Small and medium-sized enterprise – the driving force of the implementation of Industry 4.0 in Ukraine

Author:

Selivanova Iryna1ORCID,Porokhniak Valerii2

Affiliation:

1. PhD in Law, Associate professor, Research associate of the Scientific and Research Institute of Providing Legal Framework for the Innovative Development of NALS of Ukraine

2. Research assistant of the Scientific and Research Institute of Providing Legal Framework for the Innovative Development of the NALS of Ukraine

Abstract

Problem setting. Today, Industry 4.0 is a strategic direction of state economic policy in many countries of the world. In particular, the European Commission’s initiative «Digitization of European Industry». is currently being implemented in the EU. Ukraine is also actively moving towards Industry 4.0. What economic entities are the driving force of the country’s development in this direction? Given that small and medium-sized enterprises have serious advantages compared to large businesses Purpose of research. Based on the analysis of scientific literature and legislation on informatization and digitalization, state support of small and medium-sized business entities in the world and Ukraine, to justify the leading role of small and medium-sized business entities in the implementation of Industry 4.0 in Ukraine. Analysis of recent researchers and publications. Peculiarities of the legal regime of small and medium-sized enterprises, state support (aid) to these business entities were studied by many domestic and foreign scientists. Only recently, the monographs of the authors of the Research Institute of Legal Support of Innovative Development of the National Academy of Sciences of Ukraine, Korytina D.S. were devoted to this issue. Legal regulation of economic activity of small and medium-sized enterprises, dissertation Feofanova I. M. Admissibility of state aid: economic and legal aspect. The concept, problems of implementation, individual legal aspects of the implementation of «Industry 4.0» are devoted to the monograph of the authors of the Research Institute of Legal Support of Innovative Development of the Ukrainian National Academy of Sciences was not investigated. Аrticle’s main body. One of the main resources for restoring the country’s economy after the full-scale aggression of the Russian Federation is people, their intellectual potential. As a result of the war, serious demographic changes took place in Ukraine and, as a result, enterprises faced the problem of a lack of labor resources, in particular, qualified managers. This affects the efficiency of enterprises. The article substantiates the conclusion that an important factor in ensuring the effectiveness of the management of the current activities of enterprises in the conditions of a lack of qualified personnel is the introduction of Industry 4.0 in Ukraine, i.e. comprehensive digitalization and automation of production processes and management in the real sector of the economy. The leading role in accelerating the country’s movement in this direction is played by small and medium-sized enterprises. After all, they have serious advantages compared to large businesses, in particular, high mobility, flexibility of the production structure, simple organizational and management relationships, maintenance of free competition, adaptability to changing market conditions, susceptibility to the implementation of innovative technologies, etc. The conclusion is substantiated that in order to increase the efficiency of small and medium-sized business entities, priority support for their innovative activities should be included in the main directions of the state’s economic policy. Also, a transparent mechanism for the distribution of international financial aid and wide and open access of small and mediumsized business entities to existing recovery programs, grant and donor programs should be ensured Conclusions and prospects for the development For the effective operation of small and medium-sized enterprises, which are the driving force behind the implementation of Industry 4.0 in Ukraine, priority support for their innovative activities should be included in the main directions of the state’s economic policy. It is also necessary to ensure a transparent mechanism for the distribution of international financial aid and wide and open access of small and mediumsized business entities to existing recovery programs, grant and donor programs.

Publisher

Scientific and Research Institute of Providing Legal Framework for the Innovative Development

Reference16 articles.

1. Bilousov, Ye. M., Borysov, I. V. & Vapniarchuk N. M. el al. (2020). Regulatory and institutional support for the promotion of economic activity in an innovative society. Hetman, A. P., Dmytryk, O. O. & Tokarieva, K. O (Ed.). Kharkiv: NDI prav. zabezp. innovats. rozvytku NAPrN Ukrainy, 40–93 [in Ukrainian].

2. Bilousov, Ye. M. & Borysov, I. V. (2021). Concept «Industry 4.0»: Implementation Problems and individual legal aspects of its implementation in Ukraine. S. V. Hlibko (Ed.). Kharkiv: NDI prav. zabezp. innovats. rozvytku NAPrN Ukrainy [in Ukrainian].

3. Harahonych, O. (2023). Problems of enterprise management in martial law. Rozvytok Ukrainy v umovakh militarnoho vplyvu: sotsialno-pravovi, ekonomichni ta ekolohichni aspekty : Proceedings of the International-Practical Conference. (pp. 69–73). (Vols 1–2). Vol: 2. Ustymenko V.A., Hradoboiev Ye.S., Illarionov O.Yu., Sanchenko A.Ye. (Eds.). Kyiv: ВАІТЕ [in Ukrainian].

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5. 4 Retrieved from: http://ape.fmm.kpi.ua/article/view/205842 [in Ukrainian].

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