Экономические науки/10.Экономика предприятия.

Гогия Е.С., Белан Н.В.

               Донецкий национальный университет  экономики и торговли

имени Михаила Туган-Барановского

The essence and role of small business in terms of transition to market relations

 

One of the most common definitions of business said that the "business" - is any activity aimed at making profit through the provision of other necessary goods and services. An important part of business structure, is a "small business". The purpose of the work is to point out the role of small business in economy.

World experience and practice suggest that an important element of market economy is the existence and interaction of large, medium and small enterprises. This small business is considered not only as a supplement to more production, as well as an independent form of functioning and development of modern productive forces. Of special importance of small businesses in transition to market relations period is manifested in economic restructuring, accelerating scientific and technological process, the formation of a new social stratum.

Small business is one of the leading sectors, largely determines the pace of economic growth, employment status, structure and quality of the gross national product.

The most actual problem of market penetration of small businesses in conditions of recent changes the economy of our country. While recovering from the economic crisis we can not but mention the policies of small business support. The emergence of a large number of companies will create new jobs, small business is easier to manage in an uncertain rate of national currency, and it will  bring real money not only into the budget of the center, but to regions, as well which is especially important.

But in order to avoid many mistakes that are inevitable in the formation of the new trend in the Ukrainian economy, we must first learn from the ups and downs of other countries in this field and with the account of conditions necessary for the development of small businesses in our country.

Active growth of the share of small enterprises in the economic structure of western countries began to take place since the mid 70's - early 90-ies. Today, small firms account for 70-90% of the total number of enterprises in the most developed western countries. For comparison, we can take, for example with the United States - where a small business employs 53% of the total population and in Japan it is 71,7% in EU, similar enterprises employ nearly half the working population. But these figures show the great importance of small businesses for the economy of these countries.

Most foreign countries are trying to attract outer funds to promote the development of small businesses but not through the mobilization of the domestic market whit the use of a system of benefits and public assistance. Financial stability of the country directly depends on the implementation of the economic potential of small businesses, opportunities and conditions for their financial security. An effective system of public financial support is of great importance not only for businesses but also for the economy.

In conclusion, it is important to say that dynamism, development and diversification of small businesses suggest that, the sector of farming in western countries will also develop. In future our country is hoped to follow the experience of foreign countries to adapt small business to modern economic reality. Moreover, Ukrainian small and medium-sized businesses are not fully utilized in production that could increase and improve its efficiency and balance. Small business leads to a healthier economy as a whole. Therefore, the best way out of the crisis in Ukraine would be a government policy aimed at expansion and development of small businesses in our country.

 

 

References.

 

1. Muravieva A.I. and other Small Business: Economics, organization and finances. - M., 2005.

2. Onischuk Y. financial support of small businesses. / / Finance of Ukraine. 7, 2008.

3. Goncharova NV Areas of integration processes in financial support for small business. / / Finance of Ukraine. 7, 2003