# 18 151–158 View full article

УДК 334.012.64

Natalia KOVSHUN
PhD, Associated Professor, National University of Water and Environmental Engineering, Ukraine

JEL classification: L 19; O 31; O 32; P 27; R 11

Abstract

Introduction. The article deals with the development of small and medium-sized businesses in Ukraine and China. A retrospective analysis has been conducted to identify differences in the restructuring of the socialist economy in different countries. The initial stages of market transformation – economic processes in 1970-2000 are investigated. The main driver of small and medium-sized businesses in China was the poor rural population. In Ukraine, the transformation initiative belonged to the USSR government.

Results. The dynamics of the number of small and medium-sized enterprises is investigated and the pace of its changes is analyzed. The influence of political, legislative and economic factors on the identified trends is shown. The role of investments in the market economies development of Ukraine and China is highlighted. The positive influence of foreign investors on the development level of China is revealed and the reasons for their activity activation are shown. The obstacles to investment activity in Ukraine are described. The role of labor resources in the development of small and medium business is shown. There are differences between the level of motivation and approaches in building their own business between Ukraine and China. The state regulation level of entrepreneurship has been investigated. The main legislative acts and their impact on the development of small and medium-sized businesses are shown. The stages of economic transformation are shown. The negative effects of the market economy introduction in China are highlighted. Measures taken by the Chinese Government to address the threat of social explosion have been examined. The problem of import dependence of the Chinese economy is shown separately.

Conclusions. The basic tendencies were revealed, preconditions and national peculiarities of transformation processes have been established. The level and effectiveness of state regulation of entrepreneurship have been determined. Positive and negative consequences of market processes in China are shown. The obstacles to the development of small and medium businesses in Ukraine are outlined.

The established advantages and disadvantages of market transformation in China are necessary to develop the strategy and tactics of small and medium business development in Ukraine.

Keywords: small business, national economy, Ukraine, China, state regulation, market transformation.

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The article was received 08.12.2018