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Why Should the Government Protect Small Business?

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Private entrepreneurs are considered as ‘engine’ for economic development. They are freedom fighters (including economic ones) and democratic values` carriers, CASE Ukraine`s Senior Economist Volodymyr Dubrovsky said in a commentary to Radio Liberty.

In Ukraine, 58% small and medium-sized businesses` representatives consider the state as an obstacle and limitation for their activities. 28% think the state is an opponent, and 14% see it as a partner. These are the figures of a recent study, and they are not surprising, because the state helps the big business, as experts point out.

According to the results of the interagency study within the framework of the ‘Problems of small business in Ukraine and ways to overcome it’ project, if you want to start your own business (to open a food outlet, hairdressing saloon, art studio, or a small processing enterprise), you will face bureaucratized procedures as well as a mess in the legislative provision of small businesses.

CASE Ukraine`s Senior Economist Volodymyr Dubrovsky believes that, in Ukraine, one needs to support for small and medium-sized businesses because these entrepreneurs become ‘engines’ for economic development, freedom fighters (including economic ones) and democratic values` carriers.

‘Every time you see an offensive against real and large corruption schemes, one may observe a growing hype around the simplified taxation system. In Ukraine, a simplified system forms about seven percent of the turnover of the Ukrainian enterprises sector. Our big business is, for the most part, an oligarchic business. The majority of shadow economy ‘lives’ there’, specialist says.

The development of small business will liberate human and entrepreneurial capital. As a result, it will push the development of the Ukrainian economy as a whole. At the same time, the state does not have to manage this process, Dubrovsky says.

August 1, 2017