Institutional levers for financing small and medium-sized businesses as a component of development of depressed regions

Abstract

Methods. The results were obtained through the application of the following methods: critical analysis – when establishing barriers that impede the effective state support of small and mediumsized businesses at the regional level; scientific abstraction – in determining the advantages of small and medium-sized enterprises in comparison with large business in forming the socio-economic basis for the development of a region (territory, city); generalization – in establishing institutional levers to overcome the territory’s depressiveness. Results. It was diagnosed that the vast majority of business entities in the business sector in Ukraine are small and medium-sized enterprises, which is consistent with global trends. However, the effectiveness of their functioning indicates the presence of obstacles to the use of advantages and potential opportunities. It is shown that financial government support for small and mediumsized businesses is based on legislation and is carried out in direct and indirect forms. The implementation of the state regional policy to stimulate the development of regions and to overcome the territory’s depressiveness is determined by a set of legislative acts and state programs. The scientific approaches to the definition of depressed territories and the formation of their varieties are analyzed, the basic principles on which state support for these regions should be based are identified. Novelty. It is established that the institutional levers and tools to overcome the territory’s depressiveness should take into account the regional (local) aspect of the opportunities for realizing the entrepreneurial potential of small and medium-sized businesses, subject to their financial support. Practical value. The guidelines for the formation of a program for overcoming the city’s depression, subject to the interaction of government, business and society, which will allow achieving the goal of developing small and medium-sized businesses, provide comfortable and safe conditions for the population, the formation of a city of social responsibility and social innovation.