FEATURES OF THE DEVELOPMENT OF FINANCIAL AND CREDIT SUPPORT FOR SMALL AND MEDIUM BUSINESSES IN UKRAINE

Abstract

The article is devoted to topical issues of financial and credit support for small and medium-sized enterprises in Ukraine. The aim of the study is to identify the characteristics of financial and credit support for small and medium-sized enterprises and to justify the need for further development of such support in Ukraine. The research is based on official statistics from the National Bank of Ukraine, the Ministry of Finance of Ukraine, and the works of Ukrainian scientists. The level of development of small and medium-sized businesses can be assessed by analysing the Business Activity Expectations Index (BAEI). According to the NBU, in October 2025, the Business Activity Expectations Index stood at 50.3 points, while at the beginning of 2022, it stood at 40.73 points. The index is growing and its value exceeds the neutral indicator, which indicates a trend towards the recovery of small and medium-sized businesses in Ukraine. Small and medium-sized enterprises face a number of problems, including limited financing. Bank lending forms the basis of financial and credit support for small and medium-sized businesses. The study analysed lending to small and medium-sized businesses, and the results show a trend towards growth in the volume of loans and the share of loans to small and medium-sized businesses in the total volume of bank loans. High interest rates and strict requirements for borrowers are a limiting factor in the expansion of lending, reducing and even making it impossible for businesses to obtain bank loans. The article defines the role of state support in financing small and medium-sized enterprises and describes the problems that arise in the implementation of state financial support programmes and in bank lending. The study provides a description of the government's strategic goals, the achievement of which will enable the identified problems to be resolved. It is suggested that financial and credit support for small and medium-sized businesses be improved by introducing a comprehensive system in which the state and banks are assigned specific areas of activity (access to comprehensive information on state programmes and grants, improvement of the information infrastructure, simplification of the rules and procedures for providing financial resources, and improvement of the financial literacy of small and medium-sized businesses).