Evolution of Theoretical Concepts of Development and Support of Small and Medium Entrepreneurship
Year: 2025
Type: article
Abstract: The article explores the theoretical foundations of the development and support of small and medium-sized enterprises (SMEs) based on a comprehensive analysis of global economic thought. It systematizes seven major paradigms: classical (liberal), Keynesian, institutional, innovation-oriented, sustainable development, entrepreneurial ecosystem, and adaptation (EU integration). Each paradigm is examined in terms of its historical origin, geographic dominance, and relevance to different economic conditions. Special attention is paid to the growing role of hybrid models that combine elements from multiple paradigms to address contemporary challenges. The relevance of the study is reinforced by Ukraine's integration into the European Union, which requires harmonization of SME support mechanisms. The article argues that isolated application of traditional models is insufficient under conditions of systemic shocks such as pandemics, war, and digital disruption. It highlights the weaknesses of minimal state intervention and the need for proactive institutional, digital, and social responses. The institutional paradigm is emphasized as critical for creating transparent and secure business environments. The innovation paradigm, based on Schumpeterian theory, is shown to be essential for technological competitiveness and structural transformation. The sustainable development approach integrates ecological and social responsibility into SME policy. The entrepreneurial ecosystem paradigm promotes stakeholder collaboration, knowledge exchange, and resource synergies. The EU integration model stresses access to European markets, alignment with acquis communautaire, and participation in programs like COSME and Horizon Europe. A key contribution of the article is the development of a comparative matrix of paradigms and their influence on policy instruments. The study also outlines the evolving role of SMEs in digital transformation and post-war economic recovery. It suggests that modern policy must move toward inclusive, adaptive, and innovation-driven strategies.
Source: Business Navigator
Authors: Bohdan Kyshakevych, Bohdan Demediuk
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4410863274