Abstract

The article substantiates an important factor in the socio-economic development of the state is the development of the business sector in general and small businesses in particular. This highlights the need to study the socio-economic preconditions and the state of formation and realization of the potential of small business in Ukraine. The article analyzes the quantitative indicators of small businesses (including those compared to the EU). According to the results of generalizing various surveys and monitoring, the main barriers to doing business in Ukraine are the low purchasing power of citizens, restrictive measures in connection with the pandemic, fiscal pressure, as well as pressure from government agencies, and corruption. It is established that according to the SME policy index, Ukraine, despite some improvement in the environment for the business sector, still has less favorable conditions for business activity compared to the Eastern Partnership countries. Based on the analysis of Ukraine’s rating positions according to a number of indices, it has been established that our state demonstrates the most unfavorable conditions for the development of small businesses according to the index of perception of corruption and economic freedom. Among the trends that indicate the improvement of conditions for the formation and realization of the potential of small business in Ukraine is the increase of Ukraine’s rating position on the indices of ease of doing business and ease of paying taxes. It is proved that the conditions of small business lending in Ukraine, although showing some improvement, still remain unfavorable and hinder the development of small businesses. An important tool for the formation and realization of the potential of small business is its grant support, the most important partner in providing which for Ukraine in the EU. It is proved that Ukraine has a well-developed infrastructure to support small businesses, but the formality of its operation is quite common. According to the criterion of compliance with the principle of predictability in regulatory activities, most government agencies show a fairly low level of predictability, which is a deterrent to business development, as it increases the uncertainty of the business environment. It is proved that despite the presence of a number of problems and deterrents for small business development, Ukraine has a significant number of strengths and opportunities for the formation, development, and realization of small business potential.

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