MARKET BARRIERS AND BUSINESS DEVELOPMENT PROBLEMS
In the article researched the basic problems, arising on the way of functioning of small and medium enterprises in the national economy and the role of entrepreneurship for the economy and society. The influence of competitive relations of business entities on the development of small and medium enterprises (SMEs) analysed. The character of competitive relations defines the special aspects of development of small and medium business, which in one's turn, affecting on the level of economic competition. The limited number of market participants allowing them to align their behavior, to create or enhance the existing restrictions on market for potential competitors in form of economic barriers.
In the article considered the factors that prevent an emergence of new counterparties, and therefore, the development of economic competition on the market. Also presented a classification of market barriers that significantly affecting on the level of monopolization of economy, as well as strengthening of market power of individual entities allowing them to abuse of their position. The anticompetitive behavior of enterprises, resulted with emergence of new or strengthening of existing market barriers, has analyzed. The most common economic reasons that complicating business development and threatening with restrictions or even disappearance of competition from the market are: behavior of market participants that limiting competitive relationship, presence of market structures engaged in anticompetitive behavior (monopoly, the high level of concentration, etc.) and illegal actions of public authorities. The problem of deterioration of business activity in society and the business confidence indicator was also outlined.
The experience of developed countries, where the share of SMEs accounts a half of their GDP, highlights the necessity to activate the work in area of support and development of SMEs in the national economy, because such countries by theirs own example are proving that support and development of SMEs provides an economical growth, due to formation of middle class of capable, creative and initiative people are realizing their potential and improving a social welfare. In the article researched the aspects of SMEs sector support by developed countries and the activities of the state towards SMEs. The activity of existing funds supporting the business on the national level is not effective, that's why was noted a requirement of state regulation of small and medium enterprises sector in order to provide the development and strengthen of its position in the economy.
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Keywords: competitive relationship, small and medium enterprises (SMEs), economic competition, market barriers, anticompetitive behavior, market's participants. |
MACROECONOMICS
Dutska Anna
postgraduate, Kyiv National University of Trade and Economics
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