Uman NUH | today: 08/15/2021

Current problems and prospects of the development of bank crediting of small business in Ukraine

Author(s) Nepochatenko Olena O., Doctor of Economics, Professor, Rector of Uman National University of Horticulture, Head of Department, Uman National University of Horticulture
Melnyk К. М., , ,
Huzar B.S., Candidate of Economics Sciences, ,
Category Economics
year 2019 issue Issue 94. Part 2
pages 5-16 index UDK 336.77:334.012.61
DOI 10.31395/2415-8240-2019-94-2-5-16 (Link)
Abstract Dynamic development of small business is impossible without active crediting support. However, nowadays entrepreneurs have to be in a constant search of financial resources, alternative to bank crediting, because the Ukrainian banks focused their credit programs on short-term high-margin products. At the same time, the demand of small businesses for bank crediting is growing. According to the results of the conducted research it has been found that the lack of credit availability (65%), inflation (56.3%), the level of tax burden (42.24%), high level of corruption (41.9%), the lack of highly qualified professionals (39.3%) are the main factors of a negative evaluation of a business climate. In the conditions of a post-crisis stabilization of the national economy, the credits that are granted by the banks should be one of the most important factors of small business development as the main driving force of sustainable development of the national economy. The analysis has shown that banks invested in the fixed capital most of all in 2013 (13.9% of the total volume of crediting). As of 1 January, 2017 the share of bank credits made up only 6.6%., which is by 7.3 percentage points lower compared to 2013. However, large accumulated losses, underdevelopment of stock market, lack of long-term credit availability for small business considerably decrease the ability to an innovative renovation of the production potential. It has been established that in the present-day conditions commercial banks began to change their priorities in crediting, interest to small business is growing. Involvement of the state into this process is an important pre-requisite for the further development of bank crediting of the subjects of entrepreneurial activity. At the state level, measures should be taken to improve the legislative framework, intensify credit guarantee institutions, create a National Guarantee System, revitalize the investment climate, promote economic activity, increase the share of government spending on small business development, develop financial support programs using successful foreign experience and European standards.
Key words small business, bank crediting, financial resourses, interest rate, financial support.
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