LEGAL REGULATION OF FINANCIAL SUPPORT FOR SMALL BUSINESS

Abstract

The article analyses the regulatory and legal framework of the state financial support of small business in Ukraine. The provisions of the Law of Ukraine "On Development and State Support of Small and Medium Enterprises in Ukraine" are considered. The provisions of the Law of Ukraine "On State Assistance to Business Entities" are analysed. The author focuses on the existing programmes of support for small business in Ukraine under martial law. The article identifies the main tasks that need to be solved to improve the efficiency of the system of state support for small businesses. The author considers the positions of scholars on the main problems of small business development in Ukraine. The author concludes that legal regulation of the State financial support for small business in Ukraine is defined as a set of methods and forms of promoting sustainable development of small business with due regard for the interests of small business entities and the State. The author analyses the main achievements of the Strategy for Recovery, Sustainable Development and Digital Transformation of Small and Medium-Sized Enterprises for the period up to 2020. The author establishes that for proper legal regulation of financial support for small business, it is necessary to establish an integrated approach which would include various types of financial support, such as tax benefits, lending, leasing, grants, etc. The following measures are proposed to improve the legal regulation of financial support for small businesses: 1) at the regulatory level, to increase the access of small businesses to financial resources on affordable terms, including low interest rates, simplified loan procedures and easier access to leasing services; 2) it is necessary to ensure transparency and equality of conditions for obtaining financial support for all small businesses, to avoid corruption schemes and favouritism; 3) to promote innovation in the small business sector through the introduction of innovative financial instruments, such as start-up incubators.