THE STATE POLICY FOR THE DEVELOPMENT OF SMALL BUSINESS CLUSTERS

Abstract

The formation of clusters of small businesses plays an important role in the total enhancement of territorial competitiveness and in enhancing the ability of the state to become economically resilient. This study has obtained relevance due to a current urge to reformulate government policies regarding support for small business entities during times of soaring global competition and dynamic changes within economic environments. Specifically, this study aimed at reviewing theoretical and methodological underpinnings concerning participation by small businesses in cluster and polarized territorial formations; mechanisms intended for boosting their competitiveness were also sought. Conducted through a hybrid method involving scientific notion analysis, an indication systematization for socio-economics, practically applied results generalization pertaining to cluster functioning, as well national as international models’ comparisons on cluster development the study found out new regularities concerning how integration between polarised territorial structures with small business entities could affect area’ social-economic development. The methods of research included theoretical analysis and synthesis, comparison of the analytical approach with modelling as well as applying factual statistical data to generalize empirically. This study has characterized partnership formation mechanisms, identified systemic effects accruing from small business integration, formed an opinion on the effectiveness of clusterization, and formulated state support for cluster initiatives in addition to giving recommendations on enhancing territorial competitiveness. It generalized Ukrainian and European clusters’ experiences while demonstrating the importance of cluster approaches in driving innovations as well as resource optimization toward creating a favourable investment climate. Its value lies theoretically in the systematization of notions and approaches to interactions regarding small businesses within cluster structures for further scientific inquiries. The degree of its practical significance is measured against how applicable the findings are about enhancing state policy relating to the development of small enterprises and clusters. The study novelties lie in the revelation of complex effects of clusterization for raising the competitiveness of small business entities and effective mechanisms of their integration into the territorial economy, which can be developed. Further research should assess the long-term impact that cluster strategies have on economic stability and the innovative development of regions.