Features of financing small enterprises in Ukraine

Iorga Svitlana
PHD in Economics, Senior Lecturer of the Department of Financial Management and Stock Market , Odessa National Economic University, Odessa, E-mail:fiests@ukr.net

Lastovenko Mykola
PhD in Economics, Associate Professor of the Department of Financial Management and Stock Market, Odessa National Economic University, Odessa, E-mail:fiests@ukr.net

Cite this article:

Iorga S., Lastovenko M. (2021) Features of financing small enterprises in Ukraine. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Osoblivosti finansuvannya malih pidpriyemstv v Ukrayini; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (288-289), pp. 27-32.

Abstract

Goal. The purpose of the study is to determine the features of small business financing in Ukraine and outline ways to improve the process of their financing. Methods. The research used methods of generalization, comparison, synthesis and analysis, empirical research methods.Results. The impact of the pandemic on the functioning of small enterprises in Ukraine is determined. The impact of the pandemic on small businesses has been shown to be more detrimental than large and medium-sized businesses. The criteria for defining a small enterprise are analyzed, differences and the lack of a unified legislative approach to this issue are identified. The necessity of dividing small enterprises into traditional small enterprises and small enterprises aimed at growth is proved. The peculiarities of financing the above types of small enterprises through the prism of the enterprise life cycle are analyzed. Practical significance. The basic criteria for financing a small enterprise, which should form the basis of financial decisions: access to financial resources, purpose of operation, financial risks, liquidity. Peculiarities of financing small domestic enterprises are identified: lack of clear guidelines on the possibilities of using a simplified system of taxation by small enterprises; mostly declarative nature of legislative acts aimed at supporting small business; limited access of small enterprises to the stock and money market; low level of liquidity and high level of financial risk. The tasks of which will contribute to the harmonization of the process of financing domestic small enterprises have been identified.

Keywords

small enterprise, traditional small enterprise, small enterprise aimed at growth, small enterprise financing.

JEL classification: M210, G100

UD classification: 334.012.64:658.14

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