THE SITUATION OF SMALL BUSINESS ENTERPRISES IN LITHUANIA AND THE FACTORS INFLUENCING THEIR OPERATIONS

Abstract

The article analyzes the situation of small business enterprises (SMEs) in Lithuania and the factors influencing their operations. Based on the analysis of legal documents, the definition of SMEs, their economic role, and main challenges have been identified. The study revealed that SME growth is constrained by a lack of financial resources, insufficient marketing strategies, limited technological capacity, and complex administrative procedures. The COVID-19 pandemic increased the operational instability of these enterprises; however, an active trend of small business establishment indicates growing entrepreneurship. To promote SME development, state support and the implementation of innovations are essential.