DEVELOPMENT OF SMALL AND MEDIUM ENTREPRENEURSHIP IN CONDITIONS OF ECONOMIC INSTABILITY AND CRISIS PHENOMENA

Abstract

The article substantiates the principles of development of small and medium-sized enterprises in conditions of economic instability and crisis phenomena. It is found that over the past two decades the structure of the Ukrainian economy has changed, and now medium-sized businesses consist mainly of new enterprises created during the years of Ukraine's independence. The distribution of medium-sized enterprises by industry is an important indicator for analyzing the structure of the economy, since the industry specialization of enterprises reflects the level of development of specific sectors of the economy and their contribution to the overall production activity of the country. It is substantiated that, given the role of medium-sized enterprises in providing jobs, developing technologies and innovations, as well as their impact on the national economy, their distribution by industry makes it possible to determine priorities in economic policy and infrastructure development. An analysis of the distribution of medium-sized enterprises by industry indicates the dominance of the food industry in the overall structure, which is an important factor in the stability and development of the country's economy. It is also worth noting the significant share of enterprises in the category "Other production", which may indicate the diversity and adaptation of medium-sized enterprises to modern economic conditions. It was established that in modern conditions of economic instability and crises, negative factors persist, in particular, shelling of port infrastructure, the risk of new attacks on energy facilities, increasing costs for energy, salaries, logistics, increasing excise taxes on fuel, shortage of qualified personnel and inflationary processes. Obstacles to the growth of small businesses in modern conditions of economic instability and crises were identified, including: low demand for products, loss of tax benefits, lack of investment resources, limited access to loans, changes in accounting, the need to maintain commodity and warehouse accounting, expectations of an increase in cost or deterioration in product quality. The main aspects that small and medium-sized businesses should focus on are highlighted, namely: increasing the efficiency of using available resources; adapting business models to changing market conditions; searching for new sources of financing, such as crowdfunding and partner investments; developing innovative technologies that reduce costs and increase competitiveness.