Problems of Small and Medium Business Development

Ds and characteristics of the problems of small and medium usiness development in the Donetsk region. Small and medium business is the most dynamic element of the structure of the national economy and an important component of its system of economic relations. It contributes to the establishment of competitive principles, as it antitrust in nature. Small and medium enterprises, as the leading sector of the market economy, providing the market with goods and services, are autonomous in carrying out their economic activities, dispose of finished products and profits that remain after taxes and other obligations. The analysis of the main indicators that determine the state of small and medium business in Donetsk region: the number of registered entrepreneurs, the share of small and medium business in the economy, the number of employees in small and medium business. A SWOT-analysis of small and medium-sized businesses in Donetsk region was conducted and its strengths and weaknesses, development opportunities and threats were identified. They need the greatest attention and concentration of efforts of regional authorities to eliminate them. Assessing the opportunities, the potential attractiveness of the Donetsk region and the probability of their realization, as well as whether the planned benefits may outweigh the probable losses due to the realization of opportunities. Sometimes opportunities can carry both great attractiveness and great risk. Depending on the situation, the same factor can be both a threat and an opportunity. Based on the PEST-analysis, the influence of external factors on the activities of small and medium enterprises is determined. It is noted that over a long period of time the development of small and medium enterprises is slowed down by negative factors: the crisis of domestic commodity production, rising prices, inflation, low solvency, corruption and more.