DIGITAL TECHNOLOGIES AND ENSURING THE ECONOMIC SECURITY OF SMALL BUSINESSES - Scientific conference

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Рік заснування видання - 2011

DIGITAL TECHNOLOGIES AND ENSURING THE ECONOMIC SECURITY OF SMALL BUSINESSES

01.04.2022 22:38

[2. Economic sciences]

Author: Kravchenko S.A., Sc.D., professor, Leading Researcher of the Department of Entrepreneurship, Cooperation and Agro-Industrial Integration, NSC “Institute of Agrarian Economics” NAAS, Ukraine, Kyiv; Bеzhenar I.M., Ph.D., docent, Senior Researcher of the Department of Entrepreneurship, Cooperation and Agro-Industrial Integration, NSC “Institute of Agrarian Economics” NAAS, Ukraine, Kyiv


Small business performs not only economic functions, it is closely connected with all spheres of society. Knowledge of the state and trends in the development of the small business sector, identification of its connections and dependencies with other sectors of the economy, allows us to more clearly and specifically see the main problems on the way to the development of the digital economy in Ukraine. Economic security is a qualitative characteristic of the economic system that is able to ensure normal living conditions for the population, sustainable socio-economic development of territories, support for national and state, and geopolitical interests of the country. The most important factor that affects the solution of these problems is the creation of safe conditions for the economic activities of small businesses [1].

It should be noted the dual role of small business in solving the problem of ensuring the economic security of economic entities in the regions. Small business entities, on the one hand, need to ensure their own economic security, and, on the other hand, to promote the economically safe functioning of regional socio-economic systems that contribute to the development of the economy and society of the regions of Ukraine. Of particular importance is the improvement of approaches to ensuring the economic security of small businesses both at the micro level and at the level of the external environment, which are due to the results of the implementation of state policy to support small, medium and individual entrepreneurship. This is especially true in the context of the development of the digital economy.

The main external problems of ensuring the economic security of economic entities in the aspect of the formation and development of small business are: ineffective approaches to risk management both at the micro level - the level of economic entities - and as a result of the implementation of state policy to support small and medium-sized businesses in Ukraine; existing unevenness and contradictions in the development of the small business sector as the main subsystem of the market economy; deformation of economic relations in the aspect of monopolization of certain sectors of the economy and a high level of corruption; inadequate economic, legal and institutional conditions for the activities of small business entities, which forces them to reorient their activities into the corrupt sector of the economy and leads to an increase in the scale of corrupt economic activity.

Internal factors that affect the security of the business activities of small businesses and pose a threat to the security of their activities include: criminalization of the economy, corruption in the field of economic and business management; imperfection of legal legislation that regulates the activities of small business; weak competence of entrepreneurs themselves in matters of doing business; low investment activity and low innovative potential; insufficient development and sustainability of infrastructure facilities; high risk in the implementation of entrepreneurial activities. 

The most important principles in the digital economy are: economy (in the context of the use of digital technologies, the costs of ensuring economic and digital security increase dramatically); timeliness (or speed of threat detection); competence; complexity or consistency. It is necessary to pay additional attention to such a component of the economic security system as information security. With the introduction of the digital economy into the life of the digital economy, the priority component of the economic security of the enterprise in the field of information security is changing [2, p. 165-171].

Detection of threats, disclosure of dangers, exposure of fraud creates conditions for achieving the goals of financial and economic activities of small businesses, guarantees the sustainable development of the enterprise, its economic security, information security. The change in the well-known industries and the service sector, the correct creation of logistics chains, the modernization of the demand structure in the system of development of digital technologies leads to the creation of new markets and conditions for their development. The introduction of large digital data banks is becoming a priority in the development of the individual, society, business and the state as a whole.

The use of digital economy technologies, being a factor in the development of the economy and improving the functioning of public and state institutions, at the same time generates new information threats. The openness of economic entities leads to the fact that a segment of the national economy becomes more vulnerable to the negative impact of persons from corrupt officials - businessmen and can lead to an increasing development of a corrupt economy. The scale of computer crime in the credit and financial sphere is increasing, the number of crimes that are associated with the violation of the constitutional rights and freedoms of a person and a citizen is increasing. The methods, methods and means of committing such crimes are becoming increasingly diverse. As a result of the development of digital technologies, a person becomes completely open to global platforms through which you can get any information about him, and this is a violation of the human right to freedom.

Thus, in the course of the study, it is established that the main reasons that affect ensuring the proper level of economic security in the small business sector in the context of the development of digital technologies should include corrupt economic activity, ensuring the safety of the economic activities of the smallest enterprise, low competence of entrepreneurs and specialists in this matter.

References:

1. Kruse, T. P. Youth social entrepreneurship advancing the field. Sundance Family Foundation. URL : http: // www.sundancefamilyfoundation.org (дата звернення 28.03.2018).

2. Snowdon, B. Competitiveness in globalized world: Michael Porter on the Microeconomic Foundations of the Competitiveness of Nations, Regions and Firms. Journal of International Business Studies. 2016. No. 2. pp. 163-175.



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