The Role of State and Municipal Support for Small and Medium-sized Businesses in the Context of Sanctions Pressure

The article reveals the importance of effective interaction between municipal authorities and small and medium-sized businesses. During the period of sanctions, the support of entrepreneurship by the municipal government is the main reason for the stabilization of the activities of such enterprises. The theoretical basis of the article is based on the scientific developments of M.N. Dudin, N.V. Lyasnikov, V.A. Chernenko, N.Yu. Shvedova, A.N. Omelchenko, E.Yu. Khrustalev, E.V. Balatsky, N.A. Ekimova, V.A. Grischuk, M.M. Akhmetzyanova, A.A. Rabtsevich, M.A. Ovakimyan, T.N. Kameneva, N.V. Kubikova, S.A. Kotlyarova, D.A. Chizhova. The empirical base is represented by the results of an online survey of employees working in small and medium-sized businesses. The total sample size was 1260 respondents. The objective of the study was to examine the role of state and municipal support for entrepreneurship under sanctions. The analysis of the research results showed that the sanctions had a significant impact on the functioning of small and medium-sized businesses. Research results. The study revealed differences in respondents’ assessments of the impact of sanctions depending on the industry of enterprises and their involvement in international trade. To assess the effectiveness of state and municipal support for entrepreneurship under sanctions, indices of sanctions impact and entrepreneurship support were constructed. Municipal support is significant and effective primarily for small businesses that assessed the impact of sanctions as extremely critical. Despite the low percentage of business representatives who clearly assess state and municipal support as effective, in general, it can be characterized as sufficient and covering the costs of entrepreneurs. The study also identified factors for increasing the effectiveness of business support from municipal authorities: information support, financial resources, cooperation and interaction, foreign trade substitution, legal framework and regulation, monitoring and adaptation. It is important to note that the strength of the action of the listed factors cannot be measured separately and requires a comprehensive approach.