|
| HOME PAGE | |
№ 2021/2
BEREZHNYTSKA Uliana Bohdanivna1
1Ivano-Frankivsk National Technical University of Oil and Gas
FOUNDATIONS FOR THE FUNCTIONING OF INSTITUTIONS FOR SUPPORT AND DEVELOPMENT OF SMALL AND MEDIUM ENTREPRENEURSHIP
| Economy and forecasting 2021; 2:123-136 | https://doi.org/10.15407/econforecast2021.02.123 |
ABSTRACT ▼
The article considers the conceptual foundations of the functioning of institutions for support and promotion of the development of small and medium businesses. The author defines the significance of such institutions, and the value of their product, that is, the services for small and medium entrepreneurship (SME), which allows a better understanding of the main functional and applied role and purpose of these entities.
Given the lack of trust from the population of Ukraine for government agencies and organizations, the presence of a number of problems in the SME support system, and especially the inadequate legislative regulation of the status and definition of the functions of the main performers of SME development policy, the article notes that this area needs a qualitative institutional change.
The study uses the methods of analysis and synthesis, comparison, generalization, and induction and tests the methodology of Canvas Business Model strategic planning of the activities of SME support entities.
Guided by the principle of functionalism, the author conventionally groups the SME support institutions into five main types: business support funds, business centers, business incubators, business innovation centers, and business associations. For each type of SME support institution, the main functional purpose and, accordingly, the main type of operational activity are specified. There are proposals that allow understanding the essence, the functional and applied role and the mission of individual elements of the SME support infrastructure. In practical terms, they can be used in state purpose-oriented programs to promote the development of small and medium businesses in order to qualitatively improve the final product for SME.
The author develops a model of the activity for a typical SME support entity, which is applicable, can be adapted to specific conditions and is flexible over time. Strategic planning of the entity’s activities based on the methodology of Canvas Business Model allows defining both the value of the product (services for SME), as well as the general value of the entity’s activities, which is extremely important in the SME support system.
It is emphasized that each institution of the SME promotion infrastructure performs an important social function. The key values recommended following for SME support institutions are trust, partnership, and righteousness.
Keywords:institution, SME support system, value, Canvas Business Model
JEL: Е 020, D 02
| Article in English (pp. 123 - 136) | Download | Downloads :277 |
REFERENCES ▼
2. World study of values 2020 in Ukraine (2020). Ukrainian Center for European Policy. Kyiv. Retrieved fromucep.org.ua/wp-content/uploads/2020/11/WVS_UA_2020_ report_WEB.pdf [in Ukrainian].
3. Vaschenko, К.O., Varnaliy, Z.S., Vorotin, V.Ye., Heyets, V.M. et al. (2008). On the state and prospects of entrepreneurship in Ukraine. Кyiv: Derzhkompidpryyemnytstvo [in Ukrainian].
4. Pivovarov, M.G. (2010). Formation and development of small enterprises as the basis of entrepreneurship. Zaporizhzhya: KPU [in Ukrainian].
5. Encyclopedia of modern Ukraine. Retrieved 01.01.2021 from esu.com.ua/search_articles.php?id=3256 [in Ukrainian].
6. Balazs, Egert (2016). Regulation, Institutions, and Productivity: New Macroeconomic Evidence from OECD Countries. American Economic Review, 106: 5, 109-113. Retrieved frompubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20161026; doi.org/10.1257/aer.p20161026
7. Rodrik, D., Subramanian, A. and Trebbi, F. (2002). Institutions Rule: The Primary of Institutions Over Geography and Integration in Economic Development. Retrieved from drodrik.scholar.harvard.edu/files/dani-rodrik/files/institutions-rule.pdf; doi.org/10.3386/w9305
8. Inshakov, O.V., Frolov, D.P. (2011). Institution is the key to understanding economic institutions. Ekon. teor. – Economic theory, 1, 52-62 [in Ukrainian].
9. Law of Ukraine "On the development and state support of small and medium enterprises in Ukraine" on 22.03.2012 No. 4618-6. Vidomosti Verkhovnoi Rady Ukrainy – Information of the Verkhovna Rada of Ukraine (VVR), 3, 23 [in Ukrainian].
10. Ostetskyy, V., Petrenko, V. (2019). Institutional and organizational mechanisms to support business development. Review of transport economics and management, 2(18), 20-30. doi.org/10.15802/rtem.v18i2.190450[in Ukrainian].
11. Chorniy, L. et al. (2016). Institutions of business support: concept, features, activity. Center for Public Expertise, Friedrich Naumann Foundation Representation in Ukraine, USAID Leadership in Economic Governance Program. Retrieved from platforma-msb.org/wp-content/uploads/2016/06/Catalogue-2016_web3.pdf [in Ukrainian]
12. Kireeva, O.B. (2010). Social entrepreneurship as an instrument of social policy. Aktual'ni problemy derzhavnoho upravlinnia ta mistsevoho samovriaduvannia – Actual problems of public administration and local self-government, 3(6). Retrieved from www.dridu.dp.ua/zbirnik/2011-02(6)/11kobdsp.pdf [in Ukrainian].
13. Institutions providing support for entrepreneurship. Retrieved 20.01.2021 fromwww.me.gov.ua/Documents/Detail?lang=uk-UA&id=0ced3c9f-a057-4852-9072-151dd387356a&title=Institutsii-SchoZabezpechuiutPidtrimkuPidprimnitstva [in Ukrainian].
14. Strelets, V.Yu. (2019). The current state of the infrastructure of state support for the development of small business in Ukraine. Infrastruktura rynku –Market Infrastructure, 28, 32-37 [in Ukrainian].
15. Resolution of the Cabinet of Ministers of Ukraine "Some issues of the State Regulatory Service of Ukraine" on 24.12.2014 No. 724. Retrieved from zakon.rada.gov.ua/laws/show/724-2014-%D0%BF#n10 [in Ukrainian].
16. Nebrat, V.V., Suprun, N.A. et al. (2019). Entrepreneurship in Ukraine: historical and institutional analysis. Institute for Economics and Forecasting, NAS of Ukraine. Kyiv. Retrieved from ief.org.ua/docs/mg/314.pdf [in Ukrainian].
17. Osterwalder, A., Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries. Game Changers, and Challengers.
18. Global Entrepreneurship Research Association (2020). Global Entrepreneurship Monitor 2019/2020. LBS. Retrieved 20.01.2021 from www.gemconsortium.org/file/open?fileId=50443
19. Layout (canvas) of businessmodel. Retrieved from www.kiwka.com/ wp-content/uploads/files/business_model_canvas_poster_ ua.pdf [in Ukrainian].
20. Business model CANVAS for public organizations. Retrieved 20.01.2021 from www.prostir.ua/?kb=biznes-model-canvas-dlya-hromadskyh-orhanizatsij [in Ukrainian]
Events calendar
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| 1 | ||||||
| 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 9 | 10 | 11 | 12 | 13 | 14 | 15 |
| 16 | 17 | 18 | 19 | 20 | 21 | 22 |
| 23 | 24 | 25 | 26 | 27 | 28 | 29 |
| 30 | 31 | |||||
