CONCEPTUAL APPROACHES TO SMALL BUSINESS MANAGEMENT IN TERMS OF THE CRITERIA OF ECONOMIC SECURITY AND AN ENTERPRISE LIFE CYCLE

Abstract

The paper focuses on the need for enhancing small business development as a mandatory component of a market-based economic system. A thorough comprehensive analysis has been performed to reveal the characteristic features of modern entrepreneurship, providing insights into small business management basics in terms of the criteria of economic security and the enterprise life cycle. To solve the research problem set, the following research methods were employed: a method of abstract logic (to detect regularities of processes, phenomena and trends in the development of small businesses) and a monographic method (to study the organizational and management principles of small business). Recommendations and tips for managing small businesses are offered taking into consideration a set of criteria and economic security indicators for small enterprises. The key criteria for small business economic security refer to its development capacity; depreciation of physical facilities and resources; financial and economic performance indicators; the crime rate as to business entities; the system viability  to ensure the appropriate level of commercial confidentiality as well as property and private safety of businesses. It is proved that any life cycle stage of a small business development should involve a range of clear, consistent and coordinated management actions to implement the business goals. Evidence has been provided that to prevent bankruptcy and small business liquidation at any stage of its life cycle it is critical to implement the effective management paradigm which will mitigate the effects of external environment threats and maintain the optimum life cycle development of small businesses. It is argued that a correct choice of strategic guidance promotes the sustainable development of small businesses, enhances their economic security, assures products and services competitiveness, etc.