SME DEVELOPMENT: INTERNATIONAL FACTORS AND COVID-2019 EFFECTS IN THE SELECTED EU ECONOMIES

Abstract

SME sector is the most important element of the market economy for many countries. Small and medium enterprises largely determine the rate of economic growth, the structure and quality of the GDP (gross national product). In current paper, we have discussed the factors, which traditionally affect the development of SMEs. We emphasize that the role of the government is very important for the SMEs development, as along with traditional international factors affecting SMEs, the world is now facing the effects of the COVID-2019 pandemic, which has pushed a huge number of businesses to the brink of survival. Without government measures to mitigate the negative consequences of COVID-2019, the SME sector of many economies might not survive. Thus, it is vital to study the effective measures of the developed economies, which can be used in other countries to address the effects of COVID-2019.