№ 11/2018

Fìnansi Ukr. 2018 (11): 54–75https://doi.org/10.33763/finukr2018.11.054

FINANCES OF THE INSTITUTIONAL SECTORS

BORTNIKOV Gennadiy ¹, LYUBICH Oleksandr ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-8388-6721
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9339-4242

Startup credit financing as a component of state programs to stimulate economic growth

The middle class creates a stabilizing layer of the open opportunity society, allowing common people to reach a state of wealth even from the level of unemployment. The concept of “startup” in the broad sense means not only the entrepreneurship since its official registration but includes the stage of preparation of a business idea. The business is treated as matured if it has the following features: acquisition of another company for further development, transformation in a subsidiary of a large corporation, an increase in the number of staff, turnover and excess assets of a small business, steady profitability, etc. Ukraine has no efficient financial instruments to support startups and requires a law on entrepreneurship. As a target group for such Government’s programs, it is expedient to identify people aged 20-39, the unemployed, employed or self-employed, as well as those who do not conduct any business activity at least one year before the date of requesting funds. The amount of allocated public funds should be determined on the basis of annual state expenditures on the maintenance of unemployed youth and payment of social allowances. State banks with a developed regional network and SME lending activities (Oschadbank, UkrGasBank and PrivatBank) are capable as prime bank-agents of the national start-up support program. The creation of a national agency for entrepreneurship support should allow its functioning as the administrator of the general start-up program. Another program to backup technological start-ups should be administered by existing State Innovative Finance and Credit Entity but preconditioned by sound corporate governance standards in terms of transparency and accountability in the provision of funds to beneficiaries to prevent corruption risks.

Keywords:entrepreneurship, state policy, state support, lending, innovation, small and medium business, lending to the real sector of the economy

JEL: G31, G38, M13, O43

Bortnikov G. . Startup credit financing as a component of state programs to stimulate economic growth / G. . Bortnikov, O. . Lyubich // Фінанси України. - 2018. - № 11. - C. 54-75.

Article original in Ukrainian (pp. 54 - 75)

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