scholarly journals CHANGING THE LARGE BANK LOANS ROLE IN THE SMALL BUSINESS DEVELOPMENT

2021 ◽  
pp. 87-96
Author(s):  
Maryna Matviienko ◽  
Keyword(s):  
Small Business ◽  
Interest Rates ◽  
Small Businesses ◽  
Banking Sector ◽  
Bank Loans ◽  
Financial Resources ◽  
Adjustment Process ◽  
Capital Investments ◽  
Dynamic Adjustment ◽  
Venture Capital Investments

The article is aimed at analyzing the world and domestic practice of small business lending by large banks and focusing on changing their role as major financial resources suppliers. The article also examines the existing and new forming alternative forms of attracting resources, which, today, better meet the needs and opportunities of small business.An analysis of the statistics showed that lending to small businesses by the largest banks as in Ukraine as in other countries has decreased sharply compared to indicators since 2008 and remains relatively depressed to this day. So the ability to get loans for enterprises has become essentially shorter. The development of almost any business is impossible without external funding. The growing due to own funds will take many years. This condition made small business interested in finding new financing sources. The article examines the dynamic adjustment process aftershock for the loan offer. In Ukraine like in some other countries where the largest banks had high market shares, aggregate credit flows for small businesses became extremely shorter, interest rates staid high or even rise, fewer businesses rose, unemployment rose, and wages fell. The loans flow resumed after 2010, but other lenders intensified, slowly filling the void, but interest rates remained high. The financial resources market is wide enough, and there are both local and external players. And for solving different problems, different tools can be chosen. Venture capital investments are used, for example, for a good start or a powerful breakthrough; long-term loan money or investor’s entry into capital can be used for progressive growth or entry into new markets. A variety of leasing products allow financing not only the purchase the source of transport or equipment, but also rent or buying out warehouse space or offices. There are even so interesting tools such as ICO. It should be concluded that the influence of these factors, as well as the development of block chain technologies and the emergence of alternative (public) forms of financing and development of social enterprise are gradually leading to the loss of key positions of the banking sector in financing small business projects. All these processes have shown that the financial sources accumulation even for big project can be organized in the way of multiplied microcredit system trough attraction stakeholders. Such examp-les we can mark in various business sectors, for example, in transport –collective financing of the ship construction. Keywords: Small Business, Financing, Loans, Banks, Banking._______________________©Matviienko M.,2021

scholarly journals Assessment of the Efficiency of Implementing the Regional Program of Preferential Lending to Small and Medium-Sized Businesses (Based on Rostov Region)

2020 ◽  
pp. 202-211
Author(s):  
Olga Chernova ◽  
Irina Davydenko
Keyword(s):  
Interest Rates ◽  
Small Businesses ◽  
Financial Support ◽  
Business Development ◽  
Bank Loans ◽  
Financial Resources ◽  
Financial Flows ◽  
Financial Factors ◽  
Rostov Region ◽  
Social And Economic Development

Financial factors are crucial for the development of small and medium-sized businesses. The article dwells on the issue of the effectiveness of regional financial support for small and medium-sized businesses implemented in the form of preferential lending, and it also discusses “failures” that generate problems in the implementation of this support. The research object is Rostov region. The authors prove that it is difficult for small and medium-sized businesses to obtain a loan on normal terms due to instability of financial flows. As a result of the analysis, the authors reveal that the volume of lending to small businesses in Rostov region is steadily declining. The decrease in demand for loans from small businesses is connected with high interest rates on bank loans. The article emphasizes that concessional lending can solve the problem through the encouragement of business development in priority areas for the region. The correlation analysis is carried out on the basis of comparing the main indicators of the regional subprogram “Development of small and medium-sized businesses in Rostov region” and indicators of social and economic development of the region. According to the results of the analysis, there is an increase in the number of economic entities in the section of small and medium-sized businesses due to unemployment reduction in the region. However, this quantitative dependence in Rostov region is functionally unstable and probabilistic. At the same time, inefficient organizational and methodological activities of the state in supporting small and medium-sized enterprises have lead to the emergence of “failures” that generate the problem not of the lack of financial resources but of their low demand.

How Small Business Enterprises of Russia Attract Investments: Practices and Problems

10.12737/5966 ◽  
2014 ◽  
Vol 2 (5) ◽  
pp. 47-54
Author(s):  
Фомичева ◽  
Irina Fomicheva
Keyword(s):  
Public Policy ◽  
Small Business ◽  
Exchange Rates ◽  
Interest Rates ◽  
Growth Rates ◽  
Small Businesses ◽  
Foreign Investments ◽  
Inflation Rates ◽  
Business Support ◽  
Capital Financing

Considered are possible sources of real investments for small businesses. It is shown how foreign investments in Russia make shifts towards securities market. Dynamics and structure of domestic sources of debt funds for fixed capital financing are examined. Considerable growth rates of the volume of investments is emphasized as well as growing number of sources of financing with substantial share of budgetary funds in the total amount of investment. Factors conducive to investment activities are outlined. Dynamics of mortgage lending, as the author shows, is not actually impacted neither by the dynamics of interest rates, nor by exchange rates ratio and inflation rates in Russia, while underuse of budgetary funds allocated for programs of small and medium business support proves that public policy in this sphere is inefficient.

scholarly journals ACTIVITY RESULTS OF LOAN PARTNERSHIPS AND AGRICULTURAL PRODUCERS

2020 ◽  
Vol 1 (383) ◽  
pp. 199-206
Author(s):  
А. К. Zhussupova ◽  
B. S. Utibayev ◽  
G. B. Utibayeva ◽  
D. Т. Ahmetova ◽  
R. М. Zhunusova ◽  
...  
Keyword(s):  
Interest Rates ◽  
Production Efficiency ◽  
Limited Liability ◽  
Point Of View ◽  
Bank Loans ◽  
Financial Resources ◽  
Agricultural Producers ◽  
Financial Condition ◽  
Agricultural Enterprise ◽  
Agricultural Business

The article outlines the issues of financial support provided to agricultural producers through a lending system. The results of the activities of credit partnerships were analyzed using the example of Credit Partnership (СP) Tselinogradskoye Limited Liability Partnership (LLP) in Akmola region and the agricultural enterprise Aktyk Agrofirm JSC. CP Tselinogradskoye LLP provides soft loans and subsidies at interest rates that are much lower than market rates. The performance of the credit partnership, which is ensured by annual monitoring by the CP of the targeted use of bank loans and borrowings, the financial condition of the business entity, as well as their collateral. The relationship of the results of production and financial activities of agricultural business entity and credit unions, reasonable given the specific data of participants who received loans due to improved their operational and financial performance. It is noted that the effectiveness of the use of financial resources, regardless of their structuring and affiliation, is expressed through indicators of productive production activities of the enterprise. It is substantiated that, based on the principles of a systematic approach, the optimization of the structure of the formation of financial resources should be considered from the point of view of interdependence and interaction with production efficiency.

scholarly journals ROLE OF THE FINANCIAL SECTOR IN FINANCING THE ENTERPRISES OF THE REAL SECTOR OF THE ECONOMY

2018 ◽  
pp. 78-84
Author(s):  
Dmytro Malysh
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Banking Sector ◽  
Financial Sector ◽  
Bank Loans ◽  
Positive Trend ◽  
Real Sector ◽  
Real Economy ◽  
The Real

Introduction. Financial sector plays an important role in the financing of business entities in the real economy sector. A possibility of rising funds through the stock or banking sector enables substantially to expand the scope of enterprises. However, the presence of permanent financial crises does not allow companies to use these opportunities in full. Therefore, the assessment of state and trends of the stock and banking sectors in the context of the use of their funds to finance companies in the real sector of the economy becomes important. Purpose. The article aims to identify contemporary issues of development of the stock and banking sectors in the context of their ability to finance companies in the real economy. Method. In order to achieve the goal of the research we have used the following methods: method of structural and dynamic analysis and method of economic and statistical analysis of the development of the stock and banking sectors of Ukraine. Results. It has been determined that the deterioration of the stock market in Ukraine led to its exclusion from the list of marginal markets. The largest segment of the Ukrainian stock and banking sector services the issuers, which are owned by the state. At the same time, the financial sector has features of bank-centeredness since banks play a leading role in financing of companies and in transactions of the stock market. Ukrainian stock market mainly carries out operations with government bonds and only a small part of operations provides financing for the activities of companies through the issue of stocks and bonds. The share of long-term sources of funding is gradually decreasing and it is critically low for economic growth of the country. The tempos of providing long-term and short-term bank loans for the company are slowing down. A positive trend is the reduction of interest rates on loans. There is a need to develop effective measures for using opportunities of the stock and banking sectors as well for financing companies in the real sector of the economy.

scholarly journals The financial mechanism of small enterprises innovation activities

2020 ◽  
pp. 195-202
Author(s):  
Viacheslav Riznyk ◽  
Oleh Kalmykov
Keyword(s):  
Interest Rates ◽  
Financial Support ◽  
Banking Sector ◽  
Innovative Activity ◽  
Financial Resources ◽  
Small Enterprises ◽  
Innovative Development ◽  
Competitive Advantages ◽  
Development Models ◽  
Financial Mechanism

Relevance of the research topic. Increasing capital is one of the most important challenges for ensuring sustainability and growth opportunities for small enterprises both in Ukraine and abroad. Successful activities of small enterprises require constant competitive advantages through the implementation of innovative development models. Integration of Ukrainian enterprises into the global economy is impossible without investing in their innovative development, aimed at overcoming the economic lag behind developed countries, because in an era of dynamic globalization changes, competitiveness depends primarily on the ability to implement innovative projects, which requires significant financial resources. Formulation of the problem. Attracting financial resources to the innovative activities of small enterprises is especially problematic. The main reasons for this situation are high interest rates in Ukraine, the reluctance of the banking sector to lend to projects with a high degree of uncertainty and the weak development of non-traditional forms and methods of attracting financing in Ukraine. Analysis of recent research and publications. The problems of innovative activity of small enterprises and the mechanisms of its financial support were investigated by A. Bondarenko, G. Wozniak, O. Denysenko, V. Zianko, A. Kuznetsova, M. Melnyk, V. Nevmerzhitsky, Yu. Nikitin, Dong Xinyin, N. Stasyuk, A. Cherep, S. Khvalynsky and others. Setting goals, research objectives. The aim of the article is to determine the economic content of the financial mechanism and find out the sources of financing the small enterprises innovative activity and to develop ways to increase the efficiency of small enterprises financial mechanism of innovative activity in Ukraine. The method and methodology of the study. The article used a set of methods of scientific research: a systematic approach, structuring, analysis and synthesis, etc. Conclusions according to the article. The article reveals the essence of the financial support mechanism and its specifics for the innovative activity of small enterprises. The necessity of ensuring small enterprises competitive advantages through the implementation of innovative development models is substantiated. It was stated that most Ukrainian enterprises are now experiencing a shortage of their own funds, and attracting investment is problematic. The main reasons for the difficult access of small enterprises to financial resources are analyzed. Directions of increasing small enterprises financial mechanism of innovative activity efficiency are proposed.

scholarly journals Bank lending in Ukraine and simulation of credit activity by methods of system dynamics

2021 ◽  
Vol 2021 (2) ◽  
pp. 89-109
Author(s):  
Hlushchenko Svitlana ◽  
◽  
Ivakhnenkov Sergiy ◽  
Demkiv Sofiia ◽  
◽  
...  
Keyword(s):  
System Dynamics ◽  
Interest Rates ◽  
Growth Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Supply And Demand ◽  
Bank Lending ◽  
Bank Loans ◽  
Short Term ◽  
Loan Portfolio

The trends of bank crediting of businesses and households in Ukraine are determined and credit interrelations between subjects of economy by means of methods of system dynamics simulated. The article shows that by end 2020 the main trends in the Ukrainian banking sector are: 1) increasing the dynamics of return on capital, consistently high interest rates on loans until 2019 and their declining dynamics in 2020; 2) declining trends in the dynamics of the share of loans in the assets of commercial banks and the indicator of the financial depth of lending to the Ukrainian economy; 3) predominance of the share of loans to businesses in comparison with the share of loans to households in the loan banking portfolio; 4) faster growth rates of bank loans to households compared to the growth rates of lending to businesses; 5) in the sectoral context, the largest share in lending to business units is accounted for by trade and in lending to households – by consumer lending; 6) half of the loan portfolio of commercial banks are short-term loans for up to one year; 7) the share of non-performing loans in the loan portfolio remains high; 8) gradual reduction of non-deposit sources among the liabilities of commercial banks and their transition to almost full financing at the expense of customer deposits; 9) increase in the share of short-term and decrease in the share of long-term deposit financing of commercial banks. Based on the methods of system dynamics, the authors created a model that allows to trace the relationship between commercial banks-businesses-households, as well as to calculate the forecast volumes of bank loans in accordance with the demand for loans from businesses and households (weighted by the maximum value credit load) and supply of credit resources by commercial banks. From a practical point of view, determining the characteristic trends of bank lending, modeling the interaction of its main participants and determining the volume of bank loans using system dynamics helps to identify key factors influencing the supply and demand of bank credit resources at the present stage of Ukraine’s development and predict future lending dynamics.

scholarly journals SMEs debt financing in the EU: on the eve of the coronacrisis

2020 ◽  
Vol 15 (3) ◽  
pp. 81-94
Author(s):  
Yevheniia Polishchuk ◽  
Anna Kornyliuk ◽  
Inna Lopashchuk ◽  
Alina Pinchuk
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
Banking Sector ◽  
Debt Crisis ◽  
Debt Financing ◽  
Bank Loans ◽  
Eu Countries ◽  
Credit Lines ◽  
Level Data ◽  
Governmental Support

SMEs are the main drivers of economic development. As the debt crisis and coronavirus crisis show, despite their importance, they are extremely sensitive to economic downturns. Therefore, SMEs need to be supported through various tools. The paper is aimed at evaluating the SMEs’ bank and governmental support in the northern and southern EU countries in two crisis periods and assessing the financial state of SMEs on the eve of coronacrisis using micro-level data. It was proved that bank loans and credit lines remain the main sources of SMEs’ financing. After the debt crisis, banks are becoming more loyal to SMEs.It was proved that SMEs from the northern EU countries suffered less from the previous crisis and therefore started their recovery earlier than the southern ones in terms of profitability, liquidity and debt burden. In addition, it was shown that both groups on the eve of the new turbulence period were in better financial state compared to the previous debt crisis. The southern EU countries suffered more from both crises. At the same time, due to effective governmental support and bank loyalty, their SMEs entered the coronacrisis at the same level of financial stability as the northern ones. Since the new support measures are concentrated primarily in the banking sector through loan guarantee schemes and reduced interest rates, it is essential to provide debt financing to high-quality borrowers and avoid the debt crisis in southern counties.

FINANCIAL INTERMINGLING IN KOREAN-AMERICAN AND MEXICAN-AMERICAN SMALL BUSINESSES

2009 ◽  
Vol 14 (03) ◽  
pp. 297-310 ◽  
Author(s):  
GEORGE W. HAYNES ◽  
JOSEPH I. ONOCHIE ◽  
MYUNG-SOO LEE ◽  
AlVIN N. PURYEAR ◽  
EDWARD G. ROGOFF ◽  
...  
Keyword(s):  
Small Business ◽  
Ethnic Groups ◽  
Rural Areas ◽  
Small Businesses ◽  
Mexican American ◽  
English Language ◽  
Business Owners ◽  
Korean American ◽  
Financial Resources ◽  
Small Business Owners

This study explores the financial intermingling behavior of Mexican-American and Korean-American owned and operated small businesses. It posits that ethnically-owned and -operated small businesses with strong familial ties and more limited access to financial capital are more likely to intermingle financial resources than other small businesses. Mexican-American small business owners typically have very strong familial ties, while Korean-American small business owners typically have very strong community ties. Perhaps more importantly, Mexican-American small business owners have less access to pools of community capital than Korean-American small business owners. Therefore, it is expected that Mexican-American small business owners are more likely to intermingle financial resources than Korean-American small business owners. Even when controlling for the time in United States and English language spoken in the household, this study suggests Mexican-American small business owners are more likely to intermingle financial resources than Korean-American small business owners. Within these two ethnic groups, similar factors contribute to intermingling. Small business owners living in rural areas and borrowers are more likely to intermingle financial resources for both ethnic groups.

scholarly journals Improving the financial support of small business organizations

KANT ◽  
2020 ◽  
Vol 37 (4) ◽  
pp. 114-118
Author(s):  
Yulia Klishina ◽  
Оlga Uglitskikh ◽  
Maria Mastepanova
Keyword(s):  
Small Business ◽  
Rural Areas ◽  
Small Businesses ◽  
Financial Support ◽  
Driving Forces ◽  
Well Being ◽  
Small Towns ◽  
Financial Resources ◽  
Business Organizations ◽  
Theoretical Foundations

The article discusses the theoretical foundations of financial support for the activities of small business organizations, the features of the structure and problems of the formation of financial resources in the activities of small business organizations, as well as ways to improve and develop the system of financial support for the activities of small businesses. Small business in Russia should become one of the driving forces for improving the well-being of the population, solving issues of its employment in small towns and rural areas. However, the development of small business depends on the availability and ability to attract a sufficient amount of financial resources. It is financial resources that are one of the most problematic issues for Russian small business.

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