Economic instruments to support and stimulate the development of small and medium-sized businesses in the context of European integration

Abstract

The article examines economic instruments for supporting and stimulating the development of small and medium-sized enterprises (SMEs) in Ukraine under conditions of European integration and digital transformation. It highlights the importance of adapting national SME support mechanisms to EU standards. Special attention is given to the role of digitalization in expanding financial access and facilitating entry into international markets. Online lending, crowdfunding, P2P lending, and FinTech solutions are identified as key tools for SME financing. The paper emphasizes the benefits of digital public services, such as "Diia.Business," in reducing administrative burdens. Trends in the growth of Ukraine’s e-commerce sector are analyzed, with projections up to 2029. The need for comprehensive modernization of state support mechanisms for SMEs is substantiated. The article underscores the importance of combining financial, regulatory, tax, and educational tools to enhance SME competitiveness. Challenges in the Ukrainian simplified taxation system are discussed in comparison with European practices. The role of financial literacy programs for entrepreneurs is highlighted as a critical factor. The study reveals the potential of blockchain technology and smart contracts in financing SMEs. Alternative funding mechanisms such as digital investment platforms and venture capital are evaluated. The importance of export support mechanisms, including export credit agencies and trade risk insurance, is noted. Successful European experiences in SME support and international integration are referenced. Digital platforms for trade and finance are seen as essential for SME globalization. The article proposes strengthening digital and financial infrastructure to support entrepreneurship. The role of innovation-driven programs and startup accelerators is emphasized. The need for regulatory simplification and digital customs procedures is also discussed. Ultimately, the implementation of modern digital support instruments is deemed crucial for integrating Ukrainian SMEs into the global economy.