THE ROLE OF SMALL BUSINESS IN THE DEVELOPMENT OF THE NATIONAL ECONOMY

Abstract

Small business is an important factor that leads to the economic prosperity of countries and provides a strong stimulus to the revival of production and increasing the economic activity of the population. Small business is one of the most flexible and efficient sectors of the economy, as it provides the creation of a large part of the GDP and provides employment to a large part of the 
economically active population. In addition to creating jobs, small and medium enterprises play an important role in creating a competitive, dynamic and diversified economy. Small business largely determines the level of socio-economic development of the country. Therefore, as in civilized countries, special attention is paid to the development of this field in Azerbaijan. The main part of 
national resources is created and circulated in the small business sector, which is a food environment for medium and large businesses. The technological production and management flexibility of small enterprises allows them to adapt and react to changing market conditions accurately and timely. Small business, as a more dynamically developing sector, can have a significant impact on the macroeconomic environment. It contributes to the expansion of employment, ensures the real functioning of the market mechanism that prevents the emergence of monopoly, in short, acts as an important factor in the formation of the competitive environment