Abstract:

It has been argued that the development of the small business sector in Ukraine is central to economic reforms and the creation of wealth and employment (Isakova, 1997). Given the inherent instability and general weakness of the Ukrainian economy, there have been many internal and external obstacles to entrepreneurial activity and the development of small enterprises in a variety of business sectors. However, the relatively recent emergence of the Internet as a vehicle for business transformation has provided opportunities for small to medium-sized enterprises (SMEs) in Ukraine to enter global markets. The extent to which this has been the case for developing economies is an emerging research issue, given that various studies have already identified tangible benefits for the growth of SMEs in developed economies (e.g. McWilliams, 1995; Daniel & Myers, 2000; Warren, 2000). This paper looks at the development of SMEs in Ukraine and outlines the factors that have affected their growth. The paper then focuses on the role of the Internet in promoting the growth of SMEs in Ukraine, and considers the facilitation of opportunities provided by the available infrastructure. Recent progress towards developing a better infrastructure to support entrepreneurial activity and SME growth are discussed, including the need for further research.