THE ROLE OF PUBLIC ADMINISTRATION IN PROMOTING THE INNOVATIVE DEVELOPMENT OF SMALL BUSINESS IN THE CONDITIONS OF EUROPEAN INTEGRATION

Abstract

The article is devoted to the problem of state administration in stimulating the innovative development of small entrepreneurship in the conditions of European integration. In the transition period to the innovative economic development model, the state acts as the primary author, which forms the national development strategy, creates conditions for innovative growth and develops effective institutions of the innovative environment. The article examines the role of small businesses in the modern economy and their impact on society's socio-economic development. Small entrepreneurship's importance in European integration as a critical factor of economic development was revealed. It was noted that despite the potential opportunities, small businesses face numerous challenges, including a low level of innovation activity. The results of the analysis of the influence of state administration on the development of small businesses, especially in the context of European integration processes, are presented. Various aspects of the role of public administration are discussed, such as providing financial support, creating a favorable business environment, and regulating taxation to stimulate the innovative development of small businesses. In particular, attention was drawn to the need to adapt legislation to European standards and ensure small businesses access to European markets and technologies. The strategy for creating a favorable environment for entrepreneurship development in Ukraine was presented. It has been established that effective public administration is a critical factor for the successful innovative development of small businesses in the conditions of European integration. The article highlights key aspects such as the competitive environment, problems of small businesses functioning in wartime conditions, and the need for state support of small businesses. The critical role of state administration in stimulating small businesses' innovative development in European integration conditions was discussed. The systemic problems that complicate this sector's innovative development process were highlighted. The importance of an effective public administration strategy to overcome these challenges was emphasized. It was emphasized that small businesses' successful competitiveness requires precise regulation to support and encourage innovation. The measures that the state can take to promote the innovative development of small businesses, such as providing financial support, infrastructure investments, educational support, and product promotion in international markets, are analyzed. The state's role as a guarantor of sustainable economic growth and entrepreneurship development in European integration conditions was considered.