ANALYSIS OF THE STATE OF SMALL AND MEDIUM-SIZED BUSINESS INTERNATIONALIZATION IN UKRAINE UNDER THE EUROPEAN INTEGRATION CONDITIONS

Abstract

Globalization and integration processes show positive trends in expanding access of small and medium enterprises to different forms of international cooperation, particularly in export and import operations. The article analyzes the importance of small and medium enterprises internationalization for the Ukraine’s foreign trade development under the European integration conditions. Basing on statistical data, the dynamics of small and medium enterprises involvement in foreign trade operations was analyzed (at the national and Zhytomyr region levels). The place of small and medium business in the foreign trade relations system has been outlined. It covers local resources accumulation and use, forming the demand in the domestic market for labor and material resources. Internal and external barriers to the small and medium-sized businesses internationalization are described, including lack of access to financial resources, inability to obtain complete information about foreign markets, lack of material and labor resources, language barriers for SMEs’ staff. The advantages and disadvantages of small and medium enterprises in comparison with large companies are formulated in terms of direct market entry and export decision-making. In the article it has been determined that small and medium enterprises of Ukraine and particularly Zhytomyr region have increased exports in recent years, their share in Ukraine’s total exports is growing (especially for micro-enterprises). In addition, the volume of exports per enterprise is growing at the same time. In Zhytomyr region the corresponding growth trends of the SMEs’ share in export activities should also be outlined, because it is higher than average indexes in Ukraine. Potentially, SMEs’ development and internationalization will expand regional opportunities for effective employment; contribute to the households’ incomes growth. National and regional disparities in SMEs’ internationalization level should be equalized through the support of such enterprises, in particular by the regional development programs and the SMEs’ expansion to European funding programs.