Management as a Factor of Socio-Economic Development of Small and Medium-Sized Businesses of Ukraine in Conditions of Instability

Abstract

Small and medium-sized enterprises (SMEs) in Ukraine are increasingly challenged by ongoing economic instability, characterized by currency volatility, inflationary pressures, and uncertain political dynamics. This paper explores the role of management in the socio-economic development of small and medium-sized businesses (SMEs) under conditions of instability. Time series from 2001 to 2023 is analyzed for Ukraine. ADF and PP unit root test shows that data is stationery at first difference. ARDL bound test shows that time series data is cointegrated. Long-run estimates of ARDL technique show that management practices, socioeconomic development, research & development, technology adoption and employee skill & training have significantly positive relationship with SMEs growth rate, whereas, economic instability decrease the SMEs growth rate in Ukraine during studied time. Government of Ukraine should reform and bring new policies in all sectors especially manufacturing and production sector. Digitalization of the economy is foremost requirement of the Ukraine.