Baltic Journal of Economic Studies (Nov 2016)
MECHANISMS OF STATE REGULATION OF SMALL AND MEDIUM BUSINESSES
Abstract
Subject of research is the mechanisms of state regulation of small and medium businesses in Ukraine. The purpose of the research is effective mechanisms development of state regulation of small and medium enterprises (SMEs). Methodology. The article uses general and special methods of investigation: empirical research methods (observation, comparison); methods used empirically and theoretically study (abstraction, analysis and synthesis); methods of theoretical research (ascent from the abstract to the concrete, systemic and structural approach). The article highlighted the priority areas of activity in Ukraine, such as agriculture, IT-sector and tourism. In particular, we have analyzed data of the State Statistics Service of Ukraine and international surveys such as Enabling the Business of Agriculture, DOU, Deloitte (Global Survey of R&D Incentives 2015), International SOS and Control Risks, WTTC, UPS, Consulting integrated, Organic Monitor and other. We determined that agriculture must use consistent increasing areas under food crops; introduction of modern technology and innovation; gradual increase in the level of mechanization of agricultural production. Scientific research preparation and training of local staff employed in the agriculture and food industry must become the main aspects of quality development. The article defines that IT market requires quality of the state regulation in readiness for a permanent dialogue with government and comprehensive support for sector as a strategic development of the country; development strategy and projects for development of the sector; effective fight against corruption at all levels. The relevance of government regulation in the development of green international tourism is determined. Modern historical and cultural features of Ukraine can allow providing a range of services for international tourism community. There is analyzed an impact of export orientation for small and medium business in the article. Export agribusiness areas that are not yet wide developed are identified: the supply of organic products (use of fertilizers over many years significantly reduced the possibility of growing organic products in the EU, Ukraine has a a lot of land that is not processed); bean cultures export (For example, provision of population with bean cultures is only 8%, 92% – import in Turkey. The production of bean cultures have high indicators in Ukraine); selling of honey (Ukraine takes 3rd place in Europe on manufacture of of honey, and only a small part is realized abroad). As a result of research we have created own Index of business quality development (IBQD), which includes the negative tendencies of development in international rankings and current state of socio-economic environment in Ukraine. Index of business quality development considers the practical significance and is formed directly on the SMEs questionnaire and includes the following blocks: general information about the company; contemporary business issues (the study of actual practical problems of business); providing state functions to support the business development. Thus, the Index of business quality development shows efficiency of mechanisms of state administration in the SMEs sphere in dynamics.
