ANALYSIS OF PATTERNS OF INTERACTION BETWEEN SMALL AND MEDIUM ENTERPRISES AND GOVERNMENT AGENCIES

Authors

DOI:

https://doi.org/10.32689/2617-2224-2022-2(30)-12

Keywords:

power structures, regularities of interaction, subjects of small and medium business

Abstract

It is determined that the relations between the state and small and medium enterprises are based primarily on economic cooperation. The interdependence of these entities is obvious: the state provides the institutional environment for business, defining the "rules of the game", ie. the legal field of entrepreneurship, business, in turn, provides employment, is a source of tax revenue, in particular through which the state implements its functions in society. It is established that the types of interaction between government and business structures are presented, taking into account additional classification parameters, which are the most relevant at present and can be used in formulating state policy in the field of business support, as well as when planning organizations' behavior models: interactions: economic, normative-legal, organizational- administrative; on the subjective composition of interaction: macroeconomic, mesoeconomic, microeconomic; on the scale of interaction: national economy, types of economic activity, subjects of entrepreneurial activity; by the degree of maturity of interaction: initiation, awareness, control; by the level of mutual loyalty: intensive development, parity, dominance. It is especially important to understand the specifics of the models on which the interaction of government and business structures is based. Note also that in different periods of history, this interaction was sometimes based even on diametrically opposed models. The factors that form a particular model of interaction between government agencies and business entities include: features of the state system and institutional environment, historical and cultural aspects, the specifics of the state economy and more. A detailed analysis of the interaction of government and business structures allowed us to conclude that the most successful and profitable for all is the model of interaction based on partnership. As the analysis of researches has shown, now the model of "partnership", built on balance of interests of participants of interaction, finds the realization practically in all developed democracies. The purpose of the article. The purpose of the study conducted in this article is to analyze the patterns of interaction between small and medium enterprises and government agencies. Methodology. Currently, the "economic mechanism" of public administration combines self-regulation of economic entities with regulatory functions of the state. It is worth noting that, despite the significant contribution of these authors, many aspects of interaction, both from a theoretical and practical point of view are still insufficiently studied and developed. Works of Prorochuk MV, Zaskalkina AS devoted mainly to the analysis of small businesses, forms of state business support. The subject of analysis in the scientific literature of recent years has often become some aspects of entrepreneurship, which are fragmented and reflect the issues of interaction between business and government. There are works that consider the interaction of government and business structures as a holistic system and mechanism for implementing this system in the process of formation and development of a market economy, namely: Mytnyk AA, Muzychenko AS, Berzhanir AL The interaction of power structures and economic entities is the basis of organizational and economic mechanism of public management of this sector of the economy, while the content of certain organizational and economic mechanisms is considered by most authors as a unity of structural and process components, not just a set of methods or levers on the managed object (Uzunov FV, Gerasimenko AG, Masko AM and others). Scientific novelty. The current classification of typologies of interaction between government and business structures has been supplemented with this type of interaction, which is based on mutual social responsibility of its subjects, which are in search of compromise ways of coexistence, definition of mutual responsibility, and most importantly – responsibility to society. The balance of interests is the basis of interaction of any economic entities, and their implementation by each of the entities is always possible in full, and the most effective will be the system in which relations are built with maximum benefit and minimum suppression. Similarly, in solving social problems, the interaction of government and business structures should be built taking into account the strategic social interests of business. Conclusions. The presented models and mechanisms of interaction of power and business structures, the analysis of approaches to definition of typology of types of these interactions allowed to formulate such conclusions. The existing diversity of research in the field of mechanisms of interaction between government and business structures at any level is due to special relevance: both are in search of compromise ways of coexistence, defining the boundaries of mutual responsibility, and most importantly – in society. The study of social responsibility of small and medium enterprises is especially relevant in this regard. When forming or improving the mechanism of interaction between government and business structures, one of the main conditions will be the creation of such a mechanism, which provides, on the one hand, the development and implementation of measures to support small and medium enterprises, and on the other – increase their social responsibility.

References

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Published

2022-09-08

How to Cite

Цимбал, Є. П. (2022). ANALYSIS OF PATTERNS OF INTERACTION BETWEEN SMALL AND MEDIUM ENTERPRISES AND GOVERNMENT AGENCIES. Public Management, (2 (30), 94-100. https://doi.org/10.32689/2617-2224-2022-2(30)-12

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