From big business to small and medium-sized enterprises: factors and prospects

Abstract

The article considers changes in organizational structure (in the context of a shift in favor of small business), the main factors and long-term prospects of these changes. Enhancing the role of small and medium-sized enterprises (SMEs) in many countries of the world is described. The concept of SMEs, as well as the range of indicators measuring organizational structure, is defined. Modern trends that indicate the increasing role of small and medium-sized enterprises are shown. On the basis of dynamics of economic indicators in Europe and the United States, the increasing role of small and medium enterprises is investigated. It is shown that the increase in the share of the service sector is the result of market saturation. The influence of the service sector on the shifts in the organizational structure in the period of global economic changes, as well as the influence on the increasing share of more flexible and innovative small and medium-sized enterprises in total employment and income, is argued. Increased competition in the process of saturation of the market is shown as one of the factors of the development of personal needs that promote individual entrepreneurs, inventors and innovators, for whom a complex and rigid structure of large organizations is the factor which limits the growth and interferes with their becoming the engines of scientific and technological progress. It is proved that in conditions when large corporations find themselves unable to identify a new micro niche quickly, small and medium enterprises are becoming the most convenient form for the realization and promotion of innovation. The transition from the dominance of large corporations to the dominance of SMEs in the process of substitution of technological modes is investigated. The increasing role of small and medium firms in the context of long-term trends of economic development is considered.

Digital business research for small and medium-sized enterprises: The case of Ukraine

“…Previous studies (Kvitka & Kramarenko, 2018) have found that SMEs increase their influence on the economic development of EU countries, as well as on the dynamics of the Ukrainian economy. This raises the question of how to improve the efficiency of small businesses.…”

“…Nevertheless, in a highly competitive environment, the problem of survival and scaling is particularly acute for small and medium-sized businesses (Anderson et al, 2014;Chen & Fan, 2013). The main factors for the prosperity of modern enterprises are the use of available digital tools (Buntak et al, 2020), the entrepreneur's personal human capital (intellectual and emotional capital, skills, abilities) (Peček & Ovsenik, 2018), and the formation and filling of niche markets (Kvitka & Kramarenko, 2018).…”

Consumer Perceptions of Critical Success Factors for Small Local Consumer Brands

“…The following is a list of typical FMCG products: processed foods; prepared meals; beverages; baked goods; fresh and frozen foods; dry goods; medicines; cleaning products; cosmetics and toiletries (Kenton, 2019). FMCGs are an essential part of the manufacturing sector and increasing competition caused by the emergence of new products, aggressive marketing and technological innovations presents a challenge for manufacturers (Kvitka and Kramarenko, 2018), especially for SME enterprises.…”

“…SMEs' turnover in South Africa shows it to be the second largest turnover of any industry in South Africa (Bureau of Economic Research, 2016), focused mainly on retailing and product manufacture (Fischer and Reuber, 2000). Research has shown that SME activity in countries such as the United Kingdom and Germany, fuels growth in these economies (Kvitka and Kramarenko, 2018), but despite overall rises in total revenue and employment in Germany, studies have shown regional differences. SME success seems to vary with turnover, a key indicator of profitability, showing variances between regions.…”

Strategic management accounting as an information platform for measuring innovation of the enterprise

“…At present, there is no single methodology for analyzing the innovative activity of the enterprise due to the complexity of the development of the methodologies of the study, the availability of different approaches to defining the essence of the concept of "innovative activity of the enterprise", the problematic allocation of factors that affect the innovative activity of the enterprises [1][2][3][4]. The peculiarity of the analysis of the innovative activity of the enterprise is the coverage of all its stages, the orientation towards identifying the achievement of the main objectives of the enterprise, the close relationship with the system of strategic management and the adoption of long-term managerial decisions, the integration of quantitative and qualitative methods of analysis, methods of mathematical, logical analysis, methods of expert measurements ( Fig.…”