EMPLOYEE MOTIVATION IN SMALL BUSINESS ENTERPRISES

Abstract

Small enterprises constitute the foundation of the development and recovery of the Ukrainian economy. The competitiveness of small enterprises largely depends on the effectiveness of personnel motivation. At the same time, the specific characteristics of small businesses in terms of meeting employees' needs necessitate the development of a motivational mechanism tailored to their operational environment. An additional factor increasing the relevance of this issue is the current labour shortage, which requires small enterprises to implement effective approaches to employee motivation. The purpose of this study is to improve personnel motivation in small enterprises by investigating the complex of motivational factors and taking into account the specific characteristics of small business operations. The research methodology is based on the application of the methods of generalisation and systematisation, logical generalisation, systems analysis and comparison, as well as structural-functional analysis. The study examines the essence of personnel motivation, identifies the factors that encourage employees to seek employment and perform effectively in small enterprises, determines the key requirements for developing an effective motivational mechanism, and highlights the typical challenges associated with its implementation. The findings confirm the expediency of developing the personnel motivation mechanism in small enterprises based on three key components: competitive remuneration, recognition, and interpersonal relationships. The study substantiates managerial approaches to incorporating employees' needs, the dynamics of their changes, and the specific features of small business operations into the design of the motivational mechanism. It is established that recognising employees' achievements and fostering favourable interpersonal relationships within the workforce can partially compensate for insufficient financial incentives under the conditions of limited resources typical of small enterprises. The study also emphasises the necessity of providing institutional support for the development of managerial competencies among small business owners and managers, as well as the importance of integrating modern digital technologies to enhance the flexibility, adaptability, and effectiveness of personnel motivation systems. The implementation of the proposed measures will contribute to optimising the motivational mechanism in small enterprises, ensuring a better alignment between organisational objectives and employees' needs, and improving workforce performance and organisational competitiveness.