Small industrial enterprises in the modern Russian economy: trends, growth factors, and barriers to development

Abstract

Amid slowing industrial growth and persisting sanctions restrictions, the search for new drivers of economic development has become increasingly important. The article examines trends in the development of small industrial enterprises (SIEs) and assesses their role in the structure of industry and small business. The study aims to determine the position of SIEs within the industrial sector and among small enterprises as a whole, assess their development trends, and identify key growth drivers and barriers to development. Using Rosstat data for 2014–2025, the study analyzed the industrial production index by sector and the revenue structure of small enterprises. It was found that manufacturing was the fastest-growing industrial sector, with the share of SIEs in this sector reaching 88%. From 2022 to 2024, revenue of SIEs increased by 54.8%, making industry the second-largest small-business sector by revenue, behind only trade. The main drivers of SIE growth were import substitution, government support, and the high adaptability of small enterprises. At the same time, systemic barriers were identified: staffing shortages, limited access to preferential loans, increasing tax burden, barriers to small-business participation in high-tech industries, and weak innovation infrastructure. The study proposes directions for institutional reform needed to transform SIEs into a driver of structural economic transformation.