Sources of Financial Support for Small and Medium-sized Enterprises: the Case of the Sakha Republic (Yakutia)

Abstract

The article reviews small and medium-sized businesses in the Sakha Republic (Yakutia), and their role and significance in the economy of the republic. The purpose of the study was to determine the available financial opportunities for the development and support of small and medium-sized businesses in the Sakha Republic (Yakutia). The system of available sources of financial support in the region was considered, including government programs to support small and medium-sized businesses, subsidies, grants aimed at supporting their activities, preferential bank loan programs and microloans for small and medium-sized businesses. An analysis of available financial sources showed their limitations and inaccessibility for most small and medium-sized enterprises that do not have sufficient collateral, bank guarantees and sureties. Most of the representatives of small and medium-sized enterprises in the republic do not have timely accessible information about the proposed sources of financial support from government authorities. At the same time, not all enterprises cope with filling out the required documentation to receive financial support. The work provides a comparative analysis of preferential interest rates and loan terms for small and medium-sized businesses that have official programs in the Sakha Republic (Yakutia). For this purpose, the official partner banks of the Microcredit Company of the Entrepreneurship Development Fund of the Sakha Republic (Yakutia) were selected: VTB Bank PJSC (Public Joint Stock Company), AKB (Joint Stock Commercial Bank) “Almazergienbank” Joint Stock Company (JSC) and Joint Stock Company (JSC) “Asian-Pacific Bank”. As a result of the analysis, the work identified the most effective sources of financial support for small and medium-sized enterprises in the Sakha Republic (Yakutia). The work provides examples of successful projects that have received financial support in the republic. Based on the study, recommendations were proposed for improving the system of financial support for small and medium-sized businesses in the Sakha Republic (Yakutia).