On a New Approach to Formation of a Strategy of Developing Small Businesses

Abstract

An enterprise operating in terms of market economy must always set itself the task of further development and improvement in order to be successful and competitive. To solve this problem, it is necessary to produce a development strategy. This problem is all the more relevant for small enterprises, which find it more difficult than large enterprises to survive in the competition. Therefore, small businesses face the task of developing and implementing such a strategy for their development, which allows them to clearly define their goals and outline the ways to achieve them. The article considers various points of view on the concept of «strategy», the classification of strategies that exist in the scientific literature, including those applied to small businesses, brings forth the authors' point of view on this concept. It pays a particular attention to the proposed approach to the process of strategy formation and the mechanism of its implementation in relation to small businesses. It makes a conclusion that on the basis of the systematic approach the strategy under development should be comprehensive and include such elements as marketing, product, production, personnel, management, financial strategy and risk strategies. It brings forth a description of the content of each element. It examines an algorithm for developing an integrated strategy for development of small businesses, as well as a mechanism for implementing the strategy.