FUNCTIONING OF SMALL ENTERPRISES IN THE CONDITIONS OF WARTIME AND EUROPEAN INTEGRATION PROCESSES

Abstract

The article examines the theoretical foundations of the development of small entrepreneurship in martial law and European integration processes. It is determined that small businesses include enterprises with a small level of profit, a small number of employees and small volumes of production or sales. The main characteristics of a small enterprise include: a small number of employees who can work remotely; small volumes of products manufactured or sold; formation of a natural (market) competitive environment, the possibility of faster application of technical innovations, developments, innovative or technical inventions; greater business mobility; the ability to change the direction of production or sales in a short time; relatively small amounts of initial capital to start an activity. It is determined that in the current economic environment, small business is influenced by external and internal factors, which has significantly affected: the number of small enterprises; the volume of production and sales; the amount of tax revenues to the budget from the payment of taxes; the number of jobs; the volume of use of national raw materials, etc.The theoretical and practical basis of the study was the research of domestic scientists in the field of small business development in Ukraine, taking into account legislative, financial and consumer aspects, analytical reports and data of the Institute for Economic Research and Political Situations. It is shown that during 2017-2022, there was a significant reduction in the number of small enterprises, which is a consequence of military aggression, significant departure and movement of the population abroad, and physical loss of business due to shelling. The number of employees involved in small businesses has also decreased. It is determined that the key areas for optimizing the development of small business in Ukraine during the war should be: state support for small business; formation of state programs, grant programs at the international level, reduction of the tax burden during martial law, reduction of the loan interest rate for business development or start-up.