EVOLUTION STAGES OF SMALL AND MEDIUM ENTERPRISES DEVELOPMENT IN UKRAINE

Abstract

The article considers the evolution of small and medium entrepreneurship development in Ukraine, analyzes the dynamics of business development, changes in state regulation of business activity during 1991–2020. During the stated period, Ukrainian entrepreneurship passed a long way and nowadays over 99% of business entities in Ukraine are small and medium-sized enterprises. At the same time, the level of support and trust in SMEs in Ukraine remains insufficient in comparison with global trends, as article demonstrates. Meanwhile, small and medium-sizedenterprises in Ukraine are still at the stage of development, because since1991, when Ukraine gained independence and transition to market relations started. Ukrainian business has begun to actively emerge and develop.Current articles suggests the classification of evolution stages of small and medium enterprises development in Ukraine. In the study, four SMEsdevelopment evolution stages were defined, thereof: stage of conception,stage of growth, stage of adaptive development and stage of crisisdevelopment. The conception phase lasted for four years from 1991 to 1995, during which time the first legislative initiatives began, the number of enterprises increased significantly, due to the fact that there was no such activity before. The ten-years growth phase was marked by an increase in the share of manufactured products and services provided to SMEs in the general structure of Ukraine's economy. The stage of adaptive development from 2007 to 2013 essentially became a transitional one, as it was during the period of the adaptation of business conditions according to international and European standards began. The next stage of crisis development began in 2014 with a deep crisis. It continues nowadays. Namely, during current period a lot of very important initiatives took place. For example, SME Development Office was established, entrepreneurs began to realize the importance of business knowledge, and government began to create infrastructure for conducting business in accordance with modern requirements. The previous 29-year experience of SMEs in Ukraine was, in fact, a process of creation and development, so this study also provided a brief analysis of the opportunities for entrepreneurs to acquire knowledge in different periods.