FACTORS AFFECTING THE FINANCIAL STABILITY OF SMALL BUSINESSES

Abstract In today's market conditions, the financial stability of small businesses (SBs) is a key factor in their sustainable functioning and development. This work examines the main factors influencing the financial stability of small enterprises. These include access to finance, level of government support, financial literacy of entrepreneurs, economic situation and competitive environment, as well as innovation activities. The analysis shows that lack of access to finance and low levels of financial literacy significantly limit the capabilities of small businesses. At the same time, effective government support programs and active innovation contribute to increased sustainability and competitiveness.