Management by the Development of Small and Medium Business in Ukraine

• Authors: Boreiko Volodymyr

Title variants

UK

Управління розвитком малого та середнього бізнесу в Україні

• Languages of publication: UK

Abstracts

EN

Purpose. To disclose the effectiveness of management of the development of medium and small business in Ukraine. Methods: The study uses descriptive method based on a literature review. Results: In the industrialized countries of the world, medium, small enterprises as well as business involved individuals – entrepreneurs play an important role in ensuring development of national economies. They create new jobs and are the basis for training of highly skilled managers. Therefore, these cоuntries through taxуs and other cоnditions providе favourable еnvironment for the devеlopment of small and mеdium businesses. To support small and medium enterprises in foreign countries governmental policy include their involvement into the state contracts execution, provision of loan guarantees, corporate tax rates reduction, full dismissal from income tax during first years of an enterpise performance, the introduction of accelerated depreciation of buildings, encouragement of capital investments. Understanding the important role of medium and small enterprises in ensuring the development of the country's economy has encouraged Ukrainian legislators to introduce a simplified system of taxation of small enterprises and a special regime for taxation of individuals-entrepreneurs. These changes in the Ukrainian taxation system have given impetus to the development of small and medium businesses. However, the lack of an effective regulatory policy and system of legal protection as well as an increase in the tax burden due to the financial and economic crisis do not allow such enterprises to play a key role in the Ukrainian economy. So, to stimulate the development of small and medium-sized enterprises Ukraine should not be limited to introducing a preferential taxation regime for them, but should take advantage of other countries’ experience implementation. Considering foreign experience and analysis of the small and medium business activity in Ukraine have shown that besides the preferential tax regime, many other factors such as policy of the state investments and innovations promoting, getting loans, conducting training of young leaders, assistance in establishing cooperation with large domestic enterprises, and access to international markets, as well as protection against unlawful encroachment have made significant influence on its development. Therefore, creation of favourable tax, legal, financial-credit, investment and innovation environment, involvement in state orders fulfillment and promotion of foreign economic activity should become the basis for the development of small and medium businesses and the economy of Ukraine.

Keywords

EN

small and medium business; tax law; legal protection; investment and innovation policy; foreign economic activity

• Publisher: Wyższa Szkoła Gospodarki Euroregionalnej im. Alcide De Gasperi w Józefowie
• Journal: Intercultural Communication
• Year: 2018
• Issue: 4
• Pages: 229-244

Dates

published

2018-03-01

Contributors

author

Boreiko Volodymyr

• Alcide De Gasperi University of Euroregional Economy

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