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Use of State Support Levers for Small and Medium-Sized Enterprises within the Dynamic Environment

Author

Listed:
  • P. V. Gudz
  • Pavlinka Ileva-Naydenova
  • A. V. Cherep
  • L. H. Oleinikova

Abstract

The evolution of theoretical approaches to the definition of the “entrepreneur” and “entrepreneurship” concepts essence was studied. It was established that various risks inherent in entrepreneurship are characterised by the complexity of distinguishing the signs of economy and investment within a turbulent dynamic environment of uncertainty, limited liquidity in a small and medium-sized business. It was determined that in many countries of the world small and medium-sized enterprises enjoy state support through their taxation systems, which necessitates the determination of a fair tax burden and appropriate fair tax bases. The role of small and medium-sized enterprises in ensuring technological progress, eliminating regional imbalances in economic development, achieving socio-political stability in society and strengthening national security was highlighted. The Recommendations of the European Commission on the SME definition in different countries of the world were characterised. The method of SME classifying into independent and dependent was suggested, which will further allow guiding the SME sector activities to ensure stability in society and simultaneously comply with their obligations to manage public finance at all levels.

Suggested Citation

  • P. V. Gudz & Pavlinka Ileva-Naydenova & A. V. Cherep & L. H. Oleinikova, 2021. "Use of State Support Levers for Small and Medium-Sized Enterprises within the Dynamic Environment," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 140-158.
    • Handle: RePEc:bas:econst:y:2021:i:2:p:140-158
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    References listed on IDEAS

    as
    1. Fudenberg, Drew & Tirole, Jean, 1983. "Capital as a commitment: Strategic investment to deter mobility," Journal of Economic Theory, Elsevier, vol. 31(2), pages 227-250, December.
    2. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1994. "Entrepreneurial Decisions and Liquidity Constraints," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 334-347, Summer.
    3. Gentry William M. & Hubbard R. Glenn, 2004. "Entrepreneurship and Household Saving," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-57, August.
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    Cited by:

    1. Bojan Ćudić & Iwona Skrodzka, 2021. "‘Soft’ Support Infrastructure And The Performance Of Small And Medium-Sized Enterprises In European Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(230), pages 67-100, July – Se.

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    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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