Current state and support of small business in Ukraine

Kichuk Oksana
PhD in Economics, Department of Enterprise Economics and Business Organization, Odessa National Economics University, Ukraine, e-mail: ok_5@ukr.net, ORCID ID: https://orcid.org/0000-0001-5323-7608

Tarasova Yuliia
PhD in Economics, Department of Enterprise Economics and Business Organization, Odessa National Economics University, Ukraine, e-mail: julia20@ukr.net, ORCID ID: https://orcid.org/0000-0002-6120-4715

Cite this article:

Kichuk, O., Tarasova, Yu. (2023). Current state and support of small business in Ukraine [Suchasnyi stan ta pidtrymka maloho pidpryiemnytstva Ukrainy], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1-2 (84-85), pp. 145-156.

Abstract

The article investigates the current state of small businesses in Ukraine. The problems faced by enterprises and the challenges arising due to uncertainty and turbulence of the external environment are defined. The key indicators and performance results of this segment of the economy for 2017-2021 are analyzed. It has been established that during the study period the number of small enterprises tended to increase. It is noted that a relatively larger population is involved in this business sector’s activity. The volume production and sales is increasing. The structure of assets and liabilities of small entrepreneurship in Ukraine over five years is analyzed. It was determined that the structure of assets is dominated by current assets, receivables have the greatest weight among them, and the amount of inventories begins to grow. In liabilities, a significant amount is accounted for by current liabilities and collateral. It was found that enterprises have a high dependence on borrowed funds, but it decreases over time. The results of the study indicate that during the analyzed period, most small enterprises receive a net profit, but financial and investment activities are unprofitable. During the period 2017-2022, the amount of credit funds obtained by enterprises has increased. State programs designed to support Ukrainian enterprises are considered. Recommendations for supporting the country’s small entrepreneurship are formulated. To solve the problems of entrepreneurship, it is proposed to develop venture funds and business incubators in Ukraine. It is proposed to pay attention to the domestic manufacturers and suppliers, it is necessary to provide them with state orders, available capital for the development of existing and creation of new enterprises, as well as to use various forms of interaction between small and large enterprises

Keywords

small entrepreneurship; the results of small business activity; business support programs; forms of interaction between small and large enterprises.

JEL classification:L530; O100; DOI:https://doi.org/10.33987/vsed.1-2(84-85).2023.145-156

UD classification: 334.722.1:33602(477)

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