BUSINESS DEVELOPMENT

Development of small-sized business is the powerful additional factor, which positively influences the growth of regional economy. Its progress leads to the elimination of disproportions in some markets, creation of additional workplaces and reduction of unemployment. Its development also enforces the competition, fastens the saturation of the market with goods and services.

During years region had formed favorable trend for development of small-sized business.

There are 11 thousand of small enterprises operating in the region, which provide 11,8% of all regional workplaces.

Among small-sized business enterprises with personnel up to 10 persons prevail and make 80.8% of total number of small enterprises.

Their total volume of product and services reached 5.5% of total volume of product and services produced in the region.

There are very few changes in branch distribution of the small-sized enterprises: 40.1% of them operate in the sphere of trade and servicing, 17.9% – sphere of real estate and servicing to juridical bodies, 14.3% – in industry, 10.2% – in construction, 4.6% – in agriculture, 3.9% – transport and communication, 3.5% – hotel and restaurant servicing, 2.5% – collective, public and private services.

Almost 64% of all the small-sized enterprises have joint ownership, near 32% are private.

Except for legal persons almost 93 000 entrepreneurs operate in the small-sized business.

The majority of the businessmen – physical persons – operate in the markets, the number of the businessmen, who provide services (repairing of home appliances, custom repairing, shoe-making) is also increasing.

During agriculture complex reforming many inhabitants which were granted by the land lot choose farming as a form of operating. There are 2 300 of farmers operating in the region.

For maintenance of effective enterprise activity in the region corresponding infrastructure was created. In particular, it is Regional fund of business support in Zaporizhzhya region, which founders are Ukrainian fund of business support and Zaporizhzhya regional state administration. Giving an opportunity to use state financial and information resources to entrepreneurs is the basic direction of the Fund activity. Zaporizhzhya regional business centre was created on the basis of Regional fund.

Regional fund of business support during 2005 gave financial help on realization of investment projects to 22 subjects of economic activities for a total sum of 803.2 thousand UAH.

With the purpose of overcoming different barriers and sanctions concerned with entrepreneurs' activity, 26 centres of assistance were created in 20 districts of the region and in 5 cities of regional subordination.

There are 31 “common registration offices” in each district of the region and in every town of regional subordination, 7 in Zaporizhzhya.