Microcredits for Sustainable Development of Small Ukrainian Enterprises: E ciency, Accessibility, and Government Contribution

Abstract

The purpose of the study was to assess the eciency and accessibility of microcredits for small Ukrainian enterprises and to justify the feasibility of strengthening government contributions in lending to ensure the sustainable development of small businesses. Indicators for evaluating the eciency and accessibility of microcredits are systematized. Methodological approaches to assessing the eciency of lending for the creation and development of microenterprises have been improved. A model for evaluating the eciency of microcredits aimed at the survival of microenterprises in a deteriorating environment was developed. It has been revealed that the level of eciency of microcredit creation for firms in some time intervals depends quadratically on the share of microcredits in the total amount of funds directed to the creation of firms. A linear relationship between the relative amount of credit received and the growth rate of firms’ assets has also been established. However, there is no significant impact of the microcredit’s amount on labor productivity. A method has been developed for evaluating the budgetary eciency of microcredits when such a lending is carried out using funds from state or local budgets. It was found that improving these lending conditions through budget financing can significantly increase its attractiveness for microenterprises without significantly reducing the budgetary eciency of microcredits. This article substantiates the need to strengthen state support for microcrediting of small Ukrainian enterprises in the context of the COVID-19 pandemic.