COMPETITIVENESS OF SMALL ENTREPRENEURSHIP IN UKRAINE: THE STATE AND PROSPECTS OF IMPROVEMENT

Author
, PhD (economy), Associate Professor, Associate Professor Department of Corporate Finance and Controlling, Ukraine, Kyiv

In heading

 Economic theory;

Signed print

 22.11.2019

Issues number

 2019 - № 4 (39)

Page

 24-45

Type of articles

 Scientific article

Code UDK

 334.012.61–022.51:339.137.2](477)

ISSN print

 2411-5584

Abstract

 Problem setting. At the present stage of economic development of Ukraine, enterprises are forced to grow their business in an extremely unstable external environment. In order to be competitive and meet the requirements of the market for businesses, it is necessary to: constantly analyze the demand in the area in which the enterprise operates; to modernize production and all processes at the enterprise; to conduct research of offers of competitors; analyze customer wishes; constantly expand and upgrade products or services.
Recent research and publications analysis. At the present stage of development of small business management aspects of analysis and planning of improving the competitiveness of enterprises are insufficiently developed, their coverage in scientific publications is controversial, there are many differences among scientists in understanding the ways to reach a competitive level in one or another field of activity of small enterprises.
Paper objective. The purpose of the article is to analyze the condition and problems of development of small business in Ukraine, to assess the government of its competitiveness at the national and international levels, as well as to develop and substantiate promising proposals for improving the competitiveness of small business entities in the current economic environment in the light of globalization transformations.
Paper main body. The current realities of the country’s economy lead to small businesses being forced to work and develop in a complex and volatile economic environment. The issues of enterprise competitiveness are being investigated both nationally and internationally.
Innovation is the main driver of small business competitiveness in today’s world. Therefore, the state and, above all, entrepreneurs should focus on modernizing their businesses.
In recent years, there have been clear and consistent steps by the government in supporting and developing small businesses in Ukraine, which is reflected in the positive dynamics of the country’s ranking in the ease of Doing business index.
It has been determined that the priority areas for enhancing the competitiveness of small business entities in Ukraine are: participation in EU-initiated small and medium-sized entrepreneurship support programs; participation in the EEN; search for new alternative sources of financing for business activities (financing through credit, state subsidies, participation in programs of financial support for innovative technologies, fundraising, etc.); optimization of taxation (application of preferential taxation, exemption from payment of individual taxes); strengthening state support for small business entities, including financial support from state and local budgets.
Conclusions of the research. To enhance the competitiveness of small businesses in Ukraine, the following proposals are justified: use the global experience of small businesses; to join European small business development programs; to introduce innovative processes more broadly into the work of enterprises; introduce government preferential lending programs and support for other small business financing tools; to clearly structure the
legislative norms for the support and regulation of small businesses; reduce the tax burden on small businesses; to create a level playing field for all market participants.
Short Abstract for an article
The article analyzes the current state and problems of small business development and its competitiveness, assesses the influence of factors that determine this process. The place of Ukraine in the ranking of the Global Competitiveness Index and the Ease of Doing Business Index is analyzed and the factors that influence it are identified. Prospects for the development of small business in Ukraine and ways to increase its competitivenes are substantiated. Proposals for modernization of state support mechanisms for small business in order to increase its competitiveness have been developed.

Keywords

 entrepreneurship, small business, competitiveness, innovation, government support.

Reviewer

External reviewer

Article in PDF

 24-45

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Code DOI

 10.31359/2411-5584-2019-39-4-24

22.11.2019