PERSPECTIVES OF SMALL BUSINESS DEVELOPMENT UNDER THE CONDITIONS OF UNCERTAINTY CAUSED BY COVID PANDEMICS

Abstract

A market economic system based on the means of production is characterized by fundamental uncertainty. The differences between the fundamental uncertainties and the risks lie in the fact that it is impossible to empirically measure the level and dynamics of future threats. A correct understanding of the uncertainty is essential for the study and analysis of the crisis. Under the influence of the COVID-19 pandemic, world economy found itself in a new global crisis, which had a significant impact on the rise of economic and social uncertainty, the degree of which is so high that it is impossible to predict the model of the economic and social development due to the current pandemic. The current economic crisis is characterized not only by global losses but also by the limited sources of compensation. According to scientists (Adžić & Al-Mansour, 2021) a crisis of this magnitude is the most unprecedented economic event of the last century. The COVID-19 world pandemic crisis has limited a traditional opportunities for small business, accordingly has emerged a new one. The most difficult problem was created in the value chain. Small business is a heavily dependent on consumers and suppliers behaviour, therefore, changes in the value chain have a significant impact on all of its participants. The closure of national borders has led to the disruption of the logistics network; And after the reduction of the stocks, it threatens to almost all participants in this network. It is important to consider the uncertainties and risks that are involved while studying small business crisis behavior. As a result even the most trained institutions are approaching disaster. After a pandemic, the universe will find itself in a larger, no less turbulent zone. Prior to the crisis, cost was the most important criterion while choosing a supply chain that had led to single suppliers and small stocks for small businesses. As it seems during the pandemic, this choice turned out to be one of the most important causes of the small business crisis. At the same time, dependence on one supplier has undergone a transformation into the need to diversify stocks, that has led to an increase in funding sources and which has led to the financial instability of a small company. These examples of the correlation between environmental and small business threats have illustrated the need for a global vision in order to adapt anti-crisis behavior model .A global vision is certainly needed. There is no single, optimal choice for overcoming uncertainty, however, the importance of the multivariate strategies is an important. Small firms found themselves unprepared for such approaches, leading to a high level of uncertainty. As well as, when a small business is in the early stages of its life cycle, the lack of experience limits its choice, and the lack of resources prevents it from choosing an effective strategy, that has exacerbated the problems of the small firms.