PROBLEMS AND PERSPECTIVES OF SMALL AND MEDIUM BUSINESS DEVELOPMENT IN REGIONS OF LITHUANIA

Criteria of small and medium business and its impact on country's economic development are discussed in this article. Analysis of Lithuanian small and medium business state trends in 20022009 was performed, focusing on dynamics of number of small and medium enterprises and outputs of entrepreneur activities. The most of attention is paid to the analysis of small and medium business development problems in Lithuanian counties. Guidelines and instruments of small and medium business development in regions are formulated on the basis of performed analysis. Criteria of small and medium business are discussed on the basis of practice of Great Britain, Japan, USA, Russia and Lithuania. Problems of business development are specified by comparing performance indicators across counties (according to data from Department of Statistics of Lithuania database). Perspective guidelines of business development are foreseen according to performed analysis. Investigation results may be applied when solving regional cohesion issues. Small and medium size enterprises are getting more and more important in the whole world. There are established a lot of special programs to support this business sector. Nowadays a lot of countries admit that small and medium size enterprises are the main part in their economy and the future belongs to small and medium size enterprises. Definition and criteria of small and medium business varies across different states. Lithuanian conception of small and medium business coincides with that one of proposed by European Commission. Small and medium enterprises accounts up to 99% of total active enterprises in Lithuania. The number of such enterprises grew by 19% during 2002-2009. Trends of activities expansion, growth of turnover and market share are seen. Such processes cause growth of revenues. One of the main objects of regional politics is equivalent economical development in all regions which is achieved by efficient and stable activities of small and medium size enterprises. However, the development of small and medium size enterprises in different regions are not equal because of not identically amplified industrial and social infrastructure, different possibilities to get secondary or higher education, huge differences in countryside and city residents earnings per month, problems with financial support to the business and other factors indicating regional differences. Significant differences of regional development as well as lack of information, unfavourable legal basis and insufficient financing subdue development of small and medium business. The most (57%) of small and medium enterprises are run in Vilnius and Kaunas counties which are highly developed and where the greatest part of GDP is created. Other counties possess underdeveloped infrastructure, lower scientific and intellectual potential. Promotion of small and medium size enterprises development is one of the main economical tasks which allow materializing objects of country development: growth of GDP, establishment of new work places, improvement of residents' economic and social life and reduction of regional differences. The major strategic trends of small and medium size enterprises development are the accessibility of proper information for the business, the support of innovations and new technologies, improvement of financial support programs and law system, and one of the most important things is the unification of current regional differences.