The development of small business as a source of formation of local budget revenues in Ukraine

Human resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.

In the process of small business establishment and development, it is very important to understand both the financial needs of entrepreneurs and the main obstacles and difficulties arising in the way of financing. Alternative sources of financial support, along with traditional ones, create opportunities to increase funds, but the solution to the issue of their attraction should be based on modern effective methods and decision- making technologies. The article uses the decision tree method to determine the optimal alternative to financial support of small business at the early stages of the life cycle. The results highlight the importance of alternative source of resources for small business entities, namely business angels’ means. The empirical and statistical analysis confirms that access to alternative sources of financing for small businesses in EU countries is improving, while in Ukraine, informal financing is a rather new and underdeveloped area. Based on the analysis of the advantages of using the business angels’ funds, it was concluded that they need to implement their potential in small business of Ukraine. The results show that the decision tree method is an effective tool for deciding on the prioritization of a financial alternative to the small business, and is characterized by ease of use, forecast precision and problems solution novelty.

The problems of formation of small business in Ukraine are caused by insufficient financial provision, ineffective mechanism of taxation and unsustainable state regulatory policies. The aim of the paper is analyze financial provision of small businesses and substantiation of its improvement scenarios with the use of foresight instruments. The paper evaluates the criteria of financial provision of small businesses. It offers the organizational mechanism of financial provision of small business. It also assesses the system of relations “state-small businesses” in the formation of financial provision of companies and identifies the main obstacles for the realization of small business potential. The use of foresight technologies in building scenarios for the formation of financial provision of small businesses is proposed. Stages and methods of systemic foresight are considered. The conclusion is made that financial provision of small business in Ukraine should be focused not only on changes in the legislation, but also on the improvement of state support of small businesses and expansion of the relationship “state-small businesses”.