THEORETICAL ASPECTS OF ATTRACTING FOREIGN INVESTMENTS INTO SMALL BUSINESS

This article examines the theoretical foundations of attracting foreign investments into the small business sector. It explores the economic nature, significance, and key determinants influencing foreign investment inflows, particularly in developing economies. The study highlights the role of institutional frameworks, investment climate, legal regulations, and financial infrastructure in enhancing the attractiveness of small businesses for foreign investors. Additionally, the paper analyzes various theoretical approaches, including neoclassical and institutional theories, to explain investment behavior. The importance of government support mechanisms, risk mitigation strategies, and innovation-driven growth is also emphasized. The findings suggest that improving the business environment, ensuring transparency, and strengthening financial systems are crucial for increasing foreign investment in small enterprises.