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Abstract

Table of contents

Introduction

Small and medium business in a market economy is the leading sector that determines the rate of economic growth, the structure and quality of the gross national product (GNP).

In all developed countries, small business accounts for 60-70% of GNP. In most countries, such as the United States, Japan, Germany, France, Great Britain, the overwhelming majority – 99.3% -99.7% of the number of enterprises are the so-called small and medium-sized enterprises. They are allocated among others in terms of the number of employees (for example, no more than 500 people) or the size of fixed capital. Almost half of the output is produced on them. As a rule, such enterprises give 75-80% of new jobs, in contrast to large industries, where employment is reduced and structurally adapt more quickly to changes in the external environment. This sector is inherently a typical market and forms the basis of modern market infrastructure.

1. Theme urgency

The topicality of process management in small and medium-sized businesses is that small and medium business in a market economy is the leading sector that determines the rate of economic growth, the structure and quality of the gross national product (GNP).

The problems of small business development were handled by the largest foreign and domestic economists.

First of all, these are the works of the classics: R. Cantillon, A. Smith, Zh.B. Say, D. Ricardo, K. Marx, A. Marshall, D. Keynes. Among the later researchers: P. Drucker, A. Kaminka, M. Piter, F. Hayek, R. Hizricha, J. Schumpeter.

2. Goal and tasks of the research

The purpose of this work is to analyze the state of the small business sector, as well as the development of a strategy for small business development in the Donetsk People's Republic.

Research object: the process of managing the strategy of small business development.

Research subject: the process of managing the strategy of small business development.

3. Theoretical and legislative basis for the existence of small business

3.1 Features of small business management

One of the important reserves of increasing the efficiency of production and improving on this basis the life of the people in the transition to a market economy, as the practice of the developed countries of the world shows, is the intensive development of small business.

Historically, the initial factor in the genesis of the market economy of most countries was small business. This phenomenon requires an analysis of its causes in order to subsequently determine the factors hindering the small business's performance of its organizing functions in the formation of the market system. Only on this basis can we disclose the economic and social conditions for the development of small business in the world economy.

Small enterprises are quite independent and the most typical form of organization of the economic life of a society in conditions of developed market economy. They have their specific distinctive features advantages and disadvantages inherent only in their internal laws of development. Functioning mainly on a specific local market, rapid response to changes in the market conditions of this market, narrow specialization in a certain segment of the market for goods and services, direct communication with the consumer, the need for a relatively small start-up capital - these characteristics of a small enterprise are its strengths that increase stability and their survivability as a structural element of the economy, but under certain conditions such characteristics acquire a negative significance inhibit The development of a particular enterprise, threatens its existence[1, с.115-116].

Studying the problems of small business is impossible without the definition of the concept itself, the disclosure of its essence and functions. In Western and Russian economic literature, there is a different interpretation of this concept, and it is often used with different semantic loads. In addition to the concept of small business in economic literature, such concepts as small business, small business, small enterprise are also used. All of them are not identical. Also, one can immediately note that there are certain difficulties associated with the delineation of small, medium and large businesses. The latter concept is broader. Business includes entrepreneurship and acts as a kind of economic activity for the creation of marketable products and its market realization in the conditions of market competition. Under the business, we also understand certain market relations between legal entities and individuals engaged in economic activity, which is based on different forms of ownership, about income generation and the satisfaction of people's needs, that is, the expression of what is called production relations in classical political economy.

Small business is an integral part of the overall business system and is a form of existence of small-scale production in a market economy, and small businesses and small businesses are small business elements.

There are different criteria for classifying an enterprise as a small one, and in different countries in different ways. Among the quantitative indicators used, the number of employees, annual turnover, the size of the authorized capital, participation in the capital of the enterprise of other firms and organizations, profit, and the level of profitability are allotted. For example, in Germany, Belgium, Great Britain, the Netherlands, Portugal, the company's turnover indicator is used as a criterion, in Italy and Ireland – the value of real estate. In accordance with the federal law On the state support of small business in the Russian Federation, small business entities include commercial organizations whose share in the authorized capital of the Russian Federation, constituent entities of the Russian Federation, public and religious organizations, charitable and other funds does not exceed 25% one or several legal entities that are not subjects of small business, does not exceed 25% and in which the average number of employees per report the first period does not exceed the following limits, the person:

– Industry, construction, transport 100 people;

– agriculture, scientific and technical sphere 60 people;

– wholesale trade 50 people;

– Retail trade and consumer services for the population of 30 people;

– other branches and other types of activity 50 people[2, с.3-5].

A feature of small and medium-sized enterprises is the management system. This is due to the fact that the owner of the property directly manages the enterprise. The entrepreneur is vitally interested in the prosperity of his business, the more he risks his property, so he is directly involved in almost all the functional areas of the enterprise. The last mentioned fact explains the compactness of the management team, the multifunctionality of managers, the absence of cumbersome managerial structures, the informal nature of planning and control, and the speed of decision-making.

Conclusion

Thus, at the current stage of research, theoretical aspects of competitiveness are considered.

Small business is a special type of entrepreneurial activity, the subject of which takes innovative decisions with full responsibility and connects various means of production with the aim of generating income (profit). The concept of small business is multifaceted, therefore it should be viewed in the unity of several aspects. The subjects of small business include consumer cooperatives and commercial organizations entered into the unified state register of legal entities (with the exception of state and municipal unitary enterprises), as well as individuals entered in the unified state register of individual entrepreneurs and carrying out entrepreneurial activities without the formation of a legal entity (hereinafter – individual entrepreneurs), peasant (farm) farms that meet certain conditions

This master's work is not completed yet. Final completion: June 2018. The full text of the work and materials on the topic can be obtained from the author or his head after this date.

References

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