FORMATION OF SYSTEM OF STATE SUPPORT FOR THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED BUSINESS IN UKRAINE - Scientific conference
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Рік заснування видання - 2014

FORMATION OF SYSTEM OF STATE SUPPORT FOR THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED BUSINESS IN UKRAINE

23.12.2022 11:21

[1. Economic sciences]

Author: Биців Марія, аспірант, Дрогобицький державний педагогічний університет ім. Івана Франка


An important area of Ukraine's economic reforms is the creation of a favorable environment for the formation and functioning of small and medium-sized business entities, which is an effective means of solving primary socio-economic problems. Small enterprises are important for the market economy, making it flexible, actively influencing economic changes, ensuring the saturation of the market with goods and services, and promoting monopoly. Medium-sized enterprises produce a small, stable range of manufacturers in significant quantities, quickly reacting to the market situation, thanks to the equipment of technologies, the possibility of introducing new ideas into production.

The problem of forming a system of state business support was studied by: A. Amosha, A. Blynov, V. Buev, A. Bulatov, Z. Varnalii, V. Gorfinkel, N. Jobava, F. Saidullaev, L. Sorokina, I. Shapkin, B. Shirokov, L. Shuklov and others.

The legislation of Ukraine provides broad rights regarding the establishment of small enterprises. Thus, their founders can be rental, collective, joint enterprises, cooperatives, joint-stock companies, and other enterprises and organizations, as well as citizens, family members, and other persons who jointly run a labor economy. The development of small business is also an effective factor that alleviates social tension and contributes to the democratization of market relations, because it is the fundamental basis of the formation of the "middle class", and therefore, the weakening of the tendency towards social differentiation inherent in the market economy. Small business has not only economic-production and socio-economic advantages, namely: flexibility, dynamism, adaptation to changes in technology, ability to quickly create and implement new equipment and technology, ensuring social stability, saturation of the labor market with new jobs, creation of additional workers places and reduction of unemployment, openness of access and ease of entry into this sector of the economy. Therefore, the development of entrepreneurship at the local level is a key direction of the state policy of promoting the development of small business [2, p. 188].

The state uses many forms of influence and mechanisms for direct or indirect influence on subjects of entrepreneurial activity, which manifest various aspects of state influence on it, including promotion of entrepreneurship, planning, regulation. The regulation will be applied in response to the need to protect public interests from abuses and violations by business entities and to protect business entities from violations of their rights by other entrepreneurs.

State regulation of entrepreneurial activity is not sufficient to create a favorable environment for entrepreneurship. It is necessary to form a complex of organizational and legal means for creating a macro-environment of entrepreneurial activity, including a developed infrastructure for supporting entrepreneurship, legal mechanisms for stimulating the development of entrepreneurial activity and an effective system for protecting the rights and legitimate interests of entrepreneurs, as well as public and state interests in the field of entrepreneurship.

Analysis of the activities of small business entities shows that a significant number of newly created small enterprises cannot start their work due to the lack of sufficient authorized capital, raw materials and materials, own space and equipment, practical skills and entrepreneurship of employees in doing business. They have problems of a production nature, difficulties in selling products, forming the appropriate clientele. Due to small volumes of economic activity, some small enterprises are unable to attract qualified specialists, hire capable workers and provide them with high wages. The development of small business is negatively affected by such restraining factors as the general decline of domestic commodity production, rising prices, inflation, low level of solvency of the population, racketeering, corruption, etc.

The problems of the development of entrepreneurship in Ukraine require an urgent solution by introducing the following measures: creation of special organizations that will deal with regulation and support of small business; to make changes to the legislative acts regarding the procedure for establishing an enterprise and to simplify this process by reducing the number of necessary permits required for opening a firm; introduce preferential lending conditions for small and medium-sized business or develop a state program aimed at providing subventions from the state budget; to improve the system of licensing and patenting for enterprises permanently engaged in the types of activities subject to licensing by extending the terms of validity of licenses and patents. Accordingly, the implementation of a complex system of measures to improve the system of state support for small business will allow to improve the financing mechanisms of the latter, which, in turn, will expand the sources of financing, increase the efficiency of the use of financial resources, and activate the development of the MB as a whole [1, p. 42].

Small and medium-sized entrepreneurship has a significant impact on the structural restructuring of the country's economy, makes a certain contribution to increasing the total volume of production, retail turnover, promotes savings and rational use of all resources, creates a favorable environment for the development of competition and the elimination of monopolies in the implementation of entrepreneurial activities, provides powerful incentives to innovative processes and highly efficient work. The lack of modern experience of civilized entrepreneurial activity among entrepreneurs is one of the main reasons for the financial collapse of most small business. The formation of small and medium-sized business in Ukraine is a long process, which must have a certain stage, based on the economic state of the country, existing problems at the macro and macro levels in the conditions of war.

Literature

1. Lomachynska I. A. Formation of sources of financial support for the development of small business entities. Bulletin of I. I. Mechnikov ONU. 2012. T. 17. Issue 34. P. 37-43.

2. Fedorchenko V. V. Improvement of the mechanism of formation of the state policy to support the development of small entrepreneurship. Governance. Investments: practice and experience. 2014. No. 7. P. 185 – 188.



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