EVALUATION OF STATE AND TRENDS OF DEVELOPMENT OF SMALL ENTERPRISE IN UKRAINE

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EVALUATION OF STATE AND TRENDS OF DEVELOPMENT OF SMALL ENTERPRISE IN UKRAINE

Journal Title: Науковий погляд: економіка та управління - Year 2018, Vol 1, Issue 59

Abstract

In the modern world, the functioning of business entities is rather complex and unpredictable, and especially small businesses are vulnerable. Small business in Ukraine is in a rather horrible state and primitive level, as small business entities are forced to “survive” under strict market laws. The article reveals the advantages and disadvantages of creating and developing small business entities in Ukraine, comparing their share in GDP with different European countries. Estimates of the number, composition and structure of small business entities (by types) in Ukraine for 2010 – 2017, in particular, the largest share is occupied by individual entrepreneurs. The main factors that negatively influence the development of small business in Ukraine were determined, and their significance was substantiated by the decrease of the number of subjects of economic activity for the further analyzed period. The article analyzes the number of small enterprises by types of their economic activity in 2017 by means of the estimation of statistical data published by the State Statistics Service of Ukraine, and an estimation of their share, which is represented graphically by means of a structural diagram. It was determined that the smallest enterprises engaged in wholesale and retail trade, repair of motor vehicles and motorcycles, agriculture, forestry, fishing industry and industry occupy the largest share. The smallest share is education, art, sports, entertainment and recreation. The number of hired workers of small businesses in Ukraine in 2017 and labor costs are presented, the main types of their activities are determined, in particular, the largest number of hired employees belongs to industry, and the least – to artistic activity. The territorial placement and closure of small business entities on the territory of the country, in particular, in: Kyiv region, Kharkiv region, Dniprovs'k region, were investigated. It is substantiated that retail and wholesale traders, warehouse and transport services are most often closed. A number of factors that influenced the mass closure of small business entities in the country were revealed, as well as identified the directions of development and the effectiveness of their activities in the future. It should be noted that small business in Ukraine is forced to overcome a number of macroeconomic impediments, the main reason of which is the unstable economic situation of the country, ineffective financial support of small enterprises, excessive tax pressure and ineffective legislative framework of Ukraine

Authors and Affiliations

L. V. Vynyantsyna, I. V. Senchuk

Keywords

EP ID EP449614
DOI 10.32836/2521-666X/2018-1-59-6
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