STARTUP DEVELOPMENT IN UKRAINE: PROBLEMS AND PROSPECTS

Abstract

The development of startups is a powerful factor in socio-economic progress. Ukraine has significant potential to create a new types of business, the introduction of production of goods and services that can satisfy changing and very diverse needs of society. Therefore, there is a need to analyze the features of implementation, the most important problems and startup’s risks. Ukraine has significant potential for the startup’s development, which is confirmed by its high position in a world rankings. At the same time, the activity in the implementation of startup projects in different regions differs significantly. The most successful startups were analyzed and the spheres of their realization were determined. Almost all of them are related to the field of computers and information modern technologies (IT), which indicates about the prospects for the development of this industry in the Ukraine. There are highlighted the main stages of the startup: Seed and development; Startup stage; Establishment and growth; Expansion stage; Maturity. And also justified the most important problems that come up during these stages. Implementation of startups is complicated by this factors, such as: difficult financial position; lack of information support; unfavorable investment climate; low support from the government; insufficient level of knowledges in the field of business development. There were identified the factors that determine the investment attractions of startups the necessity and directions of country’s support for startups are substantiated. Ukraine has significant potential: highly qualified engineering resources, lots of cool ideas and enterprising people, who are ready to implement business innovations. However, only with the effective support from the government to the entrepreneurship in the field of innovation, financial support, effective system of protection of intellectual property rights, the development of appropriate regulatory framework, which will regulate legal relations in the startups’ market and in the sphere of their investment, then Ukrainian startups projects will have significant potential to develop and growth.