Government financial support and SME development in Switzerland

Abstract

Purpose: The goal of the study is to analyze model of government financing for small and medium-sized enterprises (SMEs) in Switzerland in order to apply its advanced experience to improve the system of federal financial support for SMEs in Russia. Design/Methodology/Approach: Brewer and Hunter’s approach was used to carry out an analysis of state financial support. Findings: The findings suggest that the modern system of government financial support for SMEs in Switzerland is flexible and capable of effectively resisting financial crises and changes in global market conditions. Switzerland has one of the most powerful and secure banking systems in the world and modern scientific and educational capabilities based on its world famous universities. These conditions are self-sufficient in the innovative development of the economy, focusing on their own financial resources and the national scientific and educational environment. Practical Implications: The experience of Switzerland can be applied in Russia to develop effective mechanisms for integrating academic and university sciences with public and private commercial industrial partners in order to accelerate the commercialization of scientific research. Such government policy instruments will make it possible to increase the level of state interaction in the sphere of education and science with the business sector, resolve the shortage of qualified specialists and accelerate the process of commercialization of research and development (R&D). Originality/Value: The advanced approaches of the Swiss model of public financing for the SME sector can be applied in developing countries, especially in those with limited mineral and labor resources, and in implementing strategies to boost the ratio of SMEs in the economy and their contribution to it.