The Evaluation of Small Business Growth in the Regions

Abstract

The article offers a methodical approach to determining the level of small business growth in the regions of Ukraine, based on the calculation of the integrated index. Small business is an important component of region’s economy, but its role and importance in socio-economic development vary depending on the heterogeneous industrial development of the regions. There is a need for a comprehensive assessment of the level of small business development to identify growth points and areas of support. In author’s opinion, the indicators of small business development currently used to determine the effectiveness of the implementation of regional programs to support small business do not reflect the impact of small business activities on the regional development at all. The author focuses the reader’s attention on determination of the level of development of small business and its role in the economy of the regions using the method of integrated index. This index is taken into consideration the extensiveness, intensity and social significance of small business. The coefficient of extensiveness is the share of small enterprises in the total number of enterprises in the region; the intensity coefficient is the share of the volume of products (goods, services) sold by small enterprises in the total volume of products (goods, services) sold in the region. The social significance of small business is calculated as the geometric mean of the product of the share of employees in small enterprises in the total number of employees in enterprises of the region and the share of personnel costs of small enterprises in total personnel costs of all enterprises in the region. The calculation of the general index of small business development in the regions is provided in the article. It allows to draw conclusions that small business has the greatest impact on the development of Kherson, Chernivtsi and Kirovohrad regions, and the least - on the development of Donetsk and Dnipropetrovsk regions. The article concludes by outlining prospects for further research. The analysis of indicators of extensiveness, intensity and social significance of small business makes it possible to highlight the problems that hinder its successful growth in the regions and require concentration of efforts for urgent solution.