Financial Mechanism for Regulating the Sphere of Medium-Sized Businesses in Ukraine

Abstract

The article notes that financial regulation and support for the development of medium-sized businesses is one of the priority and main areas of social and economic policy in Ukraine. Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This may be handled by either a government or non-government organization. Financial regulation has also influenced the structure of banking sectors by increasing the variety of financial products available. It is emphasized that the main areas of financing of the medium-sized business support program are: assistance to companies, that are engaged in the development and implementation of innovative products and services, innovative industries; subsidizing the interest rate on loans to make them more attractive for entrepreneurs; compensating for the cost of purchasing equipment; promoting the development of equipment leasing; expanding self-employment programs for the unemployed people, supporting social branch and responsibility of entrepreneurship; creation of business incubators, accelerating programmes, industrial parks, technology parks, entrepreneurship centers, cluster development centers, prototyping centers, collective access centers, equipment, etc. promising areas for improving and complementing programs of state regulation and financial support for medium-sized and small businesses in Ukraine are indicated. It is proved that financial mechanisms are ensuring the life of the enterprises and businesses are the only type of its resources that act as an incentive for entrepreneurial activity, as well as providing funds for the production process, Personnel Support and use of labor resources, and the implementation of a set of marketing measures, production, economic and other elements of the enterprise and their transformations, which increases at the end of the stage of the financial cycle, increasing the volume of net cash flow, acting as a necessary condition for the development of any organization. It is concluded that the implementation of the proposed measures will contribute to solving the financial problems of medium-sized businesses, as well as ensure the real development and growth of this sector in Ukraine.