FINANCIAL LEVERS AND INCENTIVES FOR THE DEVELOPMENT OF MICRO-, SMALL AND MEDIUM BUSINESSES IN UKRAINE

Abstract

The article analyzes the key financial levers and economic incentives for the development of micro-, small, and medium-sized enterprises (MSMEs) in Ukraine in the context of post-war economic recovery and European integration. The relevance of the study is driven by the crucial role MSMEs play in restoring economic activity, ensuring employment, and enhancing the resilience of the national economy under conditions of prolonged instability. It is established that MSMEs demonstrate a high level of adaptability and are capable of recovering relatively quickly and continuing to operate amid significant crisis variability, including economic, political, military, natural, and social challenges.

The paper examines the current state and economic significance of micro-, small, and medium-sized businesses in Ukraine, emphasizing their contribution to gross value added, employment generation, and market diversification. Particular attention is paid to the analysis of the main economic indicators of MSME activity in 2024, including their share in the structure of the Ukrainian economy, the number of employed workers, and the volume of sold products, goods, and services. The results show that despite wartime constraints, MSMEs remain a key driver of economic stability, especially at the regional and local levels.

It is substantiated that accelerating the pace of MSME development is possible only through active and systematic state support in the sphere of economic management. The study highlights the limitations of existing financial instruments and emphasizes the need to improve access to credit resources, expand state guarantee mechanisms, stimulate investment activity, and enhance fiscal incentives for entrepreneurship. Special attention is given to the analysis of international experience in supporting MSMEs during post-war recovery, with a focus on the practices of Germany, South Korea, and Japan, where targeted financial policies, innovation support, and institutional coordination played a decisive role in economic reconstruction.

Based on the conducted analysis, the article formulates conclusions regarding the necessity of introducing effective financial and economic levers and developing comprehensive support measures aimed at strengthening the role of MSMEs in ensuring economic stability, employment growth, and innovative development of Ukraine. The importance of reorienting the national economy toward sectors with high added value, technological modernization, and export-oriented production is emphasized as a strategic priority of state economic policy.