Management of Small Innovational Enterprise under the Conditions of Global Competition: Possibilities and Threats

Abstract

Introduction Any enterprise is a socio-economic system, provision of integrity and development of which requires effective management. Without coordination of efforts of various structural elements, such system won't be able to solve problems and will be rather a sum of elements but not a single whole. Managing small enterprise is not more difficult than managing large business, as, despite smaller personnel and smaller volume of managed resources, it is necessary to perform all functions of management under the condition of lack of possibility for keeping a large managerial staff and necessity for combining managerial authority and responsibility. Challenges of global competition complicate the process of management of small innovational enterprise, as they increase the number of forces influencing it. The main problem consists in the fact that if the process of management of small innovational enterprise is not restructures for the conditions of global competition, the business won't be preserved. Preservation of small innovational business is sought not only by its owners but national and global socio-economic system on the whole, as such business is very important for preservation of high level of competition in sectorial markets and realization of the model of innovations-oriented economy. Thus, actuality of study of possibilities and threats for management of small innovational enterprise under the conditions of global competition grows. The purpose of the article is to develop recommendations for overcoming threats and effective us of possibilities of development of small innovational enterprise in the process of its management under the conditions of global competition. Place and role of small innovational entrepreneurship in development of global markets It is possible to distinguish the following key characteristics of small innovational enterprise. Firstly, it possesses a small share of the market. Having no possibility to influence market processes in a large way, small innovational enterprise is oriented at constant adaptation to new economic conditions and new trends of demanda (Davidovna & Vladimirovna, 2015). This feature makes small innovational business inclined for constant changes (Khokhlova & Okladnikova, 2014). As compared to large enterprises that risk reluctantly and are not inclined for implementation of innovations in its striving to preserve market positions, small innovational enterprises are oriented at expansion of its market influence and are ready to take the risk of innovational activities for achievement of this purpose (Doroshenko et al., 2015a). Secondly, as a rule, it is oriented at specific segment of the market on at the market on the whole (Doroshenko et al., 2015b). This allows small innovational enterprise to study needs of clients in the targeted market segment and build business so as to correspond to them (Bezrukova et al., 2013). While large business strives to preserve control over market on the whole and be universal, satisfying the needs of all groups of customers, which does not require regular implementation of innovations, small innovational business is constantly modernized in view of the smallest changes in the needs of market's targeted segment (Nadtochey, 2015). Thirdly, it possesses flexible and innovations-oriented organizational structure (Kraus, 2014). Absence of complex bureaucratic machine makes the process of approval of innovational projects in small innovational business quick and easy (Measson & Campbell-Hunt, 2015). These characteristics make small innovational entrepreneurship an initiator of changes in the global markets. Small innovational enterprises show the other market members on the changes in tendencies of demand and play a role of progress of technologies and products (Kravchenko et al., 2015). While large market players strive to obtain maximal profit from previous investment projects which led to creation of successful innovations, small innovational enterprises look for new ways to surprise and attract attention of customers, as well as to satisfy their needs (Romer & Martinez-Roman, 2012). …