FINANCIAL INSTRUMENTS OF SUPPORT OF SMALL BUSINESS INFRASTRUCTURE SUBJECTS IN THE REGION

Abstract

The purpose of the article is to identify and provide theoretical substantiation of
the necessary and appropriate steps to ensure the proper organization of support for small
business infrastructure subjects in the region with the involvement of a wide range of modern
financial instruments.
The article states that the development of small business infrastructure subjects in the
region depends to a large extent on the effectiveness of the financial process organization. In the
context of the economic crisis and post-crisis development, key areas of regional financial policy
to support the financial sustainability of small business infrastructure entities should be the
accumulation of financial resources for their further targeting the expansion of the network of
small business infrastructure subjects in depressed (backward) territories; optimization of
sources of accumulation of financial resources through increased participation in grant and donor
programs, maximum attraction of private investments; orientation towards the gradual
introduction of new forms and methods for managing financial activities at the regional level,
including through the application of program-targeted financing in the budget process;
orientation to the accomplished tasks in order to maintain the high efficiency of the regional
financial policy.
As a result of the analysis, it was found that regional funds for entrepreneurship support are
the most common tool for providing financial assistance to small businesses at the local level. In
a context of significant reduction of lending to commercial banks, regional business support
funds in most regions continued the implementation of credit programs for small and medium
enterprises. An important direction for increasing the lending of small business infrastructure
entities is the creation of a system of guarantees for bank loans.
It was established that in order to fulfill the tasks related to the financial support of the
activities of small business infrastructure subjects, it is necessary to take effective measures
aimed at supporting the infrastructure of the financial market itself (financial intermediation
entities), as well as expanding the range of relevant services that may be offered to the subjects
of small business infrastructure. It is determined that one of the tasks of regional financial policy
is to support an attractive investment climate, which would help to attract appropriate investment
resources for the organization and implementation of productive entrepreneurial activity. It is
proposed to create special (free) economic zones at the regional level in an area as an effective
tool for optimizing financial policy in the region. One of the tasks of creating such zones may be
to stimulate the development of small business infrastructure subjects.
The necessity of further theoretical substantiation and formation of recommendations
concerning the ways, conditions and resources necessary to support small business infrastructure
subjects in the region with the use of modern financial instruments is indicated.