The impact of where businesses are located in Russian cities affects how well they perform. Factors like how many other businesses are nearby, the size of the local market, and the quality of transportation and workforce all play a role. When businesses are clustered together, they can benefit from sharing resources and knowledge. The study found that being in a city with lots of other businesses can help each individual business do better. It also showed that having access to a large local market is important for success. These findings can help improve policies for different regions, like investing in better transportation to help businesses thrive.