STATE REGULATION OF ENTREPRENEURSHIP IN UKRAINE

Abstract

The article reveals that the leading position in the structure of the economy of most EU countries is occupied by small and medium enterprises (SMEs), as it has a number of significant advantages, namely: high flexibility, rapid adaptation to market changes, the possibility of competition in industries. prompt response to the needs and tastes of the consumer, the ability to create new jobs. It is determined that the support of small and medium business should be a priority of economic policy of any developed country, because small and medium business has a number of advantages, which are largely due to its characteristics. It is substantiated that small business occupies a major place in the agricultural sector of most countries, it is important for the economy of Ukraine. The state of its development is decisive in ensuring employment of the rural population, food security of the country, conservation of natural resources. Small and medium-sized enterprises play an important role in maintaining the social orientation of economic policy in all countries. Thus, the purpose of supporting small and medium enterprises in any country is, firstly, to reduce hidden unemployment and reduce employment in the shadow sector of the economy, and secondly - to form a system of motivation and personal responsibility for the end result of economic activity management. It is also obvious that the pace of development of small and medium-sized businesses determines the growth rate of the national economy as a whole. Regardless of the country of origin, the main characteristics of small and medium-sized businesses are: functioning in the local market; quick response to changes in market conditions; direct relationship with the consumer; narrow specialization; opportunity to start a business with small start-up capital; high susceptibility to innovation; involvement of the broad masses of the population in active business activities. The development of small and medium-sized businesses is especially relevant for countries with economies in transition, as these countries suffer the most from problems such as unemployment and irrational distribution of income. The contribution of small and medium-sized businesses to the overall productivity of the factors of production of the national economy, the creation of additional jobs and the spread of social equality is due to the choice of its technologies. Describing the general principles of regulation, as well as favorable conditions for the development of small and medium-sized businesses, it is also worth emphasizing that in practice there are two large models of small business, "not antagonistic but defining very different sets of public policy instruments. In most developed countries of the world, small business is legally defined as a special subject of state regulation. Thus, the economically developed countries of the world are trying to create favorable tax conditions for the functioning of small and medium enterprises.