Development of small and medium enterprises (SMEs) in developed countries and possibilities of applying the same strategy in Ukraine

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Table of Contents

CHAPTER 01: INTRODUCTION1

Background of the Research1

Overview of Ukrainian SME Sector2

Justification of the Chosen Topic3

Aims and Objectives Research4

Outline of the Study4

Research Methodology5

REFERENCES8

CHAPTER 01: INTRODUCTION

Background of the Research

According to the 2010 progress report on the United Nations Millennium Development Goals (MDGs), it is projected that many of the targets set for fighting hunger and poverty will not be met in many regions as hoped by 2015. According to the report, the number of people who are malnourished has continued to grow: as a consequence of the food crisis, the number of people who were malnourished in 2008 may have been as high as 915 million and exceeded 1 billion in 2009. Poverty still remains endemic in much of the developing world, with an estimated 1.4 billion people living in extreme poverty in 2005 (Campbell, 1999, 81). Considering that 75 percent of the world's poor live in the rural areas of the developing world, small farmers and their rural producer organizations and SMEs have been identified by several development stakeholders as a key segment in the fight against poverty and malnutrition.

Rural producer organizations and SMEs (through which small farmers export to Fair Trade markets), is one of the best hopes in the fight against poverty and malnutrition. A growing literature has studied the importance of small farmers associations and SMEs, the rise of RPOs and SMEs and their impact on the people. As to be demonstrated in the documentary research and literary review section, SMEs, appear to be fundamental in the reduction of markets constraints on access for the farmers and a key actor in promoting new institutional arrangements favourable to people. While consumers are increasingly familiar with efforts to increase RPO and small farmer market access through certification initiatives such as fair trade, fewer are familiar with efforts to boost technical or productive capacity of these organizations or, crucially, to help SMEs capitalize on these new market opportunities by providing them with much-needed financing. This study discusses the problems of development SME in Ukraine. The development of small and medium enterprises (SMEs) in developed countries and possibilities of applying the same strategy in Ukraine (Crick, 2000, 63).

Overview of Ukrainian SME Sector

The trend to windup the business has grown by over 20% as compared since 2010 in Ukraine. The favour for supporting the private Ukrainian entrepreneurship is easy to explain. After the adoption of the Fiscal Code of the small companies, the conditions are incompatible with the business. The legislative initiatives enacted in 2011 does not help, but rather discriminated small businesses by limiting the real opportunities for companies working in the Ukraine economy. In fact, the system is often used as a way for tax optimization, and also suffered the true representatives of small business, in particular services. All changes are too radical, and virtually eliminate the benefits. In the view of experts, expulsion of FOP and SOP from the market is one ...