DEVELOPMENT AND PERSPECTIVES OF SMEs IN THE EUROPEAN UNION

The article includes a brief overview of SME development in the EU, in the context of their sustainable development. Following the financial crisis of 2007-2008, SMEs in the EU-28 have contributed significantly to the recovery and further expansion of its economy. This contribution of SMEs to the European economy has exceeded expectations, the number of newly established SMEs has far outstripped the growth of already existing SMEs. New and expanded businesses have benefited from economic growth, especially for fast-growing businesses, based on innovative products and a growth strategy. In the years 2008-2018 it was intended to improve the entrepreneurship approach in Europe, to impose regulatory and SME policy and to remove remaining barriers to their development. Also, the article proposes solutions for improving the activity of SMEs by implementing the circular model and their transition from the linear economy to the circular economy.