Modern Economics (Nov 2018)
Perspective sources of small and medium business financing in Ukraine
Abstract
Introduction. The article investigates the role of small and medium-sized businesses and its financing in the development of Ukraine’s economy and describes some perspective financing sources, which can lead to increasing the efficiency of small and medium business activity. Purpose. To highlight the main problems in financing of small and medium-sized businesses in Ukraine and to develop proposals and recommendations for its solution with the help of modern untraditional sources of financing of enterprises. Results. The literature sources, statistical data, official web portals related to the chosen topic are analyzed. The main obstacles of doing business in the country are analyzed, the main sources of financing for small and medium-sized enterprises are identified, such as internal financing, bank loans, repurchase agreements, bond issues, commercial lending. The features of bank lending, interest rates of leading Ukrainian banks and the system of state support to small and medium-sized businesses are described, the main disadvantages of using the traditional financing sources are highlighted. Alternative types of financing sources for enterprises such as leasing, venture funding, factoring are considered, nonconventional structures for Ukrainian small and medium businesses, such as business incubators and business angels, are investigated. The programs of international financial organizations that are implemented in Ukraine to support small and medium business are analyzed. The key problems of financing of small and medium business in Ukraine are highlighted. Conclusions. The priority directions of financing development for increase of efficiency of activity of small and average business in Ukraine are suggested. The measures to improve the state support of Ukrainian business are recommended.
Keywords
