The article deals with problems of small and medium-sized businesses development in Ukraine. The social and economic functions of small and medium-sized businesses are outlined. Statistical indicators of small and medium-sized businesses and individuals-entrepreneurs activity is analyzed.
Important social and economic functions of small and medium-sized businesses are described, such as: problems of the population employment, providing market flexibility and adaptability, formation of a competitive environment, structural economy restructuring, freedom of market choice, economic growth by generating new ideas, the formation of a middle class that enables the creation of civil society.
A statistical research of entities activity in Ukraine is conducted. The authors analyzed the performance of small, medium and large enterprises in Ukraine in 2017-2018. Indicators of private entrepreneurs in Ukraine in 2015-2018 was researched. Research found that small and medium-sized businesses occupy a significant share in the economy of Ukraine. It has been established that in recent years there was a reduction in the number of private entrepreneurs, which is a non-negligible factor.
The authors analyzed and identified five groups of problems that small and medium-sized businesses face. These problems are: problems with starting business entities, problems related to financing and finding credit, problems related to goods sale, services and works, problems related to the economic and socio-political situation in Ukraine, problems that may arise in case of force majeure. Small and medium-sized businesses are faced with the problems of high cost of rent, high loan rates, fierce competition, price dumping, business risk, ineffective government support.
Solving development problems of small and medium-sized businesses in Ukraine is one of the key areas of public policy. Business support programs conducted over the last six years are reviewed. The focus is on the support of the Ministry of Economic Development and trade of Ukraine of small and medium-sized businesses. Programs and answers of the Ministry of Economic Development and trade of Ukraine in support small and medium-sized businesses are described.
Attention is paid to the current support for small and medium-sized businesses by the domestic government. Prospects of overcoming the negative factors for small and medium-sized businesses, such as: state support for small and medium-sized businesses, international assistance for small and medium-sized businesses, business support through franchising and leasing, self-organization and cooperation in the form of associations, unions, networks and branch, effective personnel management and skilled training are developed.
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