Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
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4.5. UKRAINETable 16.Dimensions Negatively affecting Positively affecting SuggestionsDemographic • Aging <strong>of</strong> <strong>the</strong>population• Population decline ingeneral• Large number <strong>of</strong>workers abroad• ImmigrationSocio-cultural • Not friendly to <strong>SME</strong>sector employeesretirement <strong>and</strong> healthcare systems• Crimea – is amultiethnic region with<strong>the</strong> complex inter-grouprelationshipsPolitical/legal • Political instability• Internal conflictbetween major politicalgroups• Immature legislationcontrol• Low level <strong>of</strong>advantages for <strong>SME</strong>businesses proclaimed in<strong>the</strong> legislative system• Strong lobbing <strong>of</strong>large companies’ interestsagainst <strong>SME</strong> sector• Underestimation <strong>of</strong><strong>the</strong> <strong>SME</strong> role in <strong>the</strong>economy by politicians• Corruption <strong>and</strong> lowtransparency <strong>of</strong> legislativesystem• Complex relationshipwith <strong>the</strong> neighbouringcountriesMacroeconomic • Low income country• Part <strong>of</strong> <strong>the</strong> formercentrally plannedeconomy• Over-concentration <strong>of</strong><strong>the</strong> former SU economyresulted in <strong>the</strong> lack <strong>of</strong> astate attention to <strong>the</strong> <strong>SME</strong>sector problems• Shadow economy• Investment climate isnot favourable for• More or less stable indisposition <strong>of</strong> ethnicgroups• Well educated labour• More uncertaintyaccepting than Russians• Legislative base forsuccessful <strong>SME</strong>development is created<strong>and</strong> is improving• Funds <strong>and</strong> stateprograms <strong>of</strong> financing<strong>SME</strong> needs• GDP growth• Financingopportunities for <strong>SME</strong> areslightly growing• More attention is paidto <strong>SME</strong> sector byeconomic policy makers• Growing potentialdem<strong>and</strong> for tourism inRussia (for Crimearegion)• Growing opportunities• State policy tosupport <strong>of</strong> a populationgrowth• Develop <strong>the</strong> system<strong>of</strong> non-certificate <strong>and</strong>for degree managerialeducation• Correction <strong>of</strong> <strong>the</strong>medical care system<strong>and</strong> retirement plansfor self-employed <strong>and</strong><strong>SME</strong> employed people• Diversify financialopportunities for <strong>SME</strong>sector• The higher priorityshould be given tocooperation <strong>SME</strong>development projectswith <strong>the</strong> neighbouringcountries <strong>and</strong> o<strong>the</strong>rs• Stimulate on <strong>the</strong>state level <strong>the</strong>development <strong>of</strong> <strong>the</strong><strong>SME</strong> businessinfrastructure(associations,foundations, funds,consortiums, <strong>and</strong>strategic alliances)• Develop electronicsubmission for <strong>the</strong>majority <strong>of</strong> documentsfor <strong>SME</strong>; <strong>and</strong> afeedback e-system toavoid corruption <strong>and</strong>briberies• Develop favourable<strong>and</strong> transparenttaxation system for<strong>SME</strong> sector• Attract FDI flow to<strong>the</strong> <strong>SME</strong> sector byannouncinginternational tenders<strong>and</strong>/or nationalprograms81
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