FINANCIAL AND ADMINISTRATIVE ASPECTS OF SMALL BUSINESS DEVELOPMENT IN UKRAINE
The article substantiates key financial and administrative aspects of small business development. It is noted that entrepreneurship in the field of small business is determined as the activity of business units with the inherent features that are both characteristic to entrepreneurial structures in...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
FINTECH Alliance LLC
2019-09-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/1963 |
| Summary: | The article substantiates key financial and administrative aspects of small business development. It is noted that entrepreneurship in the field of small business is determined as the activity of business units with the inherent features that are both characteristic to entrepreneurial structures in general, and also peculiar features that determine the peculiarities of such a functioning of business units in the sphere of implementing the tasks and objectives of the business. It is highlighted that the success of a small business depends on the conditions of the environment in which entrepreneurial structures operate. It is explained that to such conditions there should be included economic, legal, socio-cultural, demographic, technological, natural-geographical and organizational ones.
The peculiarities of business development in developed countries and Ukraine are analyzed and their comparative estimation is presented. It is determined that small and medium business play a significant role in the development of economic systems of developed countries around the world. It is established that the share of small and medium business in the GDP of many developed countries stands for more than 50%, which speaks of their significance for society as a whole.
It is proved that in order to reach the level of developed countries in Ukraine and to increase the presence and importance of small business, it is necessary to improve the mechanisms of public administration and to strengthen the financial factor of influence on the processes of business development in the country. The ways of improving financial mechanisms of small business management at the level of the state are presented. The direct and indirect means of public administration influence are characterized, on the basis of which entrepreneurs will be able to attract financial resources for their development.
It is suggested to allocate budget allocations, preferential lending and partial compensation of interest rates on loans to the direct means of public administration influence on the development of small business. Also, in the article there is offered to treat the development of alternative financing schemes, the activity of specialized guarantee funds, improvement of access of business to credit resources, improvement of the financial market infrastructure and training of specialists for the provision of consulting services for the participation of small business in financial market operations as the indirect means of public administration influence on the development of small business.
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| ISSN: | 2306-4994 2310-8770 |