THE ROLE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN SUSTAINABLE ECONOMIC DEVELOPMENT: INTERNATIONAL EXPERIENCE AND POLICY IMPLICATIONS

Abstract

Sustainable economic development is largely determined by the effectiveness of small and medium-sized enterprises (SMEs), which play a crucial role in job creation, innovation, structural transformation, and economic diversification. This article examines the role and significance of SMEs in the modern economy, with particular attention to international experience in supporting and regulating small entrepreneurship. The study analyzes key models of SME development in developed countries, including the European Union, the United States, Japan, and Singapore, highlighting the institutional, financial, and regulatory mechanisms that contribute to their success. The research is based on a comprehensive review of academic literature, statistical data, and policy documents, employing analytical, comparative, and systemic research methods. The findings demonstrate that SMEs significantly influence economic resilience, competitiveness, and social stability, while their sustainable growth depends on the quality of the institutional environment, accessibility of financial resources, reduction of administrative barriers, and targeted state support. The article argues that effective SME policy requires a differentiated and adaptive approach that takes into account the life cycle of enterprises, the development of human capital, and the promotion of entrepreneurial cooperation. The conclusions emphasize that SMEs should be regarded as strategic drivers of long-term economic growth rather than secondary economic actors. The international experience analyzed in the study provides valuable insights for improving national SME support policies and fostering inclusive and sustainable economic development.