Financial Aspects of Environmental Entrepreneurship Development

Abstract

Іn this article we have considered some aspects of financial support for environmental entrepreneurship in Ukraine. We focused on the analysis of the advantages, disadvantages and prospects of using different channels of access of small and medium-sized businesses to international sources of "green" funding and assessment of opportunities to optimize the flow of funds from international to local level through administrative verticals. In particular, we have expanded such channels as foreign Direct Investments and Direct Access Channels (direct access); Locally Administered Funds; Participatory Funding Structures; Competitive Elements in Fund Allocation. As a result of our research, we have concluded that none of these channels is perfect and has certain implementation problems that need to be considered. The main problems are the loss of financial resources at various levels of administration; insufficient level of adaptation of existing financial flows to the needs of the community and priorities of local organizations; insufficient level of development of local financial and business structures. We believe that effective channels for green businesses to access international green finance should minimize the share of funding lost along the way and maximize the amount that entrepreneurs receive in those communities, municipalities and areas where there is the greatest need for implementation of “green” projects.