PhD Levchenko M. O.

Khmelnytskiy national university, Ukraine

INFLUENCE OF ECONOMICAL TRANSFORMATION PROCESSES ON THE EFFICIENCY OF SMALL BUSINESS ACTIVITIES

A high level of small enterprises development is an important constituent of the socio-economic system of the economically developed countries, where small business determines the rates of the economy growth, GDP structure and quality. This sector helps to support competition in an economy, applicates the achievements of science to production and forms the new social layer of community. In spite of increasing attention to the small enterprises, this sector has not perfect civil and tax legislation, weak material and technical basis and financial support. Reason for such state lays in the under exploitation of theoretical and methodological management basis of the small business and absence of effective mechanism of management.

  That’s why it is important in the modern ways of world economy to develop a connection between the study of organizational structure management of small business to the influence of different economical processes that can not only harm small business development but also help it gain benefits in the future.

However in modern terms the priority of enterprise development is to increase profits and qualitative constituent is often ignored and does not find estimation from both state and small business that violates an optimality and proportion of their integrated relations [1].

It should be said, that under economic essence of small business activities it is necessary to understand such difficult complex of interactive ingredients, where either is capable, coming from some minimum organization, to develop the difficult structure of connections and relations, that are excelling on fineness of management algorithms.

The effective type of economic relations development is related with the laws of management and entrepreneurial activities regulation that are having an internal goal of development exposing purpose of production and new relations algorithm.

Today small business should not only analyze external factors of economical development, but also internal motives for its growth. Otherwise speaking, an effective small enterprise must develop the high-quality, inwardly contradictory and interactive in all elements system of connections. Thus every element in the system is examined as part of single unit, as original «subsystem», which functions depend not only on properties of this element but also on the properties of the whole system. Thus, the enterprise system represents something greater, than simple combination of interactive elements, because its conduct depends not only on the structure of elements and their functions but also on the methods of their co-operation in the system [1; 2].

On the basis of the conducted research are represented the main factors of economical transformation processes influence and basic elements of small business development in the system of enterprise management (Fig. 1).

Fig. 1. Elements of development and factor influence in the system of enterprise

Technological intercommunication is influenced by the level of factors co-operation and includes administrative forms of every element in the system development. It is important to underline that in this connection the efficiency of small business depends on the level of functional connections that rely on the technological cycle of production, and violation of even one link of general chain results in interest’s displacement and catastrophic tendencies growth in a reproduction process [3].

Basic principle of small enterprise is multi-variant approach of activities directions choice, methods of adjusting and management of the structural and economical relations.

Such categories, as utility and value, come forward as the dominant condition of small business efficiency increase, on which the development of economic relations depends on. In spite of that a meaningful role is taken by the enterprise on the income, a value and utility are qualificatory [2; 4].

The main problem of efficiency increase is forming of new social values re-orientation in the economic conduct of small business subjects which gives ground to the change of production pattern and economy system management in all hierarchy of public relations.

Entrepreneurial activity efficiency of small business should be realized in difficult complex of the dynamically constrained relations that are characterized:

-       by the large number of difficult structural elements;

-       hierarchical structure and strong intercommunication between component parts on the different levels;

-       by the variety of these parts and their functions;

-       by the presence of single and general purpose, qualificatory direction of development that provides relative stability of structural elements;

-       by possibility of criterion function introduction, that express minimization of co-operating with an external environment;

-       by ability to resist to external influences and promote the level of the self-organization.

Today small business sector alone cannot provide the financing and human resources required to modernize its infrastructure. There is therefore scope for innovative financing involving the private sector. Infrastructure Bonds have become important for the mobilization of infrastructure financing and the development of domestic capital markets [5].

Economic transformation has been the hope and ambition of many Ukrainian small enterprises. Today, that challenge remains as valid as ever. In addition to the key imperatives such as quality education, improving efficiency and productivity, infrastructure development and regional integration, ensuring that economic transformation is inclusive is equally important.

However, economic transformation is a process and not a goal in itself. Today the main goal in small business development in Ukraine is to stabilize the situation and improve economic indicators. Success requires that the whole country is carried along, and no one is left behind. It also requires that policymakers are able to resolve the many difficulties and contradictions that accompany the process of transformation.

The list of references:

1.              Scarborough Norman M. Essentials of entrepreneurship and small business management / Norman M. Scarborough, Doug Wilson, Thomas Zimmerer . – 6th ed. – Upper Saddle River , N.J. : Prentice Hall, 2011. – 630 p.

2.              Thaler J. The elements of small business. A lay person’s guide to the financial terms, marketing concepts and legal forms that every entrepreneur needs / J. Thaler . – Los Angeles : Silver Lake Publishing , 2005. – 352 p.

3.              Encyclopedia of small business in 2 vol. / ed. A. J. Darnay , M. D. Magee. – Detroit : Thomson Gale, 2007. – 1216 p.

4.              Воротіна Л. І. Можливості збереження підприємств сектору малого бізнесу економіки України / Л. І. Воротіна // Теоретичні та прикладні питання економіки : зб . наук . пр . – К.: Київський університет , 2009. – Вип . 19. – С. 32 –38.

5.              Ларіна Р. Р. Малий бізнес в Україні : роль та особливості розвитку в національній економіці : монографія / Р. Р. Ларіна , О. В. Азаров – Донецьк : Вебер , 2007. – 300 с.