Analysis of the state support effectiveness for entrepreneurship in Ukraine

Abstract

The purpose of the article was to analyze the effectiveness of state support for entrepreneurship in Ukraine during 2021-2024. Methods. The study used two basic approaches to studying the effectiveness of state support: from the standpoint of economy and productivity of the use of state budget funds to finance entrepreneurship support programs in various sectors of the economy during 2021-2024. Results. Since the beginning of the military invasion in 2022, the government has reduced the amount of state support for entrepreneurship. At the same time, to solve the most problematic business issues, relocation programs were introduced, in which local authorities also participated. Only in 2024 are there trends towards the restoration of financial support for enterprises, as the volume of affordable loans and leasing on preferential terms has significantly increased. At the same time, during 2021-2024, there is a saving of budget funds actually allocated to business support programs, while the volume of planned financial resources is much larger. The exception is the amount of actual expenses of the Ministry of Finance to ensure the functioning of the Entrepreneurship Development Fund, which may indicate the effectiveness of this particular mechanism for supporting business entities. Digitalization has also significantly simplified business regulation processes and expanded opportunities for obtaining information and consulting support. In general, the analysis of the effectiveness of state support for entrepreneurship in Ukraine demonstrates an increase in the effectiveness of assistance to business entities. At the same time, the share of preferential lending in their total volume remains low. The conclusions of the study are the importance of expanding the volume of financing for various types of enterprise activities in Ukraine, continuing the most effective state support programs, such as affordable lending and financial leasing, which have proven important for domestic business. The effectiveness of these state support programs is associated with the development of the activities of the Entrepreneurship Development Fund in Ukraine, within the framework of which effective mechanisms for cooperation with business have been created to provide funds for its development.