SMALL AND MEDIUM-SIZED ENTREPTENEURSHIP – THE INSTITUTE OF DEVELOPMENT OF NATIONAL ECONOMY

Abstract

The article is devoted to defining the role and importance of small and medium entrepreneurship (SME) in national economy, given the current situation of development of this sector of the economic system of Ukraine. In the presence of well-founded theories on the development of small economy, scientists and practitioners interpret small and medium-sized businesses differently, and some assertions are partially or not reflected in practice. Using the hypothetical-deductive methodology, methods of analysis and synthesis, logical generalization, systematization, comparison, graphical display of data, etc., the author's vision of necessity of considering the SME as an institution of national economy development was formed. This approach allowed, in addition to confirming or refuting the hypotheses about SME, to comprehensively assess the state of development of small and medium-sized businesses in Ukraine, to identify the most painful problems and indicate the direction of their solution. The hypothesis that SME are forming around big business was refuted, on the contrary, it was confirmed that small and medium-sized businesses in Ukraine are an independent institution, actively developing in small non-industrial towns. The second hypothesis regarding the value of SME in payments to budgets was partially confirmed, while it was noted that the most positive factor in the impact of SMEs on the national economy is employment. The third hypothesis involved finding the role of startups in starting a new business. True innovations require significant investments, so it is advisable to use government programs to promote innovation in SME. Regarding startups, the hypothesis was refuted, as such practical cases are needed as tools in the process of business education and business training of potential business entities. The position was expressed that it is more expedient to implement training on the basics of founding and running one's own business in combination with individual consulting support from such institutions of SME support infrastructure as business incubators. In this case, in addition to professional counseling, the future entrepreneur receives psychological assistance and a number of social benefits. With the appropriate potential for this, the formation of small and medium-sized businesses in Ukraine as a development institution, unfortunately, did not happen, it is necessary to create an appropriate institutional environment.