Russian Startup Industry: State and Prospects

Relevance. Startups are an integral part of the modern economy and business, and their creation and development represent an important contribution to the economic growth and innovative development of the country. At the same time, the startup system in Russia has not yet been fully developed ‒ there are problems with their number, successful activities, and financing of startups. There are many sources of financing for startups, but it is often difficult for young entrepreneurs to find the necessary resources to implement their business idea. This may lead to the inability to launch a startup or to difficulties in its development. Therefore, studying the issues of financial support for a startup is relevant for many people starting their own business, as well as for investors, venture funds and large companies that can provide significant support for startup entrepreneurs. The purpose of the study is to analyze and evaluate the problems of growth, development and financing of startups. Objectives: analyze the startup business market; consider niches of the startup market and assess its growth trends; identify sources, main directions and problems of financing startups. Methodology. During the scientific research, empirical, theoretical, statistical and graphical methods were used. Results. The theoretical aspects of startup business were studied, the startup market was analyzed, the main sources of startup financing were identified, as well as the associated problems of growth and financing of startup business. Conclusions. The startup system has not yet been fully developed in Russia. Russia is still losing in terms of the total number of startups and the number of startups per 1 million people. The business areas in which startup developers operate are very diverse. The creation and successful development of startups depends on many factors, including financial security. The article discusses the problems of financing startups. The viability of startup developments in the Russian Federation in recent years has been strongly influenced by the COVID-19 pandemic and the sanctions imposed against the country. However, the main factor remains the lack of financial resources.

PurposeFinancing investments in a knowledge-intensive sector may be more difficult as there is a greater degree of uncertainty and asymmetries of information. This paper aims to examine whether a company’s intellectual capital (human capital, relational capital and structural capital) can serve as a quality signal in the financing of health care startups with new business models.Design/methodology/approachThe study constructed a manual database using several paid and unpaid databases. This paper collected random data from 204 startups that obtained funding during the 2014–2017 period and used signaling theory to examine the factors that impact access to external financing for Indian health care technology startups.FindingsThis paper found that venture capitalists partly base their financing decisions on the relational capital of the startup represented by startups’ age and the average number of website visits, the presence of a syndicate of investors. Human capital variables and structural variables do not show much significant impact. This paper also find some business models show a negative impact on financing implying that investors are reluctant to invest in new technologies that carry more uncertainty and take a longer time to become profitable.Research limitations/implicationsBefore concluding this paper, it is important to acknowledge the limitations of the study and some implications for future research purposes. First, the study is conducted on only 204 startups from India, and as such, it suffers from a small sample size, like many other comparable survey-based studies in entrepreneurship. Second, the results are obtained with respect to data collected from Indian startups and represent the Indian context which limits the generalization on a global level.Practical implicationsThe results suggest that years of experience and prior relevant experience, do not actually impact the financing of a new venture. These results are crucial as India has a unique demographic advantage over other countries in relation to age. If young minds are adequately nurtured, this can result in innovation, entrepreneurship and job creation (which still remains as a foremost challenge for India).Social implicationsFrom a policy perspective, a number of implications emerge from the current study. There is a need for ameliorating the capacity of the education system in providing top-quality support including a greater focus on entrepreneurship courses and to replicate the education delivery model from top foreign institutes. The government should take this opportunity to revive the system of education and follow the methodology of elite institutes and to develop entrepreneurship spirit in other colleges and schools.Originality/valueFinancing the investments of young startups with new business models in knowledge-based sectors may be more difficult. In this paper, this paper demonstrates that startups have to effectively use and manage their intellectual assets to achieve sustainable competitive advantage. The findings of the paper emphasize the role of intellectual capital in securing financing through venture capital.

The role of the translator in the startup project is analyzed. It has been proven that translation is an important and necessary element of a startup project for establishing relationships with potential clients around the world. The success of a project depends on the translation of many types of documentation: application, presentations, website, CVs, financial calculations, required audio and video materials, agreements and other types of legal and economic documentation. The translator as a member of the startup team needs to understand the key topic and main trends of the industry in order to efficiently translate the project. It was found that the translator works with the special patent, legal and economic documentation depending on the field and the main purpose of the project. The tasks of linguists will be solved more successfully with the help of modern information and computer technologies. The usage of information and computer technology in the translation process was explored. It is determined that it is important for a startup project translator to understand all the features of using the software, choose the appropriate programs or online tools and develop a strategy for the project translation process. The results of this work are very important and necessary for further study of the features of the ICT usage in the startup projects translation, in particular, the final projects of the Startup School of Poltava Polytechnic.

Purpose: is to assess the impact of EU sanctions on the dynamics of inflation in the Russian Federation in 2022-2023, caused, among other things, by rising gas prices for the population in the context of a decrease in revenue from gas sales by Gazprom due to a decrease in Russian natural gas exports to Europe. Methods: the research used statistical analysis, comparative analysis, financial analysis of the company, synthesis, deduction, graphical method, econometric modeling. Results: the structure and dynamics of Russia's natural gas exports are assessed. A financial analysis of Gazprom has been conducted. An assessment of the dynamics of gas prices for the population and their impact on the CPI, as well as a comparative analysis of forecasted utility prices, including gas prices for the population, has been performed. Conclusions and Relevance: in the context of the Nord Stream diversions, reduced transit of Russian natural gas through Ukraine and sanctions shocks in 2022–2023, Russian natural gas exports, mainly pipeline gas, decreases to Europe, with partial reorientation of supplies to China and the domestic market. It affects the dynamics of Gazprom's net profit, the fall of which partially compensates by the growth of prices for network and liquefied gas to the population with the planned indexation increase in 2024–2025. In turn, it further stimulates the growth of inflation, which is most influenced by the CPI on services, in the context of linking the indexation of utility tariffs to the forecast average annual inflation. Identification and control over endogenous and controllable factors of inflation growth, which include gas prices' indexation to the population, improve the effectiveness of Russia's anti-inflationary policy in the conditions of forcing inflationary pressure on the Russian economy.

Micro, Small, and Medium Enterprises (MSMEs), particularly in the catering sector, often experience fluctuations in raw material prices, which directly affect their cost structures and profitability. This condition poses a challenge for MSMEs in optimizing financing to maintain financial stability and business continuity. For this reason, innovation is needed in the form of sensitivity analysis and optimal funding source analysis to overcome the challenges MSMEs face. Aim: To analyze the impact of raw material price fluctuations on MSME profitability and to determine the optimal financing structure through sensitivity analysis and evaluation of funding sources. Method: Sensitivity analysis was conducted using raw material price data from 2020 to 2023 to assess changes in net profit. Gross profit and net profit were calculated based on sales revenue, cost of goods sold, and operating costs. The optimal financing source was assessed by calculating the Weighted Average Cost of Capital (WACC) and evaluating profitability using the Net Present Value (NPV) and the Internal Rate of Return (IRR). The results indicate the attainment of a break-even point where total revenue equals total costs, providing a basis for MSMEs to formulate appropriate pricing strategies to achieve profitability.

This article examines current issues in the external and internal environments of technology startups. The author analyzes key elements of the startup and small technology company ecosystem in the Russian Federation. Based on the research, the author identified a significant decline in venture capital activity, as well as the proportion of startups successfully reaching the final stage of their life cycle. In this article, the author examines and identifies the factors necessary for the successful promotion of technology startups. The author assesses government support measures for technology start-up projects and outlines proposals for a positive exit from late-stage start-up projects.

Introduction. Proceeding from the axiomatic nature of the assertion that the system is stable only if both central bank and second-level banks are stable, the article focuses on the nature and connection between the general financial stability indicator (financial result) and particular banking groups: systemic (at the moment consists only of the state banks), banks with foreign capital and other banks. This choice has an objective precondition, taking into consideration the difficulty in implementation of the author's approach because of the need to use a correct sample for calculations on one hand, and frequent methodological changes in statistical sources, on the other hand. The obvious fact is that each of these banking groups has not only certain features of its own activities in the banking services market but also indirectly or even directly influences the functioning of the entire banking sector in Ukraine. Purpose. The article aims to assess the qualitative impact of individual quantitative factors on the key indicator of the efficiency of banking institutions which is net profit (or loss), at the level of individual groups, as well as on the system as a whole. Method (methodology). We build multifactor regression models to determine the dependency between net profit (loss) and various quantitative parameters that describe a particular banking group as well as banking system as a whole. Results. The results of the research have clearly shown which of the factors can influence the financial outcome for outlined banking groups. We have also discovered additional quantitative factors of influence on the banking sector profit. These factors were not included into any of the models on the group level. This result vividly confirms the initial thesis about the complex nature of connection between quantitative factors of distinct banking groups and endpoint financial result of the banking system. It demands a deeper qualitative evaluation of efficiency of its functioning both on micro- and macroeconomic level.

PIN65 Socio-Economic Burden of COVID-19 in Russian Federation

One of the main issues in the course of industrialization is the provision of dynamically developing industrial production with energy sources. Despite the rapid spread of new types of engines in Russia in the late XIX – early XX centuries, water as an energy source continued to be actively used in industrial production. The research, the results of which are presented in the article, based on the published materials of the first (1900) and second (1908) industrial censuses showed that at the beginning of the twentieth century the share of water engines in the structure of the total power in industry as a whole not only did not decrease, but, on the contrary, increased. Groups of industries and provinces distinguished by the active use of water energy in industry have been identified. Analysis of statistical sources allows us to conclude that industrial enterprises are moving from water wheels to water turbines that exceed them in power. On the basis of industry data, the interrelations between the specific values of the use of water engines in the overall structure of the energy capacity of enterprises and their main production indicators (net profit, cost structure, etc.) are revealed. On the basis of correlation analysis, the hypothesis of a higher level of labor concentration at enterprises and in industries that have retained a significant proportion of water engines in the structure of their energy base has been confirmed.

The objective of this study were to analyze cost structure, added value and profit as well as absorption, incentives and labour share of tempe small scale industry. This study was conducted at a tempe production centre of Panarukan Village, Kepanjen District of Malang Regency. The analytical methods used were cost structure and added value analyses. Results of this study showed that for each process needed cost of more than Rp 181.000, that was dominated (90%) by variable costs. The net profit of each process was more than Rp 100.000. Conversion factor reached 2,86 and added value reached more than Rp 1.400 (added value ratio 21,44%), consisting profit of Rp 1.184,55/kg of row material (profit rate 54,46%) and labour incentive of Rp 218,01/kg of row material (labour share 14,86%). The labour absorption reached 1 MDE/process that was mostly family labour. Producer added value reached Rp 1.402/kg of row material, most of them as net profit and labour incentives

Изучена эффективность сидерации различных культур в трехпольном полевом севообороте в засушливых условиях степного Крыма в 2016–2021 г. Озимые тритикале и рожь, донник и эспарцет песчаный максимально обогащали почву органическим веществом – 5,52–5,88 т/га. Донник и эспарцет аккумулировали в биомассе, соответственно, 156 и 142 кг/га азота, рожь – 37 фосфора, озимая злаково-бобовая смесь (тритикале, рожь, вика) – 148 кг/га калия. По злаково-бобовой смеси озимых культур, вики и фацелии урожайность зерна озимой пшеницы была максимальной – более 3,7 т/га с содержанием белка более 13,5 % (2-й класс). Последействие сидератов на продуктивность ячменя озимого было менее выраженным, урожайность зерна варьировала от 2,9 до 3,3 т/га. После сидерации бобовых куль-тур в зерне ячменя содержалось больше белка. Производственные затраты, связанные с использованием зеленых удобрений, варьировали от 6,6 тыс. руб/га при сидерации фацелии до 19,3 тыс. руб/га – вики. Они в значительной степени зависели от стоимости посевного материала, для вики это достигало 67,5 % в структуре затрат. Самая низкая себестоимость зерновой единицы – 4,92 руб. при наибольшей чистой прибыли – 20,4 тыс. руб/га и рентабельности 187 % получена при использовании в качестве зеленого удобрения биомассы фацелии. In the course of the current research, we studied the efficiency of usage of different green manure crops in a three-field crop rotation under arid conditions of the Steep Crimea. All studies and observations were conducted between 2016 and 2021. Winter triticale and rye, as well as sweet clover and sainfoin, demonstrated the greatest potential for organic matter input to the soil (5.52-5.88 t/ha). Sweet clover and sainfoin were found to be the most efficient nitrogen providers (156 and 142 kg/ha, respectively), while the greatest quantities of phospho- rus (37 kg/ha) and potassium (148 kg/ha) were supplied by rye and winter cereal-legume mixture. The highest yield of winter wheat grain was obtained when winter cereal-legume mixture was used as a green manure (3.7 t/ha). Similar results were obtained at fields where vetch and phacelia were used as green manure crops. After using sweet clover, sainfoin, vetch and phacelia as green manure crops, more than 13.5 % protein in wheat grain (which corresponds to the second-class grain) was obtained. Barley yield did not depend on the green manure species composition and was within 2.9-3.3 t/ha. It is noteworthy that the protein content of the barley grain was higher after the use of sweet clover, sainfoin and vetch, with values ranging from 11.8 to 12.4 %. Production costs associated with the use of green ferti- lizers were found to vary considerably, from 6.6 thousand RUB/ha for phacelia to 19.3 thousand RUB/ha for vetch. The cost of seed constituted a significant proportion of the overall cost structure; for vetch, for instance, this reached 67.5 %. The lowest cost of a grain unit (4.92 RUB) with the highest net profit (20.4 thousand RUB/ha) and profitability (187%) was obtained after the use of phacelia biomass as a green fertiliser.

The article discusses the main problems with the development of the IT industry in the national economy of Russia, with special attention paid to IT startups as the most risky business projects. A startup is a company with a short history of operating activities, usually based on an innovative or existing product, and therefore belongs to high-risk entrepreneurship. The IT industry of the Russian Federation was analyzed, including during the period of imposition of sanctions by foreign countries, in terms of such indicators as the volume of the industry, the costs of the corporate sector, and the population on IT technologies. A comparative analysis of the dynamics of such indicators as turnover, investments in fixed capital, and financial results in the IT sector and in the Russian economy as a whole was carried out. Both positive and negative trends in the development of the IT technology market and the development of small businesses in this sector are highlighted. The article highlights the typification and classification of startups, considers the problems of Russian IT startups, and suggests directions for their development. To implement a differentiated approach to stimulating the development of IT startups, a methodology for their classification is proposed. Testing of the methodology was carried out on the economy of the Volgograd region: the subjects of small and medium-sized businesses in the Volgograd region were analyzed, and the subjects that were potentially IT startups were identified.

The object of the study is the financial relations of self-employed citizens. The subject of the study is the insurance of social security for self-employed citizens in the Russian Federation. The author examines in detail the parameters of the experiment to establish a special tax regime "Tax on professional income". The scientific article also presents the results of the analysis of statistics of the Federal Tax Service on the spread of the practice of its application (taking into account current data as of June 30, 2025). The use of official data confirms the reliability of the results obtained. Particular attention is paid to studying the content of the draft law "On conducting an experiment on the voluntary entry of certain categories of citizens into legal relations on compulsory social insurance in case of temporary disability", as well as substantiating recommendations for its improvement in the context of the development of the insurance component of social security for the self-employed. The research methodology is based on the collection and processing of data by systematization, grouping, analysis and synthesis. Also, for the purpose of visual presentation of the results obtained, graphical tools are used. The study revealed that the professional income tax experiment being implemented in Russia is in great demand: the growth dynamics of the number of registered self-employed citizens in the Russian Federation for the period from June 30, 2020 to June 30, 2025 is extremely positive (an 18-fold increase over the study period). The self-employed have the opportunity to voluntarily enter into relations under compulsory pension insurance, while there is no formed legal framework for their participation in compulsory social insurance in case of temporary disability and in connection with maternity has not been formed. Scientific novelty is associated with the author's approach to considering the directions for improving the social security for the self-employed in the Russian Federation. It seems possible to formulate the following proposals for its adjustment: justification of the tariff of insurance premiums used when making insurance premiums; expansion of the number of options for insurance amounts, including those linked to the minimum wage; consideration of the possibility of including in the insurance coverage child care benefits up to 1.5 years and maternity benefits.

The measures taken against tuberculosis (TB) in recent years in the Russian Federation have been highly effective. Unfortunately, the COVID-19 pandemic may seriously undermine the progress that has been made in the fight against TB. The aim of this study was to assess changes in the epidemiological rates of tuberculosis in the Russian Federation before and after the COVID-19 pandemic. Materials and methods. The analysis was conducted by considering the main epidemiological indicators of tuberculosis, according to the federal statistics for the period from 2017 to 2021. The parameters were estimated according to the data received from 11 areas in the North-Western region. Statistical analysis was carried out using the free software computing environment R (v.3.5.1) and the commercial software package Statistical Package for the Social Sciences (SPSS Statistics for Windows, version 24.0, IBM Corp., 2016). Research results. We found a positive correlation between the incidence among the overall population and the incidence among children aged 0–17, inclusively (r = 0.55 in 2017, r = 0.60 in 2020, and r = 0.53 in 2021). Along with the received regularities, a different trend is shown in the data analysis of general incidence and health X-ray examination for tuberculosis among the general population. The correlation has decreased threefold from 2017 (r = 0.72) to 2020 (r = 0.32); this negative trend might be the result of factors such as the quality of X-ray screening examinations among the general population, and the reduced assessment objectivity of the tuberculosis incidence rate. Conclusions. In assessing the correlation between general incidence and incidence in children under 17 years of age, as well as between incidence and mortality in the Russian Federation, a positive correlation was found with an increasing trend. Such a discrepancy might be due to decreases in the occupational health examination coverage among the general population. Therefore, in the years ahead, we can expect epidemiological indicators to increase incidence and mortality, including child mortality, associated with the insufficient detection of tuberculosis among the population during the COVID-19 pandemic.

The study was carried out to appraise the economics of rubber production in rural Nigeria. Secondary data were used for the study. The data collected were analysed using budgetary analysis and multiple regression model. The Net Farm Profit of N176, 657.88 and N213, 105.71 per hectare for Ilushin Rubber Estate Limited (IREL) and Waterside Rubber Estate Limited (WAREL), respectively was an indication of the economic viability of rubber enterprise. The cost structure of the two rubber estates indicated that rubber enterprise requires huge capital outlay and is labour intensive. The results of the multiple regression revealed that labour input, transportation cost, maintenance cost, agrochemical and age of the tree were the determinants of rubber output. The study thus recommends the checking of the system of land acquisition in the country to enable potential investors venture into such a land demanding investment as rubber enterprise. Also, provision of sustainable credit is recommended as rubber enterprise is capital intensive. Lastly, existing policies on plantation establishment should be reviewed and enabling environment provided to ensure local consumption of rubber products.