SMALL AND MEDIUM-SIZED BUSINESSES AS THE MAIN ELEMENT OF FOREIGN ECONOMIC ACTIVATION IN THE DONETSK PEOPLE'S REPUBLIC

Abstract

Purpose of the study. It has been established that the number of SMEs in the DPR increased by 7% by the beginning of 2026, reaching approximately 60 thousand entities, which indicates the restoration of business activity. The key barriers to small business participation in foreign economic activity have been identified: sanctions restrictions on international settlements, lack of financial resources, underdeveloped logistics infrastructure, and insufficient professional competencies among entrepreneurs. It has been proven that large industrial enterprises, due to inertia and sanctions pressure, cannot quickly develop foreign markets, whereas SMEs demonstrate high adaptability, the ability to customize products, and the capacity to fill niche segments of non-resource exports. It is substantiated that the adopted State Program for the Development of Entrepreneurship and Foreign Economic Activity for 2026–2030 has for the first time institutionally consolidated the priority of supporting small business as a driver of foreign trade activity. Practical directions for improving the efficiency of SME participation in foreign economic activity are proposed: creating a "one-stop shop" infrastructure for exporters, introducing export risk insurance mechanisms, stimulating production cooperation between small and large businesses, digitalizing customs procedures, and providing educational support for entrepreneurs. Scientific novelty lies in the substantiation of a paradigm shift: in the context of post-conflict recovery, it is SMEs, rather than large industry, that become the main element in activating the region's foreign economic activity.