ANALYSIS OF THE POSSIBILITY OF FINANCING SMALL AND MICROBUSINESS ACTIVITIES OF THE KHARKIV REGION BY INVOLVING INTERNATIONAL FINANCIAL CAPITAL

Abstract

The article is devoted to the research of possibilities of financing the activity of small and microbusiness of Kharkiv region by attracting international financial capital. The dynamics of direct investments both in Ukraine and abroad due to the use of debt instruments is analyzed. It was found that due to the size and features of the used organizational and legal forms of small and micro businesses, as a rule, do not use such a tool as investing in equity. Assessing the real inflows of investments in the form of debt obligations to the Kharkiv region, it is established that their volumes are insignificant, even on a domestic scale. At the same time, their structure does not correspond to the global distribution of financial centers, which is due to the offshore nature of most investment agreements. Regarding the sectoral structure of distribution of funds invested in Ukraine, it was found that the vast majority of them fall on industry with a share of 49.11% and wholesale and retail trade – 14.08%. The activity of international financial and credit organizations operating in Ukraine is analyzed. In particular, the characteristics of the programs of the International Finance Corporation, the European Bank for Reconstruction and Development, the German State Development Bank, the German-Ukrainian Fund. It is established that this mechanism of attracting foreign funds is not used enough. At the same time, the list of international business financing programs in Ukraine still remains insignificant. It is proposed to use the funds of grant programs as alternative tools for international financing of small and micro businesses. The basic requirements for participation in such grant programs as "Grant competition for startups and social enterprises Synergy for Change", "Second wave of grant competition for the implementation of civic tech tools in a pandemic", "Grants + Visegrad Fund for the Western Balkans and Eastern Partnership countries" are listed. »,« Coronavirus Fast Response Fund. Black Sea Trust for Regional Cooperation ». It is established that the use of grant programs to solve the problem of financing domestic business has a positive effect on extending the time of borrowing and reducing their cost.