VENTURE FINANCING OF INNOVATION ACTIVITY IN ENTERPRISES: ADVANTAGES AND DISADVANTAGES OF IMPLEMENTATION IN UKRAINE UNDER WARTIME CONDITIONS
Abstract
The article examines venture financing as an important tool for stimulating the innovative activity of enterprises in the context of Ukraine's transformative economy, which is facing significant challenges due to military actions. The aim of the study is to comprehensively explore the potential of venture financing as an effective tool for supporting and stimulating the innovative activities of enterprises in Ukraine during the martial law period, focusing on identifying its advantages, limitations, and practical implementation opportunities in the current economic realities. The author analyzes the theoretical foundations of venture financing, defines its essence, operational characteristics, and specifics of application in the Ukrainian context under war conditions. The potential of venture capital is discussed and emphasized as a driving force for the development of science-intensive businesses, high-tech startups, and critical sectors of the economy. The advantages of venture investment are highlighted, such as attracting significant financial resources to innovative, but high-risk projects, promoting technological renewal of the economy, forming new markets, developing international partnerships, and providing professional project support from investors. The study thoroughly characterizes the key problems of implementing venture financing in Ukraine, including: a high level of risks exacerbated by the conditions of war, instability of the legal environment, limited institutional support, insufficient awareness of entrepreneurs about the opportunities to attract venture capital, and the low investment attractiveness of the country in the eyes of international investors. The author substantiates the necessity of creating a favorable regulatory environment, reforming tax and investment policies, activating the role of the state in developing venture infrastructure, and implementing targeted programs to stimulate innovative development. Strategic directions for the development of venture financing in Ukraine, considering post-war reconstruction and the needs of the national economy for technological renewal, are proposed. The article is of scientific and practical interest to specialists in innovation management, public economic policy, entrepreneurship, and financial analytics.
References
Brown, A. Investment Strategies for Construction Companies in Times of Economic Uncertainty. Construction Economics and Finance. 2020. No. 27(4). Pp. 45-59.
Williams, E. The Role of Government Policies in Shaping Investment Decisions in the Construction Sector. Construction Policy Review. 2018. No. 25(1). Pp. 78-92.
Garcia, M. Investment Allocation in the Construction Industry Amidst Global Transformations. Journal of Construction Economics. 2017. No. 42(3). Pp. 211-228.
Lee, S. Managing Construction Investments in a Time of Crisis: Lessons from the Syrian Conflict. International Journal of Project Management. 2016. No. 33(5). Pp. 890-905.
Harvard Business Review. Investment Decision-Making in the Construction Industry: Best Practices in Times of Crisis. Harvard Business Review. 2015. No. 10(2). Pp. 112-125.
Столярчук Я., Ільницький Д., РудьковскийС.. Зелене інвестування як механізм глобального сталого розвитку. Вісник Хмельницького національного університету. 2023. No. 2. С. 241-246.
Орєхова Т.В., Роздобудько М.М. Теоретичні аспекти та основні тенденції розвитку «зелених» інвестицій у глобальному вимірі. Економiка iорганiзацiя управлiння. 2022. No. 1 (45). С. 39-46.
Дима В.В. Фінансові інструменти стимулювання розвитку "зеленої" економіки в Україні. Інвестиції: практика та досвід. 2020. No. 5-6. С. 182–187.
Шолудько О., Грицина О., Рубай О. Теоретичні основи застосування інструментів зеленого фінансування. Аграрна економіка. 2024. Т. 17. No 1. С. 36-46.
Social Investment Task Force. Social Investment Manual. An Introduction for Social Entrepreneurs. Munchen. Technishe Universitat Munchen. 2011. 60 p. URL: https://ssrn.com/abstract=1884338
Brown A. (2020) Investment Strategies for Construction Companies in Times of Economic Uncertainty. Construction Economics and Finance. vol. 27(4), pp. 45-59.
Williams E. (2018) The Role of Government Policies in Shaping Investment Decisions in the Construction Sector. Construction Policy Review. vol. 25(1), pp. 78-92.
Garcia M. (2017) Investment Allocation in the Construction Industry Amidst Global Transformations. Journal of Construction Economics. vol. 42(3), pp. 211-228.
Lee S. (2016) Managing Construction Investments in a Time of Crisis: Lessons from the Syrian Conflict. International Journal of Project Management, vol. 33(5), pp. 890-905.
Harvard Business Review. (2015) Investment Decision-Making in the Construction Industry: Best Practices in Times of Crisis. Harvard Business Review. vol. 10(2), pp. 112-125.
Stoliarchuk Ya., Ilnytskyi D., Rudkovskyi S. (2023) Zelene investuvannia yak mekhanizm hlobalnoho staloho rozvytku [Green investment as a mechanism of global sustainable development]. Visnyk Khmelnytskoho natsionalnoho universytetu - Bulletin of Khmelnytskyi National University. vol. 2. pp. 241-246. (in Ukrainian)
Oriekhova T. V., Rozdobudko M. M. (2022) Teoretychni aspekty ta osnovni tendentsii rozvytku «zelenykh» investytsii u hlobalnomu vymiri [Theoretical aspects and main trends in the development of "green" investments in the global dimension]. Ekonomika i orhanizatsiia upravlinnia - Economics and management organization. vol. 1 (45). pp. 39-46. (in Ukrainian)
Dyma V. V. (2020) Finansovi instrumenty stymuliuvannia rozvytku "zelenoi" ekonomiky v Ukraini [Financial instruments for stimulating the development of the "green" economy in Ukraine.]. Investytsii: praktyka ta dosvid - Investments: practice and experience. vol. 5-6. pp. 182–187. (in Ukrainian)
Sholudko O., Hrytsyna O., Rubai O. (2024) Teoretychni osnovy zastosuvannia instrumentiv zelenoho finansuvannia [Theoretical foundations of the application of green financing instruments]. Ahrarna ekonomika - Agricultural economics. vol. 17, is. 1. pp. 36-46. (in Ukrainian)
Social Investment Task Force. Social Investment Manual. An Introduction for Social Entrepreneurs. Munchen. Technishe Universitat Munchen. (2011). 60 p. Available at: https://ssrn.com/abstract=1884338
