Comparative analysis of foreign small business in the USA and China

This article provides a description and analysis of small business models in the USA and China. In the structure of modern economic systems, small businesses perform critically important functions, being deeply integrated into national economies and value chains, ensuring the satisfaction of consumer demand and the creation of new jobs. A significant proportion of small businesses in both the United States and China are represented either by individual enterprises without hired staff, or by microenterprises. Small business models in the United States and China differ in key criteria for business accessibility, but they show similarities in the determinants that constrain growth. Common fundamental problems include limited availability of financial resources and their low level of penetration, as well as a high regulatory, legal and bureaucratic burden. In the United States, the sources of small business development problems are mainly market and macroeconomic factors, while in China they are institutional and administrative barriers. The American model of small business development is based on the principle of subsidiarity and is focused on creating favorable market conditions for doing business with minimal direct government involvement. The Chinese model of small business development is based on the principle of centralized administration and assumes the active participation of the state in the creation of targeted institutional regulatory mechanisms.