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Defining the Essence and Content of the Concept of Small Business
Krasnonosova O. M., Kharchenko R. V.

Krasnonosova, Olena M., and Kharchenko, Ruslan V. (2020) “Defining the Essence and Content of the Concept of Small Business.” Business Inform 12:293–301.
https://doi.org/10.32983/2222-4459-2020-12-293-301

Section: Problems of Business

Article is written in Ukrainian
Downloads/views: 19

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UDC 334.72

Abstract:
The article is aimed at actualizing the definition of the essence and content of the concept of small business in view of further research of its functional capacity in the changing conditions of today. To achieve this aim, the essence and content of the concept of small business are defined, which is a system of relations arising from the interaction of small and medium-sized business entities with representatives and institutions of the market on an initiative basis of conduct of economic activity, which is accomplished at the expense of own or borrowed resources at their own risk and subject to social responsibility and sets the main goal of profit and the own business development. The definition of small business as a system of relations provides the advantages of a system approach as an instrument for researching the complex systems, where any of the systems is seen a set of interrelated elements that have «input» – purpose and «output» – result, as well as communication with the external environment, feedback and processes, that is, consistent changes in objects and phenomena occurring in a certain order. Determination of the role of small business in the national economy is carried out on the basis of its main properties, namely: rapid adaptation to the level of demand and purchasing power in local markets; ability to create unique products and fulfill one-time orders of consumers; organization of paid employment of a significant number of people against the background of a reduction in the production of large enterprises; development of local crafts, taking into account the mental specifics of consumers; facilitation of professional training of employees on the basis of acquiring practical skills. On the basis of the results of regression analysis, the existence of a close relationship between the condition of small business development and the condition of the country's economy is proved. The analysis was carried out according to official statistics of Ukraine for the period of six years (2013–2018). Based on the results obtained, it can be suggested that the creation of conditions for the development of small business on the part of the State will contribute to the strengthening of the State economic system.

Keywords: entrepreneurship, small business, economic system, small business share, small business development.

Fig.: 1. Tabl.: 7. Bibl.: 25.

Krasnonosova Olena M. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Marketing, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]
Kharchenko Ruslan V. – Junior Researcher, Department of Industrial Policy and Energy Security, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkiv, 61166, Ukraine)
Email: [email protected]

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