Enterpreneurship and problems of specialists training in Ukraine

Table 1. Some Indicators of Small Business Enterprises Activity

According to the table 1 the biggest number of small business enterprises is in trade and public
catering- 57% of all functioning, in industry is 17,5% and in constriction is 12,3%.

In comparison with 1993, the number of small business enterprises involved in trade and mediator
operation has increased in 1,3 times and small business enterprises involved in public catering
increased in 2,2 times.

In the meantime, the number of small business enterprises involved in providing services of the
social character, education, culture, arts, medical services has reduced in 40% and in construction
and agricultural more than in half. Industrial structures of small business decreased in one third.
“Commercialization” of small industrial enterprises is being observed. In order to survive they have
to transit to trade and the share of their main produce is in process of reduction.

The number of local inhabitants employed in small business (including entrepreneurs) is 24.000.

In 1997 only 230 of joint-ventures with foreign investors were functioning in Zhitomir region, the
amount of investments was very insignificant.

Thus, small entrepreneurship actually remains on the initial stage of its development and does not
play any noticeable role in the economy. Last year the volume of production of small business
enterprises in region has totaled 8% and as for the consumer goods only 0,6%. Innovative small
business enterprises are completely absent in Zhitomir region.

What are the main reasons of slow development of entrepreneurship?

To our mind they are:

• absence of benevolent legal base for the development of small business and its instability;

• psychologically unpleasant attitude to market reforms and entrepreneurship of the bigger part
of population;

• high taxes;

• newly established small business enterprises are not able to start their operations because of
absence of starting capital, technological equipment, production facilities etc.;

• state support of small business remains declarative, not real;

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