SMALL BUSINESS – ALTERNATIVE TO UNEMPLOYMENT REDUCTION IN ECONOMY UNDER RECESSION

Abstract: The decade long trend of unemployment rate increase, reduction of national income and salaries of the employees and demand reduction implies the necessity for taking urgent measures and counteracting the high inflation rate in order to reduce the unemployment of both the younger population as well as the elderly population (older than 50) which is often considered to be unneeded. More active initiation of small business through entrepreneurship, even self-employment can be an impetus for healing the economy. Education, financial support in the form of favorable loans together with the fiscal policy of new entrepreneurs can initiate entering into business of people with the feeling, awareness and readiness for innovative work and uncertainty, and those who are ready to face the risk of anticipating future developments and market turbulences which are inevitable companions of modern business.

Key words: recession, small business, unemployment, national income, salary, inflation, entrepreneurship, business risk, fiscal policy

Authors: Trajković Svetlana, Trajković Predrag, Milan Ivanković

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