ESTIMATION OF TRANSACTION COSTS OF SMALL BUSINESS SUPPORTJournal: Herald of Kyiv National University of Trade and Economics (Vol.87, No. 1)
Publication Date: 2013-02-14
Authors : OSTAPENKO Nataliia;
Page : 64-76
Keywords : transaction costs; support; small businesses; estimation;
From a position of the neoinstitutional theory, transaction costs in the process of economic management can cause their low productivity. Therefore the aim of the article is to determine the influence of transaction costs for productivity of process of support of small business. Under the transaction costs (TC) in the process of small business support is offered to understand interaction expenses (through formal and informal institutions) of small businesses support agencies in the process of: property transferring of rights on resources, goods, services; providing the access of small businesses to special operating conditions; governing of process of support of small business. In the course of direct support of small business (SB) the following types of TC are allocated: costs of search of information, cost of measurement and costs of opportunism. TC of indirect support of SB consists of costs of adaptation, monitoring and enforcing the implementation of formal rules. The estimation of transaction costs in the course of support of small business is made by comparing them at various systems of support. We used the following methods of assessment: measuring the costs of time for interactions of economic agents (costs of information search and the cost of measurement); aggregation of costs for the maintenance of regulatory authorities (the costs of control and coercion to carry out the formal rules and regulations); use of indicators reflecting the general level of corruption and shadow economy in the country (the cost of opportunism). Ukraine, both on TC indicator, and on an indicator of a share of small business in gross domestic product, occupies the lowest place among the studied countries, suggesting low efficiency of existing support institutions. For the purpose of increase in management efficiency in the sphere of development of SB it is necessary to consider influence of transaction costs on productivity of measures for support of this sector. In the course of the analysis of efficiency of support of SB it is also expedient to consider action of time lags (costs of adaptation).
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