Small business support in the territories in a decentralized environment.

Abstract

Purpose of the article: to substantiate differentiated mechanisms of support of small business entities within the newly formed communities under the conditions of decentralization in order to eliminate disparities in business development. Research methods: comparison, statistical-analytical method, tabular and graphical modeling, analysis and generalization of data have been used in the academic paper. It has been established that decentralization causes a change in the business environment, creates new opportunities (the possibility of greater influence of the private sector on the activities of government authorities) and threats to the effective use of existing production and financial potential of small enterprises; it affects the dynamics of their development. It has been revealed that the achievement of a positive social-economic effect is possible only by balancing the interests of different participants in the economic process through the application of differentiated approaches to the settlement of relations that arise between individual UTCs. Within the conditions of transformation of the social structure it is necessary to update the theoretical and methodological bases of management of small business entities, which will contribute to the structuring of social-economic relations and rationalization of economic activity both at the level of national economies and at the European level. European policy of social cohesion and fiscal decentralization contributes to the increase of financial resources at the level of UTCs’ budgets, intensifies the innovative activity of small business entities and, as a result, stimulates the development of small business entities. The principles of supporting small enterprises in the context of decentralization in the EU are as follows: concentration; program planning; rational combination; partnerships; efficiency. Decentralization changes the business environment, creates new opportunities for effective use of existing production and financial potential of small enterprises. Still, achieving a positive socio-economic effect is possible only by balancing the interests of different participants in the economic process by applying differentiated approaches to settling relations among certain UTCs. So, these aspects confirm the necessity and relevance of detailed research on the outlined issues. The purpose of writing this scientific article is to analyze the conceptual basis for stimulating the development of small business within certain UTCs. Their formation was the result of decentralization, as well as substantiation of differentiated approaches to eliminate disparities in business development while maintaining signs of autonomy of certain UTCs.