Metodological and statistical analysis of the formation of gross value added at the regional level: the Orel region. Economic and humanitarian sciences. 2022;3(362):29-38. https://doi.org/10.33979/2073-7424-2022-362-3-29-38. (In Russ.)

3. Syzdykova E. J. Gross added value: the influence of extensive factors on the example of the number of the employed population. Bulletin of Karaganda University. Economy Series. 2023;106(2):302-312. https://doi.org/10.31489/2021ec2/302-312. (In Russ.)

4. Pasynkov A. F. Compilation of regional financial balances for the ‘General Governance’ sector in the Ural Federal District. R-Economy. 2020;6(4):251-260. https://doi.org/10.15826/recon.2020.6.4.022.

5. Nast C., Broekel T., Entner D. Fueling the fire? How government support drives technological progress and complexity. Research Policy. 2024;6:105005. https://doi.org/10.1016/j.respol.2024.105005.

6. Gallouj F., Weber K. M., Stare M., Rubalcaba L. The futures of the service economy in Europe: A foresight analysis. Technological Forecasting and Social Change. 2015;94:80-96. https://doi.org/10.1016/j.techfore.2014.06.009.

7. Sypko V. State support for entrepreneurship development in Italy. Social Economics. 2022:136-144. https://doi.org/10.26565/2524-2547-2022-63-13.

8. Lee J., Chu W. Nudge Design Strategies for Experiential Marketing and Retail Space Branding. Journal of Interior Design. 2023;48(3):174-190. https://doi.org/10.1177/10717641231177463

9. Liao J. The rise of the service sector in China. China Economic Review. 2020;59:101385. https://doi.org/10.1016/j.chieco.2019.101385.

10. Pyanova M. V. On taxation of small business in the conditions of integration of new regions. Taxes and Taxation. 2024;(5):1–20. https://doi.org/10.7256/2454-065X.2024.5.71555. (In Russ.)