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

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Table of contents

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 1: BACKGROUND OF UKRAINIAN SME SECTOR1

CHAPTER 2: BACKGROUND OF SME SECTOR IN WESTERN COUNTRIES2

CHAPTER 3: AIMS AND OBJECTIVES3

CHAPTER 4: LITERATURE REVIEW OF DEVELOPMENT OF SMES IN WESTERN COUNTRIES4

CHAPTER 5: SECONDARY RESEARCH ON SMES IN DEVELOPING COUNTRIES (POLAND AS A CASE STUDY)7

CHAPTER 5.1: RESEARCH METHODOLOGY9

Question 01:10

Question 02:11

Question 03:12

Question 04:13

Question 05:14

CHAPTER 6: DATA ANALYSIS15

Lack of information on possible sources of financing15

Limited availability of financing16

Complexity of financing arrangements16

Time delays in receiving finance from financial institutions17

Size of collateral required to obtain finance18

CHAPTER 7: EVALUATION19

CHAPTER 8: CONCLUSION22

CHAPTER 9: REFERENCES23

APPENDIX26

Questionnaire26

CHAPTER 1: BACKGROUND 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 SOP (Standard Operating procedures) from the market is one of the strongest attacks in the segment of small and medium enterprises (Strahan, 1996, 6).

The conditions of the loans are more loyal for the borrower in SME segment. Where they can now have short terms loan available for three to six months in 12%-13%, while rates of other times, reaching 18-19%. European lenders also prefer to support entrepreneurs working in the physical needs segments. Ukraine has established its economy, as an outsourcing base and other services base economy. These industries enjoy certain tax benefits in the current mode, and also being discussed specific bills associated with the development of these industries.

CHAPTER 2: BACKGROUND OF SME SECTOR IN WESTERN COUNTRIES

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, ...