STATE REGULATION OF SMALL ENTREPRENEURSHIP IN THE CONTEXT OF BUSINESS MODEL TRANSFORMATION: THEORETICAL, METHODOLOGICAL AND APPLIED ASPECTS

Abstract

Under conditions of digital transformation of the economy, market globalization, increased competition, and institutional changes, the development of small entrepreneurship becomes especially important as a key driver of economic growth, employment, and the formation of the state’s innovation potential. Current trends in business practice lead to the transformation of traditional business models, which requires the adaptation of mechanisms of state regulation to new conditions of operation of the entrepreneurial sector. This issue becomes particularly relevant in the context of Ukraine’s post-war economic recovery, when small entrepreneurship is viewed as one of the primary drivers of socio-economic stabilization and structural modernization. Purpose. The purpose of the article is to substantiate the theoretical and methodological foundations of state regulation of small entrepreneurship in the context of business model transformation and to determine promising directions for improving state support mechanisms. Materials and methods. The study is based on scientific works devoted to entrepreneurship regulation, institutional economics and business model transformation. System analysis, comparison, synthesis, abstraction and logical modeling methods were used. Results. The essence of business model transformation and its impact on small entrepreneurship development are identified. The features of state regulation under digital economy conditions are analyzed. The necessity of modernization of state support instruments through digital services, financial incentives, cluster cooperation and innovation infrastructure development is substantiated. A conceptual framework for improving state regulation mechanisms is proposed. Discussion. Future research should focus on the development of organizational and economic mechanisms for supporting digital business models, assessing the effectiveness of public policy instruments and forming an adaptive system for entrepreneurship development management in Ukraine.