The Importance оf Small and Medium Enterprises in the Economic Development of Eastern Europe

Abstract

An important engine of economic development of the country is the development of small and medium enterprises. At the same time, small and medium-sized businesses, being elements of the economic system, have a significant impact on the overall economic growth of the country. Thus, there is a mutual influence of economic units on the economy as a whole. The purpose of the article is to study the impact of small and medium-sized enterprises of small and medium-sized enterprises on the gross domestic product on the example of Eastern European countries. Methods: analysis, description, observation, comparison, generalization, induction, deduction, grouping, systematization, tabular and graphical representation. Results: The level of ease of doing business in Eastern Europe was analyzed according to the Ease of doing business ranking and it was found that the Czech Republic and Poland are among the 40 countries in Eastern Europe ranked 40th and 41st out of 190 possible. It is established that the subjects of small (including micro-enterprises) and medium-sized enterprises belonging to the non-financial sector, in the structure of all enterprises of the non-financial sector of each of the studied countries occupy more than 90%. It was found that a significant share in the structure of small and medium enterprises in Eastern Europe is occupied by micro-enterprises, while the share of medium-sized enterprises is the lowest. The results of regression analysis to determine the impact of small and medium enterprises on the economic growth of countries obtained by establishing the dependence of GDP on Turnover of the non-financial business economy by size class of employment. Revealed a high dependence of GDP Turnover of the non-financial business economy by size class of employment in all surveyed countries in Eastern Europe.