ECONOMIC ASPECTS OF THE DEVELOPMENT OF INSURANCE ACTIVITY OF SMALL BUSINESSES

Abstract

The goal of the article is to summarize and highlight the main economic aspects of the development of insurance activities of small businesses in the countries of Eastern Europe. The small business performs a number of important economic and social tasks. The main arguments in favour of the features of the organization and operation of insurance activities of small businesses are considered. The purpose of the research. The purpose of this scientific research is to develop a methodological approach to the organization of insurance activities in small business and make proposals on the ways of their improvement. Insurance provides reliable protection of property interests of entrepreneurs and the population in case of losses caused by fire, natural disaster, technogenic accidents, traffic accidents, and many other unforeseen circumstances. Problem statement. In the economy of countries of Eastern Europe, there are a number of features of small business development. Entrepreneurship contributes to the expansion of the sector of employment, the creation of new employment opportunities for the unemployed population, and the dismissal of employees from enterprises, which operate inefficiently. Insurance provides reliable protection of property interests of entrepreneurs and the population in case of losses caused by fire, natural disaster, technogenic accidents, traffic accidents, and many other unforeseen circumstances. Insurance has proved itself as a form of accumulation of funds of citizens to solve their social problems (health, pensions, education, etc.). In recent years, insurance is widely used in the event of third-party liability. The issue on the problems of the organization of insurance activities of small businesses has been and is studied in detail in periodicals and special literature. Methodology. The analysis of the operation of small business and the features of its conduct was made during the study. The issues of the formation and operation of small business, as well as workflow management and business administration at these enterprises, are controversial. As a result of the research, the regulatory framework of the operation of insurance enterprises in the sphere of small business has been analysed. The article focuses on the main arguments in favour of the features of the organization and operation of insurance activities of small businesses. There is a need for the intensification of insurance activities. Practical implications. The study of scientific works and the practice of economic activity indicate that some of the theoretical provisions regarding the interpretation of the features of the organization and operation of insurance activities of small businesses are of a polemical character, and a number of important aspects of their organization, evaluation, and the methods of organization should be improved. Value/originality. The main directions of the insurance activity of small businesses in the global economy have been studied. The ways and directions of activation of insurance activities are offered. The strategy of the development of small and medium-sized businesses in the insurance sector in Ukraine is proposed. The strategy is aimed at ensuring the gradual development of insurance activities of small businesses, given the temporarily limited financial support and significant challenges in the economy of Eastern European countries.

Keywords

• insurance, insurer, insurance market, small business, entrepreneurship, state support