Small and medium-sized enterprises in the Republic of Moldova: trends, challenges and forecasts

Abstract

Forecasting is relevant for improving Small and Medium-sized Enterprises management. It is due to the great uncertainty of the events arising from the operation of a market economy, a geopolitical and energy crisis of recent years. Forecasting allows SMEs to reduce the degree of uncertainty of the future and makes it possible to develop a strategy for the company's behavior. It permits SMEs to make effective management decisions. Forecasting makes it possible to evaluate the economic and financial prospects for the development of the enterprise. One of the main problems is the lack of financial resources that hinder entrepreneurship development. In conditions of economic instability, the main task of small business development is not so much obtaining guaranteed profits as increasing business survival in an unstable environment. One of the indicators that registered a downward trend is the number of employees employed at SMEs, which is decreasing every year. To forecast the base SME indicators for 2022-2025, the econometric model developed based on statistical data for 2009-2021 was adjusted.