The pandemic is changing business: an insider's perspective.

Abstract

In modern social and economic conditions small and medium business overcomes considerable difficulties, as it performs its activity in rather complicated time for the whole world community, when economy, markets and principles of global economic system were under attack. Doing business during the crisis conditions showed the importance and necessity of flexibility and freedom in the economic sphere. It is the small and medium business that can compete in such a difficult situation, quickly adapting to changing conditions. The dynamic development of the economy is possible only with the active participation of private business in these processes. Considering the current situation, the formation of favorable conditions for business activity becomes the most important priority of state economic policy.

The article deals with the consequences of the coronavirus pandemic as a crisis situation affecting the conduct of entrepreneurial activity. On the basis of analysis of results of sociological surveys "Estimation by business community of the competitive environment in the Republic of Mordovia", conducted by the State Autonomous Institution of the Russian Federation "Scientific center of socio-economic monitoring" in 2020 and 2022 the assessment of pandemic influence on the economy in general as well as on small and medium business development is given.  According to the results of the polls most respondents consider that the consequences of coronavirus infection had negative influence on economic development both in the whole country and in the Republic of Mordovia affecting the financial results of activity. Most respondents did not use state support in connection with the pandemic, but evaluate its effectiveness rather highly. Postponement, reduction or cancellation of taxes, and financial support/subsidies, according to respondents, are the most important types of state support to business, which helped to cope with the consequences of the spread of the corona virus infection. According to entrepreneurs' forecasts, the situation in business will normalize not earlier than in a year. The results obtained correlate with the results of surveys conducted by the Analytical Center of NAFI in 2020.

Existence of business in crisis conditions has pointed to the importance and necessity of formation of flexible and free system of functioning in economic sphere, as small and medium entrepreneurship is more adapted to competition in such a difficult situation, more quickly adapting to changing conditions. Effective development of the economy can be only if private business takes an active part in these processes. Taking into account the current situation, the formation of favorable conditions for entrepreneurial activity becomes the most important priority of state economic policy.