Current problems of small business development in Ukraine

Abstract

At the present stage, the development of small businesses in Ukraine is quite problematic due to a number of factors, such as an unstable geopolitical situation, a difficult economic situation, in particular through Covid-19 and the full-scale invasion of the Russian Federation. The question of analyzing the state of development of small businesses in Ukraine is quite common among scientists. Small business plays a significant role in the overall development of the country's economy and is a source of budget revenue, which, in turn, affects employment by providing jobs. The development of small businesses in Ukraine today is a rather complex process. This is due to the fact that the overall economic situation is in a critical state. Small business is one of the main links in the economy, which makes it possible to further develop the economic system in Ukraine. Having examined the essence of small business, a number of its strengths and weaknesses are considered. It can be argued that this segment of the economy, unfortunately, has more threats than opportunities. Existence threats are because the small business link in the overall economic system is quite unstable and is often influenced by external economic factors. One of the problems of small business development is the difficulty of financing large-scale projects. The number of small businesses in Ukraine has been increasing unevenly in recent years. In 2022, this figure has decreased significantly. The overall state of the national economy has deteriorated significantly. Currently, the defining problem for the development of all sectors of the Ukrainian economy is the full-scale invasion of russia. This factor had an extremely negative impact, and its consequences will hamper the normal economic development of the country for a long time. Until 2022, the Covid-19 pandemic had a significant impact on the national economy. However, its impact was not as widespread as the impact of the war. Consequently, analyzing the main modern problems of small business development in Ukraine, it can be argued that in addition to the «classical problems» that constantly exist, in recent years, problems objective for the state have been added, caused by external factors that cannot be influenced.