Diversification of small and medium-sized businesses: reasons and barriers to strategy implementation

The relevance of the topic is due to the widespread use of diversification strategy by small and medium-sized enterprises as a strategy of evolutionary growth, adaptation to changes in the economic environment and maintaining competitiveness in the market. The purpose of the work is to analyse the factors that stimulate diversification, as well as the barriers faced by enterprises in the implementation of this strategy. The study identifies external and internal factors that stimulate the use of diversification strategy in business development; considers financial, organisational, tax and competitive barriers to the successful implementation of this strategy. The obtained results can be useful in planning and managing the development of small and medium-sized enterprises.