CONSEQUENCES OF SMALL AND MEDIUM BUSINESS СOLLAPSE

Abstract

The article deals with the essence of small and medium business under the new classification forms of development. The authors proposed the following classification: the stage of damper development of small and medium business; the stage of small and medium business reformation development form; the stage of a constantly-balancing form of development. The article deals with the case of a sharp artificial reduction of small and medium businesses at the stage of its damping development, that is the reverse process of development in the direction of collapse, the process of collapsing development and its consequences are considered. The current rates of doing business in the occupied Crimea based on the statistics for 2014–2017 are given by the following parameters: number of small and medium enterprises, number of entrepreneurs, small business financing and lending, small business registration, taxation. As of January 1, 2014, 16 thousand legal entities were registered in the Crimea, including 15 thousand small enterprises. As of January 1, 2016, only 1016 small enterprises remained on the peninsula. As of January 1, 2014, in the Crimea in the sphere of small business, one third of all workers on the peninsula were involved – about 80–90 thousand people. In two and a half years, from the beginning of 2014 to the middle of 2016, the number of workers employed in small enterprises in the Crimea has decreased by 3 – to 29 thousand people. As of 2017, the number of individual entrepreneurs in the Crimea has fallen by 5 times compared with the period of 2013. This led to the fact that in four years, 2014–2017, the number of superfluous deaths in the Crimea in comparison with the level of 2013 exceeded 9.4 thousand people. For comparison: military losses in Donetsk, Luhansk and southeastern Ukraine during this time amounted to about 10 thousand people. These are also those who now had to be alive. It was concluded that entrepreneurial collapse in the sphere of small and medium enterprises is a local but very dangerous threat to the social, economic and personal safety of the population.