Modern problems of small business development in Ukraine

Baldzhy Maryna
Doctor of Economics, Professor, Professor of the Department of Economics, Law and Business Management, Odessa National University of Economics, E-mail:baldgi@ukr.net

Mryk Maryna
student of Odessa National Economic University, E-mail:marinamruk@gmail.com

Cite this article:

Baldzhy, M., Mryk, M. (2019) Modern problems of small business development in Ukraine. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 3(266), pp. 52-72.

Abstract

The article deals with the problems of small business development in Ukraine, which creates an appropriate environment for the development of competition in entrepreneurial activity; provides strong incentives for innovative processes and highly effective work. Small and medium-sized businesses create opportunities not only for solving economic and social problems, but also satisfy the need for domestic and foreign markets. For the stimulation problem of small business, a well-considered state policy is important, which should be based on the integrated use of analytical tools, defining quantitative and qualitative characteristics of small and medium enterprises, the degree of infrastructure development, etc. The regulation of small businesses should be based on the analysis and assessment of financial obligations and the study of their financial status. It is in the small business sector that a large mass of national resources are created and operated, which is a nutrient for medium and large businesses. Small business enterprises are engines of economic growth and development, especially in the face of high unemployment and high levels of poverty; in a market economy based on cash calculations. Small business enterprises have potential for economic growth. An analysis of the financial situation of small enterprises of Ukraine shows that there is a favorable climate for business establishment, expansion and directions of economic activity, activation of business and investment activity of business entities. It has been determined that in Ukraine, state support to small businesses is necessary, which is recognized by the practice of foreign state administration. It should be borne in mind that state support to enterprises is justified only in order to eliminate situations in which market mechanisms do not provide an efficient allocation of resources, namely, the concept of state support involves measures to promote economic entities that create direct or hidden advantages for them. The substantiated proposals on possible prospects for the development of small business in Ukraine will create favorable conditions for its development and should be based on a stable economic and political situation in the country, as any market fluctuations can become dangerous for financial-economic activity of small business.

Keywords

small business, Ukraine, state regulation of the economy, analysis of small businesses, price index, state policy, market economy.

JEL classification: M290; DOI: 10.32680/2409-9260-2019-3-266-52-72

UD classification: 658.114

References

1. Підтримка малого та середнього бізнесу у світі (Огляд інструментів і політик) [Електронний ресурс]. - Режим доступу: http://euinfocenter.rada.gov.ua/uploads/documents/28947.pdf
2. Господарський кодекс України від 16 січня 2003 року № 436-IV станом на 25 березня 2017 року. [Електронний ресурс]. - Режим доступу: http://zakon3.rada.gov.ua/ laws/show/436-15.
3. Про розвиток та державну підтримку малого і середнього підприємництва: закон України №4618-IV від 22.03.12 р. (із змінами та доповненнями) [Електронний ресурс]. - Режим доступу: https://zakon.rada.gov.ua/laws/show/4618-17
4. Про схвалення Стратегії розвитку малого і середнього підприємництва в Україні на період до 2020 року: розпорядження Кабінету Міністрів України від 24 травня 2017 р. № 504-р. [Електронний ресурс]. - Режим доступу: https://www.kmu.gov.ua/ua/npas/250167535
5. Агенція регіонального розвитку Вінницької області Електронний ресурс]. - Режим доступу: http://ardvin.org.ua/
6. Doing Business 2016 [Електронний ресурс]. – Режим доступу: http://russian.doingbusiness.org/data/exploreeconomies/ukraine – 2016].
7. Doing Business 2018 [Електронний ресурс]. – Режим доступу: http://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2018-Full-Report.pdf
8. Державна служба статистики України [Електронний ресурс]. - Режим доступу: http://www.ukrstat.gov.ua/
9. Балджи М.Д. Тенденції розвитку підприємництва в Україні та Одеській області // Економічні інновації: зб. наук. праць. – Вип. 59. – 2015. – С. 52-59.