INCREASING THE INVOLVEMENT OF SMALL AND MEDIUM-SIZED BUSINESSES FROM THE EUROPEAN NORTH OF RUSSIA IN PUBLIC-PRIVATE PARTNERSHIPS
The article is devoted to the current problems of increasing the efficiency of interaction between government and business. The research is implemented for the case of certain industries from the European North of Russia. The main research purpose is connected with the process of increasing the efficiency of interaction between government and business in implementing the procedures of financing and state order. On the basis of the system and functional approaches the main problems of small and medium-sized businesses' insufficient involvement in the public and private partnership are identified. A process of streamlining access to government procurement contracts for businesses is proposed. Special attention is paid to the reduction of administrative barriers and government requirements to government contractors. On the basis of the situational approach and analyzing statistic datasets the main current problems of entrepreneurship are identified that have to do with poor access to funding. It is found that small and medium-sized businesses fail to meet the requirements of commercial banks. The specific features of entrepreneurship activities such as a high share of shadow cashflows, faking of tax reports, unwillingness to provide information about the groups of affiliated companies create significant barriers to borrowing. Measures are proposed for expanding programs of financial support, which implies the introduction of amendments to the government program “Stimulation of financing small and medium-sized businesses”, widening the practice of subsidized interest payments. Special attention is paid to the activities of creating a system of integrated entrepreneurship information support, that would pull together information from financial institutions implementing federal and regional support programs. The research results could be of interest to the spheres of small and medium entrepreneurship which are supported by the government. The application of the research results into the work of organizations that borrow financing from commercial banks could help reduce loan repayment cost.