ANALYSIS OF THE IMPACT OF URBANIZATION ON THE STRATEGIC DEVELOPMENT OF SMALL AND MEDIUM-SIZED BUSINESSES IN THE CITY: PROBLEMS AND PROSPECTS

Introduction. Urbanization processes have a significant impact on the economy of any country, since cities are not only drivers of economic growth of territories, but also concentrations of population and business centers in one place, which contributes to increased economic productivity through specialization, innovation and more efficient use of development potential in the context of intensified globalization processes. However, in the context of rapid growth of urban areas, small and medium-sized businesses face new challenges and opportunities, which necessitates identifying the problems and prospects for the development of small and medium-sized businesses in the context of urbanization processes. The purpose of the study. To assess the impact of urbanization processes on the development of small and medium-sized businesses, as well as to identify opportunities for enhancing entrepreneurship in an urbanized environment. Materials and methods. Research materials: 1) official data of the State Statistics Service of Ukraine on the development of entrepreneurial activity, demographic statistics; 2) works of domestic and foreign authors on urbanization, urban development, as well as publications on the development of small and medium-sized businesses. The following methods were used in the study: theoretical generalization, comparative analysis in assessing the dynamics of changes in the number and size of small and medium-sized enterprises; synthesis method in identifying challenges and prospects for the development of small and medium-sized enterprises; methods of generalization for drawing conclusions. Results. The article analyzes the process of urbanization in the global and Ukrainian contexts. The main reasons for the growth of urbanization in Ukraine are highlighted. The main challenges faced by small and medium-sized businesses in the context of urbanization are highlighted: economic, social, infrastructure, environmental, innovation and regulatory, as well as the opportunities that open up for SMEs in the urban environment, in particular, the growth of consumer demand and innovation. The experience of Ukraine during the full-scale war is considered and the need to support small businesses for economic recovery is proved. Prospects. it is advisable in further research to focus on the formation of detailed financial plans for business development, taking into account existing risks, optimization of logistics chains, as well as intensification of investment in digitalization and automation of business processes of enterprises.