IMPACT OF BUSINESS MACRO ENVIRONMENT ON THE SMALL BUSINESS MANAGEMENT IN THE REPUBLIC OF NORTH MACEDONIA – PEST ANALYSIS

In this paper, we use PEST analysis to examine the impact that macroenvironmental factors in the Republic of North Macedonia (RNM) have on the small businesses’ management. PEST analysis groups the factors of national environment into four main categories, namely political, economic, social and technological factors, so this paper analyses their impact on the management of small businesses in RNM. The chronological analysis of PEST factors provides a comprehensive picture of the business environment for small businesses in RNM, under normal conditions and circumstances, and highlights their positive and negative impacts on active small businesses in the country. Thus, the synthesized findings can facilitate the management process by providing a greater focus on the key factors of the macro-environment that affects small businesses, i.e. allowing for better use of the opportunities and easier overcoming of the challenges they pose. In this sense, the developed PEST analysis of macro-environmental factors in the RNM allows managers to adopt better management practices to manage sustainable small businesses with potential for growth and development, while allowing the government to understand the general state of the sector and improve supportive policies in the country.