Activity of Small Enterprises and Microenterprises Modeling Based on the Entrepreneur Capital

The purpose of the study is to assess the three-factor production functions that describe dependence of small enterprises and microenterprises turnover on workers wages, investments in fixed capital and the current level of regional entrepreneurial capital development. The study is based on the empirical spatial data characterizing the activities of all small enterprises and microenterprises, as well as the number of large enterprises employees. Official statistical information for 2018 in 82 regions of Russia is used. Study determines factors that influence on turnover such enterprises located in all regions, it proves that there is a significant potential for development of the Russian regional economy using goods and services provided by small enterprises and microenterprises.