SME in Sakha Republic: The Challenges of the North

Lead Author Anna, Grigoryeva
Institution Contact North-Eastern Federal University Institute of Finances and Economics Department of Economics and Industrial Management 677000 Yakutsk Pr. Lenina, 1 Room 513
Theme Theme 5: New Markets for the Arctic, including Trade, Tourism and Transportation
Session Name 5.3 Management of the High North: the role of context, strategies and plans
Datetime Wed, Sep 14, 2016 01:00 PM - 01:15 PM
Presentation Type Oral
Abstract text Companies operating in the North encounter numerous problems that are place-defined. Among the most important challenges faced by the businesses in one of the northern regions of Russia - the Republic of Sakha (Yakutia) - are relatively small market size, low population density, uneven economic development of the region, lack of infrastructure, seasonal logistics, high transportation and energy costs, extreme temperatures, liquidity problems etc. While larger companies may have a wider range of instruments to solve these problems, small and medium-sized enterprises are often limited in the choice of solutions and business strategies. At the same time they are much more flexible which supplies them with a greater resilience and closer ties with the local communities.
This study is to provide an overview of the challenges faced by people managing small and medium-sized businesses in the Republic of Sakha (Yakutia) and define the approaches that Yakutian SME use to cope with the place-specific constraints. The aspects explored are the general role of SME and its place in the social and economic structure of the regional business system; opportunities, challenges, and issues facing Yakutian entrepreneurs; skills necessary to successfully develop, operate and manage a small business venture in Republic of Sakha (Yakutia).
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