SOURCES OF STATE FINANCIAL SUPPORT OF SMALL BUSINESS

The small businesses’ ability for adaptation to changes in consumer demand conditions and prospects of self-employment permit to influence positively on the development of the national economy. The presence of diversified sources of financing, including financing by the centralized funds, allows businesses to provide and develop their activities in conjunction with market changes, keep it at the proper level in times of crisis. Ukrainian fund for entrepreneurship support is the main fund concerning the realization of government assistance programs to small businesses. Ukrainian state fund for farms support is another fund, which provides support to small business. The selection of subjects, that receive state financial support, is based on the significance of their activities to the state. Activation of financial and credit, investment support to small businesses is one of the main directions of National program to promote small business in Ukraine, which should be directed, in particular, on the development of effective credit and guarantee mechanisms, including micro-credits for small businesses. The state budget is the main source of the state financial support. Small business receives financial resources of the state support through such state target funds as the Ukrainian fund for entrepreneurship support and Ukrainian state fund for farms support. The existent declared mechanism of microcredits and farmers’ loans issue actually cannot be made in full and cannot be delivered to final recipients through constant lack of financing. In a situation of state funds insufficiency for financial support we should reorient to the possibility of state guarantees to commercial banks for small business crediting. The raise of external financial resources using an example of cooperation with Reconstruction Credit Institute and German-Ukrainian fund, which, in turn, finances small business through Ukrainian partner banks, is an effective way of financial support for small business.