FINANCIAL AND CREDIT MACHANISM OF SMALL BUSINESS SUPPORTING
Journal: University Economic Bulletin (Vol.1, No. 27)Publication Date: 2015-10-10
Authors : Kalmykov О.V.;
Page : 173-178
Keywords : small business; credit and financial mechanism; financial mechanism; small business supporting;
Abstract
The article is devoted to highlighting of some aspects of the problem of financial and credit mechanism of small business supporting. The factors that shape the financial and credit relations of small business with other structures are singled out in it: taxation and control; budgetary and extra budgetary funds etc, several basic types of financial and credit supporting of small business are identified, e.g.: schemes of credit guarantee, micro-crediting, venture capital funds and funds in direct support of small business; problems in the financial and credit sphere for subjects of small business in Ukraine, including the absence or insufficiency of property that can be taken as liquid collateral to guarantee the repayment of the loan; complicated procedure for obtaining a bank loan, long time for making decisions on granting loans; systemic need in small loans for filling up of working capital of small businesses; factor that influences the financial security of SB as the use of different forms of public and private guarantee for returning of borrowed funds by business structures; the important area of financial support is presented: promoting of small businesses participation in markets of joint stock capital, markets of derivatives, forms and sources of financial support of SB development: guarantee funds of lending, leasing, credit unions, insurance companies and basic principles of financial-credit mechanism formation for small companies, in our opinion, are: consistency, complexity, sufficiency, diversification, validity, predictability, and transparency.
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