Development of small and medium-sized enterprises in Ukraine

Abstract

Small and medium-sized enterprises (SMEs) are an important driver of economic development in any country, including Ukraine. Their role is especially growing in the context of globalization and constant change. They have an economic impact on society. The work aims to analyze the development of SMEs in Ukraine. Possible reasons for these trends may be that until 2022, the Ukrainian economy demonstrated positive dynamics, which contributed to the growth of production volumes. State policy aimed at supporting small and medium-sized businesses contributed to its development. Increased investment in fixed capital contributed to the modernization of production and increased its efficiency. The introduction of new technologies made it possible to increase labor productivity and expand the range of products. The growth of incomes and changes in consumer preferences stimulated demand for goods and services. The development of online commerce opened up new opportunities for small businesses.However, economic crises, political events, and pandemics significantly affect the dynamics of production and sales volumes. In general, in most years there has been an increase in the total number of business entities, both medium and small. This indicates the intensification of entrepreneurial activity and the development of a market economy.