Efficiency of Using Financial and Credit Instruments to Intensify the Innovative Development of Small Business Structures in Ukraine

Abstract

The article is devoted to substantiation of theoretical and methodical provisions, development of practical recommendations aimed at improving the innovative development of small business structures in the economy of Ukraine using the influence of financial and credit instruments. The role and importance of small business structures for the Ukrainian economy are revealed, the main problems of its innovative development are covered, including available financial support. The importance of innovative development of small enterprises is noted, in particular their compliance with changes in market conditions, increase and profitability. It is noted that the system of financial support for small businesses should be based on ensuring the smooth flow of innovative development. The article considers and critically describes the available sources and forms of financial support for small businesses depending on the goals of their activities. In particular, attention is paid to self-financing, equity, public financial support, bank and commercial lending, financial leasing, factoring, forfaiting, financing programs of international financial institutions, grant and venture financing. The most common sources of financial support for the current activities of a small business are its profits and bank lending. At the same time, the possibility of obtaining a bank loan is limited for many reasons. A promising type of financial support for the innovative development of small business structures is venture financing in the form of attracting funds from external investors and grant support from international organizations. Their feature is to provide funds on a non-refundable basis. The conditions of bank lending under the programs of the Ukrainian-German fund are considered in detail. The peculiarities and substantiation of the main advantages and disadvantages of the existing financial sources of financing are singled out, and also the most effective approaches to financing of innovative activity of small business structures in unfavorable economic conditions are offered.

The Current State and Tendencies of Development of the Enterprises in Ukraine According to Their Sizes

“…Багато науковців присвятили свої дослідження вивченню особливостей діяльності малого підприємництва, зокрема такі, як Данилків Х. П., Гембарська Н. Є. та Волошин О. П. [4], Крисак А. О. та Мусятовська О. С.…”