FINANCIAL INSTRUMENTS OF SUPPORT OF SMALL BUSINESS INFRASTRUCTURE SUBJECTS IN THE REGION

Abstract

The purpose of the article is to identify and provide theoretical substantiation ofthe necessary and appropriate steps to ensure the proper organization of support for smallbusiness infrastructure subjects in the region with the involvement of a wide range of modernfinancial instruments.The article states that the development of small business infrastructure subjects in theregion depends to a large extent on the effectiveness of the financial process organization. In thecontext of the economic crisis and post-crisis development, key areas of regional financial policyto support the financial sustainability of small business infrastructure entities should be theaccumulation of financial resources for their further targeting the expansion of the network ofsmall business infrastructure subjects in depressed (backward) territories; optimization ofsources of accumulation of financial resources through increased participation in grant and donorprograms, maximum attraction of private investments; orientation towards the gradualintroduction of new forms and methods for managing financial activities at the regional level,including through the application of program-targeted financing in the budget process;orientation to the accomplished tasks in order to maintain the high efficiency of the regionalfinancial policy.As a result of the analysis, it was found that regional funds for entrepreneurship support arethe most common tool for providing financial assistance to small businesses at the local level. Ina context of significant reduction of lending to commercial banks, regional business supportfunds in most regions continued the implementation of credit programs for small and mediumenterprises. An important direction for increasing the lending of small business infrastructureentities is the creation of a system of guarantees for bank loans.It was established that in order to fulfill the tasks related to the financial support of theactivities of small business infrastructure subjects, it is necessary to take effective measuresaimed at supporting the infrastructure of the financial market itself (financial intermediationentities), as well as expanding the range of relevant services that may be offered to the subjectsof small business infrastructure. It is determined that one of the tasks of regional financial policyis to support an attractive investment climate, which would help to attract appropriate investmentresources for the organization and implementation of productive entrepreneurial activity. It isproposed to create special (free) economic zones at the regional level in an area as an effectivetool for optimizing financial policy in the region. One of the tasks of creating such zones may beto stimulate the development of small business infrastructure subjects.The necessity of further theoretical substantiation and formation of recommendationsconcerning the ways, conditions and resources necessary to support small business infrastructuresubjects in the region with the use of modern financial instruments is indicated.