DEVELOPMENT OF SMALL ENTREPRENEURSHIP IN UKRAINE: MODERN TRENDS AND PROSPECTS

Abstract

The role of small business in the socio-economic development of the country is determined. It is established that the development of small business is extremely important for economic growth (creation of new jobs, introduction of innovations, increase of budget revenues), reduction of unemployment through self-employment of the population.

Based on the analysis of statistical data, an assessment of the current state of development of small business in Ukraine has been made and problems in this area have been highlighted. Among the main ones are: changes to the legislation, introduction of a zero income tax; dependence of domestic small business entities on fluctuations in foreign exchange rates; reducing the purchasing power of the population; the difficulty of attracting bank loans.

The potential of small business development in Ukraine has been evaluated based on the Doing Business Index. According to its results, in 2018, the country has taken 76th place, improving its position compared to last year by four points.

The main reasons that impede the development of small business are identified. Namely: lack of a comprehensive state policy aimed at supporting small business entities; complexity of access to external sources of financing and attraction of investments; imperfection of tax legislation; complexity of certification and standardization of goods and services; insufficient interaction between local authorities and entrepreneurs; low level of information, consulting and methodological support of business activity. In this regard, attention is drawn to the need for state support for small business. The basic directions of the state policy aimed at the development of small business and full utilization of its potential for socio-economic development of the territories and the country as a whole have been formed.