Social and Legal Studios

Abstract

The article investigates a complex and controversial nature of small entrepreneurship in Ukraine. It states that the Ukrainian government supports the development of small business with national, regional and local programs. However, this support is declared in writing-only. At the same time, the pressure from supervisory bodies and a significant degree of state control has led to a decrease in a number of small enterprises. The author has analyzed various academic doctrines that explain the essence of small entrepreneurship. In economic literature, it is described as a significant component of an economy, whose features strongly depend on location and a corresponding government policy of specific country. Definitely, there is a need to implement innovations and determine the perspectives for small business development. The paper emphasizes a crucial role of small enterprises in streamlining the structure of national economy. A special attention has been paid to the socioeconomic importance of small business. By creating jobs, small entrepreneurs actively participate in the accumulation of state budgets at all levels; facilitate the process of levying personal income taxes. The author claims that the overhaul of small entrepreneurship sphere has to ground on innovations, especially in management. Consequently, it will create a basis for further evolvement of an economy. One of the paragraphs displays a “reliability hexagon” as a graphic visualization of competitive economic foundations of business environment. It presents a constellation of effectiveness indicators of small entrepreneurship by specific examples of EU-15 countries. The calculations base on the following indicators: actual number of enterprises and employees, payroll, labor productivity, gross investment, commodities turnover, value added, gross profit. The author lists the circumstances that affect small business and originate from the peculiarities of a national economic policy in the sphere. The most influential ones include a dependency on evolutionary technological and organizational processes in a country as well as a reproduction mechanism inside the small business, which itself cannot establish specific technological and organizational conditions as of big companies. It is recommended to find special pathways for small firms and government as well as clarify mutually beneficial circumstances and employ scientific approaches

Keywords: small entrepreneurship, implementation, EU-15, constellation of indicators, innovative experience, “reliability hexagon”

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