THE CHANGE IN PRIORITIES OF STATE REGULATION OF THE SMALL BUSINESSES' DEVELOPMENT

Анотація

Urgency of the research. Small business is the structure-forming element of the modern mixed economy. Its subjects promptly react to the changes of market conditions, maintain a competitive environment, create new work places etc. Target setting. The imperfection of classification criteria and artificial narrowing of the economic substance of small business made some of the domestic business entities be out of state regulation. Actual scientific researches and issues analysis. Both foreign (P. Druker, H. Milenbush, S. Parker, D.Rechmen et al.) and domestic scholars (Z. Varnaliy, T. Kovalchuk, V. Syzonenko, H. Sobol et al.) researched various aspects of the creation and operation of small business. Uninvestigated parts of general matters defining. The< problems of transformation of the economic essence of small business in the modern economy of Ukraine and, on this basis, the feasibility of changes in priorities of state policy and its support need more investigation. The research objective. The objective of the paper is a comprehensive study of the economic essence of small business, providing recommendations on improving its quantitative classification criteria and expanding its structure, formulation of proposals for effective directions of state support for each domestic small business. The statement of basic materials. The weighty role and functions of small business in today's mixed economy are substantiated; its advantages and disadvantages are characterized. On the basis of the critical analysis of existing classification criteria and of the use of the world experience it is suggested to broaden the criteria for its classification. While determining qualitative criteria one should take into account the heterogeneity of small businesses and their contribution to economic development. Size criterion (small sole proprietors, micro enterprises, small businesses) is offered to be complemented with the criterion of conformity to market economy ("forced entrepreneurship", "mature entrepreneurship", "demanding entrepreneurship"). Conclusions. Using updated criteria and taking into account the importance, specificity and heterogeneity of domestic small business, it is proposed to change the priorities of state policy of its maintenance.

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