CLUSTER ANALYSIS OF SMALL AND MIDDLE BUSINESS IN THE REGIONS OF RUSSIA

Abstract

Cluster analysis in this study is a set of methods to classify multi-dimensional observation of the state of small-and medium-sized enterprises in the regions of Russia. The importance of this problem is connected with the fact that the use of standard tools of analysis (including standard econometric procedures) with the presence of clusters in the data leads to a shift as the point estimates (coefficients re-progression), and standard errors, and consequently, to incorrect inference. The grouping of regions in terms of development of small and medium-sized enterprises can serve as a basis for further government measures to modernize small and medium business and reducing regional disparities. Identifying typical levels of development of small and medium-sized businesses in Russian regions, highlighting the most similar to each other entities can be through the use of classification of groups according to the considered indicators of small and medium businesses.