The financial mechanism of small enterprises innovation activities

  • Viacheslav Riznyk Pereiaslav-Khmelnytskyi Hryhorii Skovoroda State Pedagogical University
  • Oleh Kalmykov Pereiaslav-Khmelnytskyi Hryhorii Skovoroda State Pedagogical University
Keywords: small enterprises, financial resources, investments, innovations, innovative development models, financial mechanism, innovative activity, competitive advantages

Abstract

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.

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Author Biographies

Viacheslav Riznyk, Pereiaslav-Khmelnytskyi Hryhorii Skovoroda State Pedagogical University

PhD, Assistant Professor Department of Vocational Education

Oleh Kalmykov, Pereiaslav-Khmelnytskyi Hryhorii Skovoroda State Pedagogical University

PhD, Doctoral Student Department of Finance, Accounting and Taxation

Published
2020-02-12
How to Cite
Riznyk, V., & Kalmykov, O. (2020). The financial mechanism of small enterprises innovation activities. University Economic Bulletin, (44), 195-202. https://doi.org/10.31470/2306-546X-2020-44-195-202
Section
Finance, Monetary Circulation and Credit