As a rule, all states use this tool to restrict foreign trade.
There are a number of arguments that, in addition to the successful macroeconomic measures taken in post-socialist countries, overall economic progress has been the result of the entrepreneurial spirit that small business has brought to this process. The power of entrepreneurship as a way of life gave impetus, which intensified the emergence of new property relations, changes in social consciousness and economic efficiency.
Countries such as Poland, Hungary, Slovenia and the Czech Republic are already in the third stage of market self-regulation. A number of arguments can be made, in particular, that these countries already had a basis for development, their economies were at a higher stage of development and they had better relations with other countries with free market economies. Despite these factors, the analysis of development in Ukraine shows that the main reason for economic inefficiency is the lack of a flexible and adaptable political environment. This observation can be easily explained and confirmed by the high share (50%) of the shadow economy in Ukraine.
Small business in Ukraine has certain features that significantly distinguish it from entrepreneurship in most foreign countries, namely:
low level of technical armament with significant innovation potential; low management level, lack of knowledge, experience and culture of market relations; the desire for maximum independence (most foreign small businesses operate under franchise conditions, etc., and we have almost none); combination of several types of activity within one small enterprise, impossibility in most cases to focus on a single-product development model; lack of self-organization system and insufficient infrastructure to support small business; lack of complete and reliable information about the state and market conditions, low level of consulting services and special educational programs; practical of state financial and credit support; distrust of Western partners and negative psychological attitude of the population to entrepreneurs.
In addition, it should be noted that the state of the commodity market in Ukraine, which operates small businesses, differs significantly from economically developed countries. Developed market relations are characterized by the predominant influence of demand with a rapid response to it, the priority of private property, developed market infrastructure, efficiency and stability of legislation, financial stability, availability of means of production, traditions of contractual relations, information openness , officially minimal criminalization.
Currently, the small business sector in Ukraine is at an early stage of development and is characterized by a high degree of inefficiency. At the same time, Ukrainian companies suffer from excessive taxes and a complex system of regulations. But recently there has been a significant growth of small business in many areas: the introduction of new flexible technologies; expanding consumer demand, which departs from standard mass-produced goods, and turns to goods that have their own style and characteristics.
These achievements can be explained by certain advantages of small enterprises in adapting to the conditions of the transition economy. Small firms enter the market without the problems of most state-owned enterprises, such as, for example, high overhead costs, inefficiency in the use of capital and labor resources, debt, and so on. However, the successful role of small business in changes in the economy is not simply the ability to accumulate capital quickly, using the opportunities created by the turmoil in the economy.
In the current situation in Ukraine, the development of small business should be a decisive factor in improving economic mechanisms. Only the vigorous development of the MP will ensure the social restructuring of society and the transition to a civilized market.
Thus, the development of small business in Ukraine is extremely necessary. Its formation has a positive impact on the national economy, which will largely lead to the creation of a modern market economy with a social focus.
The place of small enterprises in the economies of different countries
The analysis of foreign experience allows to look in a new way at the development of the economy in the 80-90s and to imagine the process of unusual growth of small business, to use the positive aspects of this experience.
In the late 80’s in all industrialized countries, the share of small business in number is significant. Thus, in the USA, Japan, and France, 99% of all enterprises were small.
According to statistics, there are 13 million small businesses in the United States, 2.37 million in England, and 6.5 million in Japan. The annual growth rate of new small businesses over the past decade was: in the UK 1.1%, in France – 1.5%, in the United States – 8%.
Today, in many countries with developed economies, small employ businesses between 5 and 15% of the population. In the United States, small businesses employ 63% of the population (and projected to be 70% in 2000) in the private sector, accounting for 47% of the country’s total sales of goods, as well as 50% of gross domestic product.
The concept of franchising became a revolution in the field of small business. In the United States alone, franchise sales have accounted for 40 percent of total retail sales for more than a decade, with total gross sales exceeding $ 800 billion. The main reason for this success is the structure of franchising, which combines the effect of scale with the ability to provide personalized services.
The late 1980s saw a boom in small business in the UK. In 1987, 42 thousand MPs were registered, in 1990 – 87 thousand, in 1993 – 409 thousand, in 1997 – 2.37 million.
In France in 1998, MPs accounted for 94% of the total. They employ 33% of the working population, which, to a large extent, solves the problem of employment. By industry, MPs are most common in services, trade, construction (80% of employees), to a lesser extent – in industry (54%), transport (28.6%).
The share of MP in the Japanese economy in terms of sales is 58% in industry, it is 64% of trade and 79% of retail turnover. In Japan, there are more than 6.5 million MPs, which employ 82% of workers.
Italy, England, Germany, France, and Spain have the largest number of MPs from EU countries. With an average number of MP per 1,000 inhabitants – 45 units, Greece, Spain, Italy, Portugal have 65 units, the Netherlands, Denmark, France – 30.
By the end of the 1970s, it was believed that most new jobs were created in large enterprises. But studies have shown that during 1969-1976. in the United States, 66% of all new jobs in the country were created by small businesses with twenty or fewer employees. Thus, smaller corporations are more actively looking for new opportunities. This is confirmed by statistics from other developed countries. For example, in Italy 80% of the total number of employees work in small business, in Denmark 92% of manufacturing enterprises are small, which employ 43% of the labor force. Let’s compare the structure of enterprises in Europe and the United States.
As we can see, MPs in the EU employ more people than in the US, ie in EU countries small business is more important in terms of employment, especially in manufacturing. Regardless of the criteria for determining MPs, they make up 95% of all enterprises in the EU.
From the statistical data it can be concluded that the largest share of MPs at the global level falls on agriculture, trade, services, construction, industry (especially light and food). Recently, MPs have been operating effectively in the field of precision engineering, instrument making, optics, electronics, and electrical engineering.
Quantitative growth of MP in industry is mainly due to the specialization and differentiation of social production, the abandonment of large-scale mass production in favor of small-scale, individual production of goods, which requires the modern market.
It is also worth noting that such a flourishing of small business in economically developed countries has been achieved due to the existence of an effective government policy to support the development of this area.
On the concept of state policy for small business development. Resolution of the Cabinet of Ministers of 3.04. 1996 No. 404. About entrepreneurship. Memory from 7.02. 1991 No. 698-XII. About the enterprise in Ukraine. Memory from 27.03. 1991 No. 887-XII. About the state support of small business. Decree of the President of Ukraine of 12.05. 1998 No. 456/98. On the elimination of restrictions that stimulate the development of entrepreneurship. Decree of the President of Ukraine of 3.01. 1998 On the simplified system of taxation, accounting and reporting of small businesses. Decree of the President of Ukraine of 3.07. 1998 123helpme.me No. 727/98. Reverchuk SK Small business: methodology, theory and practice. – Kyiv: IZMN, 1996 .– 192 pp. Small business in Ukraine. Collection of legal acts / Ed. OV Kuzhel, AK Kinah, VV Kostytsky. – Kyiv: Institute of Legislative Predictions and Legal Expertise, 1999 .– 190 pp. Plotkin JD Entrepreneur about entrepreneurship. – Lviv, 1993. – Art. 63-75. Varnaliy Z. Trends in the formation of small business in Ukraine // Market transformations, pp. 58-64. Blinov A. Small business. Organizational and legal bases of activity. – M.: Os-89, 1997. – 336 p. Varnaliy ZS Small business of Ukraine: problems of formation and prospects of development // Government Courier. – 1995. – No. 62-63. – Page. 4.Gerasymchuk VG Entrepreneurship development: diagnosis, strategy, efficiency. – K.: Higher school, 1995 .– 267 p. Economics of the enterprise: Textbook for universities / Ed. Gorfinkel V. Ya., Shvandara VA-M .: UNITI, 1998.-Pp. 92-117. Kuzmin OE, Zagorodniy AT, Gromyak LS Small forms of entrepreneurship. Tutorial. – Lviv: Center of Europe, 1996. – Pp. 4-36.
Non-tariff regulation system: licensing and quotas. Abstract
Effective measures to regulate foreign economic activity are non-tariff instruments: licensing system, quotas, creation of unjustified product quality standards, bureaucratic obstacles in customs procedures
They are used by the state under conditions of a sharp deterioration in the balance of payments of countries, the maximum level of foreign currency debt.
Today there are about 50 different ways of non-tariff regulation. As a rule, all states use this tool to restrict foreign trade. In Japan and European countries, it is a licensing system for importers. Restricting the issuance of licenses significantly reduces unwanted imports.