Abstract. The article is devoted to problems and prospects of development of small business in Ukraine. The purpose of this article is to evaluate the trends of development of small business in Ukraine, detection of problems of taxation of its activities and justify their solutions. The results of the study determined that small and medium business in Ukraine is developing at a slow pace, which suggests the existence of unrealized potential. One of the reasons for insufficient development of small business in Ukraine, there are distortions in the tax system, which creates prerequisites for the use of small businesses in schemes to minimize taxes, not the implementation of real activities.

Keywords: small business, the simplified system of taxation, taxation of entrepreneurship, the role of small business.

Abstract. The article described features of the simplified system of small business in Ukraine, outlined the problems and prospects of taxation for small businesses. The author supposes the idea that a simplified system of taxation, on the one hand, allows small businesses to grow, and with another – has become a tool of manipulation for tax purposes.

Keywords: small business, the simplified system of taxation, taxation of entrepreneurship, the role of small business.