Sustainable development of network interaction between business structures and local governments

Plekhanov Russian University of Economics, Moscow, Russia

^* Corresponding author: schmelevaanna@mail.ru

Abstract

There is a long-term dependence of most regions on federal budget subsidies in Russia. The policy of artificial financial equalization of the regions can create a dependent mood in weak regions and deprive the incentive to develop strong regions. In the Covid-19 era, the regions of the Russian Federation must find alternative sources of financing for their projects, including entrepreneurial ones, for example, through “people`s financing” and activation of territorial development based on the crowdfunding mechanism. The main purpose of the article is to consider the prospect of using crowdfunding as a sector of the distributed economy as an alternative financial tool to develop network interaction between business structures and self-government bodies in Russia. According to the authors, the development of such practices is due to several factors: the mixed results of applying self-taxation practices in the regions of Russia; in some cases, there is opposition to this mechanism by the population; the introduction in 2020 of a regulator of crowdfunding platforms; the growing involvement of citizens in various IT platforms, including investment. Entering into this project financing scheme for both individuals, business entities, and local governments allows optimizing the economic potential of all participants in this network, and obtaining a synergistic effect from combining their resources.