INNOVATIVE DEVELOPMENT OF SMALL BUSINESS IN UKRAINE

Abstract

The article examines the importance of innovative development for enterprises in the modern market economy. It is proved that innovations lead to positive changes in society and the economy, contributing to increased productivity and efficiency of economic indicators. They help enterprises to compete with world leaders in the global environment and ensure stable long-term growth rates. The authors consider a model of innovative development for small businesses based on a systematic approach. Different levels of the model are highlighted, starting with the prerequisites for innovative modernization of the economy and ending with the innovation infrastructure. It is shown how the state innovation policy interacts with business entities, especially with small enterprises, and provides recommendations on the use of incentive policies to support innovative development. The importance of focusing entrepreneurs on creating and using innovative ideas rather than copying technologies and the challenges that arise in a competitive environment are proved. In this context, in the formation of mechanisms for the innovative development of small enterprises, it is necessary to understand the new challenges of the competitive environment and the impact of technological innovations. The influence of business environment conditions and obstacles on the innovative development of the small business sector is analyzed. It is noted that in Ukraine small and medium-sized businesses are a key component of society, but the war significantly complicates their functioning. The importance of government support for economic stability and recovery is emphasized. The measures taken by the state to support small and medium-sized businesses in times of war, such as the establishment of the National Council for the Recovery of Ukraine from the Consequences of War and the SME Support Fund, are described. Measures to improve the legislative framework to simplify taxation, compensation for losses and financial assistance to enterprises and individual entrepreneurs during martial law are presented.