Spatial concentration and regional disparities in small and medium entrepreneurship development: Evidence from the Republic of Belarus, 2019–2024

Authors

  • Irene Malgina Academy of Public Administration under the President of the Republic of Belarus

DOI:

https://doi.org/10.68081/0rd92m16

Keywords:

small and medium entrepreneurship; regional development; spatial concentration; regional disparities; Belarus

Abstract

This article investigates regional disparities in the development of small and medium entrepreneurship (SME) in the Republic of Belarus over the period 2019–2024, with particular attention to the alignment between observed SME dynamics and the regional development priorities set out in the Program of Social and Economic Development of the Republic of Belarus for 2026–2030. Using official statistical data from the National Statistical Committee of the Republic of Belarus on the gross value added (GVA) generated by micro-, small-, and medium-sized organizations and by individual entrepreneurs, the study applies economic-statistical analysis, comparative analysis, and descriptive synthesis at both the regional and district levels to assess how SME activity has evolved since the conclusion of the previous socio-economic development cycle. The analysis shows that regional SME development in Belarus is characterized by high spatial concentration: Minsk and the Minsk region account for a disproportionate share of SME gross value added, while the remaining regions display considerable internal heterogeneity, with regional-level performance driven less by uniform regional trends than by the presence or absence of a small number of high-performing districts. A subset of districts associated with large anchor enterprises or favorable logistics, most notably in the Vitebsk region, shows improvement even where broader regional indicators are declining, whereas a substantial number of peripheral districts, including several named as priorities in the Program of Social and Economic Development of the Republic of Belarus for 2026–2030, show worse performance in 2024 than in 2015 or 2019. These findings indicate only partial alignment between the Program's designated priority districts and the districts that have, in practice, achieved positive SME dynamics. The study concludes that the spatial concentration of SME activity in Belarus reflects not only population density and administrative status, but also the presence of anchor enterprises, logistical accessibility, and the institutional capacity of local authorities, and it offers an empirical basis for refining regional SME support measures within the Program.

Author Biography

  • Irene Malgina, Academy of Public Administration under the President of the Republic of Belarus

    Irene Malgina is an Associate Professor at the Department of State Economic Policy, Academy of Public Administration under the President of the Republic of Belarus (Minsk, Belarus), and holds a Ph.D. in Economics (Candidate of Economic Sciences). She teaches and researches state economic policy, regional economics, and entrepreneurship management, focusing on the regional development of small and medium entrepreneurship, spatial concentration of economic activity, and the design and evaluation of state socio-economic development programs. She is the author of several scientific articles on regional economics and entrepreneurship in post-Soviet countries. ORCID: https://orcid.org/0000-0002-7516-8911. E-mail: irina_malgina@list.ru.

References

Beckmann, M., Garkisch, M., & Zeyen, A. (2023). Together we are strong? A systematic literature review on how SMEs use relation-based collaboration to operate in rural areas. Journal of Small Business & Entrepreneurship, 35(4), 515-549.

Duranton, G., & Puga, D. (2004). Micro-foundations of urban agglomeration economies. In V. Henderson & J. F. Thisse (Eds.), Handbook of Regional and Urban Economics (Vol. 4, pp. 2063–2117). Elsevier. https://doi.org/10.1016/S1574-0080(04)80005-1

Glezman, L. V. (2022). Development of small and medium-sized business in a new regional environment. Journal of Economics, Entrepreneurship and Law, 12(7), 1855-1868. https://doi.org/10.18334/epp.12.7.115120

Inevatova, O.A., Mikhailova, E.O. & Silenko A.S. (2026). Factors and trends of structural transformation of the small and medium entrepreneurship sector in the region. Economics, (1 (56)), 4-13.

Juraev, F. M., & Ziyaev, M. M. (2026). To theoretical aspects of small and medium entrepreneurship in the regional economy. Bulletin of the Tajik State University of Law, Business and Politics. Social Sciences Series, 107 (2), 70–80. https://doi.org/10.24412/3005-8023-2026-2-70-80

Khamidullina, A.R. (2024). The role of small and medium entrepreneurship in the socio-economic development of the Оrenburg region. Natural Sciences and Humanities, (6 (56)), 727-732.

Martin, R. (2012). Regional economic resilience, hysteresis and recessionary shocks. Journal of Economic Geography, 12(1), 1–32. https://doi.org/10.1093/jeg/lbr019

Matsegor, A.Y. & Suglobov, A.E. (2023). Supporting Entrepreneurship in the Regions as a Key Factor in Ensuring Economic Security. Bulletin of Eurasian Science, 15 (2S), 48.

McCann, P., & Ortega-Argilés, R. (2016). Smart specialisation, entrepreneurship and SMEs: issues and challenges for a results-oriented EU regional policy. Small business economics, 46(4), 537-552.

Makkonen, T., & Leick, B. (2020). Locational challenges and opportunities for SMEs in border regions. European Planning Studies, 28(10), 2078-2098.

Ministry of Economy of the Republic of Belarus. (2025). Program of Socioeconomic Development of the Republic of Belarus for 2026–2030. Minsk. https://economy.gov.by/ru/pser2030-ru/

National Statistical Committee of the Republic of Belarus. (2016). Small and medium entrepreneurship in the Republic of Belarus. https://www.belstat.gov.by/ofitsialnaya–statistika/publications/izdania/public_compilation/index_5272/?sphrase_id=2712782

National Statistical Committee of the Republic of Belarus. (2026). Structural statistics, including statistics of small and medium-sized businesses. https://dataportal.belstat.gov.by/osids/rubric-info/10623

Ndregjoni, A. (2025). Small and medium enterprises in the Western Balkans: Development, challenges, and prospects. Revista Economicus, 24(2).

President of the Republic of Belarus. (2025). Address by the President of the Republic of Belarus A.G. Lukashenko to the Belarusian people and the National Assembly of the Republic of Belarus «Time for Concrete Actions». https://president.gov.by/ru/events/vtoroe–zasedanie–vii–vsebelorusskogo–narodnogo–sobrania

Rubtsov, G., & Litvinenko, A. (2020). Development of single-industry towns as a factor of economic and regional growth. E3S Web of Conferences, 208, 08005. https://doi.org/10.1051/e3sconf/202020808005

Salikhova, S.F. (2022). Development of small business in the new reality: regional opportunities and limitations. Economics, Entrepreneurship and Law, 12 (12), 3189-3204.

Stam, E. (2015). Entrepreneurial ecosystems and regional policy: A sympathetic critique. European Planning Studies, 23(9), 1759–1769. https://doi.org/10.1080/09654313.2015.1061484

Downloads

Published

2026-07-22

Issue

Section

Original Research Articles

Categories

How to Cite

Malgina, I. (2026). Spatial concentration and regional disparities in small and medium entrepreneurship development: Evidence from the Republic of Belarus, 2019–2024. Journal of Governance, Economics, and International Affairs, 1(1), 5-25. https://doi.org/10.68081/0rd92m16