The development of small businesses is an important area of creating a competitive market environment in Ukraine. Today it is quite obvious that the success of market transformations will largely depend on how the small business potential as the dynamic and mobile sector of the economy is realized, the existence of a well-balanced system of state-legal measures, and their internal monitoring. After conducting internal monitoring of small businesses, the following main conclusions were made: first, the companies have qualified proactive staff willing to work and able to perform tasks despite the complexity of work, high labor intensity and workload, and second, respondents believe that without a proper level of cooperation between themselves, between managers and subordinates, and with public authorities, it is impossible to achieve high results. This monitoring made it possible to characterize the internal state of activity of enterprises provided by their employees and is the first step towards the implementation of the concept of “change management” in the process of entrepreneurship development. On the one hand, it is a collection of information, on the other hand - a tool of “feedback” between management and subordinates and with public authorities at all levels, which enables the monitoring of the dynamics of the indicators across specific issues. An integrated approach to the process of enterprise development based on the concept of “change management” will increase the effectiveness of positive change in enterprises, remove most of them from the shadow sector, create more jobs, as well as increase the overall well-being of citizens and the state as a whole by increasing its GDP. The article thoroughly describes and demonstrates the factors restraining small business development during 2021-2022. 

change management, small enterprise, internal monitoring, external environment, competitiveness