Ways of activization of bank lending of business entities in Ukraine

Abstract

Introduction. The article examines the current trends in small and medium-sized business in countries with developed market economies and in Ukraine. The basic features of state bank lending to SMEs are revealed. The problems and recommendations on improving the system of state support are analysed.

Purpose. The aim of the research is to analyze the current state of bank lending to small and medium-sized enterprises in Ukraine and to develop possible directions of its revitalization on the basis of synthesis of international experience of state support of entrepreneurship.

The method (methodology). On the basis of the dialectical method of knowledge it is held the generalization of international experience on peculiarities of state support of entrepreneurship. In order to study the state of development of small and medium-sized business in Ukraine we have used statistical techniques, methods of  technical and economic and financial analysis and observation.

Results. Investigation of the trends of business in Ukraine shows that the current economic financial troubles that have deepened against the backdrop of the world financial crisis and are stipulated by the processes of reforming the economy in the country, have put the sector of small and medium-sized businesses in an extremely difficult financial conditions. Foreign experience of state support for small and medium-sized biness is considered. Destabilizing factors that affect the efficiency of forming relationships with business entities of banks are analyzed. The main directions of activation of bank lending entities in Ukraine are detrmined.