Ivanytska S., PhD (Economics), Associate Professor of the Department of Economics, Entrepreneurship and Marketing, National University «Yuri Kondratyuk Poltava Polytechnic», Poltava, Ukraine

ORCID ID: 0000-0002-7111-270X
e-mail: azz123z@meta.ua

Troyan Yu., student, National University «Yuri Kondratyuk Poltava Polytechnic», Poltava, Ukraine

ORCID ID: 0000-0003-4617-5415
e-mail: leria.zvezda@gmail.com

Prospects of Small and Medium Business Development in Ukraine

Аnnotation. Introduction. Small and medium-sized enterprises are an integral part of the modern market economy. This gives the economy of any country some flexibility, influences its economic growth, mobilizes financial and production resources of the population, accumulates a powerful antitrust potential, plays a system-forming function. Entrepreneurship is a serious factor in solving pressing social and economic problems.

Purpose. The purpose of the article is to summarize the fundamental principles for the support and development of small and medium-sized enterprises in the transition economy. The aim is to develop methodological foundations for improving their efficiency in Ukraine.

Results. It is established that the main reasons for slowing down the development of small and medium-sized enterprises in Ukraine are the lack of an effective mechanism for implementation of state policy for support of small and medium-sized enterprises, the lack of appropriate regulatory support for business development, limited financial resources, limited information and advisory support, imperfection of the training system and further training. The article analyzes the main directions of state support for small and medium-sized enterprises in Ukraine and other countries. Obstacles hindering the development of entrepreneurship have been identified. Such obstacles include limited access to finance, burdensome legislation, and difficulties in entering new markets, etc. These programs are aimed at making breakthroughs and inventions; promote entry into new markets; facilitates the opportunity to obtain financing for business, offer a large amount of investment, grants and vouchers are provided, advisory assistance and targeted support are provided.

Conclusions. The tasks that need to be solved to realize the strategic goals of the development of small and medium businesses in Ukraine are identified. The main ones are the creation of favorable financial conditions for starting and conducting business activities; development and implementation of a special program of support for promising companies and entrepreneurs; creation and development of business support infrastructure; development of competition; support in the social sphere; stimulating demand for enterprise products; creation of conditions for increase of labor productivity; development of micro-credit; implementation of financial support programs; simplification of procedures for access of small and medium-sized enterprises to the use of real estate objects; training, training, and retraining of professional staff for small and medium businesses; provision of state support for small and medium-sized enterprises active in the field of investment activity; conducting information-analytical monitoring of small and medium-sized business development and development of state policy measures for the further development of entrepreneurship.

Keywords: entrepreneurship; infrastructure; financing; lending; investment; training; development; competitiveness.

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