Financing of Small and Medium Enterprises by International Organizations

Анотація

The aim of the article is to determine how international financing affects the development of small and medium enterprises in Ukraine, to analyze the organizations that finance Ukraine, how funding trends have changed and to identify the reasons for these changes, and to study the sectors and industries where small and medium enterprises receive the most support. The article examines the features of financing small and medium enterprises in Ukraine by international financial organizations and their role in ensuring the economic stability of the country. It has been found that small and medium enterprises constitute over 99% of the total number of enterprises in the country, provide a significant share of employment, and create a substantial portion of added value and sold products. At the same time, their development is constrained by a number of factors, among which are: limited access to financial resources, high cost of lending, inflationary processes, and economic instability. These problems were especially exacerbated during the COVID-19 pandemic and after the start of the full-scale war, which led to the destruction of infrastructure, disruption of logistics connections, and relocation of a significant portion of enterprises. The activities of leading international financial institutions, in particular the European Bank for Reconstruction and Development, the International Bank for Reconstruction and Development, and the European Investment Bank, which provide financial support to Ukraine’s economy, were analyzed. The dynamics of financing in 2020–2025 were examined, and the main directions of fund utilization were identified. It was found that international financing is directed towards supporting entrepreneurship, modernizing production, developing the agricultural sector, energy, infrastructure, and export-oriented business. Special attention was paid to the regional distribution of financial resources, which depends on economic needs and the security situation. A significant portion of funding is directed to agricultural regions of central and southern Ukraine, the restoration of enterprises in areas affected by hostilities, as well as the development of business in western regions that have become centers for enterprise relocation. It was concluded that international financing is an important tool for supporting small and medium-sized businesses and contributes to the recovery of Ukraine’s economy.

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