BUSINESS ACTIVITY OF INDUSTRIAL ENTERPRISES AS A DRIVER FOR THE REGION’S ECONOMIC SPACE CONVERGENCE (BY THE EXAMPLE OF NOVGOROD REGION)
Abstract
In times of unstable economic conditions, it is important to increase the efficiency of activities of large industrial enterprises, to strengthen the interaction of business units of all shapes and sizes, to balance information space, to improve legal support and economic mechanisms of state support. Sustainable and long-term development of the region is simply impossible without implementation of these aspects. Companies should follow a single strategy of financial development, which is a prerequisite for convergence, and helps to successfully implement various regional programs, including socially oriented ones. It should be noted that sustainable development determines the region's potential in ensuring quality of life. In this regard, it is necessary to increase business activity of large economic entities of industrial specialization of the region. The article is devoted to studying the impact of business activity of large industrial enterprises of the Novgorod region on the convergence of the region's economic space. In Novgorod region, several enterprises of industrial specialization play a significant role in forming the regional budget: AO Laktis, PJSC Acron, JSC Borovichi Refractories Plant. These enterprises are large taxpayers and stick to the strategy of sustainable economic and social development. The current development trend of the analyzed enterprises allows us to draw conclusions about the formation of the convergence process. The study of regional convergence in the Novgorod region made it possible to describe its model, its basic principles of work and produce recommendations that can be applied by other constituent entities of the Russian Federation taking into account possible risks of further development. It is concluded that convergence is not only a result and a condition, but also an algorithm for the development of a regional economy. Activation of the convergence process requires the development of a set of management decisions supported by mechanisms for their implementation.
Keywords: business activity; convergence; large industrial enterprises; sustainable development of the region; financial strategy.
References
Bobojonova Z.Sh. & Abdullaeva D. Innovative development of industrial production based on the principle of synergy // Problems of Modern Science and Education. 2016. No. 36 (78). pp. 64-66. (In Russ.).
Borsheva A.V. & Hayk M. Efficient technologies of analysis of business activity and profitability of the organization // Business and Design Review. 2018. No. 3 (11). pp. 5-10. (In Russ.). Available at: https://obe.ru/journal/2018_4/borshheva-a-v-hajk-m-effektivnye-tehnologii-analiza-delovoj-aktivnosti-i-rentabelnosti-organizatsii/ (accessed: 20.03.2020).
Malkina M.Yu. Study of the factors of interregional convergence / divergence in real incomes and ‘social well-being’ of Russian regions // Journal of Economic Regulation. 2015. Vol. 6. No. 4. pp. 111-119. (In Russ.).
Authors
Nina I. Vinogradova – Student, Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russia; Assistant Accountant, Ltd AKhK Evrochimservis, Veliky Novgorod, Russia. E-mail: nina-vinogradova-2012@mail.ru.
Olga S. Kukushina – PhD in Economics, Docent; Associate Professor, Department of Economics, Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russia.
E-mail: Olga.Kukushina@novsu.ru.
For citation:
Vinogradova N.I., Kukushina O.S. Business Activity of Industrial Enterprises as a Driver for the Region's Economic Space Convergence (by the Example of Novgorod Region) // BENEFICIUM. 2020. No. 1 (34). pp. 5-12. (In Russ.). DOI: 10.34680/BENEFICIUM.2020.1(34).5-12.
