SOCIO-ECONOMIC IMPACTS OF COVID-19 ON UKRAINIAN SMALL BUSINESSES AND HOUSEHOLDSJournal: University Economic Bulletin (Vol.0, No. 52)
Publication Date: 2022-05-13
Authors : Oksana Palamarchuk; Vadym Melnyk;
Page : 122-129
Keywords : COVID-19; household; small business; entrepreneurship; socio-economic factors;
Relevance of the research topic. The COVID-19 pandemic has shaken Ukraine's economy and affected all businesses. In addition, it showed how vulnerable both business owners and employees can actually be. And, although quarantine has paralyzed business activity in all parts of the world, for Ukrainian entrepreneurs this test has complicated the already difficult economic situation. A socio-economic assessment of the impact of COVID-19 on businesses and households, led by UNDP and in collaboration with UN Women and the Food and Agriculture Organization of the United Nations, found that 84% of households had reduced incomes and 43% had at least one family member lost his job. Formulation of the problem. Small business is the driving force of the entire economy. This thesis is confirmed by the practical experience of Ukraine and foreign countries. For the past two years, the economies of the states have been affected by the COVID-19 pandemic, which has exhausted them and forced them to look for new ways to support, rationally and economically use funds. Big business has adapted quickly to the challenges of the crisis, but small businesses are not always able to respond adequately and are the most vulnerable, as small businesses tend to lack the financial reserves to stay afloat and go bankrupt in the wake of another pandemic. Research method or methodology. The article uses a set of such methods: generalization, descriptive, abstract-logical and systematization. Presenting main material. Given the destabilization of the economy and limited financial resources caused by the pandemic, it is business entities that do not require large start-up investments that can, with some support, solve Ukraine's crisis economy most quickly and effectively, stimulate competition and promote economic growth. Based on the above, we can say that the development of entrepreneurship is a powerful factor in reforming the economy: creating a socially-oriented market mechanism, overcoming the current crisis decline in production and providing conditions for economic growth of the regions. Unfortunately, small business, which for many years was formed as a means of subsistence for entrepreneurs and their families, and remained a "survival business" without being formed into a full-fledged sector of the economy, construction, etc.) carries the following important economic burdens: is an important part of the country's export activities, along with large corporations is an important component of innovation, cooperates with large enterprises, forming mutually beneficial cooperative structures to become a decisive factor in improving economic mechanisms, and must work in the interests of all segments of society, contribute to the eradication of poverty. Field of application of results. The results of the study can be used in the study of problems: regional economy, global economy, national economy. Conclusions according to the article. In the conditions of a pandemic and a crisis of the economy, it is the state's assistance to small businesses that can lead to an improvement in the economic situation both in the regions and in the country as a whole. Today, it is with small and medium-sized enterprises that the state hopes for rapid positive structural changes in the economy, overcoming the economic crisis and creating conditions for economic growth. That is why countries with developed economies do their best to promote the development of small business by creating a favorable economic climate for its existence, develop and implement various measures of financial support by the state.
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Last modified: 2022-05-28 18:59:56