Abstract
Annotation.During the life cycle of a small business, a special place is occupied by a development strategy, since increased competition in the market increases the responsibility and independence of small businesses in making management decisions based on an analysis of competitive advantages in order to ensure the efficiency of its production and economic activities. In the digital economy, the formation and development of competitive advantages of small businesses becomes even more important. The effectiveness of the development strategy depends on a variety of factors that are in varying degrees of interaction not only with each other, but also with the final results of entrepreneurial activity. The scientific article reveals the problems of forming the competitive advantages of small enterprises, analyzes the development of small business in modern conditions. The article presents the results of the analysis of the economic and financial activities of a small business entity in order to develop its strategy of competitive advantage in the conditions of the sixth technological order. The results of the study indicate the need to adapt the activities of small enterprises to the conditions of increasing competition in the domestic market and to apply new approaches to the development of competitive advantages. To ensure effective management of competitive advantages, it is necessary to rationally and optimally use the existing innovative potential of small enterprises. An approach to the strategy of developing competitive advantages of small businesses in the long term, taking into account digital trends, is proposed. To develop a well-thought-out strategy of competitive advantages and tactics of confronting the challenges of the global economic situation, the expediency of using the index of measuring the digitalization of an enterprise is proposed.