Abstract

The purpose of this research is the development of theoretical foundations for the functioning of the mechanism of state support for small business in a decentralized government based on a synergistic approach. The subject of the study: theoretical and methodological foundations for the functioning of the mechanism of state support of small business in the context of synergetics. Research methodology is a set of principles, approaches, general theoretical, special, and interdisciplinary methods of scientific knowledge, namely morphological analysis, comparative analysis, methods of deduction and logical generalization, analysis and synthesis. Functioning of the mechanism of state support for small business is considered on the basis of a synergistic approach. The synergistic approach is one of the most effective methodological bases for the development of modern economics. The article considers the key theoretical provisions for understanding this approach, substantiates the possibility and feasibility of its application in the implementation of this mechanism in modern economic conditions. Results. It is determined that the reform of decentralization of power has led to the creation of institutional problems in the economic mechanism of state support for small business. In the regions and territorial communities, there is no single mechanism to support the development of small business, which causes the inefficiency of this area of public policy. This justifies the relevance of the use of new methodological approaches to the formation of the mechanisms for implementing the state policy of business regulation. The importance of small business for the development of the national economy, ensuring its stability, is substantiated, the main approaches to the essence of entrepreneurship are investigated. Theoretical aspects of the functioning of the mechanism of state support for small business on the basis of traditional and systemic approaches are systematized, their positive aspects and shortcomings are determined. It is substantiated that in the conditions of economic transformations and introduction of the reform of decentralization of power it is expedient to use the synergistic approach in the research of the mechanism of the state support of the small business. It is emphasized that the very synergistic approach is able to study the process of functioning of the mechanism of state support for small business on the basis of evolutionary development and self-organization of complex systems. We propose to consider the mechanism of state support in the conditions of decentralization as a process of self-organization of small business entities and public authorities, which is carried out through their interaction with the meso- and macroenvironment. Conceptual bases of the use of the synergistic approach in the research of the mechanism of the state support for the development of entrepreneurship and its economic levers are developed. It is substantiated that the application of a synergistic approach in the process of formation and application of the mechanism of state support of small business will allow to take into account interdependence of economic processes and phenomena, to investigate the interaction of local authorities and small businesses under decentralization. The use of a synergistic approach as a research method also makes it possible to take into account the dynamics of the state support mechanism. The synergistic methodology in the study of the mechanism of state support for small business allows to take into account the existence of connections and interactions between the components of the mechanism, as well as the integrity and ability to change. Based on a synergistic approach, it becomes possible to ensure the development of small businesses by preventing threats. The next advantage is the ability to take into account the alternative scenarios of small business development of a particular region or territory in a changing socio-economic environment. Consideration of the mechanism of state support as a self-organized system makes it possible to study the patterns of self-organization, which in the future should become the basis for calculating the synergistic effect of the mechanism.

Highlights

  • Ukraine’s strategic goal is integration with the countries of the European Union due to which the country’s economy is becoming more open to foreign business partners every year showing an increased interest in small business

  • Given the relevance of small business for the development of the national economy and individual regions and territories, the public administration processes aimed at creating favorable conditions for its development become significantly important

  • The goal of the Ukrainian economy is to transit to the modernization of the public administration system, accompanied by the formation of new economic institutions, implementation of reforms in the field of state regulation based on decentralization, the use of leading mechanisms and instruments of public policy

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Summary

Introduction

Ukraine’s strategic goal is integration with the countries of the European Union due to which the country’s economy is becoming more open to foreign business partners every year showing an increased interest in small business. Given the relevance of small business for the development of the national economy and individual regions and territories, the public administration processes aimed at creating favorable conditions for its development become significantly important In this regard, we consider it relevant the issue of providing effective state support for the development of small business on the basis of government interaction with business and communities, which is impossible without the development and implementation of an appropriate mechanism for state support for the development of business structures. Achieving the goal requires the following tasks: determining the role of small business in the development of the national economy; studying the essence of entrepreneurship; determining the mechanism of state support for small business in the context of basic theoretical approaches; substantiating conceptual bases of use of the synergetic approach in the research of the mechanism of the state support for the development of business and its economic levers. The application of a synergistic approach makes it possible to explore this mechanism as a self-organizing system and provide suggestions for determining the effectiveness of the interaction of the components of the mechanism and their impact on economic development

The essence of small business and its role in economic development
Defining the essence of the mechanism of state support for small business
Conclusions

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