System of Economic Security of Small Business Entities in Ukraine
G.A. Goncharov,
канд. экон. наук, доцент, заведующий кафедрой экономики, Киевский кооперативный институт бизнеса и права (03022, Украина, г. Киев, ул. М. Ломоносова, д.18; e-mail: gena_gon@mail.ru)
Аннотация. В статье рассмотрены методологические подходы к определению категории «экономическая безопасность предпринимательства». Обоснован комплексный методологический подход к определению этой категории, её элементов, построению системы экономической безопасности субъектов малого предпринимательства.
Abstract. The article is devoted to the methodological approach in determination of «economic security of business» category. Complex methodological approach to the determination of this category. its elements and construction of system of economic security of small business entities is grounded and assigned in the article.
Ключевые слова: экономическая безопасность, угрозы, элементы экономической безопасности, система экономической безопасности малого предпринимательства.
Keywords: economic security, threats, elements of economic security, system of economic security of small business.
The process of business development in Ukraine shows the following: the imperfection of the economic and legal foundation as well as political and economic instability of Ukraine objectively require the changing of state and regional policy to provide small enterprise with economic security. This policy has to be based on effective conceptions of an enterprise's functioning which need to be developed and implemented. This makes small business an activity of high risk, because its economic, legal and social opportunities are limited. This makes a small business vulnerable and unable to adjust to changes in the economic situation, or to resist illegitimate actions by the authorities or other enterprises. On the other hand, small enterprise is an area where there is free competition. This sphere objectively creates motivation for economic effectiveness (efficiency) and flexibility in terms of making use of resources. This sphere favours the development of the ability to resist threats to economic security. This makes it necessary to develop efficient models of economic security for small enterprises.
A lot of attention is being paid to theoretical and practical research on business security in Ukraine. The works of the following authors are of note: O. Bandurka, T. Vasiltciv, V. Dukhova, I. Zhalilo, M. Kapustin, A. Kirienko, G. Kozachenko, P. Kravchuk, P. Krainev, V. Lipkan, O. Liashenko, V. Muntian, G. Pasternak-Taranushchenko, N. Nodluzhnaia, V. Ponomrenko, V. Ponomariov, P. Prygunov, A. Rudnitskii, A. Sosnin and others [1] .
Moreover, the problem of the economic security of an enterprise has been discussed a lot in
Ukrainian society and government over the last years. However, as far as we are concerned, theoretical-methodological principles of development of effective business security and their implementation are not defined enough and they have to be described more thoroughly.
There are different interpretations for the category of economic security in Ukrainian and foreign scientific sources of information and in some Ukrainian legislative acts and conceptual documents. They differ according to various methodological approaches, criteria, and points of view. [2, 3, 4, 4, 5, 6].
This predetermines the necessity of further improvement of terminology in the area of economic security of a small enterprise. Bearing this in mind, as well as the importance of efficient security service of an enterprise, we set the task to improve existing and to develop new models of economic security for small enterprises.
Having generalized existing approaches to defining the category "economic security of an enterprise", we proposed our own definition which could be used as a methodological footing for developing of a model of economic security of a small enterprise. We believe that economic security should be defined as the economic player's state. And this economic player functions with the prognostic (expected) rates and it is characterized by certain parameters which depend on abilities to manage the risks, threats, and crisis situations according to applicable legislation, comprising a certain security system. This definition makes it possible to single out economic security as a separate category and to establish the link between
Journal of Economy and entrepreneurship, Vol. 7, Nom. 12-1
G.A. Goncharov System of Economic Security of Small Business Entities in Ukraine
economic security and other categories, such as economic efficiency, economic development, economic interests, resources, threat, risk, crisis etc.
Besides, we believe that it is worth singling out the elements of the category "economic security of an economic player". The elements of this category are: conditions of an economic player's work (they might be safe, neutral, or dangerous); state of economic security of an economic player (stable, unstable, recessional); ability to manage the risks and threats (legal, organizational, informational, moral-psychological); crisis management abilities (legal, financial, informational, moral-psychological); opportunities to be supported by other economic players (political, legal, financial, informational); guarantee the system of economic security (which really functions within a particular economic agent) and its ability to adapt to environmental changes. We believe that distinguishing these elements allows us to use all basic methodological approaches for developing a model of economic security for small business. This is due to the fact that an economic agent is always in a state of interaction with other economic agents; it depends on other economic players and at the same time it is an object of economic security. Conditions in which an economic agent functions form a general and particular situation or a trend of security, that might be safe (favourable), neutral, or dangerous for agent's functioning (current or prognostic).
We suggest determining the state of economic security of an economic agent with the help of some parameters bearing in mind the conditions in which an economic agent functions or will function in future. These parameters are relative and might change depending on changes in conditions. They also characterize the agent's ability to function properly showing previously planned results (progress). In addition, the state of economic security of an economic agent also depends on its ability to manage the risks and threats (to foresee, to avoid, to secure, and to minimize the negative consequences). The agent's abilities might work more or less effectively depending on its real system of economic security and its ability to adapt to changes in the economic environment.
We suggest defining the following characteristics which have to be taken into consideration while developing the system of economic security of a small enterprise (SESSE):
1) On the one hand, the SESSE can be considered as a basic model which will be a prototype for the real model in certain economic conditions. On the other hand, the SESSE is the set of subjects and objects of security as well as connec-
tions between them (infrastructure). They interact to resist internal and external threats.
2) The SESSE has its own organizational structure. The type of this structure depends on the level of the country's development (institutional and social-economic development) and on the level of small business' development.
3) The organizational structure of the SESSE is formed based on some principles. Sticking to those principles is the indispensable prerequisite to the SESSE's efficiency.
4) The SESSE must be formed with the help of scientific methods which are the results of scientific research in security.
5) The SESSE if formed to achieve a certain objective must fulfil a variety of security tasks.
6) Subjects of security use certain methods and means depending on threats and parts of economic security to meet the goals of the SESSE.
We think that to form an efficient SESSE we should use the results of both the domestic and world theory of economic security as well as developed countries' practical experience in this area.
Governments of developed countries (the USA, Japan, Germany, France, the UK, Sweden, Finland) not only admit that there are risks for business but they also stipulate special organizational and resource measures to provide economic security for business (particularly small business in crisis situations) in state and regional programs. This policy is based on the idea that globalization and sudden dramatic changes could influence this sphere of economy more than any other spheres and small business could need a real help and governmental support. Bearing in mind the considerable extent of vulnerability of small enterprises as well as the direct relationship between real support of this sector and people's entrepreneurial activity, favourable financial, economic and institutional conditions for small business security have been created during the last few decades.
The experience of developed countries was used to create small businesses while reforming the economy in post-socialist countries such as Poland, Check Republic, Hungary. It really furthered the development of small business. As a result these countries nowadays are in the top rank in terms of small business development. They have high marks in international ratings of economic security of business and favourability of conditions for entrepre-neurship. We analyzed the world experience of small business security and we drew the following conclusions which could be used for development of methodological principles to form the system of SESSE.
1. Interdepartmental coordination agencies have to be established at state and regional
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