scholarly journals Inconsistencies of small business fiscal stimulation in Ukraine

2019 ◽  
Vol 5 (3) ◽  
pp. 204-219
Author(s):  
N. B. Yaroshevych ◽  
◽  
S. V. Cherkasova ◽  
T. V. Kalaitan ◽  
◽  
...  
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Banking System ◽  
Debt Financing ◽  
Financial Assistance ◽  
Accounts Payable ◽  
Initial Hypothesis ◽  
National Bank ◽  
Start Ups ◽  
The Given

The article discusses the effects of fiscal instruments used to stimulate the development of small business in Ukraine and the hypothesis that the inconsistencies inherent in these instruments prevent them from achieving the desired outcomes. To test this hypothesis, the authors estimated the percentage of small businesses covered by the simplified tax scheme and analyzed such fiscal instruments as the simplified tax scheme, various types of debt financing and taxation of debt financing. The authors used the data on the amount and dynamics of repayable financial assistance to estimate the scale of the phenomenon of corporate split-ups. The latter might be caused by the interest of large and medium-sized companies in accessing small business tax preferences. To calculate the amount of repayable financial assistance the authors propose to adjust the indicator of other current liabilities for the following indicators: other current accounts payable; interest incomes of resident banks; interest incomes of non-resident banks from their lending transactions in Ukraine; commission incomes of resident banks; and the total amount of corporate bonds. The analysis relies on the data of the State Statistics Service of Ukraine on activity of companies and the data of the National Bank of Ukraine on the country’s banking system in 2012–2017. The results of the analysis have confirmed the initial hypothesis about the contradictory effects of fiscal instruments: 1) In the given period, from 22% to 38% of small businesses did not have access to the benefits of the simplified tax system due to the inadequacy of the criteria for defining the size of business. 2) The taxation norms discriminated against small businesses seeking to use specific instruments of debt financing: instead of stimulating the development of start-ups, these fiscal instruments encouraged large and medium-sized companies to split into smaller units. 3) What distinguishes Ukraine from other countries is the wide use of repayable financial assistance by small businesses to attract funds. Calculations have shown that the share of repayable financial assistance among other available instruments of debt financing in the given period exceeded 28%. Thus, the findings indicate that further improvements of small business taxation are necessary.

THE ROLE OF FAMILY START UPS IN THE EMERGENCE OF A SMALL BUSINESS SECTOR IN BULGARIA

2009 ◽  
Vol 17 (03) ◽  
pp. 351-375 ◽  
Author(s):  
DENISE FLETCHER ◽  
EMIL HELIENEK ◽  
ZVETA ZAFIROVA
Keyword(s):  
Small Business ◽  
Informal Economy ◽  
Small Businesses ◽  
Small Firms ◽  
Family Relations ◽  
Entrepreneurial Activity ◽  
The Balkans ◽  
The Family ◽  
Start Ups

It is widely reported that entrepreneurial activity has a significant role to play in transition economies such as Central and Eastern Europe but little is known about the role that the family unit plays in facilitating small business emergence in the former command economies. This is surprising given that the link between family and small business development has been widely researched in market economies. In this study, attention is drawn to the role that family relations and resources play in small business emergence. The study focuses on Bulgaria, a country in the Balkans with much cultural diversity and which became a European Union member in 2007–8. Analysis is undertaken of research material drawn from a survey of 69 small firms. 42% of the surveyed firms are two generation businesses involving the entrepreneur and children or parents. 35% of the businesses are three generation businesses involving the lead entrepreneur, parents, children and siblings. The remaining 33% are firms that are run by couples and/or siblings. This suggests that the family household is the key channel for (and of) small business formation. In neglecting the role of family start-ups, this gives a false understanding to the role that households and families sometimes contribute to the economy. At the same time, it is also partly because of this dependency on family relations and resources that small businesses become rooted in the 'informal economy' — an economy that is based on family favours and which it is difficult to break out of.

scholarly journals Small Business Capitalization Patterns

2011 ◽  
Vol 5 (2) ◽  
pp. 15 ◽  
Author(s):  
Howard E. Van Auken ◽  
B. Michael Doran
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Debt Financing ◽  
New Firms ◽  
Survey Responses

This study investigates the initial capitalization and financing patterns of recently established (new) and established (old) small businesses in Iowa. Analysis of survey responses indicates that significant differences exist between these two groups of firms. Specifically, new firms are found to have relied more heavily on debt financing than old firms. This suggests that new firms with high debt loads are likely not to survive and become old firms.

The Role of Incubators in Small Business Planning

1987 ◽  
Vol 12 (1) ◽  
pp. 51-62 ◽  
Author(s):  
Fred L. Fry
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Administrative Support ◽  
Financial Assistance ◽  
Future Research ◽  
Business Planning ◽  
Major Implication

An incubator houses a number of new, small businesses that share space and administrative support. Management assistance is usually available and financial assistance is sometimes provided. Incubator managers can aid tenants also by encouraging and assisting them in their planning efforts. However, this study found a wide variance among incubators regarding the amount of planning by tenant firms. Further, the amount of planning by tenants appears to be a function of the amount of planning that is required or encouraged by incubator managers. The major implication is that planning can be affected by incubator managers. Thus, incubator managers should see part of their role as a planning facilitator. Additional areas for future research are suggested.

Social capital of non-resident family members and small business financing

2016 ◽  
Vol 12 (5) ◽  
pp. 558-582 ◽  
Author(s):  
Amarjit Gill ◽  
Min Thu Maung ◽  
Reza H. Chowdhury
Keyword(s):  
Social Capital ◽  
Small Business ◽  
Financial Management ◽  
Small Businesses ◽  
Family Members ◽  
Debt Financing ◽  
Content Type ◽  
Management Consultants ◽  
Business Financing ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of social capital of non-resident family members on small business debt financing. Recent literature in entrepreneurship suggests that small businesses can borrow social capital to improve their access to debt financing. Design/methodology/approach Micro-entrepreneurs from India were interviewed regarding their ability to raise capital from family members as well as their relationship with banks and politicians. Findings The survey indicates that small business entrepreneurs are able to borrow social capital from non-resident Indians. Results also suggest that these small businesses are more likely to be connected to banks and politicians facilitated by their non-resident family members, which not only improves micro-entrepreneurs’ access to debt financing but also reduces their cost of borrowing. Research limitations/implications This is a co-relational study that investigates the association between social capital of non-resident family members and small business debt financing. There is not necessarily a causal relationship between the two. The findings of this study may only be generalized to firms similar to those that were included in this research. Originality/value This study contributes to the literature on the factors that improve the access to small business debt financing. The findings may be useful for financial managers, investors, financial management consultants, entrepreneurs, and other stakeholders.

scholarly journals PROBLEMS OF DEVELOPMENT OF SMALL BUSINESSES LENDING IN RUSSIAN FEDERATION

2021 ◽  
pp. 67-79
Author(s):  
Olga Sivash
Keyword(s):  
Small Business ◽  
Russian Federation ◽  
Small Businesses ◽  
Banking System ◽  
Marketing Research ◽  
Corporate Identity ◽  
Point Of View ◽  
Information Support ◽  
Small Business Lending ◽  
The Russian Federation

The development of small business in the Russian Federation is a very important urgent problem, as it will make it possible to solve many important social programs in the country. However, in terms of the scale of development of this sector, Russia lags far behind the leading foreign countries. In the Russian Federation, since 2015, there has been a negative trend in the volume of lending to SMEs. Only in 2018, the volume of loans to SMEs stabilized, and at the beginning of 2019, an increase in the volume of the loan portfolio of SMEs by 1 % is already noted. In modern economic conditions, the main source of financial resources for small businesses, from the point of view of their availability and opportunities for obtaining, is lending. The article examines the development trends of lending to such an important segment of economic activity as small business. Supporting small businesses in the Russian Federation is one of the priority tasks of the country’s socio-economic development. In all regions of the country, a network of government agencies has been created that provide information support to existing and emerging entrepreneurs (Entrepreneurship Support Centers based on the My Business platform), many seminars and forums dedicated to the development of entrepreneurship are held. Within the framework of this interaction, entrepreneurs can receive free of charge not only consulting services, but also assistance in developing a business plan, creating a corporate identity, developing and modernizing websites, conducting marketing research, and drawing up statutory documents. The activities within the framework of state support for small businesses in accordance with the State Program are highlighted and the importance of effective implementation of these activities for the development of small business lending is analyzed. The problems of lending to small businesses in the Russian Federation, obstacles that arise both from banks when they either cannot offer attractive lending programs, or refuse borrowers to provide a loan, and from entrepreneurs who refuse such a source of financing for small businesses, are considered. like lending. Measures are proposed to create favorable conditions for lending to small businesses, which are focused on supporting specific borrowers and those that are focused on supporting commercial banks and the banking system as a whole. The strategic guidelines of a commercial bank for the development of small business lending have been determined.

scholarly journals Have Stress Tests Impacted Small-Business Lending?

2019 ◽  
pp. 1-6
Author(s):  
Yuliya Demyanyk
Keyword(s):  
Small Business ◽  
Federal Reserve ◽  
Small Businesses ◽  
Banking System ◽  
Economic Conditions ◽  
Bank Holding Companies ◽  
Stress Tests ◽  
Small Business Lending ◽  
Holding Companies ◽  
The Impact

The Federal Reserve conducts stress tests of the largest bank holding companies to ensure that the banking system has sufficient capital to stay financially sound in the event of worsening economic conditions. Some groups have raised concerns that the stress tests will reduce lending to small businesses. This article describes recent research investigating the impact of the stress tests on small-business lending. It finds that the banks that are most affected by stress tests have reduced their small-business credit, but aggregate credit to small businesses has not fallen.

scholarly journals Factors of Entrepreneurial Success: A qualitative multiple case study of new small businesses

2021 ◽  
Vol 91 ◽  
pp. 01026
Author(s):  
Jan Urban
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Service Industry ◽  
Small Business Owners ◽  
Structured Interviews ◽  
Total Employment ◽  
Sustained Development ◽  
Qualitative Survey ◽  
Start Ups

In most countries, small businesses represent a majority of firms providing close to fifty percent of the total employment. However, on average, more than half of new small-business start-ups usually fail within the first 5 years of operation. Therefore, learning from the success of small-business owners who have sustained in business for at least 5 years can provide helpful insights not only for individual firms, but also for the continued growth of local economies which usually rely on small business to a great extent. The purpose of this case study based article was to explore common approaches, strategies and skills of successful business founders/small business owner´s that contribute to their sustained development. The article is based on a qualitative survey of sixteen, locally operating, small, retail and service-industry firms which, having successfully survived at least 5 years in business, continue to grow. The method of the survey covered semi structured interviews led with individual entrepreneurs and focused on identifying the crucial business as well as personal approaches and skills important for their market survival.

Assessment of small businesses activities in Ukraine

2019 ◽  
pp. 40-47
Author(s):  
Igor Ponomarenko ◽  
Kateryna Volovnenko
Keyword(s):  
Comparative Analysis ◽  
Statistical Analysis ◽  
Small Business ◽  
Small Businesses ◽  
Government Agencies ◽  
Small Enterprises ◽  
The Subject ◽  
Business Entities ◽  
The Impact ◽  
Micro Enterprises

The subject of the research is a set of approaches to the statistical analysis ofthe activities of small business entities in Ukraine, including micro-enterprises. The purpose of writing this article is to study of the features of functioningof small business entities in Ukraine. Methodology. The research methodology isto use a system-structural and comparative analysis (to study the change in thenumber of small enterprises by major components); monographic (when studyingmethods of statistical analysis of small businesses); economic analysis (when assessing the impact of small business entities on socio-economic phenomena andprocesses in Ukraine). The scientific novelty consists to determine the features ofthe functioning of small businesses in Ukraine in modern conditions. The influenceof the activities of the main socio-economic and political indicators on the activities of small enterprises in recent periods of time has been identified. It has beenestablished that there is flexibility in the development of strategies by small businesses in conditions of significant competition, which makes it possible to quicklyrespond to changing situations in specific markets. Conclusions. The use of acomprehensive statistical analysis of small businesses functioning in Ukraine willallow government agencies to develop a set of measures to optimize the activitiesof these enterprises, which ultimately will positively affect the strengthening oftheir competitiveness and will contribute to the growth of the national economicsystem.

STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

2017 ◽  
Author(s):  
Olha Drachevska
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Banking Regulation ◽  
State Regulation ◽  
The State ◽  
Protective Measures ◽  
System Protection ◽  
Banking Activity ◽  
National Bank ◽  
Threatening Situation

The article is devoted to the analysis of scientific approaches to the interpretation of the concepts of "state regulation", "state regulation of banking", "banking regulation" and the measures on which the state regulation of banking is based. An analysis of the scientific literature in various fields allows us to conclude that scholars ambiguously interpret the term "state regulation of banking." Most often, state regulation of banking is seen as a system of measures by which the state through authorized bodies regulates the activities of banks. The domestic legislator considers the concept of "banking regulation" as one of the functions of the National Bank of Ukraine, which is to create a system of norms governing the activities of banks, determine the general principles of banking, banking supervision, liability for violations of banking legislation. The main purpose of banking regulation is security and financial stability of the banking system, protection of the interests of depositors and creditors. The importance of state regulation of banking as an integral part of public policy is emphasized. Effective state regulation of banking activities should ensure stable and uninterrupted operation of the banking system, guarantee the provision of quality services by banks to depositors and borrowers and protect their interests. Preventive and protective measures on which the state regulation of banking activity in Ukraine is based are considered. Preventive measures should be implemented through the approval of mandatory regulations. The application of protective measures should provide protection against the already threatening situation for the bank. Attention is also paid to the forms in which state regulation of banks by the National Bank is carried out. Such forms are administrative regulation and indicative regulation.

scholarly journals Effects of Regional Bank Merger on Small Business Borrowing: Evidence from Japan

2015 ◽  
Vol 7 (11) ◽  
pp. 62
Author(s):  
Hironobu Miyazaki ◽  
Hiroyuki Aman
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Economies Of Scale ◽  
Loan Portfolio ◽  
Small Business Lending ◽  
Borrowing Costs ◽  
Bank Merger ◽  
Regional Bank ◽  
Small Business Loans ◽  
The Impact

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

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