ROLE AND OBJECTIVES OF ECONOMIC SECURITY OF SMALL AND MEDIUM BUSINESSES

Digitalization of the economy for small and medium-sized businesses, on the one hand, opens up a wide range of opportunities, and on the other hand, increases various risks, which actualizes the issues of ensuring economic security. Thanks to digitalization, the efficiency of business processes increases, the speed of information processing and making informed management decisions increases. Repetitive tasks demanding significant workforce involvement and energy consumption are giving way to automated systems. These systems offer the potential to lower expenses, boost profit margins, and enhance employee output. Sophisticated technologies, such as artificial intelligence and cloud-based systems, are improving the standard of customer engagement, which results in boosted revenue and, consequently, improved general business outcomes. However, against the background of positive factors, risks and threats become no less acute. In today’s reality, cybersecurity is becoming a critical factor. The vulnerability of small and medium businesses in the field of cyber protection contributes to the growth of cybercrime, and insufficient protection of information systems causes a significant share of data leaks in this segment. Dependence on digital service providers also poses a serious threat, since small and medium enterprises are often limited in their ability to independently develop digital technologies. This research aims to investigate the specifics of managing business operations within small to medium-sized enterprises and to guarantee their financial stability amidst ongoing digitalization trends.