Activation of expansion of access to means of financing implementation of innovative projects of small and medium enterprises

2020 ◽  
pp. 17-23
Author(s):  
Nataliya Vnukova
Keyword(s):  
Financial Support ◽  
Small And Medium Enterprises ◽  
Innovation Process ◽  
Innovative Activity ◽  
Main Body ◽  
State Support ◽  
Access To Finance ◽  
Innovative Products ◽  
Medium Enterprises ◽  
The Cost

Problem setting. A small and medium-sized enterprise (SME), which must be flexible and generate demand for its own innovative products, transforms knowledge into innovative capital. Under these conditions, all areas of intensification of financing of innovative entrepreneurship become especially relevant. In 2020, the Strategy for the Development of Small and Medium-Sized Enterprises in Ukraine expires, so the task is to develop new strategic directions for change, preferably on an innovative basis. The main obstacle to starting a business is the low level of access to finance. The issue of intensifying the financial support of innovative entrepreneurship is relevant due to the shortage of own financial resources of economic entities and the difficulty of attracting investment, the need to reduce the cost of lending. Analysis of resent researches and publications. Zyanko V.V., Pochtovyuk A.B., Pukala R., Volkova N.I., Sviridova K.D. were engaged in problems of financial maintenance of innovative activity of the enterprises, problems of crediting of small and average business in Ukraine. Issues of innovative activity of business are unique in conclusion that the most important obstacle is the problem of unavailability of funds to advance the innovation process at all stages, sources of funding for SMEs studied Kuzmenko A. Yu., Svistun L.A. Target of research. Development of theoretical provisions and practical recommendations for determining the means of enhancing access to finance for SMEs in an innovative society. Article’s main body. The current changes in intensifying the expansion of access to finance in entrepreneurship through the development of lending with state support, the stimulation of the regulator of financial institutions to finance innovative entrepreneurship are considered. An innovative approach to the use of automated DSS Decision Making Helper is presented to assess the level of activation of the expansion of access to funding for the implementation of innovative projects for SMEs. Conclusions and prospects for the development. The economic crisis and significant growth of Fintech services in finance will increase the search for innovative means of financing the innovative development of SMEs, including loans with state support, factoring, financial leasing, venture financing, etc. It is necessary to improve the strategic goals of financial support of innovative entrepreneurship. The use of modern software tools is recommended to be widely used as a direct way to intensify all processes, in particular, to decide on the choice of means of financing the implementation of innovative SME projects.

THE ACCESS TO GOVERNMENT FINANCIAL SUPPORT THROUGH LEGAL CHANNELS OF SMALL AND MEDIUM ENTERPRISES IN FOUR ASIA PACIFIC COUNTRIES

2020 ◽  
Vol 9 (2) ◽  
pp. 298
Author(s):  
Muhamad Marwan
Keyword(s):  
Financial Support ◽  
Small And Medium Enterprises ◽  
Mediation Effect ◽  
Asia Pacific ◽  
Survey Questionnaire ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

The aim of this study is to determine the impact of networking on SME’s ability to access government financial support through legal channels in Asia Pacific. This study is quantitative in nature in which the data has been gathered from 281 employees and managers working in SMEs through survey questionnaire. The SEM technique was utilised for the purpose of analysing and testing the mediation effect. The study found that there is a partial mediation of government financial support through legal channels among the relationship between networking with officers and access to finance. This study is restricted to the SMEs operating in the region of Asia Pacific.

Peculiarities of financial state support of small and medium enterprises in ukraine in modern conditions

2021 ◽  
pp. 135-142
Author(s):  
Denys Korytin
Keyword(s):  
State Policy ◽  
Local Governments ◽  
Financial Support ◽  
Small And Medium Enterprises ◽  
Legal Regulation ◽  
Economic Security ◽  
The State ◽  
State Support ◽  
Credit Guarantees ◽  
Medium Enterprises

Problem setting. The formation of state policy to support small and medium enterprises (hereinafter - SMEs) requires consideration of global developments in the direction of legal regulation and economic and managerial justification of certain forms of support. In addition, within the globalized market, as well as taking into account Ukraine's desire to approximate national legislation to EU law, it is not possible to create mechanisms to support SMEs without adapting to global standards, that is, mechanisms similar to conventional ones should be invented. Of course, international documents, including the European Charter for Small Enterprises, can be a guide. Analysis of resent researches and publications. Legal analysis of certain means of state support for small and medium enterprises was carried out by such scientists as N. M. Vnukova, S. V. Hlibko, A. M. Lyubchych, I. V. Podrez-Riapolova, A.T. Zavadska and others. At the same time, this paper will analyze the implementation of financial support for small and medium enterprises, taking into account current government programs. The target of research is to conduct a comprehensive analysis of financial support for small and medium enterprises provided by the state, represented by public authorities and local governments, taking into account the principles of European Union law and current national and international programs to support entrepreneurship in Ukraine. Article’s main body. One of the most popular and effective forms of support is state financial support for SMEs. It is noted that the support from the financial and credit system reflects, in fact, the financial and economic relations between the state and market actors on the redistribution of funds. The state program «5-7-9» offers partial compensation of the interest rate on the hryvnia loan in combination with the mechanism of partial credit guarantees to address the problem of lack of collateral and insufficient credit history. The program is implemented by the Ministry of Finance of Ukraine, the Foundation for Entrepreneurship Development (formerly the German-Ukrainian Foundation) through a network of partner banks in partnership with the Ministry of Economy and the Office for Small and Medium Enterprises to prevent, spread and eliminate COVID-19 disease caused by the crown virus SARS-CoV-2, and to prevent and overcome their effects. By analyzing the statistical information of the ten largest banks, it was found that there is no unity in the terms of lending, lending is not within a single program, but for individual loan products of banks, which may differ from each other. Conclusions and prospects of the development. Summarizing the above, it is possible to conclude that the current state policy to support SMEs is characterized by the presence of a significant network of funds. One of the most relevant of these is the provision of soft loans. At the same time, there is insufficient information support for the process of direct provision of this support. In view of this, it should be noted that in order to ensure the economic security of the state, these forms should be used through a system of state bodies and organizations, local governments and organizations that must exist in reality, and electronic (virtual) portals for services should operate in additions to the real ones.

On informational-communicative interaction of subjects of innovation process: national and international experience

2020 ◽  
pp. 34-37
Author(s):  
Anhelina Zavadska
Keyword(s):  
Small And Medium Enterprises ◽  
Innovation Process ◽  
Main Body ◽  
Science Parks ◽  
Business Incubators ◽  
Communicative Interaction ◽  
Business Angels ◽  
Non Profit ◽  
Information And Communication ◽  
Medium Enterprises

Problem setting. The innovative development of society necessitates the functioning of a network that would ensure effective communication between the subjects of the innovation process. In this aspect, the issue of information and communication between the subjects of the innovation process becomes especially important. Analysis of recent researches and publications. The issues of creation and specifics of functioning of separate subjects of innovation infrastructure were investigated by such legal scholars as S.V. Glibko [1], I.V. Podrez-Ryapolova, A.M. Ljubcic, V.F. Savchenko, M.G. Dolgopolov and others. Target of research is to analyze the activities of networks of individual actors in the innovation process on the example of science parks, business incubators and business angels. Article’s main body. In Ukraine, the science park is one of the most common subjects of the innovation process. At the same time, there is no single network of science parks in Ukraine that would provide interaction between these subjects of the innovation process. Instead, several networks of science parks operate effectively at the international level. In addition, today a network of business incubators (startup incubators) “YEP!” is successfully operating in Ukraine as an influential subject of the innovation process. The third subject of the innovation process, which was studied in the article, is a business angel as an individual, who invests in high-risk, mainly innovative, small and medium enterprises and startups. Conclusions and prospects for the development. As a result, the author concludes that ensuring the implementation of information and communication interaction between the subjects of the innovation process is the key to the effectiveness of their functioning. Today, international networks of business angels, business incubators and science parks operate in the world in the form of non-governmental non-profit organizations and providing education, information and communication, representation and investment services to their members.

Understanding and Adoption of E-Finance in Small and Medium Enterprises (SMEs) in Developing Countries

2017 ◽  
pp. 159-184
Author(s):  
Brenda Scholtz ◽  
Melisa Koorsse ◽  
Siyasanga Loleka
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Data Privacy ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Privacy And Security ◽  
Ict Infrastructure ◽  
Medium Enterprises ◽  
The Cost ◽  
Developed Nations

The lack of access to finance is hindering growth and development to small and medium enterprises (SMEs), particularly in developing countries. Access to finance can be facilitated by ICT and e-finance, which can reduce the cost of financial services and increase access to international markets. However, in spite of the potential benefits of e-finance, developing countries have been reported to be lagging behind in terms of e-finance adoption as compared with developed nations. The reason for non-adoption could be due to barriers such as lack of ICT infrastructure, data privacy and security concerns. The purpose of this chapter is to investigate the extent of understanding and adoption of e-finance by SMEs. A survey of SMEs in two developing countries, South Africa and Bangladesh, was conducted. The results of the survey revealed that access to financial products and services was the highest rated benefit of e-finance to respondent SMEs, whereas regulatory environment and policy was the highest rated barrier.

Understanding and Adoption of E-Finance in Small and Medium Enterprises (SMEs) in Developing Countries

2020 ◽  
pp. 1149-1174
Author(s):  
Brenda Scholtz ◽  
Melisa Koorsse ◽  
Siyasanga Loleka
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Data Privacy ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Privacy And Security ◽  
Ict Infrastructure ◽  
Medium Enterprises ◽  
The Cost ◽  
Developed Nations

The lack of access to finance is hindering growth and development to small and medium enterprises (SMEs), particularly in developing countries. Access to finance can be facilitated by ICT and e-finance, which can reduce the cost of financial services and increase access to international markets. However, in spite of the potential benefits of e-finance, developing countries have been reported to be lagging behind in terms of e-finance adoption as compared with developed nations. The reason for non-adoption could be due to barriers such as lack of ICT infrastructure, data privacy and security concerns. The purpose of this chapter is to investigate the extent of understanding and adoption of e-finance by SMEs. A survey of SMEs in two developing countries, South Africa and Bangladesh, was conducted. The results of the survey revealed that access to financial products and services was the highest rated benefit of e-finance to respondent SMEs, whereas regulatory environment and policy was the highest rated barrier.

scholarly journals Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

2020 ◽  
Vol 15 (4) ◽  
pp. 605-620
Author(s):  
Ioana Alexandra Onea
Keyword(s):  
Small And Medium Enterprises ◽  
Research Question ◽  
Methodological Approach ◽  
Innovation Process ◽  
Employment Impact ◽  
Innovative Products ◽  
Business Efficiency ◽  
Firm Investments ◽  
Medium Enterprises ◽  
Innovation Indicators

AbstractThe purpose of this paper is to determine the influence of specific innovation indicators on the overall innovation process. In this sense, a quantitative methodological approach has been employed and data has been analysed using IBM SPSS version 24. Innovation is one the themes of considerable interest at worldwide and at European level, this being reflected by the 2020 European innovation indicator. Innovation is considered to generate economic growth and create competitive advantage for both large organizations and small and medium enterprises, thus being examined as a factor that influences overall business efficiency. In this sense, the data used for this research contains the information published in the European Innovation Indicator Scoreboard 2020 database. In this regard, two innovation indicators have been considered for analysis, namely firm investments and employment impact. An exploratory factor and correlation analysis have been performed in SPSS in order to provide an answer to the research question: “How do firm investments and employment impacts influence the overall Summary Innovation Index?”. The findings show that there is a positive correlation between the selected innovation indicators, namely firm investments and employment impact and the overall summary innovation index. These findings reveal a strong correlation between firm investments and the innovation process, which results into guidance for companies and their innovative efforts. In this sense, this paper further provides recommendations for firms on where to channel and focus their efforts in order to create more innovative products and activities.

Supporting Small and Medium Enterpries to Access Technological Innovation State Fund: International Experience and Lessons for Vietnam

2018 ◽  
Vol 34 (1) ◽  
Author(s):  
Huong Vu Thanh ◽  
Thu Anh Nguyen ◽  
Mai Thi Thanh Nguyen
Keyword(s):  
Developing Countries ◽  
Technological Innovation ◽  
Financial Support ◽  
Technology Innovation ◽  
Small And Medium Enterprises ◽  
International Experience ◽  
Advanced Technologies ◽  
Medium Enterprises ◽  
Developed Nations ◽  
State Fund

Technological innovation state funds supporting small and medium enterprises (SMEs) are not common in the developing countries like Vietnam, but are common in the developed nations like the European countries and Korea. The financial and non-financial support of these funds has contributed significantly to the development of many SMEs. Learning from the funds which have successfully facilitated SMEs in innovating and developing advanced technologies is meaningful to the Vietnamese sicence and techonology management bodies and state funds. This article will review the experience of some typical fund in supporting SMEs, thereby providing some lessons for technology innovation Funds of Vietnam to create a more favorable environment for SMEs to access funds.

scholarly journals Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia

2021 ◽  
Vol 14 (7) ◽  
pp. 286
Author(s):  
Betgilu Oshora ◽  
Goshu Desalegn ◽  
Eva Gorgenyi-Hegyes ◽  
Maria Fekete-Farkas ◽  
Zoltan Zeman
Keyword(s):  
Small And Medium Enterprises ◽  
Multiple Linear Regression Model ◽  
Financial Inclusion ◽  
Research Approach ◽  
Supply Side ◽  
Access To Finance ◽  
Secondary Sources ◽  
Medium Enterprises ◽  
Supply Side Factors ◽  
Positive Effect

The study examines the determinant factors that influence financial inclusion among small and medium enterprises (SMEs) in Ethiopia. The study uses an explanatory research design and a mixed research approach with both primary and secondary sources of data. More specifically, the study adopts a multiple linear regression model. The finding of the study reveals that; supply-side factors, demand-side factors, market opportunity, and collateral requirements have a positive effect on the firm’s access to finance. On the other hand, institutional framework factors, and the costs of borrowing negatively affect the firm’s access to finance. This study suggests concerned bodies sustain rapid and inclusive economic growth and hence eradicate extreme poverty and hunger, the policymakers must build an efficient, strong, and well-functioning financial market system that provides affordable and sustainable financial service to SMEs.

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