SMALL AND MEDIUM ENTERPRISES IN UKRAINE AND THE EU:ANALYSIS AND COMPARATIVE CHARACTERISTICS

Abstract

Small and medium entrepreneurship (SME) in Ukraine has always existed in difficult socio-economic conditions. Doing business has been complicated by waves of numerous economic crises, the political situation in the east of the country since 2014, and since 2020 – the global crisis caused by the pandemic.In Ukraine, SMEs are an important part of the economy, as they create new working places and make a significant contribution to the country's gross domestic product. That is why its development is one of the main priorities of the Government of Ukraine, which is enshrined in the Association Agreement between Ukraine and the European Union.However, not only external factors influence the development of entrepreneurship. World and domestic practice show that a necessary condition for the successful development of small and medium enterprises is state and regional support. The priority of state participation in the development of the business sector is to create favorable legal and socio-economic conditions for effective development and expanded reproduction. In the EU, much attention has been paid to the development of small and medium-sized businesses since the last century. Since then, each member state has its own strategy, active government support in the areas of finance, taxation and regulation, and a highly developed culture of entrepreneurial awareness. That is why it is necessary to pay considerable attention to the study of foreign business development practices. This article analyzes and compares the main indicators of small and medium enterprises in Ukraine and some European countries. The main problematic points that entrepreneurs face are highlighted. The main obstacles have been identified and compared with EU countries, such as Germany, Italy, France, and those whose economic development is closer to Ukrainian indicators. The advantages and disadvantages of taking current measures for the development of small and medium enterprises in Ukraine and abroad are considered. Changes and, according to the authors, an important system of measures to improve the existing business strategy in Ukraine are proposed.