How the World Bank is attacking poverty through small enterprise development and microfinance

მცირე ბიზნესში ციფრული და კოგნიტური ტექნოლოგიების გამოყენების აქტუალურობა გლობალური პანდემიის პირობებში

Annotation. Introduction. The current state of Ukraine’s economy largely depends on the development of small and medium-sized businesses. Today, there are problems of urgent solution, which are related to financial and investment support for entrepreneurship. The main obstacles to the development of small and medium-sized businesses in Ukraine are: lack of financial security; imperfection of legislation; underdeveloped financial and credit mechanism; quarantine restrictions related to COVAD-19. Purpose. The main purpose of the study is to study the problems, prospects of state regulation of financial and investment support for small and medium business development in Ukraine. Results. The article focuses on identifying problems related to state regulation of financial and investment support for small and medium business development. It is determined that the main obstacles to the development of business entities in Ukraine are: limited opportunities for export; insufficient level of qualification of modern managers; low level of innovative development; low level of business efficiency; lack of an effective system of state support for small and medium business development; limited access to funding sources; lack of incentives for business growth; spread of fictitious entrepreneurship; imperfection of the tax system; lack of effective regulatory support, effective government projects and programs for small and medium business development; limited information and advisory support from public authorities. The article analyzes the main indicators of small and medium business development in Ukraine. The analysis showed that in Ukraine entrepreneurship does not yet play a significant role in ensuring economic growth, its contribution to gross domestic product is only 19,2%. The main legislative and normative documents that regulate the process of financial and investment support of small and medium business are analyzed. The article emphasizes the need to create more favorable conditions for the development of small and medium enterprises by the state. It is substantiated that all measures of state regulation of financial and investment support of small and medium business should be evaluated from the standpoint of their effectiveness. The main indicators for assessing the effectiveness of public policy in the field of small and medium enterprises are identified. These include institutional and legal, budget and tax, financial and investment, institutional and infrastructure and information and advisory vectors of state regulation in the field of development of small and medium enterprises. Conclusions. To increase the efficiency of state regulation of financial and investment support for the development of small and medium-sized businesses, the author proposes to revise the taxation system, revise the procedure for granting state loans and guarantees, expand lending and introduce a system of guaranteed targeted loans for business projects. Keywords: state regulation, financial and investment support, entrepreneurship, small and medium business, .social responsibility of business.

This study aims to analyze: 1) The effect of entrepreneurship training on the motivation of micro and small business entrepreneurs in the East Jakarta Small Industrial Area. 2) The effect of entrepreneurship training on the development of micro small and medium enterprises in the East Jakarta Small Industrial Village area 3) The influence of motivation on the development of micro small and medium businesses in the East Jakarta Small Industrial Village area. This research uses a quantitative method using SEM Lisrel 8.8 Program analysis tools. The number of respondents was 253 respondents of micro small and medium enterprises in the East Jakarta Small Industrial Village. The results of the study stated: 1) the influence of entrepreneurship training on the motivation of micro and small business entrepreneurs in the region East Jakarta Small Industrial Village. 2) the influence of entrepreneurship training on the development of micro small and medium enterprises in the East Jakarta Small Industrial Area 3) The influence of motivation on the development of micro small and medium businesses in the East Jakarta Small Industrial Village area.

This paper investigates the current state of small and medium business in Ukraine. The protracted nature of the war in Ukraine significantly destabilizes the activities of the subjects of this sector and leads to the deterioration of its development indicators. In particular, a decrease in quantity of active entities small and medium business, a decrease in the rate of registration of new entities, a shortage of own working capital in most small and medium enterprises will have a negative impact on the national economy. The main obstacles to the recovery and development of business activity during the period of validity of state of war are identified. It is the lack of financial resources; continuation of hostilities; interruptions in electricity, water and heat supply; destruction of logistics; increase in production costs; insufficient quantity of paying customers. The peculiarities of state support of small and medium business in Ukraine during the war are considered. The problems hindering the development of national small and medium business in the conditions of war are identified. It is the absence of a program document on the development of the small and medium business sector; low level of access to finance by small and medium business entities; insufficiently developed state financial support programs for IT startups; inefficiency of industrial parks. Proved, that the prospects of the development of small and medium business largely depend on ensuring the implementation of an effective state policy to stimulate its development. In this context, the priorities of the state policy in the sphere of stimulating the development of small and medium business in the conditions of the war in Ukraine are substantiated. It is the development of the State program for promoting the development of small and medium business in Ukraine, coordination of strategies and programs for the development of small and medium business at the state, regional and local levels; attraction of money from international financial organizations and international donors; creation of conditions for increasing the level of access of small and medium enterprises to finance; expansion of state grant support for IT startups; implementation of mechanisms of tax benefits for entities that resume their activities in the de-occupied territories; expansion and creation of new industrial parks with developed engineering and transport infrastructure, creation of favorable conditions for the development of small and medium business within the industrial park.

In the article the author substantiates the importance of forming a favourable business environment for the development of national small and medium businesses. State plans and programs for the development of small and medium business in Ukraine are analyzed; the main directions and expected results of their achievement are revealed. The key provisions of the Strategy for the development of small and medium business in Ukraine for the period until 2020 are determined and its content is analyzed. The effectiveness of the state policy on stimulating the development of domestic small and medium businesses in Ukraine is investigated. Particular attention is paid to the experience of economically developed countries, and it is determined that Ukraine needs to create a favourable business environment for the development of national small and medium enterprises. The experience of foreign countries shows that small and medium-sized businesses are the basis of sustainable development of the state, which provides national welfare due to production of competitive products, job creation and raising the level of effective employment of the population, activating the country’s innovative potential, ensuring its competitiveness in the international market. The concept of the National Program for the Development of Small and Medium Enterprise for 2014-2024 is considered, and it is emphasized on the ways of overcoming the problems of small and medium business development. It has been stated that strategic initiatives should not be the result of generalization of previous projects and programs, but a qualitatively new action plan for the development of small and medium businesses. The attention is paid to the fact that the development and expansion of the business sector has been declared as a one of the priorities of the state economic policy in Ukraine. Priority in addressing tasks regarding the solution of the issue of small and medium enterprises development is to overcome the burdensome procedures of state regulation, the instrument of which may be a deregulation, which should provide an improvement of the business climate for small business in the referral article.

Entrepreneurship, embodying the process of funds formation in the form of small independent firms — small and medium enterprises is an integral element of the economic system. These subjects carry out a whole range of important socio-economic functions, which to a large extent can influence the overall level of the region’s wealth. These include the creation of additional jobs, an increase in the level of the competitive environment, the alignment of social disproportions, the introduction and promotion of innovative technologies. These factors directly affect the socio-economic development of both the country as a whole and a particular territory. Accordingly, small and medium enterprises are one of the levers of influence on the welfare of the region and the quality of life in it. The article provides a statistical analysis of the small and medium modern businesses development in the Russian Federation, reflecting the mutual influence of income from activities in the regions on financial activities in the territory and the impact on a broad impact. Also, the paper reflects the results of a conceptual approach to the study of previously presented studies of economists devoted to identifying the dependencies of the small and medium businesses development and the level of welfare of the region. As a result of the study, it was found that at the level of the constituent entities of the Russian Federation, the main reasons for the development of small and medium enterprises are the formation of a business support infrastructure, represented by a whole range of measures that provide significant support to small and medium businesses. Namely, the implementation of programs for the financing of small and medium enterprises, the provision of information, consulting and educational support measures. Also, the list of ongoing activities includes property and innovative support for small and medium-sized businesses.

Nowadays a number of legal, economic and organizational problems related to the implementation of the role of the state in the effective regulation of business development in Ukraine have become relevant. The development of entrepreneurial activity is one of the main prerequisites for the formation and realization of the export potential of the state, its material enrichment and growth of living standards. In modern conditions there is a need for a detailed study of business activity in Ukraine. Using statistical data of the site ukrstat.gov.ua, the economic indicators of small industrial enterprises within the period of 2010-2018 have been analyzed in the article. There is an excess of output over sales, this indicates an excess of supply over demand. It is necessary to study consumer demand and adjust production according to plan. During the studied period of activity of enterprises it can be noted that enterprises that received net profit increased every year than enterprises that received loss. Enterprises suffered significant losses in 2010. The main obstacle to the development of small enterprises in the field of construction is the lack of an effective mechanism for their support by our state. The state of entrepreneurial activity in Ukraine is currently unsatisfactory. It is evidenced by the slow growth rate of the number of small enterprises, imperfect market infrastructure and competition, lack of working capital, lack of investment resources, etc. Further development of small business, increasing its competitiveness in both domestic and foreign markets, largely depends on a balanced and sound state policy. Today it is vital to include the development of small business in Ukraine in the overall strategy of economic growth and structural reconstruction of the national economy. To improve and stabilize business activities in Ukraine, the following measures are offered: to apply a flexible system of preferential taxation for medium and small businesses, depending not on the number of those working in them, but on the annual volume (sales) of products, services, works; to constantly reduce the tax burden on small and medium enterprises; to facilitate access of small and medium enterprises to financial resources; to change the microcredit system in the field of small business in Ukraine. The financial and loan system in Ukraine currently offers different conditions and rates for small business loans, which has a particularly negative impact on the work of entrepreneurs in the period of the economic crisis.

1. Introduction Small business structures in economic process of reproduction are one of the main elements of sustainable innovational development, as they are the most dynamic and ensure national competitiveness and economic growth in long-term perspective. Substantiation of the main role of small business structures in the developed and developing countries is obvious, as they are the ones that create around 80% of jobs, and their contribution into formation of GDP constitutes 50%-80% (Report, 2015). Besides, their significance in development of new technologies is obvious--due to economic and social specifics and business qualities. Modern unstable state of the system of small business in Russia is caused primarily by imperfection of mechanisms of its development management. In particular, there is no system of cooperation of small business structures with subjects of large and medium business, due to which small innovational enterprises exist separately from enterprises of large and medium business--though the technologies they create are aimed for implementation in their production. At present, Russian economy goes through the period of adaptation to new socio-economic conditions of functioning and realia of current processes of globalization of the world economy; moreover, these conditions can significantly change under the influence of many external economic and political forces. Modern Russia faces serious economic conditions: ruble depreciation, the Central Bank key interest rate, economic sanctions, and limited access to foreign markets of loans and credits, which is a serious challenge for various types of modern business structures in Russia. Results of the conducted research of subjects of small and medium business show that most of existing small enterprises--legal entities (85.9%)--are micro-companies with up to 15 employees. These small companies provide a third part of jobs and 43% of revenue of the sector of small and medium business. Sectorial structure of the sector of small and medium business, as of year-end 2014, consists in the following: most of small and medium enterprises are involved in trade, transport vehicles service, and household goods service (38%), operations in the sphere of real estate and services (21%), construction (11%), minerals extraction, production and distribution of electrical energy, gas, and water (11%). Individual entrepreneurs work primarily in the sphere of trade, transport vehicles service and household goods service, service sphere, and agriculture. More than half of individual entrepreneurs (53%) are involved in wholesale and retail, transport vehicles service and household goods service, 11%--transport, 11%--real estate operations and service sphere, and 7%--agriculture and forestry. Recently, there has appeared a lot of enterprises which conduct their activities in the sphere of R&D work and production of high-tech and science-intensive products, but still priority in small business remains with companies of trade and service sphere--25%, real estate operations--21%, production and distribution of utilities (water, gas, electricity), minerals extraction--19%, construction companies, agricultural enterprises--7% (Federal State Statistics Service, 2014). This statistics shows that development of small business structures in Russia is peculiar for their low inclination for innovations, while there are a lot of small companies in innovational sector in the world. Modern tendencies of development of innovational activities of small business structures in the Russian economy do not fully correspond to expectations which would stipulate the formation of economy of innovational type, absence of tools and institutions of support which provide and stimulate innovational development of small business, imperfection of state regulation and management--all of this shows the necessity for creation of reliable institutional basis (order) of business environment, aggregated with changes in economy, based on leading regional and international experience. …

Introduction. The globalization of the economy and the introduction of the concept of sustainable development largely determine the development strategy of both large and small businesses. Adherence to the principles of sustainable development is becoming a prerequisite for organizations to develop, increase competitiveness and attractiveness for stakeholders. The purpose of the study is to elaborate the stages of formation of strategic management of sustainable development of small business enterprises. Materials and Methods. An analysis of the financial, economic, environmental and social components of sustainability of JSC Leader-Compound was performed as a case study. The company's financial statements for 2012–2019 as well as the results of the survey conducted among the management staff were used as the materials for the study. The expert method was employed to determine the final assessment of compliance of JSC Leader-Compound with the features of strategic management of sustainable development of small and medium-sized enterprises. The employed method of strategic analysis (SWOT analysis) made it possible to identify the strengths and weaknesses of the company, as well as threats and opportunities. Results. The results of a comprehensive analysis of the components of sustainable development of JSC Leader-Compound made it possible to conduct a final assessment of the compliance of this enterprise with the features of strategic management of small and medium-sized businesses. A sufficiently high level of development of the strategic management of JSC Leader-Compound has been noted, and reserves for its improvement have been determined. An algorithm for the process of development and implementation of a strategy for sustainable development of the company has been proposed. Methodological recommendations have been substantiated for each stage of the process. To calculate the generalized integral indicator of the level of sustainable development, a mathematical model has been proposed that takes into account the components of sustainable development of the company. Discussion and Conclusion. The proposed process of development and implementation of a strategy for sustainable development of a small business will make it possible not only to form a strategy based on the components of sustainable development, but also to ensure the possibility of its successful implementation. The research results may contribute to both practical activities of other small businesses, and further scientific research of the features of managing the sustainable development of small enterprises in other lines of business.

The article analyzes the tools for supporting the development of small business enterprises in wartime conditions. It has been determined that small entrepreneurship (small business) is a type of entrepreneurial activity, based on the adoption of innovative decisions regarding the rational use of available resource potential, characterized by freedom of choice of methods and forms of management and carried out with the aim of maximizing profit. It has been noted that along with the problems that were traditional and understandable, small business enterprises of Ukraine faced new threats caused by military aggression, the intensification of hostilities and the introduction of martial law – the loss and damage of the main property, the need to move it to calmer regions, the destruction of established logistic business connections, loss of traditional sales markets, reduction of financial resources due to hryvnia devaluation and human resources due to mobilization, blocking of bank accounts. The purpose of the research is to determine effective tools capable of ensuring support for the development of small business enterprises in wartime. It has been determined that it is necessary to promote the development of small business at the state level in Ukraine in order to build a high-tech business sector and increase its competitiveness on the global market. The main directions should be the stimulation of innovative activity of small business enterprises, the formation of a favorable innovation and investment climate and regulatory and legal environment. Today, unconventional measures, new legislative acts, special new organizational structures are needed in Ukraine, which should focus attention on the existing problems of the legal use of competition legislation in relation to the development of small business enterprises in wartime conditions. It has been concluded that the main factors contributing to the development of small business enterprises in the considered countries are: financial, credit and investment support; tax support; involvement of small business enterprises in the execution of government orders; support of export activities; personnel support. It has been substantiated that the most common instrument of state support for the development of small business enterprises in almost all countries is the provision of state guarantees for loans to small business enterprises.

Introduction. The state and development of small and medium businesses is an important component of socioeconomic security of the state, ensuring diversification of the economy, filling the consumer market with a variety of goods and services, ensuring employment and, accordingly, social and economic security. In conditions of global technological uncertainty, it becomes important to update the theoretical and methodological foundations for the development of small and medium-sized businesses as one of the basic links of the national economy. Goal. The article is devoted to the study of the sectoral and territorial structure of small and medium-sized businesses. Materials and methods. The theoretical basis of the research is the results of scientific and practice-oriented works in the field of small and medium-sized enterprises; the works of domestic and foreign scientists devoted to the description of the factors determining the state and development of small and medium-sized enterprises. Results and discussion. The article is devoted to the study of sectoral and territorial structure of small and medium-sized businesses. Small and medium-sized businesses in rural settlements in the Republic of Belarus are still poorly diversified by types of economic activity, which means that there is a real opportunity to increase their role in ensuring high rates of socio-economic development of small and medium settlements. Conclusion. It was found that the socio-economic role of small and medium businesses in modern economy lies, first of all, in significantly increasing the adaptive capabilities of the national economy to changes (including shocks) in global and domestic markets. They are also expected to help increase the level and the quality of life of the population of individual regions and the entire country.

An important role in the development of economic systems of the world’s leading countries is played by small and medium-sized businesses, which are the basis of the economy, create GDP, are a significant source of budget replenishment, provide the largest number of jobs. In the conditions of open economy it is important to compare the national economy with European and world countries, to define strategies that will set the vector of development of a competitive country and ensure accelerated economic growth. The aim of the proposed study is a comprehensive comparative analysis of the Ukrainian business environment in the field of small and medium enterprises in the European context. Modern challenges have made changes and adjustments to the economic development of the world and Ukraine. Therefore, it is important to summarize the practical experience of Ukrainian and world’s small and medium-sized businesses during the crisis and identify prospects for further development. The article is devoted to a comprehensive study of small and medium-sized businesses in Ukraine. What was conducted is a statistical assessment of the overall performance of medium and small businesses in terms of individual countries; the criteria for obstacles to doing business in Ukraine were identified. In order to analyze the positioning of Ukraine in the global space, a study of the essential characteristics of ratings and indices that assess the social, economic and political spheres in Ukraine, highlights the current state of small and medium business, identified its place in interstate comparisons. The key directions of activation of small and medium business in the conditions of economic crisis caused by the world pandemic are generalized and singled out. The research methods: are comparison, explanation, abstraction, empirical analysis and synthesis, a combined method of similarity and divergence. Current situation and negative trends in the development of small and medium-sized businesses in Ukraine and institutional constraints on entrepreneurship caused by the economic crisis due to the global pandemic require increased attention to the current problem of business units and use the positive experience of leading European countries. medium business. In the long run, Ukraine must ensure the sustainable development of its own institutional and legal framework for SME policy, expand deregulation measures and ensure a level playing field for SMEs. In addition, promoting the greening and internationalization of SMEs and providing business development services will help increase the competitiveness of the Ukrainian economy. Prospects for further research lie in the field of comparative analysis of government policy research in the field of small and medium-sized businesses in the European dimension in order to identify contradictions.

The concept of national and regional development strategies for small and medium-sized enterprises (SMEs) are studied for a long time, as small and medium businesses are the foundation of the economy and the basis for effective country functioning. The business development program of the European Union countries is particularly interesting because there are several levels that correspond to each other and give full effect on the SMEs development. The EU standards are higher than in non-EU countries; therefore, it is worth considering legislative documents, as well as statistics showing the indicators of openness and access to the development of small and medium-sized enterprises (SMEs). The complexity and comparative novelty of studying such a problem in Ukraine led to the need to explore sources of information in the original language due to the lack of information in Ukrainian or Russian. All these suggest that the problem of creating strategies at the national and regional level is more relevant and important to study in the West that demonstrates the current state. The subject of the study is to analyse the effectiveness of implementing strategies for the development of small and medium-sized enterprises as well as the impact of national and regional policies on their functioning and development in the European Union countries. Methodology. The authors highlighted the peculiarities and main features of the development strategies implementation for small and medium-sized enterprises in the EU countries through a comparative analysis of the legislative framework, statistical and other data that help assess the performance and effectiveness of the implemented strategies. The content analysis helps to identify peculiarities of the implemented strategies in quantitative and qualitative forms. The thorough analysis using the above-mentioned methods allowed doing a qualitative study of national and regional strategies in the context of the development of small and medium-sized businesses in the EU countries. Practical importance is that the results of this study will lead to a wider acquaintance with progressive strategic methods of management of small and medium-sized enterprises. This will enable the plan development of concrete actions to improve the efficiency of enterprise management in less developed countries. In turn, raising awareness on this issue will reduce the number of inefficient and non-innovative enterprises. Scientific novelty of the article is to determine the theoretical basis of the differences that at the current development stage are increasingly manifested as certain contradictions in the compilation and improvement of small and medium-sized enterprises, development of strategies at the national and regional levels. Small and medium-sized enterprises, in their turn, have a wider access to their development. Conclusions. As a result of the main development strategies of small and medium-sized enterprises of the EU countries, there should be identified the differences and common features of different strategies for innovations of small and medium-sized enterprises. The interaction of the national and regional strategy with actual results and existing strategies is explored.

The article identifies the state and problems of small and medium enterprises in Ukraine. The indicators of small and medium business development were monitored. An analysis of the current regulatory framework for the classification of small businesses and their tax regimes. The taxation systems of small and medium enterprises are considered. It is established that among the problems of development of small and medium enterprises in Ukraine is often called a high level of tax burden. The article examines the impact of the tax system on the development of small and medium enterprises. A comparison of the tax burden showed that for many years the burden in Ukraine exceeded the global average. The key indicators for monitoring the efficiency of small and medium business taxation are analyzed. Priorities have been identified and approaches to simplifying the taxation of small and medium enterprises have been proposed. The legal framework of the study consisted of legislative acts of Ukraine on taxes and fees governing business activities, the Tax Code of Ukraine, bylaws and programs for the development and support of small business.

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.