MACROECONOMIC STABILIZATION AS PREREQUISITE FOR SMALL BUSINESS DEVELOPMENT
Abstract
The purpose of the study is to check the impact of the macroeconomic environment on the state and development of small domestic enterprises. Methodology of research. Such general scientific research methods as analysis and synthesis were used. The statistical data for 1991–2020 characterizing the macroeconomic situation (GDP growth, unemployment rate, inflation rates, interest rates, exchange rate) and the main indicators characterizing the activity of small enterprises (the dynamics of their number and the average annual number of employees) were systematized and analyzed. Connections between both groups of indicators were summarized. Findings. It was found that during the initial stage of the establishment and development of small business, its indicators didn`t depend on macroeconomic stabilization but on the formation of regulatory and legal foundations of entrepreneurial activity. And subsequently, as the national economy was being consistently transformed into a market economy, the dynamics of indicators characterizing the state of small business will be more dependent on changes in tax legislation. The connection with macroeconomic indicators can be seen, first of all, in the years of cyclical crises. Domestic experience provides an opportunity to verify this by the example of the recessions of 2009, 2014-2015, and 2020, when both the number of small businesses and the number of people employed by them decreased. All recessions in Ukraine were accompanied by inflation. However, small businesses suffered not so much directly from inflation but from the monetary policy of the NBU, which was aimed at slowing down its pace. The practical value of the research findings lies in realizing the significance of changes in key macroeconomic indicators for the successful development of small enterprises. It can be assumed that in the future macroeconomic stabilization will have a more significant impact on the state of domestic small businesses, which can be verified once we have more statistical data available. Further research should include a larger number of indicators to determine the factors that will contribute to the development of small enterprises and, therefore, will positively impact the competitive environment and innovative activity of all domestic businesses.
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