Small Business Support Research Articles

THE ROLE OF STATE SUPPORT FOR SMALL AND MEDIUM-SIZED BUSINESSES IN ENSURING SUSTAINABLE REGIONAL DEVELOPMENT

The purpose of this scientific work is to determine the role of state support for small and medium-sized enterprises in ensuring sustainable regional development. In the course of the study, existing areas of state support for small and medium-sized businesses were considered, among which guarantees, microloans, loans, subsidies, grants, budget investments were particularly noted. Within the framework of the work, topical problems of the functioning of small and medium-sized businesses were studied, which reflect the need to improve the economic and legal aspects of state support for this sector of the economy. In addition, the study identified the main aspects of the impact of state support on the activities of small and medium-sized enterprises in the context of sustainable regional development, the relationship between the phenomena under consideration was established. The directions of improving state support for small and medium-sized businesses in the context of sustainable regional development were proposed. Conclusions. The existing state support for small and medium-sized enterprises does not have a sufficient level of efficiency, while its increase is necessary not only from the position of direct assistance to small and medium-sized enterprises, but also from the position of ensuring sustainable development of the regions, since small and medium-sized enterprises act as one of the key sources of this development.

The Effectiveness of Measures to Financially Support Small and Medium-sized Businesses During the Coronavirus Crisis in Kazakhstan

The most important tool for comprehensive support for the development of entrepreneurship in Kazakhstan is specially developed state programs to support small and medium-sized businesses, with an emphasis on concessional lending to priority sectors of the economy. The article presents a study to determine the effectiveness of government measures of financial support for small and medium-sized businesses during the crisis caused by the coronavirus pandemic. The role of the mechanism of concessional business lending among other business support measures has been determined, positive and negative aspects of measures aimed at stimulating and supporting entrepreneurship in Kazakhstan have been identified. The statistical data characterizing the state of small and medium-sized businesses during the crisis period have been studied, the risks and consequences of stimulating measures for the economy in the future have been identified. The results of the study indicate that despite the economic downturn, the support measures taken have allowed Kazakhstani small and medium-sized businesses to avoid holding on to business activity during the acute phase of the coronavirus crisis

Venture Capital and Strategic Development of Innovative Business

One of the most important sources for improving the financial support of innovative activity is venture capital. The development of venture financing in developed countries is one of the defining areas of support for medium and small innovative businesses. The purpose of the article is to identify the key features of venture capital, the selection of structural characteristics of venture capital, and the functional features of venture financing for the strategic development of innovative businesses. The survey is based on the following methods: analysis, systematization, and generalization to identify the key features of venture capital, as well as to select structural characteristics of venture capital, and the functional features of venture financing; tabular representation for the visual display of the results of research and analytical data. The article analyzes the interpretations of venture capital. A significant expansion of the key features of venture capital was noted. The structural characteristics of venture capital for the strategic development of innovative businesses are highlighted, which are systematized according to the following signs: elements of the classic form of venture capital, functions of venture capital, characteristics of the venture capital market, phases of the venture capital investment process, reasons for the refusal to receive venture capital, results from the implementation of venture capital at the macroeconomic level. Functional features of venture financing for the strategic development of innovative businesses must be considered in the context of such features forms of venture financing, types of venture financing, features that are characteristic of venture financing, steps of the venture financing process, stages of venture financing, the most common exit strategy for venture capital investors, principles of venture financing, advantages of venture financing, disadvantages of venture financing. The obtained results are the basis for further scientific research in the part of venture financing of the strategic development of innovative businesses in Ukraine and attracting investments for the development of innovative activity.

EVALUATION OF THE EFFECTIVENESS OF STATE PROGRAMS TO SUPPORT SMALL AND MEDIUM-SIZED BUSINESSES ON THE EXAMPLE OF THE CENTRAL FEDERAL DISTRICT

The purpose of the study is to evaluate the effectiveness of state programs to support small and medium-sized businesses on the example of the Central Federal District. The study examined existing approaches to assessing the effectiveness of state support for small and medium-sized businesses. The advantages and disadvantages of existing approaches were studied, as well as cases of their application were identified. Based on the analysis of existing approaches, the author’s evaluation model was developed, which has a hybrid form. This is reflected in the fact that both objective and subjective indicators are used in assessing the effectiveness of state programs to support small and medium-sized businesses. The peculiarity of the model is the formation of an integral indicator to simplify the interpretation of indicators. Then the model was tested on the example of the regions of the Central Federal District. Based on the results of the analysis, the results for all regions were determined, as well as the problematic aspects related to the application of the developed model and ways to solve them were identified. Conclusions. At the moment, there is no unified approach to assessing the effectiveness of state programs to support small and medium-sized businesses. The need to improve existing approaches is due to the limited results in the context of the completeness of the assessment of the effectiveness of state support.

Implementation of the Principles of State Innovation Policy and Ways of State Regulation of Innovation Activities in Financial Support of Innovation Projects

Implementation of the Principles of State Innovation Policy and Ways of State Regulation of Innovation Activities in Financial Support of Innovation Projects

On the Issue of the Place of State Support of Small and Medium-Sized Enterprises in the Economic Law System of Ukraine

Problem setting. In Ukraine, state support for small businesses was introduced in 2000. Currently, the mechanism of state support of economic entities is regulated by a number of acts of national legislation. However, the place of the legal institution of state support in the system of economic law, its relationship with state aid, the criteria for the admissibility of state aid in the context of the unification of national legislation with EU legislation continue to remain debatable in the science of economic law. Analysis of recent researches and publications. Economic and legal problems of small and medium-sized enterprises and their state support were studied by many domestic and foreign scientists. Only recently, these issues were considered in the collective monograph of the Research Institute of Legal Support of Innovative Development of the National Academy of Sciences, the monograph of D.S. Korytin, who studied the legal regulation of the economic activity of small and medium-sized enterprises, the dissertations of Feofanova I.M., who considered the economic and legal aspect of the admissibility of state aid and Petrova N.O., who studied the administrative and legal principles of monitoring state aid sub economic entities in Ukraine. Purpose of the research is to determine the place of the institute of state support of small and medium-sized enterprises in the system of economic law of Ukraine. Аrticle’s main body. Small and medium-sized enterprises play a significant role in the world economy. However, the operating conditions of small and medium-sized enterprises in Ukraine are difficult. Obstacles are the imperfection and burdensomeness of the taxation system, the presence of administrative obstacles, unsettled issues of financing and lending, low level of state financial support, underdeveloped infrastructure supporting entrepreneurship, etc. Currently, to these reasons added the negative consequences of Russia’s full-scale aggression. Such an effective tool as state support helps small and medium-sized enterprises overcome the consequences of the war and develop their activities in the post-war period. Therefore, strengthening the state support for small and mediumsized enterprises and improving the mechanism of its provision is an extremely urgent issue for our state The activity of small and medium-sized enterprises is very important for the economy of Ukraine. In wartime, their effective activity contributes to increasing budget revenues and reducing unemployment, and in the post-war period should become the very lever that will accelerate the growth of the economy and the reconstruction of the country. However, the Economic Code of Ukraine contains regulations on state support and protection of all economic entities. and support of small and medium-sized enterprises is not the state’s priorities Conclusions and prospects for the development Small and medium-sized enterprises play a significant role in the economy of Ukraine. In wartime, their effective activity contributes to the increase of revenues to the budget and the reduction of unemployment, and in the postwar period, it should become the very lever that will accelerate the growth of the economy and the reconstruction of the country. On the other hand, the priority of state policy regarding the support and development of small and medium-sized enterprises is not fixed in the Economic Code of Ukraine, which needs to be corrected. The list of means of state regulation of economic activity contained in Article 12 of the Economic Code of Ukraine should be supplemented by such an institution of economic law as state support for small and medium-sized enterprises.

Financial constraints: Its impact on access to financing of micro, small, and medium businesses in Calapan City

Micro, small, and medium-sized enterprises (MSMEs) play an important role in a country's progress, particularly in the Philippines. Lack of access to finance has been identified as the most severe hindrance to MSMEs' growth and development. Thus, the purpose of this study is to evaluate the awareness of MSMEs in accessing finances and know their capacity to handle financial constraints. The factors discussed were the structure of the financial sector, awareness of funding opportunities, collateral requirements, and small business support services. The research focused on a sample size of 363 MSMEs. The research design of this study is quantitative since the research questions seek to answer and lead to numerical data. The researchers used a descriptive research method as it seeks to ascertain if there is a significant relationship between financial constraints and MSMEs' access to finance in Calapan City. Self-structured questionnaires were used to collect the primary data. By examining the factors or indicators of the study, the researchers found that financial constraints such as collateral requirements, small business support services, the structure of financial institutions, and awareness of funding opportunities, had a significant relationship towards accessing finance of MSMEs in Calapan City. Therefore, the study suggested that MSMEs should look for a financial institution that provides loan products and services that are consistent with their demands for business funding. Business owners should improve their financial management abilities by attending government-provided training and seminars. Further studies are highly recommended to discover other factors affecting MSMEs' financing access.

Аналіз соціально-економічних показників розвитку України у вимірах інклюзії

Inclusive development of the national economy covers all population groups in economic development, ensuring their rights and opportunities and equal access to resources and services, including labor, education, health care, and social protection. It also includes providing sustainable sources of income for all population groups and reducing social inequality. Inclusive development of the national economy contributes to the country's sustainable development, increasing resource use efficiency and competitiveness in the international market. The article aims to analyze the socio-economic indicators of Ukraine's development regarding inclusion. The results. It was determined that inclusive development is assessed using a complex system of indicators that cover various aspects of the economy and society: income and employment; accessibility and quality of education and health care for different social groups; the level of unemployment, exclusion from the labor market and social isolation; availability and quality of housing and infrastructure for other social groups; level of inequality and lack of discrimination based on gender, race, ethnic origin, age, disability, etc.; innovative development and support of small and medium-sized businesses, contributing to the creation of jobs and reducing inequality in income distribution, etc. The analysis showed that the population of Ukraine decreased by 0.7 million during the last two years. It was determined that the decrease in population is due primarily to natural movement, that is, the number of deaths, which significantly exceeds the number of births. In addition, the decrease in population occurs mainly in rural areas. It was emphasized that there is a migration movement in Ukraine. It was determined that in 2020, the number of arrivals amounted to 576,000 people, which was higher than the number of departures - 554,500 people. However, in 2021, there was a decrease in the number of arrivals to 435,300 people and the number of releases to 426,000 people, which caused a reduction in migration growth to 9,300 people. However, in 2022, the number of arrivals increased again to 476.9 thousand people, which led to an increase in migration growth to 21.3 thousand people. It has been proven that the population is an integral part of the inclusive development of Ukraine and an essential factor in its success. Keywords: inclusive development, socio-economic indicators, demographic processes, migration, development of Ukraine.

Directions of Regional Economic Development in Small Business

Relevance. The difficulties of small business caused by the pandemic and its economic consequences actualize the study of issues of regional economic development in small business, since its effective functioning provides opportunities for economic growth in the region.The purpose is establishment of measures to support small business based on the trends of its development in the regions, which in the future will allow to form the directions of regional economic development in small business, contributing to improving the efficiency of the regional economy.Objectives: Determination of trends in the development of small businesses in Russia and the Central Federal District. Assessment of indicators of the state, activity and development of the small business sector in regional economic development in the context of the Central Federal District regions. Analysis of numerical dynamics, as well as the dynamics of ICT development and anti-crisis support in detail on financial, property and innovation support for small businesses. Establishment of support measures for the small business sector aimed at improving the efficiency of regional economic development. Methodology. Methods used in the research: statistical information processing; statistical analysis and synthesis; graphical method of data visualization.Results. Since 2019, the number of small businesses and their number has been declining due to the pandemic. In 2020, the regions of the Central Federal District are characterized by a reduction in the number of small enterprises and the number of their employees, an increase in the level of digitalization of small businesses, a decrease in the number of new private high-tech firms with non-zero revenue, as well as an increase in anti-crisis support. The support provided has not yet led to normalization of the situation. The designated set of measures will create a certain level of attractiveness for the population in the small business sector, as well as stimulate the development of existing small businesses.Conclusions. The presented set of measures will make it possible to identify promising areas of regional economic development in the small business sector, which will contribute to economic growth in the region and increase the efficiency of the regional economy.

The Concept of Family Business Legitimation in the Context of Private Law and Public Law Regulation

In the modern economic and legal model of social relations, family members take the most active and direct part in entrepreneurial legal relations, the essence of which is often reduced to the organization of business processes by spouses, children and other relatives within the framework of the concept of a family business form of entrepreneurship. We believe that this segment of economic-social and family entrepreneurship is quite significant from the point of view of the doctrine and practice-oriented direction of the implementation of the modern theory of entrepreneurship aimed at providing additional support for small and medium-sized businesses, quite often organized by means of family and legal ties, which does not exclude its application for large corporations and holdings. The paper proposes a modern concept of legitimation of family entrepreneurship through the prism of private law and public law regulation, substantiates the need for additional state support for this form of doing business, provides conclusions and some proposals for reforming legislation aimed at legalizing family entrepreneurship in Russia, publishes a memorandum on the current state and further implementation of measures to legalize family entrepreneurship in the post-reform period in Russia.

Main Directions and Priorities of Strengthening State Support for Small Businesses in Georgia

The article is related to the point that the development of small and medium-sized businesses is one of the priority tasks. Small and medium business, as a subsystem of the national economy, as a special form of economic activity, cannot develop only thanks to the conditions created for it, no matter how favorable they may be. In the national economy, special institutions must be created and "grown" that ensure the sustainable operation of small and medium-sized businesses. The evolution of approaches to the study of the concept of "success" in various fields of science is discussed, and based on this, its essence is specified, the features of the success of small and medium-sized businesses in our country are analyzed. The analysis of success factors is included. The author's classification of factors is given, based on their division into internal and external factors; Internal factors control the companies themselves, while external factors go beyond the boundaries of the companies and affect the company's activities as a whole. Keywords: small business, state support, grant, production growth, entrepreneurship.

팬데믹의 일상화에 따른 손실보상

The transition from Pandemic to Endemic requires a new task for compensation for loss after police restriction for public order. The government recognizes loss compensation for small business owners and small and medium-sized business operators who have been closed or suspended due to collective bans or restrictions caused by COVID-19 through the Infectious Disease Prevention and Management Act and the Small Business Protection and Support Act. In this regard, major previous researches have been conducted on whether to apply traditional discussions on property rights guarantees to new situations. We study whether the current loss compensation due to the pandemic can be understood as public compensation or support for socialization of responsibility under the Disaster law from a different perspective from previous studies discussed mainly on German property rights guarantee and loss compensation. In addition, we reviewed the French Constitution, related laws, and Constitutional Court decisions, which were rare to discuss in Korea, and considered the possibility of interpreting the meaning of loss compensation(SON-SIL-BO-SANG) from a perspective other than boundary/separation theory on property rights.

Understanding the contents and development of nascent entrepreneurs’ belief systems

This study tracks the development of nascent entrepreneurs’ (NE) belief systems (mental models) from the time they were seriously planning entrepreneurship to having started their firms. It aims to reveal their typical entrepreneurship-related belief systems to understand the underlying logic of the contents and their change. Cognitive theory predicts belief systems which are first relatively simple and partly shared, but turn more complex and more divergent, thus facilitating the mental representation of their firms’ different environments. The study finds that the NEs share coherent and rather developed belief systems at the outset. They also become more complex after the transition from prospective to actual entrepreneurship, but unexpectedly more uniform, reflecting the NEs’ need to mentally control not only the external environment but also internal issues they share, such as fears and self-efficacy. This implies that entrepreneurs’ cognitive evolution involves developing the conventional “cold” mental grip of the external environment, but also understanding their affective, “hot” side. The development paths can vary, suggesting a corresponding theoretic model. Methodologically, cognitive/causal mapping and semi-structured interviewing provide an accessible approach to studying both aspects of entrepreneurial cognitions. Pragmatically, the findings suggest that small business support should pay more attention to prospective entrepreneurs’ qualms and beliefs, often hidden and biased.

Credit Availability for Minority Business Owners in an Evolving Credit Environment

Disparities in access to small business financing through loan denials and discouragement are estimated using Federal Reserve Small Business Credit Survey data from 2016 to 2020. Substantial differences in credit denial rates continue to exist despite the growth of fintech lenders, which prior research has shown to have expanded the set of small businesses receiving credit. The pandemic period brought many direct additional changes to the business and lending environment, but these results show no evidence of trends in credit access over this period. The Paycheck Protection Program loans represented unprecedented support for small businesses that was not dependent on the credit worthiness of businesses, but minority-owned businesses are estimated to have received a smaller fraction of the funds that they applied for from the program in its 2020 implementation.

TOOLKIT FOR PROMOTING THE SYSTEMIC DEVELOPMENT OF HEALTH CARE INSTITUTIONS AT THE LOCAL LEVEL

In the study, attention is updated to the problem of stimulating the development of small entrepreneurship at the local level and simultaneously improving the system of providing social services to the local population, in particular medical care. It was emphasized that stimulating the development of small business entities and also the medical sector in rural and remote areas is a very difficult task that requires identification in the implementation of specific tools and the involvement of sufficient resources for such purposes. It has been proven that this is why research in this field is always unique and has a high theoretical, methodological and applied value. The purpose of the study is to improve the theoretical, methodological and applied principles of forming policy tools for supporting and stimulating the development of small entrepreneurship in the medical field at the local level. It is shown that the decentralization reform, which is being implemented with permanent success in Ukraine, has largely shifted from the central to the local level the issue of management and financial and resource provision of local social and economic development. These issues become particularly acute in the field of medicine, and often local self-government bodies are objectively unable to solve these extremely difficult tasks on their own. It is necessary to use non-traditional methods and approaches. One of these can be the stimulation of private business in the form of small private health care institutions that provide a wide range of diagnostic and preventive medical services to the population. It was concluded that the policy of local self-government bodies in terms of promoting the development of small business initiatives in the field of providing medical services to the population should be broad in nature, in particular aimed at the general socio-economic development of small towns and surrounding rural areas. Conceptually, the principles of such a policy can be implemented in the following directions: development of production factors; creation and improvement of small business support infrastructure; formation of solvent demand due to increased employment and incomes of the population; development of priority sectors of the economy; increasing the efficiency of small enterprises in the medical field.

Firms’ risk-taking for customers’ benefit and its relevance with performance relative to aspiration

We focus on firms’ risk-taking for customers and investigate how this type of risk-taking is influenced by “performance relative to aspiration” (PRA). Specifically, we examine the PRA and project-financing (PF) loan activities of all 79 savings banks in South Korea from 2013 to 2021. Contrary to the prevalent prediction that risk-taking increases with negative PRA, we demonstrate that banks with a more positive PRA take higher risk through PF loans. This suggests that a more positive PRA has given banks the freedom of action to pursue a social-based goal of small business support, which has been neglected by management as less important than their most important goal of pursuing their own profit. Furthermore, unlike the dominant idea that family firms are more risk-averse than non-family firms, we find that when PRA is positive, family firms engage in risky actions more actively for their customers than non-family counterparts. In other words, banks with better PRA take more risk to provide financial opportunities to their customers and this type of risk-taking is more pronounced for family firms. Implications and future research are discussed.

Central Asia – Russia: Opportunities and Limitations in Building a Joint Future (Foresight Analysis)

Central Asia now plays an important geopolitical role in the balance of power in Eurasia. Russia's role in the region is evolving, but it remains one of the leading ones. The pandemic and the conflict in Ukraine have shifted the situation out of homeostasis. So it is now important to address the issue of security, support for small and mediumsized businesses, and the preservation and development of cultural and humanitarian links. Based on the Foresight procedure this article draws conclusions about the way forward for multilateral relations in the “Central Asia-Russia” format on the basis of the outcome documents announced by the Heads of the Central Asian States and the Russian Federation after their meeting. Using the rapid Foresight tools (anticipation, design, programming and projection), conclusions are drawn about the important position of the Russian Federation as a regional actor in the external policies of the Central Asian States. Its current position is strong, but not uncontroversial. The thesis of the interpenetration of the Russian and Central Asian economies has also been elaborated, since the backbone of low-diversifcation economies are energy and energy-transit. At the same time, one cannot ignore the powerful resource of soft power. The vast area of frontier communicativeness formed by the Kazakhstan-Russian border is a unique resource that can be exploited in the future. The article was based on the results of a scientifc discussion held at the National Communications Development Research Institution (NIIRC), Moscow, Russia in 2022.

CORPORATE SOCIAL RESPONSIBILITY AS A TOOL FOR ENSURING SOCIO-ECONOMIC SECURITY AND SOCIAL INCLUSION

Considers the evolution of corporate social responsibility and the formation of the modern paradigm of its development. It was revealed that the modern paradigm of social corporate responsibility defines it as a managerial practice of improving business efficiency based on a balancing of profit and social welfare, an integral element of the organization's development strategy, a factor of its competitiveness and investment attractiveness. It is substantiated that corporate social responsibility is an ethical, legal, ecological, social, philanthropic context of the organization's functioning, which is reflected in long-term participation in CSR-projects that contribute to the improvement of social welfare and increasing the efficiency of sustainable development. The article considers the general trends in the development of modern CSR are: philanthropic support of small businesses, CSR is consistent with stakeholders' values (consumers, employees, managers, owners, investors, suppliers), development of volunteering for employees and virtual volunteering, development of social innovations, development of new approaches for evaluating the effectiveness of CSR-initiatives, development of green technologies, improvement of labour policy, improvement of the non-financial reports of CSR. It was determined that the development of corporate social responsibility will be determined by the digitalization of CSR-activities, the growth of employee engagement, the glocalization of the CSR business model, the full supply chain accountability, the inclusion of CSR in the crisis management system, CSR as a tool for ensuring social equality and social inclusion.

Boosting Innovation in India: A Policy Framework

Boosting Innovation in India: A Policy Framework

LOCAL ASPECTS OF SMALL BUSINESS DEVELOPMENT IN UZBEKISTAN

Special attention is being paid to intensive development of small business and entrepreneurship, introduction of modern technologies in the field and development of directions for using innovative methods of its improvement. Wide involvement of the population in business activities, growth of the investment and export potential of the industry, and the fact that more attention is being paid to the employment of the population on this basis is gaining importance. Especially in the global economy, improving the organizational and economic mechanisms of small business and private business entities, creating a favorable business environment, strengthening their participation in foreign economic activities, and making full use of their opportunities to increase the income of the population is one of today's urgent issues. These factors imply the implementation of complex measures for financial support of small business and entrepreneurship, information exchange, technical assistance and legal support.