PROBLEMS OF ATTRACTING FINANCIAL RESOURCES IN THE SMALL AND MEDIUM BUSINESS IN UKRAINE

Abstract

Purpose. Investigation of the problems of attracting financial resources to small and medium-sized businesses in the context of macroeconomic instability and outlining the main directions of their solution. Methodology of research. The methodological basis of the study is the dialectical method of scientific knowledge. In the process of research, general scientific and special methods were used, namely abstract-logical, deductive and system analysis in the study of problems of domestic small and medium enterprises; assessment of the current state of diversification of sources of financing of their activities; substantiating the ways of solving individual problems of financing small and medium enterprises and creating a favorable climate for the development of small and medium business in Ukraine in conditions of macroeconomic instability. Findings. The analysis of activity of small and medium business entities in Ukraine is carried out. The problems of financing of small and medium business are determined and the sources of its financing are diversified. It was established that the current state of financing sources for the development of small and medium enterprises in Ukraine does not allow them to actively develop on an innovative basis. Important reasons for this situation are the limited own resources as a result of a low level of profitability and, consequently, a decrease in the amount of profit, limited use of bank loans due to high interest rates, lack of development of alternative sources of financing, lack of awareness of small and medium-sized business entities regarding the possibility of participation in international grants programs. It has been established that domestic enterprises are largely financing their activities at the expense of borrowed capital, namely, current liabilities and provisions, which jeopardizes their financial stability. Originality. Science researches have received future development for solving some problems of financing small and medium business and forming favorable climate for development of small and middle business in Ukraine in time uncertainty of macroeconomic stability. Practical value. The obtained results of the research, expressed in the conclusions and proposals, contribute to the partial resolution of the problem of financing the activities of small and medium enterprises in the context of macroeconomic instability.