Institutional Factors in the Evaluation by the Entrepreneur of Municipality Investment Climate

The article presents the results of the survey assessing the satisfaction level of small and medium businesses of the Sverdlovsk region with the factors of the institutional environment created in the area. Modern economics identifies four economic benefits of entrepreneurship development: job generation; productivity growth; innovation and economic growth. Governments, however, can exert either a positive or a negative influence on the extent to which in practice these benefits materialize. The positive result of Government policy is the investment appeal of the territory. We suppose, that the investment appeal of the territory depends on the correlation of the indicator of satisfaction and objective parameters of the institutional environment. Data for the subjective view was the survey of the satisfaction level of small and medium businesses of the Sverdlovsk region with the factors of the institutional environment at the year 2015 (more than 1000 respondents in 72 territories). Data for the objective view was Reports of the Heads of Sverdlovsk region municipalities about the efficiency in the municipal management, made public in 2015. The results of the research allow to develop a series of recommendations to improve the institutional environment for small and medium businesses. The basis for the selection of priority measures to improve the satisfaction of entrepreneurs is the correlation of the indicator of satisfaction and objective parameters of the institutional environment. The recommendations of the paper can be used by State and Municipal Governments in the policy of the increase of territory investment appeal. The scientific results of the research can become the base for further investigations of the correlation between subjective and objective factors of territorial development