THE IMPACT OF COVID-19 EXPANSION ON THE ECONOMY OF COUNTRIES AND ACTIVITIES OF SMALL BUSINESS ENTERPRISES

Abstract

The purpose of this research is to study the functioning of small business during the period of implementation of quarantine restrictions. It was found out that more than 70% of small business entities in Ukraine and the European Union have suffered significant losses due to the measures taken. The article has identified the key issues faced by small business during the quarantine period to reduce the spread of coronavirus pandemic (COVID-19). A comparison of the problems of Ukrainian and European small business has shown that they are identical. The main ones relate to reducing the financial security of small business entities and increasing their vulnerability to unpredictable situations. The authors of the research have focused on the fact that Ukrainian small agricultural enterprises experienced more negative effects in comparison with others, as the closure of food markets deprived them of the opportunity to sell their own products. The authors have also highlighted the problems that arise in the process of transition of small business to remote work. This issue can be addressed through appropriate employee training. In order to prevent the loss of ties with contractors, the authors of the research have suggested that the management staff of small business entities could develop a plan to restore ties with suppliers and customers to gradually normalize the work in pre-crisis volumes. The current Ukrainian and European regulatory framework adopted in order to overcome the negative impact of the imposed quarantine restrictions on the activities of enterprises has been analyzed. The results of the study showed the need to improve Ukrainian legislation on this issue taking into account the experience of European countries. It was found out that different countries have applied customs, credit, social, tax, information and other types of mitigation measures in order to overcome the negative effects and to support small business affected by the spread of coronavirus disease (COVID-19). In order to improve the economic situation of small business entities, the authors of the research have considered the following measures for the quarantine period and after the restrictions expire: to provide a quota for public procurement for small business; not to prohibit the functioning of markets provided that they comply with anti-epidemic sanitary norms; reimbursement of expenses incurred for the purchase of anti-epidemic means of protection; introduce additional subventions from the state to local budgets; compensation for the cost of renting premises, etc.