Small Business Capabilities for Employment

Similar documents
Features of Identification Business Processes

The Influence of Phase the Organizational Life Cycle on Organizational Structure Management and Transaction Costs

Revista Galega de Economia/Economic Review of Galicia Vol (2014)

Applying Game Theory to Optimize Expenses for Employees Remuneration

Socio-Economic Systems Competitiveness Assessment Method

Current Risk Factors and Some Aspects of Prospective Development of Agro-Industrial Complex Potential in Tatarstan: Financial, Investment, Innovative

Social Technologies in Shaping and Developing Human Potential

Formation and Structuring of Cooperating Structures in Agrarian Production of Modern Russian Economy

Interregional logistic center as the growth point of regional economics

Development of the decision support system in the management of the agrarian sector in Russia

The mechanism for value formation in a trading enterprise

COMPETITIVENESS OF RUSSIAN REGIONS BY ECONOMIC ACTIVITY

The Features of Social Partnership as a Mechanism for the Integration of Education and Production

Cyclicity of Development of the Global Automobile Industry

Tools of Realization of Social Responsibility of Industrial Business for Sustainable Socioeconomic Development of Mining Region s Rural Territory

The tourism entrepreneurship competitiveness research as a multidimensional model. Tatiana Nikolaevna Tarasova,

STAFF RETRAINING AS A FORM OF LIFELONG PROFESSIONAL EDUCATION AND AN IMPORTANT AREA IN WHICH HUMAN RESOURCES IN THE ECONOMY CAN BE UPGRADED

HUMAN RESOURCE POLICY: THE WAY TO INCREASE THE INVESTMENT ATTRACTIVENESS OF THE MUNICIPAL TERRITORY

Franchising technologies for sustainable economic development

Study on College Students Carrying Out Leisure Sports Activities and Entrepreneurship Based on the State's Vigorous Development of Sports Industry

CORPORATE TRAINING AS A FACTOR OF REPRODUCTION OF THE PROFESSIONAL COMPETENCIES OF EMPLOYEES. Polina ANANCHENKOVA 1 Victoria TONKONOG 2

Bottleneck Vacancies in Bulgaria

1: NATURE CONCEPTS AND FUNCTIONS OF HRM

An Evaluation of Production Business Process Costs Using a Time-labour Approach

LEVEL OF DEVELOPMENT OF MILK AND DAIRY PRODUCTS MARKET OF THE FEDERAL DISTRICTS OF THE RUSSIAN FEDERATION

Workshop on education and training for competitiveness an growth in tourism

Structural Changes in Russian Economy and Objectives of Investment Policy

Analysis of the Application of Statistics to Economic Management

Demand and Utility: New Methodology

Corporate Social Responsibility as a tool to ensure sustainability and competitiveness of the monotowns

Asian Journal of Agriculture and Rural Development. The Innovative Directions in Agriculture of Kazakhstan

CURRENT STATUS AND TRENDS OF MINERAL FERTILIZERS WORLD MARKET DEVELOPMENT

Available online at ScienceDirect. Procedia Economics and Finance 24 ( 2015 )

The Strategic Role of Civil Servants Training for reforming Public Administration in Bulgaria. Pavel Pavlov, Ph.D., Polya Katsamunska 1

Case Study of Petrochemical Industry, THAILAND

Faculty of Business Department of Marketing. Study Plan of the Master s Degree In: Marketing (Thesis path) Academic Year: 2017 / 2018

AGENCY FOR HUMAN CAPITAL DEVELOPMENT IN THE RUSSIAN FAR EAST

The Approaches Evolution to the Local Governments Activity Efficiency Assessment

Building Life Cycle and Tacit Knowledge Base of Best Practice

Transactional costs of the interaction between business and government as a threat to the economic security of the state

Enterprises communication system diagnostics

Reform of Logistics Management Specialty Practical Teaching in Application-Oriented Institutes Based on Competency Model Ru LI

Organizational Factors Affecting Employee Innovative Behavior

Formation of Synergetic Effect of Human Resource Management of Business Organization

The Construction of Indicator System for Performance Measurement of Chinese Enterprises Based on Balanced Scorecard

SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS OF THE INDUSTRY IMBALANCES IN THE REGIONAL ECONOMY

MARKETING ACTIVITY MANAGEMENT THROUGH THE EFFECTIVE CRM-SYSTEM. Venera A. Saydashevа*, Natalya S. Sharafutdinova

Socio-Statistical Characteristics of Informal Employment

The Human Resources Development Research after National Demographic Turning Point (Case Study of China economic cycle)

PLENARY PANEL 4. A brief on

SOCIOLOGICAL SURVEY OF THE BUSINESS OF KARDZHALI REGION BASIC FACTORS FOR CHOOSING A LOCALIZATION FROM THE COMPANIES

HR certification: basic course

Rating by economic regions in the Russian Federation by the level of production and consumption of dairy products

Engaging Employers and Developing Skills at the Local Level in Northern Ireland, United Kingdom

Management Accounting as a Tool for Improving the Competitiveness of Enterprises

G20 Information Centre provided by the G20 Research Group

THE ROLE OF INNOVATIVE - PRODUCTION POTENTIAL OF THE RUSSIAN NATIONAL ECONOMY

Foreign Experience of Industrial Learning Teacher Training For the Dual System of Vocational Education

Opinion of the Committee of the Regions The Quality Framework for Traineeships (2014/C 174/07)

WorldSkills Conference 2017

OHIO ASSESSMENTS FOR EDUCATORS (OAE) FIELD 026: MARKETING ASSESSMENT FRAMEWORK. January 2013 DRAFT DRAFT

Sector: Agriculture. Keywords: Bulgaria, Sofia, Food Products and Agriculture, Agricultural sector. Abstract:

Transformation of the Resource Scarcity Principle in Increasing Return Economics

The Development of Housing-and-Communal Services Power Supply System in Samara Region

The Analysis of Colleges and Universities Compensation System Reform Based on the Total Compensation Theory Bin DENG

HR certification: basic course

Classification of operational risks in construction companies on the basis of big data

Factor Analysis of Occurring Transactional Costs in an Educational Establishment

An Empirical Analysis on the Development of Modern Service Industry and Its Countermeasures in Qingdao during Post-WTO Transitional Period

Research on the Female Talent Cultivation Model at Xi an Colleges and Universities from the Perspective of Supply-side Structural Reform

d) ensure formulation of guidelines on countering corruption. 2. The Government of the Russian Federation should:

Management Innovation Companies Based Business Cost Indicators

FINANCING A SUSTAINABLE LINKAGE: THE ADFIAP EXPERIENCE

machine design, Vol.5(2013) No.2, ISSN pp

Key performance indicators of management consulting

Human resource management: elaboration

Research on the 8 Key Competences. Latvia, Estonia, Spain, Croatia

Developing a Model for Machine Building Companies to Be Restructured in Russian Mono Company Towns as a Factor and a Condition of Well-Being

The Process Approach to Management of Enterprise Human Resources

What Students Should Understand for Each Chapter Major Themes for Business 101 Fall 2008

3rd International Conference on Management, Education Technology and Sports Science (METSS 2016)

OKLAHOMA SUBJECT AREA TESTS (OSAT )

1. A brief assessment of economic circumstances and the institutional background in Romania relevant for assisting disadvantaged groups

Competence-Based Approach to the HR Management Using in Industrial Branch

MIDDLE-INCOME JOB DECLINE IN PENNSYLVANIA

Amoco Presentation. Revised Sliced Show Written Report. Table of Contents 6/24/98. Author: HSE BBA. Amoco Presentation HR OBJECTIVES AND POLICIES

SCP Paradigm Analysis and Countermeasures of China s Automobile Industry

The necessity of a dual education system for Romanian automotive industry. Case study: The German dual vocational training

STRAGETIC RISK MANUAL

Community development 39

International Journal of Asian Social Science A STAKEHOLDER-BASED APPROACH TO CROSS-POLICY PERFORMANCE EVALUATION OF PROMOTION EMPLOYMENT PROGRAMS

Japan Society for Human Resource Management Wellington, New Zealand March 17, Current economic and political situation in the country

STRUCTURAL FUNCTIONAL EVOLUTION IN CONTINUING EDUCATIONS MODELS IN 21 ST CENTURY: A CASE STUDY OF WEATHER FORECASTERS TRAINING IN CHINA

CORPORATE VOLUNTEERING IN PERSONNEL DEVELOPMENT OF RUSSIAN COMPANIES

Productive employment and increasing of income of rural population

The Discussion of Theory Review and Practice on Enterprise Executives Incentive

Quality assessment in production systems with registers and sample surveys

THE USE OF THE MANAGEMENT METHODS ON THE FACULTY OF ENGINEERING OF THE UNIVERSITY OF DEBRECEN

ECONOMIC AND SOCIAL EFFECTIVENESS OF STATE ADMINISTRATION OF SMALL ENTERPRISE IN BELARUS

Transcription:

Asian Social Science; Vol. 11, No. 11; 2015 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education Small Business Capabilities for Employment Salyakhov E. F. 1, Zagidullina V. M. 1, Fakhrutdinova A. V. 1 & Aleshina E. A. 2 1 Kazan Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia 2 Kazan cooperative Institute, Kazan, 420045, Russia Correspondence: Salyakhov E. F., Kazan Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia. Tel: 7-919-690-0666. E-mail: hulia_k@mail.ru Received: March 19, 2015 Accepted: March 31, 2015 Online Published: April 30, 2015 doi:10.5539/ass.v11n11p341 URL: http://dx.doi.org/10.5539/ass.v11n11p341 Abstract Small business is a significant sector of economy which influences on rates of economic growth, structure and quality of Gross Domestic Product of the country, promoting social and economic problem- solving search. Small enterprises are the most important reserve for social and economic development of the country, they quickly provide creation of new workplaces, form significant quantity of technological innovations, promote creation and maintenance at the necessary level of a middle class in society. As a current significant trend of development of small business in world economy acts that fact that many graduates try to find a job in a small business. Keywords: small business, employment, economically active population, unemployment, middle class 1. Introduction In modern economy of the developed countries small business flexibly and dynamically solves a number of social and economic problems. In particular it quickly provides creation of new workplaces, forms significant quantity of technological innovations, promotes creation and maintenance of a middle class in society at the necessary level. 2. Theory According to canons of the economic theory, small business helps to form a competitiveness of an economical system, it influences on level of prices and employment. Research of features of the Russian sector of small business regarding specifics of the solving employment problems is of interest from the point of workplaces stability and formation, features of demand for a labor supply, studying of a share and specific features of the creative human capital in small business, detection of the dependence on migrants work, etc. Studying of the raised questions is interesting first of all from point of small business sector participation in regulation of processes of employment, in solving of an unemployment problem, in adaptation of economy to changes of market conditions and to calls of innovative economy (Moiseev & Shurupova, 2010). Addressing to the question of small business participation in formation of workplaces, а double role of small enterprises in this aspect should be noted. On the one hand small enterprises develop independent employment, form a point of the main workplaces, on the other hand, small business offers a wide range of non-standard forms of employment, in particular: - A part-time and an overtime employment; - A temporary employment regulated by the employment contract signed with the employee for a certain term; - A casual employment, as possibility of a side-job (it is demanded in case of an insufficient labor income or low compensation on a primary place of employment); - An employment on the basis of civil contracts and employment according to the scheme of leasing of the personnel; - Secondary employment (an off-hour job); - An informal employment (not regulated by contracts, not registered employment), etc. 341

Possibility of various forms of combining part-time outside jobs development are for many small business enterprises is a chance to survive, and for all sector is a way of flexible adaptation to changes of the market. Employment combinations can be viewed as "safety cushion" for the economy, which allows soften social consequences to changes in the demand of labor force on the market, and also adverse changes in the income on a primary place of employment (Bagautdinova, Gafurov, Kalenskaya, & Novenkova, 2012). 3. Results Figure 1 demonstrates dynamics of changes in amount of employees occupied in the Russian Federation economy in general and in the sector of small business in particular (including the microenterprises) from 2007 to 2013. Figure 1. Share of employees occupied in the sector of small business in comparison with total employment in the Russian Federation economy from 2007 to 2013. During the period of research the share of small business is stable. It remains on a mark - 14-16% of general employment. But if the total employment in 2013 reached and even over covered an indicator of 2008, in small business sector pre-crisis recovery of an employment rate hasn't reached yet (Labour and employment in Russia). Data on Figure 2 shows the dynamics of changes in number of full time employees of small business enterprises and average amount of external off-hours employees in the Russian Federation economy from 2007 to 2013. Figure 2. Number of full-time employees and a number of external part-time employees of small business enterprises in economy of the Russian Federation It should be mentioned that in small entrepreneurship employment is mainly full-time, and part time external employees it is also characterized as stable for with an indicator on mark 5,6%-7% (Employment and Unemployment). 342

In market economy measurement of external part-time jobs traditionally performed for the identification of dissatisfaction of individuals (a human capital) by the income and conditions on principal place of employment, inconsistence to their criteria of sufficient working place in terms of qualification and a safe work experience (Fakhrutdinova, 2009). According to The Russian Labor Code, off-hour job is determined as an accomplishment for a full-time job, at the free time, at a primary place of employment (the same employer, internal off-hour jobs) and (or) at another employer (external off-hour job). In most cases external off-hour jobs at small business enterprises is a work regulated by contract. As a flexible ability for secondary employment, small business sector can be viewed as the mechanism of ensuring individual s self-realization (self-expression), adaptation to economics instability, and in some cases even as a mechanism for surviving. Small business sector also helps to increase employees competitiveness in the conditions of an economic crisis, to develop some forms of social and labor mobility. We also conducted an analysis of regional and industrial aspects through a prism employment in small business. Figure 3. Distribution of average number of employees of small business enterprises (without external off-hour employees) on regions of the Russian Federation, per one thousand of people In Figure 3 we provide data on regional distribution of employment of small businesses. Throughout the entire period of research by the leading results of employment in small business are presented in Central Federal District, on the second place with a gap by 1,5 times are shown in the Volga (Privolzhski) Federal District, the third place beyond is in Siberian Federal District, it is followed by the Northwest Federal district with a small gap (Bagautdinova, Gafurov, Kalenskaya, & Novenkova, 2012). As it was considered in the previous section, such situation in general keeps within an overall distribution of the population and economy of Russia. As for specific amount of people occupied in small business on regions, here, according to data presented in Table 1, leadership distribution is different. Table 1. Dynamics of percentage of people occupied in small business in relation to the total number occupied in economics of the region 2007 2008 2009 2011 2012 2013* Central Federal District Federal District 16,22 17,4 16,9 15,13 16,02 15,8 North-Western Federal District 15,8 15,9 15,7 16,3 16,3 14,5 Southern Federal District Federal District 13,5 16,8 12 12 12 13,0 North Caucasus Federal District н.д. н.д. 6 6,2 6,4 9,8 Volga (Privolzhsky) Federal District 11,64 13,9 13,2 14 14,6 14,1 Ural Federal District 10 10,7 12,5 13,8 14 12,8 Siberian Federal District 9 11,3 11,4 13 13,5 13,3 Far Eastern Federal District 10 10,9 11 12,8 13,2 13,8 * - statistical data is given for a period of 9 months of 2013 343

Following the results of three quarters of 2013 the greatest share of people occupied at small enterprises 15,8% is noted on the territory of Central Federal District, it is follow by North-West and the Volga Federal Districts. The highest rates of employment growth in small business were demonstrated in Far East and Siberian Federal Districts where the indicator grew from 10% to 13,8% and from 9% to 13,3% respectively. In general the gap between the leading region and the region with the smallest present of people occupied in small business differs in nearly 2,5 times. Interesting results were derived from the analysis of the quality characteristics of labor force occupied in small business. In this direction it is reasonable to consider qualification and educational characteristics of employment in small business (Safiullin, Bagautdinova, Safiullin, & Gafurov, 2012). The fact that many graduates want to find a job in small business sphere can be viewed as current significant trend of development of small business (Fakhrutdinova, Karasik, Safina, & Miropol'skaya, 2013). The American scientists-economists in this respect formulated some reasons for which people prefer to employ to small business enterprises: - In small companies the probability of staff rotation is higher; - Speed of decision making and communicative processes is high; - The personnel becomes closer to a source of the power in business: - In small organizations possibilities of career development are higher; - Small companies are less regulated by internal instructions and numerous rules. As for the Russian institutional environment of small business, here is a bit different situation. Qualified personnel doesn't aim to work in small business sector because of impossibility to get high payments for work and/or benefits package which are available on large enterprises. According to researches, 70% of young entrepreneurs consider that they have a lack of professional knowledge in the field of small business (Fakhrutdinova, Safina, Kolesnikova, & Fedor, 2013). Many entrepreneurs suffer failure owing to absence of elementary knowledge and skills about the organization and business management. Also specialists connect the high level of failures in small business with absence of sufficient experience at many entrepreneurs, and understanding of problems which they can face in the future, entrepreneurs often have insufficient knowledge in the field of finance and accounting that leads to mistakes, this leads to impossibility to pay services of expensive management consultants or legal advisers, or services of the statistical information, that are necessary for effective business development. According to survey conducted by the All-Russian center of public opinion study together with the all-russian public organization of small and average entrepreneurship "Support of Russia", 50% of entrepreneurs have to stop their business because of own incompetence in this sphere. 4. Conclusions Considering industry concentration of small businesses in such spheres, as: the processing productions, construction, wholesale and retail trade; repair of trucking facilities, motorcycles, household products and subjects of private use, transport and communication, real estate transactions, lease and provision of services, it is necessary to mention entrepreneurs educational level. All types of mentioned activities, except for real estate transactions, lease and provision of services can be defined by low indicators of people having higher education occupied in them. The greatest share is presented by employees, who have secondary professional, primary professional and secondary education (Kolesnikova & 2012). In general to characterize employment in small business in economy of the Russian Federation it is necessary to allocate a number of the features distinguishing it from other countries. First, comparatively small number of people employed into small business sector. The level of employment in sector of small entrepreneurship the Russian Federation significantly lags behind countries like the USA, and countries of Europe. If in the Russian Federation not more than 25% of economically active population are in total are occupied in small and medium business, in other countries this indicator is 2-3 times higher. Secondly, employment in small business in Russia is characterized by a high share of trade sphere. Similar indicators lay almost twice behind other developed countries of the world. At the same time the weakest focus of small entrepreneurship is in participation in innovative programs, scientific researches and developments. The 344

percentage of the small businesses occupied in the field of science and innovations in the Russian Federation is 5 times lower, than indicators of developed countries. Thirdly, disproportions in regional employment in small business are obvious. Small enterprises in Russia are not evenly distributed. The present of occupied in small business distinguishes up to 3 times. Fourthly, employment in small business is usually accompanied by the worst organization and working conditions than on large enterprises where requirements and the rules of labor protection and safe engineering on workplaces are respected. Fifthly, the educational and qualification structure of stuff occupied in small business is not as good as at big companies The greatest share is constituted of employees with secondary professional, primary professional and secondary education. References Bagautdinova, N. G., Gafurov, I. R., Kalenskaya, N. V., & Novenkova, A. Z. (2012). The regional development strategy based on territorial marketing (the case of Russia). World Applied Sciences Journal, 18(Special Issue of Economics), 179-184. Employment and Unemployment. Federal State Statistics Service. Retrieved from http://www.gks.ru/bgd/regl/b13_01/isswww.exe/stg/d07/3-2.htm Fakhrutdinova, E. V. (2009). Role of social sphere and social policy in the sustainable socio-economic development of the country. Economics, 8, 116. Fakhrutdinova, E., Karasik, E., Safina, L., & Miropol'skaya, N. (2013). The role of social protection in formation of quality of work life. World Applied Sciences Journal, 27(13), 77-81. Fakhrutdinova, E., Safina, L., Kolesnikova, J., & Fedor, M. (2013). Quality formation of working life of the youth. World Applied Sciences Journal, 27(13), 87-91. Kolesnikova, J., & Banket, S. (2012). Change in the level of life of the population depending on a period of social development. The Bulletin of Economics, Law and Sociology, 2, 12-14. Labour and employment in Russia. Federal State Statistics Service. Retrieved from http://www.gks.ru/wps/wcm/connect/rosstat/rosstatsite/main/publishing/catalog/statisticcollections/doc_11 39916801766. Moiseev, A., & Shurupova, A. (2010). Creation of a new model of employment in a knowledge-based economy. HR., 14, 63. Monitoring of the socio-economic development of Russia in the first half of 2013. Retrieved from http://www.economy.gov.ru/minec/activity/sections/macro/monitoring/doc20130724_01 Safiullin, L. N., Bagautdinova, N. G., Safiullin, N. Z., & Gafurov, I. R. (2012). Influence of quality of the goods on satisfactions of consumers. International GSTF Business Review (GBR), 2(2), 225-232. Copyrights Copyright for this article is retained by the author(s), with first publication rights granted to the journal. This is an open-access article distributed under the terms and conditions of the Creative Commons Attribution license (http://creativecommons.org/licenses/by/3.0/ 345