Abstract

The relevance of the study is because small business in the service sector is sensitive to external and internal shocks, more often than enterprises in other sectors of the economy are subject to bankruptcy. The activity of business associations, aimed at optimizing the business processes of their members, is an effective mechanism for supporting enterprises in the service sector, especially during an economic downturn. One of the important quantitative indicators of the effectiveness of business associations is the dynamics of the number of its membership base. The purpose of the study is to identify groups of risks and conduct a qualitative and quantitative analysis of the degree of their influence on the indicator that predetermines the prospects and nature of the survival of business associations. The result of the study is the creation of a risk map based on the Ishikawa model, in accordance with which it is determined that economic risks have the maximum impact on the volatility of the membership of a business association. Political, financial and managerial risks can also exacerbate destructive processes in the activities of business associations, especially during periods of economic depression. Industry risks do not significantly hinder the development of business associations. Thus, the conducted qualitative analysis of the reasons for the reduction in the number of the membership base of a business association makes it possible to find approaches to the creation of a system of indicators for assessing their market stability.

Highlights

  • IntroductionSocial and innovative changes, changes and restructuring of the business model of small and medium enterprises are taking place

  • Service enterprises are undergoing a significant transformation

  • The relevance of the study is because small business in the service sector is sensitive to external and internal shocks, more often than enterprises in other sectors of the economy are subject to bankruptcy

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Summary

Introduction

Social and innovative changes, changes and restructuring of the business model of small and medium enterprises are taking place. These transformations are primarily associated not so much with evolutionary changes, but are caused by the COVID19 pandemic, which had a huge impact on the traditional way of functioning of these enterprises and made significant changes in the ways and methods of their functioning [1]. By 2024, it is necessary to increase the number of people employed in small and medium-sized businesses to 25 million people, as well as to increase the contribution of this sector to GDP to 32%, the share of exports of enterprises in this sector is planned to increase to 10% of the total volume of the country [3]

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