SMALL BUSINESS OF UKRAINE IN THE MIRROR OF OFFICIAL STATISTICS
DOI:
https://doi.org/10.34132/pard2021.13.02Keywords:
small business, SME development, small business development promotion policyAbstract
The article is devoted to the peculiarities of small business development in Ukraine. The research is primarily descriptive. The purpose of the article comprises to answer two main research questions: (1) What are the features of the structure and dynamics of small business development in Ukraine? and (2) What characterizes the policy of promoting small business development in Ukraine? Quantitative analysis is mainly based on official statistics and analytical scientific publications. Attention to small business stems from modern views on its high role in economic growth. The results obtained during the analysis demonstrate several special features of the development condition. Thus, over the last almost 10 years, the number of small enterprises (SEs) has not changed, but the number of large and medium-sized enterprises (MEs) has decreased significantly. There is a change in the sectoral structure of small and medium enterprises (SMEs): a significant reduction in the number of enterprises in financial and insurance activities, in the field of temporary accommodation and catering and in construction. Against this background, the number of new ventures in health care and social assistance and micro-enterprises in the supply of electricity, gas, steam, and air conditioning is growing. In recent years, the contribution of joint ventures to employment has increased, while the role of large and small enterprises has decreased. The participation of different groups of enterprises in the formation of value added is significantly changing: the share of large enterprises is declining, and the role of SMEs is actively growing. Distinctive is the convergence of the efficiency of personnel costs for all groups of enterprises. However, large companies show the best financial results, and they are leaders in the amount of investment per employee. The formation of the regional landscape of SMEs is rather uneven. In general, Ukraine lags far behind Georgia, the leader in the Eastern Partnership countries, in terms of small business development policy assessment: the gap is mainly in public procurement, internalization, business development services, the green economy and the institutional and regulatory framework.
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28. The state of small business. Putting UK entrepreneurs on the map. (2017) [in English].
29. Velyki problemy maloho biznesu. Systemnyi zvit ombudsmena [Big problems for small business. The system report of the ombudsman]. (2020). (n.d.). boi.org.ua. Retrieved from http://www.boi.org.ua [in Ukrainian].
30. Wang Y. (2016). What are the biggest obstacles to growth of SMEs in developing countries? – an empirical evidence from an enterprise survey. Borsa Istanbul Review, 16 (3), (pp. 167-176) [in English].
31. World Bank Group Support for Small and Medium Enterprises. A Synthesis of Evaluative Findings. (2019). (n.d.). ieg.worldbankgroup.org. Retrieved from https://ieg.worldbankgroup.org/sites/default/files/Data/Evaluation/files/SME_Synthesis.pdf [in English].
32. World Bank. (2004). «SME», World Bank Group Review of Small Business Activities. Washington, DC: World Bank [in English].
33. Belás, J., Bartoš, P., Habánik, J., & Novák, P. (2014). Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises, Economics and Sociology, (Vol. 7), 3, (pp. 22-39). Retrieved from https://doi.org/10.14254/2071-789X.2014/7-3/2 [in English].
34. Samitowska, W. (2011). Barriers to the Development of Entrepreneurship Demonstrated by Micro, Small and Medium Enterprises in Poland, Economics & Sociology, (Vol. 4), 2, (pp. 42-49) [in English].
35. Shyra, T., Shtyrov, O., Korchynskyy, I., Zerkal, A., & Skoryk, H. (2020). Providing the corporate security strategy in the management system of the enterprise. Business: Theory and Practice, 21(2), 737-745. https://doi.org/10.3846/btp.2020.12975.
2. Derzhavna dopomoha pidpryiemstvam v konteksti Uhody pro Asotsiatsiiu mizh Ukrainoiu ta YeS [State aid to enterprises in the context of the Association Agreement between Ukraine and the EU]. (n.d). www.researchgate.net. Retrieved from https://www.researchgate.net/publication/339732712 [in Ukrainian].
3. Derzhavna sluzhba statystyky Ukrainy [State Statistics Service of Ukraine]. (n.d.). www.ukrstat.gov.ua. Retrieved from http://www.ukrstat.gov.ua/ [in Ukrainian].
4. Edmiston, K.D. (2007). The Role of Small and Large Businesses in Economic Development. Retrieved from https://doi.org/10.2139/ssrn.993821 [in English].
5. Fisher, D. (1967). Modern Small Industry for Developing Countries: A Paradox in Planning Economics. Economic Development and Cultural Change, (Vol. 15), 3, (pp. 341-346) [in English].
6. Informatsiini materialy shchodo stanu ta rozvytku maloho i serednoho pidpryiemnytstva. Ministerstvo ekonomiky Ukrainy [Information materials on the state and development of small and medium enterprises. Ministry of Economy of Ukraine]. (n.d.). www.me.gov.ua. Retrieved from https://www.me.gov.ua/Documents/Detail?lang=uk-UA&id=5f43eb87-a668-4ea4-9db3-b46a02c5a782&title=StatistichniTaInformatsiiniMaterialiSchodoStanuTaRozvitkuMalogoISerednogoPidprimnitstva [in Ukrainian].
7. İşkurak E., & Dikmen C. (2021). Factors Causing Failure in SMEs and Prevention Methods. Revista Argentina de Clínica Psicológica, (Vol. XXX), 1, (pp. 549-552). Retrieved from https://www.revistaclinicapsicologica.com/data-cms/articles/20210211114605pmSSCI-523.pdf [in English].
8. Kyzym M.O., Chechetova-Terashvili T.M., & Khaustova V.Ye. (2019). Male ta serednie pidpryiemnytstvo v Ukraini: osoblyvosti ta problemy rozvytku [Small and medium business in Ukraine: features and problems of development]. BIZNESINFORM – BUSINESSINFORM, 10, (pp. 301-317) [in Ukrainian].
9. Metodolohichni poiasnennia [Methodological explanations]. (n.d.). www.ifstat.gov.ua. Retrieved from http://www.ifstat.gov.ua/STAT/m_inv.htm [in Ukrainian].
10. Monitoring the Implementation of Ukraine’s SME Development Strategy 2017-2020, OECD Publishing, Paris. (n.d.). www.oecd.org. Retrieved from www.oecd.org/eurasia/competitiveness-programme/eastern-partners/Monitoringthe-Implementation-of-Ukraine’s-SME-Development-Strategy-2017-2020-ENG.pdf [in English].
11. Ndeye N., Razak L.A., & Nagayev R., Ng A. (2018). Demystifying small and medium enterprises’ (SMEs) performance in emerging and developing economies. Borsa Istanbul Review, (Vol. 18), 4, (pp. 269-281) [in English].
12. Nimfa D. T., Latiff A. S. A., & Wahab S.A. Theories underlying sustainable growth of small and medium-sized enterprises. African Journal of Emerging Issues (AJOEI), Online ISSN: 2663-9335, (Vol. 3), 1, (pp. 43-66). Retrieved from https://www.researchgate.net/publication/349043754_THEORIES_UNDERLYING_SUSTAINABLE_GROWTH_OF_SMALL_AND_MEDIUM_ENTERPRISES [in English].
13. OECD (2019). OECD SME and Entrepreneurship Outlook 2019. OECD Publishing, Paris. Retrieved from https://doi.org/10.1787/34907e9c-en [in English].
14. OECD et al. (2020). SME Policy Index: Eastern Partner Countries 2020: Assessing the Implementation of the Small Business Act for Europe. SME Policy Index, European Union, Brussels/OECD Publishing, Paris, https://doi.org/10.1787/8b45614b-en [in English].
15. Orujov S., Alakbarov E., & Maharramov J. (2019). Econometric assessment of the effect of Small and Medium Enterprises on Economic Development (The Case of Azerbaijan). Information and Innovations, (Vol. 14), 2, (pp. 35-42) [in English].
16. Pidtrymka maloho i serednoho pidpryiemnytstva na derzhavnomu rivni [Support for small and medium enterprises at the state level]. (n.d.). www.me.gov.ua. Retrieved from http://www.me.gov.ua/Documents/Detail?lang=uk-UA&id=fd7fb228-3d3c-43d6-a9a5-34eea3e04718&title=PidtrimkaMalogoISerednogoPidprimnitstvaNaDerzhavnomuRivni [in Ukrainian].
17. Pinkovetskaia Iuliia. Sectoral concentration and regional specialisation of Small and Medium Enterprises (SMEs) in Russia: Application of Krugman Index. (2017). The Journal of Contemporary Issues in Business and Government, (Vol. 23), 1, (pp 20–29) [in English].
18. Prohramy pidtrymky pidpryiemtsiv. Ministerstvo ekonomiky Ukrainy [Entrepreneur support programs. Ministry of Economy of Ukraine]. (n.d.). me.gov.ua. Retrieved from https://me.gov.ua/Documents/List?lang=uk-UA&id=5dee0c19-31f9-4a56-9f86-c05dc322cbb4&tag=ProgramiPidtrimkiPidprimtsiv [in Ukrainian].
19. Reid Gavin C. (1993). The Survival of Small Business Enterprise. www.researchgate.net. Retrieved from https://www.researchgate.net/publication/24126731_The_Survival_of_Small_Business_Enterprise [in English].
20. Rekomendatsii shchodo planuvannia rozvytku maloho ta serednoho pidpryiemnytstva na rivni rehioniv ta terytorialnykh hromad [Recommendations for planning the development of small and medium enterprises at the level of regions and local communities]. (2021). FORBIZ. EU4Business. Ministerstva rozvytku ekonomiky, torhivli ta silskoho hospodarstva Ukrainy [in Ukrainian].
21. Rocha Vera Catarina. (2012). The Entrepreneur in Economic Theory: From an Invisible Man Toward a New Research Field. www.researchgate.net. Retrieved from https://www.researchgate.net/publication/230676107_The_Entrepreneur_in_Economic_Theory_From_an_Invisible_Man_Toward_a_New_Research_Field [in English].
22. Rosenbusch N., Brinckmann J., & Bausch A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26, (pp. 441-457) [in English].
23. Shvets N.V., & Iziumska A.V. (2020). Malyi biznes v Ukraini: analiz stanu ta tendentsii [Small business in Ukraine: analysis of the situation and trends]. Visnyk Skhidnoukrainskoho natsionalnoho universytetu imeni Volodymyra Dalia – Bulletin of the Voloimir Dahl East Ukrainian National University, 2 (258). Retrieved from https://doi.org/10.33216/1998-7927-2020-258-2-108-117 [in Ukrainian].
24. Small business in the Australian economy. (2019). (n.d.). www.asbfeo.gov.au. Retrieved from https://www.asbfeo.gov.au/sites/default/files/Small_Business_Statistical_Report-Final.pdf [in English].
25. SME Policy Index: Eastern Partner Countries. (2020). (n.d.). www.oecd.org. Retrieved from https://www.oecd.org/publications/sme-policy-index-eastern-partner-countries-2020-8b45614b-en.htm [in English].
26. Stan rozvytku maloho biznesu, derzhavna polityka shchodo maloho biznesu ta rekomendatsii. TPP Ukrainy. [Status of small business development, state policy on small business and recommendations. CCI of Ukraine]. (2020). (n.d.). ucci.org.ua. Retrieved from https://ucci.org.ua/uploads/files/5fe46a6b59923480842013.docx [in Ukrainian].
27. Tambunan Tulus. (2006). Micro, Small and Medium Enterprises and Economic Growth. Working paper series, 14 [in English].
28. The state of small business. Putting UK entrepreneurs on the map. (2017) [in English].
29. Velyki problemy maloho biznesu. Systemnyi zvit ombudsmena [Big problems for small business. The system report of the ombudsman]. (2020). (n.d.). boi.org.ua. Retrieved from http://www.boi.org.ua [in Ukrainian].
30. Wang Y. (2016). What are the biggest obstacles to growth of SMEs in developing countries? – an empirical evidence from an enterprise survey. Borsa Istanbul Review, 16 (3), (pp. 167-176) [in English].
31. World Bank Group Support for Small and Medium Enterprises. A Synthesis of Evaluative Findings. (2019). (n.d.). ieg.worldbankgroup.org. Retrieved from https://ieg.worldbankgroup.org/sites/default/files/Data/Evaluation/files/SME_Synthesis.pdf [in English].
32. World Bank. (2004). «SME», World Bank Group Review of Small Business Activities. Washington, DC: World Bank [in English].
33. Belás, J., Bartoš, P., Habánik, J., & Novák, P. (2014). Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises, Economics and Sociology, (Vol. 7), 3, (pp. 22-39). Retrieved from https://doi.org/10.14254/2071-789X.2014/7-3/2 [in English].
34. Samitowska, W. (2011). Barriers to the Development of Entrepreneurship Demonstrated by Micro, Small and Medium Enterprises in Poland, Economics & Sociology, (Vol. 4), 2, (pp. 42-49) [in English].
35. Shyra, T., Shtyrov, O., Korchynskyy, I., Zerkal, A., & Skoryk, H. (2020). Providing the corporate security strategy in the management system of the enterprise. Business: Theory and Practice, 21(2), 737-745. https://doi.org/10.3846/btp.2020.12975.
Published
2021-09-08
How to Cite
Verlanov, Y. (2021). SMALL BUSINESS OF UKRAINE IN THE MIRROR OF OFFICIAL STATISTICS. Public Administration and Regional Development, (13), 581–598. https://doi.org/10.34132/pard2021.13.02
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