IMPROVING THE MECHANISMS FOR DEVELOPING THE INNOVATIVE ACTIVITY OF SMALL BUSINESS ENTITIES

Abstract

This article analyzes the theoretical, methodological, institutional, and practical foundations for improving the mechanisms that foster innovative activity in small business entities. The study argues that innovative activity should be interpreted not only as the creation of new products, but also as a comprehensive system of renewal in management, marketing, services, digitalization, logistics, and cooperation. The author identifies the major barriers slowing the introduction of innovation in small business, including limited financial resources, uneven regional development of innovation infrastructure, insufficient human capital competencies, high market risks, and the lack of a well-established link between science and production.