THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND SMALL BUSINESS DEVELOPMENT

Abstract

The article systematizes the concept of small business and conducts research to determine the relationship between corporate social responsibility (CSR) and small business development. The purpose of the study is to test and identify which external or internal elements of CSR most strongly aff ect small businesses. The main goal of our work is to show how corporate social responsibility aff ects the effi ciency of the company. Methodology. The data of 100 small businesses were analyzed through a questionnaire. We developed a model consisting of external and internal CSR, tested 5 hypotheses. SmartPls software was used in the study. Originality / value of the research. An attempt was made to systematize the concept of entrepreneurship (small business), to identify the relationship between the social responsibility of business and the development of small business in the country. A CSR hypothesis that is directly related to the results of small business is proposed. Findings. Our results show the positive impact of CSR on small businesses. We found that CSR has a positive eff ect on both market effi ciency and current profi tability (External CSR on market effi ciency, β=0.405, p=0.000, on current profi tability β=0.404, p=0.000; Internal CSR on market effi ciency, β =0.492, p=0.000, on current profi tability β=0.490, p=0.000).The results of this study can be used by entrepreneurs and top management as an attempt to increase the effi ciency of small business through the use of corporate social responsibility (CSR) to gain sustainable competitive advantages. The author's contribution is to determine the relationship between CSR and the fi rm's performance.