Размещено на http://www.allbest.ru/

FEDERAL STATE EDUCATIONAL INSTITUTION OF HIGHER EDUCATION

NATIONAL RESEARCH UNIVERSITY

HIGHER SCHOOL OF ECONOMICS

Saint Petersburg School of Economics and Management

Department of Management

Bachelor's thesis

The Effect of Biggest Sporting Events on Small Business Performance in Russia

Kalaichev George Leonidovich

Supervisor Senior Lectureк

Zazdravnykh E.A.

Saint Petersburg 2019

Table of contents

Abstract

Introduction

Theoretical foundation

Statement of the research question

Methodology

Description of the results

Government contracts for 2013

Government contracts for 2014

Government contracts for 2015

Results

List of references

Appendix 1

Appendix 2

Abstract

sporting event business infrastructure

This work was done to understand the effect of the biggest sporting events on small business performance in Russia.

This study was aimed at studying the impact of large-scale international sporting events on business development in the Russian Federation. To identify signs of the impact of these events, there was decided to study the work of companies with the state during the issuance of state contracts for the construction of infrastructure and stadiums to prepare for the 2018 World Cup in Russia. Using the method of applied research and the official government procurement portal, it is necessary to analyze the change in company revenues when working with the state.

The methodology of this work will be to analyze the impact of government orders on key performance indicators of companies. This influence is the subject of this research.

It is expected that the results of the analysis will be significant and will be able to confirm or refute the proposed hypotheses. This work will help to determine the impact of large-scale sporting events on business development in the country on the government contracting market and how this market can help during the economic crisis.

The main keywords that form the basis of the research work are: government orders, government procurement, small and medium enterprises. These conditions will determine the participation of small businesses in preparing for an event of this scale.

Introduction

The main problem of this study is that in Russia there is a rather small support for the development of business by the state. Despite this, many small and medium-sized companies are trying to tender and looking for a way to find their niche in the market with the help of government orders. It is difficult to say how this is possible and beneficial, but by analyzing the experience of other similar companies in this market during the preparation of the country for such an economically significant event as the World Cup, one can draw some conclusions about such events for the development of business in the country.

The purpose of the study is to determine the impact of the World Cup on small and medium-sized enterprises using government orders in the Russian Federation. In addition, it is also necessary to determine the potential prospects for the development of these enterprises and draw conclusions. In this research, it is necessary to use econometric analysis and econometric models to determine the degree of influence of government contracts on small and medium-sized enterprises. One of the goals is also to compare the impact of the biggest sporting event on the market for government orders in different regions of the Russian Federation.

At present, the problem of developing business in Russia is particularly acute and requires a cautious approach, since small and medium-sized enterprises, in order to survive in a difficult competitive environment, are looking for the necessary client base that will constantly bring them profit. But during the crisis it is quite difficult, therefore, stability and confidence in the future will be given to them by government contracts, as a result of which small and medium-sized companies will gradually grow. Analyzing the methods of determining the supplier and the efficiency of the market of public contracts in such a successful period for the construction industry, small and medium-sized companies will consider which method is the most convenient, profitable and will promote them.

To perform this work, it is necessary to study the mechanism of work of state contracts, to determine what effect the state needs market has on the development of small and medium businesses. This topic is very relevant for Russia, because in recent years Russia has hosted such major events as the 2013 Universiade in Kazan, the 2014 Olympic Games and the 2018 FIFA World Cup. All these events have led to improved infrastructure in many cities across the country. No less important is the fact that the government is amending legislation and implementing reforms to develop the scope of government orders for small and medium enterprises. The main objective of this research work is to determine the possibility of developing small and medium-sized businesses in different regions of Russia by preparing for the biggest sporting event. There are several hypotheses that will be accepted or disproved, and they will help determine the feasibility of working with government orders and their effectiveness in times of crisis.

For the most effective results, it is necessary to choose a market that has a greater impact on the system of government contracts in the selected period. Therefore, to analyze the construction market was selected as the most influential and invested in Russia. Also, the construction market is one of the most problematic, as the market is very conservative, corrupt and full of unfair competition.

The target audience of this research work are directors of small and medium-sized enterprises who are working or are just starting to work with government procurement, participate in a tender and promote their company with the help of these orders. Also, the audience of this research work is companies that want to direct their business to the development of Russian regions.

This study is a continuation of the analysis of the work "The role of the state contract in the development of entrepreneurship." The main difference from the previous study is that this analysis is aimed exclusively at the cities hosting the World Cup to determine what impact this event has had on business in Russia. Around the world, such a large-scale event as the World Cup has the greatest impact on the country's economy and on the market for government contracts. That is why a comparison of the work of medium and small businesses in the period of preparation for such an event and after it will show the most accurate result. Comparing this work with others written on this topic, we can conclude that this topic has not been studied enough, especially with regard to the construction market as an object of study. The main difference from similar works is a comparison of the period of crisis in the country and the period of the most active state orders.

For writing this research work will be used theoretical and practical methods. In the work, such theoretical universal methods as analysis and deductive method will be used. Analysis of the work is necessary to identify the specifics of the government contracts market. Since the object of research is the development of small and medium-sized enterprises on the example of the construction market - it is necessary to study its specificity and properties with the help of analysis. The deductive method will help draw conclusions based on practical work. For practical research, a modeling method is used, which will help achieve results using econometric formulas.

Expected results may have global implications for the economy of any country in the world. The system of government orders is one of the most important engines of business development. Also, this process is important for solving municipal and regional problems in the country. That is why the state constantly adjusts federal laws regulating this system in order to improve and simplify its work. An example is the electronic version of the tender system. Problems with corruption still exist, but in smaller quantities and with difficult implementation. It is planned that the contribution of this work will help determine the significance of international events as the level of the World Cup for the country's economy. It is also planned to reveal the effectiveness of the work of small and medium businesses with the state in different economic periods for the country.

Theoretical foundation

To perform the theoretical part of this work, it is necessary to analyze all components related to the impact of the biggest sporting events and their impact on the economy of the host country. There will also be considered articles devoted to the past World Cup in Russia, the construction industry as one of the most enthusiastic sectors in this event and the state order system as a tool for the development of small and medium enterprises in this period.

Before starting the study of literature should determine the basic concepts of the topic. There are many terms of large-scale events, such as "mega-events" or "biggest events", and these concepts are also interpreted differently in different sources. One of these sources is (T. Byers, 2019) and is interpreted as “ambulatory occasions of a fixed duration that attract a large number of visitors, have a large mediated reach, come with large costs, and have large impacts on the built environment and population”(p.2). The source also offers such a concept as a legacy of large-scale events and treats it as “all planned and unplanned, positive and negative, tangible and intangible structures created for and by a sport event that remain longer than the event itself.”

First, you should pay attention to such a large-scale sporting event like the Olympic Games. it produces both a positive impact on the country's economy and a negative one. Many believe that thanks to holding events of such scale, the host country only economically benefits, thanks to investments from other countries, the construction of infrastructure and stadiums, but this stereotype can be refuted with a specific example. In 2004, the birthplace of the Olympic Games Greece loans for the event brought the economy to a critical state. The article (P.Dawson, 2008) states that the games in Athens allowed the country to receive world-class sports facilities, as well as to speed up the completion of major infrastructure updates in the transport, telecommunications and other industries. In total, the state financed the event at 6 billion euros, which is 83%. China and the United Kingdom also financed their Olympic Games by more than 70%, however, comparing the economic situation in these countries, we can conclude that Greece took the risk. According to this article, the event had a positive effect on the country's economy: "for the period 1997-2005 1.3% of GDP per year, while unemployment fell by 1.9% per year. The cumulative GDP increase attributed to the games over the period 1997-2005 is estimated to be 2.5 times the total preparation cost” (pp. 141). Despite this, after the Olympic Games in the long-term run, Greece got a lot of economic problems that it is still struggling with.

The article in (Ugra, 2013) confirms the theory that, if economically in general, the 2004 Olympiad in Greece did not have a negative impact on the economy of Greece at that time, then later it strongly influenced the external the country's debt, which increased by 2-3 percent. In addition to Greece, the article considers various situations in which sports mega-events have affected their host countries. First of all, we are talking about the BRICS countries, because over the past 10 years these countries have taken such events as: "Brazil - 2014 World Cup and 2016 Summer Olympics, Russia - 2014 Winter Olympics and 2018 World Cup, India staged the 2010 Commonwealth games, China hosted the 2008 Olympics and South Africa hosted the 2010 World Cup." (pp. 18) For these countries, a very important topic related to the development of sports infrastructure in the regions is touched upon. On the one hand, the development of regions through sports mega-events is a very profitable and a solution that leads to lower costs and interest from investors. On the other hand, there are living examples of countries that have spent huge amounts of money on stadium construction and now only incur losses: "Beijing 2008 the most expensive moved Olympics costing around $40 billion created stadiums praised for the architectural adventurism, but which are now struggling to keep themselves revenue relevant. Two years later, South Africa spent $5 billion on staging the football World Cup and finds its new stadia, particularly in rural Polokwane and Nelspruit, far too large for towns whose own football teams do not play in the country's top flight domestic league"(p.19). Russia currently continues this sad experience of its economic partners, since such stadiums as Volgograd Arena, Mordovia Arena and Stadium Kaliningrad are also not involved in the top championship of the Russian championship. However, in this regard, the situation is better in Russia, since the Samara Arena stadium was played in the Premier League 2018 and from the 2019-2020 season, the Fisht Stadium and the Nizhny Novgorod Stadium will be involved in the Russian championship, as the host teams from these cities went to the top division.

However, there is an opinion that the short-term impetus for the economy created during the period of preparation for a large-scale event is not capable in a short time to bring about a recoupment of costs. Also (Telnih, 2019) states that the expected economic effect from the 2018 World Cup, as world practice shows, is only ahead, because from the experience of Japan, South Korea, Germany and South Africa it becomes clear that every year after an event of this magnitude, the socio-economic effect increases. the relationship between sporting the biggest events and economic growth is well felt in developing countries, while in the case of developed countries this effect is not observed. In Russia, 39% of total expenses were spent on the creation of sports facilities, and 33% on transport infrastructure. In preparation for the 2018 World Cup, the airport in Rostov-on-Don was re-built, and another 12 airports were reconstructed and modernized, which took 70% of the total transport infrastructure costs. 20 railway stations were reconstructed and modernized; in Moscow, St. Petersburg and Nizhny Novgorod, new metro stations were opened. Among the stadiums, not all cities had to rebuild them anew, in Yekaterinburg, Moscow (Luzhniki) and Sochi needed reconstruction, in other cities the facilities were created anew. The transformation in Kaliningrad was less successful than others, the construction of the stadium and the infrastructure in this city had many problems and the city was in doubt about the failure of the championship.

Continuing the theme of the influence of preparation for a large-scale sporting event, one can draw attention to the article (C. P. Mйndez, 2018). It talks about how the 2014 World Cup and the 2016 Olympics negatively impacted economic, political and social spheres and led to riots and rallies. According to the author, most of the infrastructure is financed either by reducing public services, or by increasing taxes or public debt. In the almost exclusive construction of sports facilities for a long time it does not work to benefit because of what, consequently, they are disconnected from the original project, in which they saw the national heritage. On the other hand, there is a criticism that countries need to build these facilities for the development of sports in the country.

The article (M.Zitti, 2017) talks about how in the host country a large-scale sporting event the regions compete for its holding. First, to attract investment from private companies for the financial development of the city. It is also a very effective way to build the infrastructure of a city. The third equally important factor is to attract the interest of residents of the region to the development of sports in the country. In the case of the 2004 Olympic Games in Greece, Athens put forward its candidacy to redirect the spatial policy towards improving the urban landscape of Athens. With the economic expansion and low cost of uncultivated land, Athens was able to develop not only the quality of roads, new metro stations for public use, but also the development of infrastructure in the plains of Mesogeia. Land development in this area located near Athens began in 1990 and received its most effective development during preparation for the Olympic Games. By 2003, “More than 50% of new urban land use materialized in areas designated as protected (green zones or agricultural land). Such zones consumed up to 10% of the Mesogeia Plain and exhibited the highest rate of increase in urban land use”. These factors reduced the population of Athens and received a reverse trend in areas surrounding the capital.

Consider an article (Kaplanidou, Emadi, M.Sagas, & Fritz, 2016) dedicated to the future World Cup in Qatar, which is attractive and attractive to investors, however, due to weather conditions in a given country, it has many problems. The authors argue that the main advantage of a mega-business event is the acceleration and finding of business-to-business connections: “Since the event acts as an accelerator of change, a number of expected and unexpected business relationships are created between private and public business networks. The relationship between key event organizations (regional and global) can positively stimulate not only net economic indicators, such as gross domestic product (GDP) and wages, but also competences in the field of training and business, as discussed. For example, in 2010, 1,500 new businesses were created in the Vancouver Games in British Columbia province from 2003 to 2010, and property values ??remained almost unchanged.” (p.4105) Speaking about the barriers that business in Qatar may face, the authors' results showed that a number of sociocultural restrictions restrain the development of business and relationships, including the norms of the local community and social sanctions. Indeed, culture can be the greatest power of a country or society. However, it can also be a source of stiffness, because cultural change takes time and disrupts work. This may lead businesses to view culture as an obstacle and a barrier to the transformation of a country's industry. The results of this study also shed light on the need for cultural change for business development and networking. Also, according to the authors, the development of business relations facilitates the exchange of experience and the development of trade relations between business companies from different countries, sometimes even at a long-term level.

With regards to the development of infrastructure due to mega-events in Russia, we can consider an article (Serpuhova, 2016) which deals with the development of not only urban urbanism, but also the development of the construction business. According to a source in the region, 3,723 private construction companies were registered and many of them took part in government orders aimed at preparing for the 2018 World Cup. After the World Cup, residents of the region will get comfortable high-speed tracks for a long time, like other constructed facilities. This increased the investment attractiveness of the region and improved the socio-economic environment. The residential stock of the region was also repaired to create its favorable appearance. One of the most pressing problems for Samara was the lack of the necessary modernized building technologies, which were one of the main requirements of the organizing committee. The reason for the lack of this equipment became political sanctions, which became an obstacle to the import of equipment. This problem was solved by partial import substitution of foreign equipment.

Turning to the topic of the influence of major sporting events on business, we consider the article (Prasockaya & Ramzanova , 2013).It is dedicated to the role of the business community in the implementation of large-scale projects. As an example, selected the project preparation for the Olympic Games in 2014. The article talks about the importance of state cooperation with the private sector and that this state leads to such positive effects as a developed infrastructure, economic growth and job creation. For the private sector, however, this is an opportunity to increase the investment attractiveness of the region and, equally important, to create the basis for the implementation of business projects. In the framework of the Sochi 2011 forum, a meeting was held on the theme “Large-scale sporting events as a profitable investment for business and an incentive for sustainable Development: Maximizing Economic, Social and ecological heritage "Sochi 2014". During this meeting, large-scale sporting events were considered as a catalyst for developing the business potential of the regions and. Speakers at the conference officials announced that, in total, the state and private investors would invest 1 trillion rubles in the development of the region. The article also demonstrates illustrative examples of how the large private companies involved participated in the creation of such a large-scale project.

The concept of "small and medium enterprises" is interpreted differently by different sources. However, in the article (Litau, 2013) concept with reference to the Federal Law of 24.07.2007 No. 209-FL “On the development of small and medium-sized businesses in the Russian Federation” the main criterion determining the size of the company is the percentage of the share capital. "The subjects of small and medium enterprises are commercial organizations in which the total share participation of the Russian Federation, subjects of the Russian Federation, municipalities, foreign legal entities, foreign citizens, public and religious organizations (associations), charitable and other funds in authorized (share) capital (mutual fund) does not exceed 25%. " The author also indicates that the number of employees in a small enterprise is from 16 to 100, and on average from 101 to 250.

Based on these sources, we can conclude that construction plays one of the most important roles in preparing for a large-scale sporting event. In this case, the specifics of the interaction between the construction sector and the state should be analyzed. In the article (Kashelnikov & Vasilenko, 2018) the authors note the importance of this method of small business development as the introduction of cluster policy, which is a strong catalyst for the development of small business in the country and may affect the structure of small business in all areas. "Cluster policy is a system of government measures and mechanisms to support clusters that increase the competitiveness of regions, enterprises in the cluster, and also ensure the introduction of innovations."

The advantages of cluster policy are the following:

a) clusters increase the productivity of firms and industries:

1) effective specialization / division of labor;

2) the emergence of more demanding consumers;

3) economy of scale

4) access to technology, suppliers, skilled labor

5) improving the supply chains

b) opportunities for innovation and production growth:

1) channels are created for effective cooperation of new resources for innovation

2) definition and prediction of technological trends

3) favorable prerequisites for risk sharing

c) clusters stimulate and facilitate the formation of a new business, supporting innovation and expanding the cluster:

1) the development of fast-growing companies;

2) links within the cluster contribute to the emergence of complementary skills, technology, subsidies

3) support for new members

The most prominent example of the relationship between the state and the private sector is the market for government contracts. The article (Tamrazyan, Butova, & Migusheva , 2012) contains such concepts of the term "state contract" as "an order issued by state bodies and paid from the state budget for production, release of goods, carrying of works in which the state is interested “or” a proposal given by an authorized state organization to another supplier organization for the supply of goods, works, services for federal and regional needs-State. " According to the authors, the main task of the state order is the satisfaction of state and municipal needs. However, the objectives of the state contract are also to regulate the economy and support small and medium businesses. The article talks about how to place an order: a tender, an auction, including in electronic form, a request for quotations, and a purchase from a single supplier. One of the characteristic features of the government contract market is the borrowing of legislative practices from abroad, since the rules for organizing government contracts are still unworked and require openness and trust between both parties to the process.

“State orders as an instrument of state financial regulation of the economy” (Gadzieva, 2011) explains what functions are fulfilled by state orders and what impact they have on the state and the development of business in the country. This article can serve as a basis for a more detailed analysis and understanding of the concept of “state order”, and also provides a broader view of the government procurement market, which is positioned as a financial regulation tool for the implementation of economic relations and solving government needs. There are also a number of specific functions that can be implemented by government orders:

a) The reproductive function - consisting in the satisfaction of state needs in goods, works and services to ensure stable reproductive economic relations with the participation of the state.

b) The function of price regulation through government orders and procurement has an impact on the dynamics of prices for certain types of goods, works and services.

c) Stimulating function; expansion of government orders is a factor in the growth of aggregate demand to support, stimulate and regulate the sectoral and regional structure of the economy;

d) Social, aimed at promoting the implementation of the socio-economic policy of the state;

e) Innovative function, consisting in the formation of financial and economic prerequisites for the creation of a fundamentally new or new consumer property of products.

In order to study the state order system more deeply, you need to refer to the (Malkov, 2008), which describes the mechanism of the work of the state contract system. According to the author, the state order is “a complex market mechanism consisting of several stages. Its essence lies not only in the very fact of purchasing goods, works, services for creating public goods, but also in planning this process, as well as in shaping government demand. Basic stages of functioning of the order placement system: planning, formation, placement, execution. " Also, in the article, the authors express the opinion that the state should assume the functions of creating public goods only then and in those sectors where the private sector is not able to create them at the proper level. It is also noted that currently in our country federal and regional target programs are actively used to support and develop individual business areas. This view is reinforced by the fact that the government is constantly changing and supplementing 44 and 94 federal laws to facilitate placement processes and agreements with performers. However, changes in federal laws are also taking place for better transparency in placing orders.

In accordance with the article (Zhemchuzhnikov & Domovec, 2014) and the norms of the Law on the contract system, state procurement can be of two types:

a) Competitive methods for determining suppliers, performers, contractors;

b) Purchases from a single supplier, performer, contractor.

The first type includes the following methods:

1) Contests - the way in which the company becomes the winner is the one who offers the best conditions for the execution of the contract: a) open tender; b) a competition with limited participation; c) two-stage competition; d) closed competition; e) closed competition with limited participation; f) closed two-stage competition.

2) Auctions - the winner the bidder is recognized as having offered the lowest contract price: a) an auction in electronic form; b) closed auction;

3) Request for quotations - a method in which information on goods, works or services procured to meet state or municipal needs is communicated to an unlimited number of persons by placing in the unified information system for notification of the request for quotations and the winner is the bidder who has offered the lowest price.

4) Request for proposals - the information is communicated to the unlimited circle of persons by placing in a single the information system of the notice of the request for proposals, the documentation of the request for proposals and the winner of the request for proposals is the bidder who sent the final proposal that best meets the requirements set by the customer for the goods, work or service.

The article (Singer, 2016) talks about such practices as “dual sourcing”. Dual sourcing means that a government order is divided and divided between two suppliers. For example, there is a certain amount of material that can be divided equally between two companies that are ready to fulfill this order. What is the benefit for the state? Primarily, this practice may in some cases reduce the initial acquisition costs, but its greatest potential benefit lies in the quality of a corrective strategy, especially when the government otherwise lacks an adequate remedy. If one of the suppliers does not fulfill its obligations, the state-owned company has the right to submit a request from the second supplier to conclude a contract for a repeat order or for a part of it. What does it give to enterprises? Firstly, the reduction of competition, since this order will no longer be one place but several. Secondly, a greater number of companies will be able to participate in the fulfillment of government orders.

The next article (Kosheev & Asaul, 2009) aimed at studying the specifics of the interaction between the construction market and the state. The authors point out that there is a bilateral nature of choice in the government contract market. The state makes the list of criteria necessary for the fulfillment of the contract and selects from the performers. The performers, in turn, take into account the criteria that: "the economic feasibility of participation in a particular state construction order; the ability to effectively use the resource potential of a construction organization; the possibility of strengthening the image and business reputation; the possibility of obtaining additional opportunities in the field of innovative development; expanding strategic prospects; receiving additional investments; replacing a passive strategic position with an active one and others. " The main subjects of the process are the authors: state representatives, who form the state order, construction organizations and investor organizations. In the state order market, investors act as independent entities and can perform dual functions. They can act both on state regulation bodies combining investments for a specific state order, and on construction organizations, directly investing construction work on a specific government order.

In the article (Kovalev, 2012) the author explains the structure of the market, its limitations and the conditions of control. In addition, the article describes the features of a certain type of orders, such as conditions of acceptance, pricing for services, etc. The author notes the main factors that negatively affect the operation of this market. The most obvious problem is corruption, despite the fact that government orders are subject to publicity, many companies find ways to earn money from the state budget. In the article, the author examines in detail the specifics of the public procurement market, highlights the subjects of this market and their interaction with each other. An important component of this interaction is efficiency.

The goal of the customer is to properly allocate budget funds for the purchase of goods, works, and services needed by the customer, while at the same time obtaining the maximum budget savings. The purpose of the supplier is to supply goods, works, services with minimal costs and high profit margins. It is important to note that it will not be possible to maximize profit by setting high prices, because supply exceeds demand, so suppliers will be able to optimize distribution costs when setting prices for goods, works, services.

This is the advantage of small and medium-sized companies over large organizations. And the author raises the important question that the fulfillment of government orders by small and medium-sized companies allows them to survive in times of crisis.

However, it is impossible to consider government contracts only as a way of development of the state, it is also the development of small and medium-sized companies, which by competition every year more and more often try to work with the state. This is also indicated by statistics in the article (Gafurova, Notfullina, & Fukina, 2016). This study describes the phased development of the state order system in the Russian Federation and the fact that the number of government contracts with SMEs grows every year. The main turning point, including the crisis for small businesses, was 2010. The reasons for the sharp decline in the conclusion of such contracts were: reducing the list of goods that should be purchased from small businesses and amendments aimed at reducing the number of small purchases, which significantly limited the possibility of participation of small businesses in government orders. However, from the next year, the amendments bore fruit and the number of contracts with small businesses began to grow. All this statistics guides that this system works not only to meet state needs, but also to develop business in the country.

The article "Public-Private Partnerships: Goods and the Structure of Contracts" (Rausser & Stevens, 2009) is devoted to the structure of contractual agreements on a public-private partnership aimed at producing a set of services and products that include private goods. First, it is necessary to determine the type of products or services to be provided. The structure of the state contract depends on this. To assess the activities of various types of public-private partnerships, using a natural resource industry example, a three-stage framework program is being used, which is based on monitoring and the literature on incomplete contracting rights. Stage 1: "Setting the Bargaining Space and Negotiating the contract" at this stage is negotiating a contract and make investments. Stage 2: "Decision Making Through Bargaining" - at this stage, the partners will achieve an effective result, in which they will exercise their rights and, by calculating the mutual benefit, will make certain decisions. Last, but not least, is "Is there a shock?" This stage is crucial because here the partners react to unexpected shocks from mutual desires. This stage has 2 outcomes a) They can enter into a partnership and realize their rights; or b) Revise the terms of the agreement and return to the first stage. Thus, such studies provide a complete picture of the contractual structures that are designed to manage and ensure public goods. Using the example of one sphere, the authors show how the contractual structure of a public-private partnership depends on the type of product or service being produced.

In addition, the authors consider a two-period model with two firms. In the first period between the two firms a contract is concluded, and certain investments are made. In the second period, each of the firms makes a production decision, which is enshrined in the contract, and with the help of this decision, firms evaluate the benefits of their partner. Thus, in a public-private partnership, the principle of phased actions all the time goes the control over the fulfillment of the terms of the contract. These partnerships are successfully used in Europe, it so happens that in countries such as the United States and Canada, public-private partnerships were not popular. During the study of infrastructure, public-private partnerships showed that while the government could not reduce its income, private partners had big problems with making a profit. The authors propose to use the operational framework to eliminate these problems, that is, to establish control and property rights that are supposed to align incentives, thus public-private partnerships in North America can become much more successful.

However, there is a reverse opinion, emphasizing the main problems of obtaining and executing government orders. An article by (Moszoro & Spiller, 2012) states that often-unscrupulous companies spend their budgets on the execution of works. The process of fulfilling government orders includes four main participants: the state, private contractors, competitors and the public. Although government contracts have a stricter form of regulation, they are also subject to political risks due to unscrupulous frauds between participants in the process. These frauds are the main reason why young companies which do not have weight in the market try to bypass the implementation of government orders.

The article raises questions about the implementation of government orders, during the execution of which often small and medium-sized businesses are not taken seriously. For the construction industry, this topic is particularly relevant. The main directions and problems of the implementation of the contract system in Russia are reflected. According to the author, the electronic method of obtaining a tender is the most effective, but despite this, the scope of government orders remains for Russia in a deep crisis.

In the article by (Bajari & Tadelis, 2001) “Incentives versus transaction costs: a theory of procurement contracts”, the authors draw the reader's attention to the fact that many operations in the private sector are governed by government contracts. This article analyzes the development of contracts for construction companies. Coordination and management are one of the main aspects of a successful construction project. There is also a wide range of various small and medium business construction companies that have successfully implemented their government orders, thereby proving that clear instructions and full compliance with contractual obligations are needed regardless of the size of the company. However, the only main problem of contractual contracts is the ability to adapt in conditions of high competition, regardless of transaction costs. This analysis is relevant not only for private companies, but also for the public sector.

In the article (Ladauskas & Izumova, 2016) the authors emphasize the importance of small and medium enterprises for the development of the national economy and state contracts are the best way to help these enterprises. It is also indicated that despite the fact that Russia has adopted many edits in laws regulating the system of state contracts, problems such as corruption, the lack of transparency of the system and the lack of a single control body remain and continue to be the reasons for the slow development of this system. The analysis of this article indicates that the number of applications of small and medium-sized enterprises is increasing every year, but the percentage of winning these orders does not increase. The study revealed that the increase in the number of purchases from small businesses leads, on the one hand, to an increase in budget savings, and on the other, to an increase in the number of small businesses and their contribution to GDP.

In the article “The role of small and medium-sized enterprises in a sustainable public procurement system” by (Gуrczyсska, 2015), the author points out the main advantages and disadvantages of the participation of small and medium-sized enterprises in the implementation of government contracts. The author points out that the main benefits for the state are lower cost of goods and services, better quality, flexibility and specialization, and the benefits for the economy as a whole is the desire for a lack of unemployment, as well as economic growth. However, there is a disadvantage for small and medium-sized enterprises regarding the implementation of government orders; this is the high cost of participation in the government procurement market. An analysis of this article will help determine the benefits for small and medium enterprises.

Statement of the research question

In this section, a research question will be asked, which will focus on the thesis, the purpose of the thesis and the methods that will be used, as well as the tasks that will be solved to achieve this goal. To do this, it is necessary to determine what tasks this work pursues, what problems it may encounter and what steps to go through in order to solve these problems.

To achieve the goals of the thesis it is necessary to gradually study the literature on this topic. Based on the analysis of the sources, draw the necessary conclusions about the biggest sporting events and their impact on the state economy and in particular on small and medium business. The next step is to collect data from the official government procurement portal and the SPARK portal, which have all the necessary information for writing this work on the number and amount of government orders and show the financial position of the companies studied. Using econometric methods and a regression model is analyzed.

These research methods are not enough to disclose the entire topic and test all small and medium enterprises. However, due to the fact that these methods are used in this work of the construction market, which played the most important role in preparing for the 2018 World Cup, then having the necessary information about the participation of small and medium-sized enterprises we can draw conclusions about the impact of this event.

Comparing this part of the work with the theoretical one, we can say that after analyzing articles and magazines on the subject of the biggest sporting events, their impact on the country's economy and business development, it is necessary to find the problem that this topic faces. Further, it is necessary to formulate and hypothesize how much a sports mega event has affected small and medium enterprises in Russia.

The hypothesis of this study is that small and medium-sized enterprises, preparing for the biggest sports events, more often work with government contracts and at the expense of them develop faster. In this way, during the whole study, it is necessary to prove or disprove the fact that holding the biggest sporting event in the country as a world championship due to the fulfillment of government contracts helps to increase the revenue of small and medium enterprises. This hypothesis will become one of the methodological tools of this study and will give an idea about the future progress of small business and how mega events affect this development.

The purpose of this study is to determine the impact of government contracts during the World Cup in Russia on small and medium businesses. To achieve this goal, it is necessary to carefully study the problem of research, namely, the impact of the biggest sporting event, as well as to raise additional questions on this issue so as not to err in the further development of the topic. One of these questions is whether the state can, through the development of a system of government contracts, save or develop small and medium-sized businesses.

If the hypothesis is accepted, then we can say that participation in the implementation of government contracts during major sporting events is a promising niche for the promotion of small and medium-sized businesses. Moreover, companies can receive sufficient profits from government procurement and, thus, can give impetus to their development in the future.

Methodology

a) Description of the objectives of the thesis and the research design used to achieve these objectives.

In work the semantic search method is used. Semantic search implies a technology to search for information using the meaning of the requested phrases in a search engine. This tool makes it possible to find information about government procurement, about the problems and opportunities of mega-events and features of the work of small and medium businesses with the state - for further processing of these data. In the thesis work semantic search is used, as in the first stages of writing the work, that is, with a general set of information, by writing a literature review, writing an introduction for a term paper, and at the writing stage of a research paper and analyzing literature related to practical actions of the work. In the practical part, such a method as an experiment will be used, which will allow sampling and testing the hypothesis about the positive impact of the biggest sporting events on small and medium-sized enterprises through state contracts in practice.

The purpose of this course work is to identify the impact of government orders on small and medium-sized enterprises during the construction of stadiums and infrastructure for the adoption of the championship. To accomplish this task, a detailed process will be presented, during which the main problem, hypotheses, purpose and main stages of the research will be determined. This research work will include an introduction, a literature review, a methodology, a practical part, a conclusion and sources. The object of the research of the thesis is the development of small and medium-sized enterprises which has a wider area of ??study than the subject of study - the effect of biggest sporting events.

b) Description of the data collected (is going to be collected) in each stage of the research process.

In this study, two types of data analysis will be used: empirical and theoretical. For empirical analysis, it is necessary to collect data on all small and medium enterprises that participated in the tender in 2013, 2014 and 2015 According to the Federal Law of April 5, 2013 N 44-FL "On the contract system in the field of procurement of goods, works, services for state and municipal needs" and Federal Law No. 94-FL of July 21, 2005 "on Placing Orders for Goods, Works, Services for State or Municipal Needs", and to conduct an analysis using econometric methods of data analysis, as well as data from the official SPARK and official procurement. Web site. Theoretical analysis will provide a more detailed understanding of the main problem posed in the thesis and help draw a conclusion based on empirical analysis and detailed analysis of the literature.

Theoretical analysis of the analysis is also needed to clarify the specifics of the studied market. This will allow to formulate hypotheses correctly and find the best way to test them. To formulate the methodology, it is necessary to collect theoretical data on econometric models and their interpretation.

c) Description of the process used (is going to be used) to collect data, data sources, the sample and the representativeness of the sample

To conduct data collection for empirical analysis, data will be collected from the official government procurement website and the official SPARK portal for all government contracts for 2013, 2014, 2015 in all cities hosting the 2018 World Cup (Moscow, Kaliningrad, St. Petersburg, Volgograd, Kazan, Nizhny Novgorod, Samara, Saransk, Rostov-on-Don, Sochi, Yekaterinburg). These data are needed to conduct an econometric analysis and test the hypotheses put forward.

To collect theoretical data, it is necessary to find sources related to the themes: government orders, the construction sector and its features, data on government purchases made in 2013, 2014, 2015, and information on the government procurement market in 2015 in the Russian Federation. These sources will help you understand the dependence of the market for government orders on holding sporting events. Also, these sources can describe the situation on the market of government orders during the crisis period for the country.

The most important year in this model is 2014, as this year contracts were signed for several stadiums. The year 2015 is interesting because it is a continuation of the preparations for the 2014 championship, and therefore this year many orders for the preparation for the 2018 World Cup have been completed. In addition, 2015 is of interest because it is a crisis year that can have both positive and negative effects on small and medium enterprises. The first construction state orders for the construction of stadiums were signed in 2013. (Sport-IN)

d) Description of the methods and procedures used (is going to be used) to analyses data and of the statistical software used to analyses data

In this research work, an applied research method will be used, which will help to formulate the main issue of this work more precisely - how enterprises develop at the expense of state orders in the regions. The application of the fundamental research method would not be absolutely correct, because this research is not so closely interconnected with real life, and this method does not imply the solution of the questions posed in this research work. In addition, the fundamental research method covers more general questions than the applied one. Two methods of data collection are needed for our research - qualitative and quantitative.