LOCAL DEVELOPMENT IN THE CONTEXT OF ENVIRONMENTAL SMALL BUSINESS ENVIRONMENTS: EXPERIENCE OF CHERKAS REGION

Abstract

In the article the role of small business in shaping the region competitiveness is examined, in particular, social and economic factors influencing regional development are identified. Positive impact factors of small business on the regional economy development are presented and characterized. The competitive advantages of small business compared to large enterprises are outlined, such as: flexibility and rapid adaptability to change, low production capacity. Characteristic features of small business influence on local development (Cherkassy region is as an example) are considered. There are identified trends that indicate, on the one hand, high dynamism and ability to innovate by small businesses and, on the other hand, inconsistency of workforce involved at obtained economic results. The essence of the regional policy of small business development by two characteristic approaches is determined. Its main elements are financial and credit Infrastructure, information and consulting Infrastructure and legal and legal infrastructure. The main legal acts regulating the activity of small business are considered. The example of cooperation between business, local authorities and international institutions is considered. The structural elements of the market infrastructure for small business support are presented. The disadvantages of centralized state and local policy that impede the small business development are noted: lack of clear delineation of powers and responsibilities of local selfgovernment bodies in national legislation, insufficient control over the performance of administrators’ duties, underdeveloped infrastructure for small business activities, insufficient level of cooperation with international organizations. The ways to improve state support for small business at the regional level are suggested.