Managerial challenges for micro and small enterprises: statistical analysis in Ukraine and Hungary

Abstract

The aim of the article is to compare micro and small business groups using statistical methods and exploratory literature research in such a way as to reveal the challenges of the target group in Ukraine and Hungary in terms of leadership, management and organization. Micro and small enterprises are automatically associated with the SME sector (small and medium-sized enterprises). This is partly correct, as there are not only certain identifications, but also a significant difference, because SMEs include such medium-sized enterprises that achieve a higher added value within the overall company sector, and these companies already have a much higher proportion of professional management than large companies. Compared to this, micro-enterprises, by which we mean thousands of sole proprietors, family-owned and individual businesses, do not have a large number of employees to manage, so classic management functions are not currently developed here.In general, management activity includes: organization and coordination of actions, ensuring orderliness and consistency of production processes. Success is achieved when there is a balance of concerted efforts by management and employees. However, there is "life" outside of HR, that is, the management function, by which we mean that the planning, organization, management, and monitoring of activities also exist in one-person micro-enterprises. Therefore, one should not forget about increasing the managerial and organizational efficiency of those economic entities belonging to this category. The article explains the conceptual foundations of the topic and analyzes statistical indicators of micro and small businesses in Ukraine and Hungary. Finally, we present the main SME management defined in the literature, as well as explain the differences between micro and small companies and large companies in terms of organizational management and innovation.