Territorial expansion and sustainable development: a case study of regional small businesses

¹ Vyatka State University, 610000 Kirov, Russia
² Financial University under the Government of the Russian Federation, 125167 Moscow, Russia
³ Moscow architectural institute, 107031 Moscow, Russia

^* Corresponding author: nsebaie@outlook.com

Abstract

Small and Medium Enterprises SMEs play a critical role in driving sustainable economic growth and development. As engines of innovation and job creation, they are essential for fostering entrepreneurship and promoting sustainable development at the local and regional levels. In particular, SMEs have the potential to provide a range of economic, social, and environmental benefits, including creating new jobs, increasing local purchasing power, and contributing to the development of local communities. SMEs account for two out of every three jobs worldwide, with over 50 percent of employment in the private sector in developing economies. Furthermore, small businesses are often more adaptable and responsive to the needs of local markets, making them better equipped to compete with larger companies in the same industry. Given their important role in sustainable development, it is crucial to examine ways to support and promote the growth of regional small businesses, including through sustainable territorial expansion. This article presents a case study of an optics network to examine the challenges and opportunities for sustainable territorial expansion of regional small businesses. The study employs a mixed-methods research design, including an analysis of the optics network’s client base, a survey of key criteria for competitiveness in the optics industry, and an analysis of potential options for sustainable territorial expansion through the development of territorial representation.