Small business becomes more modern

The State Registration Service of Ukraine has reported that the most popular type of business during the last two years has been the retail sale of food and drinks at non-specialized stores. Newly registered businesses 9,876 in 2012 and 9,940 in 2013 — have identified this business activity as their primary one, the Information-analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Since early 2013, 9,639 individual entrepreneurs and 301 legal entities in Ukraine have been registered to engage in this type of business, which is practiced by over 6% (159,836) of all registered business entities.

The Registration Service says significant changes have been recorded in retail trade from stalls and on market-places. The number of legal entities and individual entrepreneurs engaged in this kind of business decreased has decreased 18.4% in 2013. The number of businesses trading from stalls and at the market-places with textiles, clothing and footwear products was also decreased by 1,738 entrepreneurs, from 7,474 to 5,736.

The most positive performance was demonstrated by entities selling goods by mail or online via the Internet, as well as those engaged in other retail sale in non-specialized stores. The number of registered business entities of these categories was up from 2,857 in 2012 to 4,686 in 2013 (up 64%).

Experts say the processes that occur in the retail trade are quite natural and predictable. 

They testify that small business becomes increasingly civilized and modern.

Experts say the rapid growth of the online sales is even more characteristic of the current economic processes. Development of telecommunications allows extending this kind of business. Even now, one can make a payment and buy thousands of goods, both non-food and food online and from mobile phones.

Consumers increasingly want to shop from the comfort of their home or office. Given that such companies do not bear costs of the stores and sales staff, their goods are cheaper than those sold in regular shops.

Experts say this is a positive trend. The total cost associated with promotion of goods and services is reduced making them cheaper and more affordable for consumers.