Open AccessInstitutional and normative legal basis of small business activity
Author(s) -
S. V. Osadchuk
Publication year - 2018
Publication title -
aspekti publìčnogo upravlìnnâ
Language(s) - English
Resource type - Journals
eISSN - 2413-8231
pISSN - 2311-6420
DOI - 10.15421/151848
Subject(s) - normative , small business , business , new business development , business analysis , business development , business transformation , marketing , business enterprise , business relationship management , industrial organization , business model , electronic business , business administration , political science , law
This paper aims to contribute to the understanding of the factors that influence small to medium-sized enterprise (SME) performance and particularly, growth. However, the paper also demonstrates that although contributing to the knowledge base, our understandings of business performance and levels of theorising remain incomplete. The paper provides a theoretical justification for the expediency of further development of the system of state management of small business development. In particular, it defines the basics of small business. It analyzes the institutional and normative support of small business activity. There have been analyzed the indicators of small business activity in recent years. There was established a negative trend of development and conditions for it for small businesses in it. The world trend of development of the market with participation of subjects of small business is defined. The most priority and least profitable projects in small business have been revealed. There was emphasized the necessity of creating more favorable conditions for development of small business by the state. The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Using new data that samples early stage entrepreneurs just prior to business start up, it showed that few small businesses intend to bring a new idea to market. Instead, most intend to provide an existing service to an existing market. Having a business plan was also found to be important in the economic development. This paper seeks to contribute to the development of the literature on factors that influence the performance of businesses through a robust empirical study by updating the current problem components. Collectively, these results suggest that there are other first order reasons why small businesses form aside from the innovation or growth motives which are embedded in most theories of entrepreneurship. And this reasons connected with governance and rules of its realisation in state.