ALTERNATIVE FORMS OF FINANCING FOR SMALL AND MEDIUM-SIZED BUSINESSES IN UKRAINE: OPPORTUNITIES AND PROSPECTS

Abstract

The role and importance of small and medium enterprises (SMEs) in the social, economic and innovative development of the state are described. It is established that the main problem of the SME sector is the problem of its financial support. It is noted that SMEs have significantly fewer domestic opportunities for expanded growth compared to large enterprises, more limited access to traditional sources of capital replenishment and government support programs. Based on this, the need to find and attract alternative forms of funding is justified. The driving force behind the state's economic development of the state is small and medium business (SMB). It forms a competitive environment of industry or regional markets stimulates innovation activity, ensuring the formation of new jobs. One of the important problems facing small and medium sized enterprises in Ukraine is the problem of financial support for their development. The aim of the article is to find forms and methods of alternative financing of small and medium business, analysis and evaluation of their application in Ukraine. The advantages and prospects of using such progressive forms of financing businesses and projects as crowdfunding, leasing and financial resources of business angels are identified. Particular attention is paid to crowdfunding as the most affordable and convenient way to finance innovative, social, cultural and other projects. The world tendencies of its development are analyzed, possibilities and prospects of application in Ukraine are defined. The advantages of involving financial resources of business angels in the activities of small and medium enterprises are outlined. The peculiarities of such financing in Ukraine and its difference from world tendencies are determined. It is proposed to consider leasing as one of the alternative sources of financing for small and medium enterprises. It is noted that in times of crisis or financial instability, leasing is the best way to renew capital without withdrawing significant amounts. Positive factors of development of the leasing market of Ukraine are noted and problematic moments are allocated. Based on the analysis and taking into account the existing problems, a set of measures to strengthen the positive impact of alternative sources of business financing on the processes of real transformation in Ukraine is proposed.