Investment Financing in Ukraine: Analysis of Problems and Prospects

Abstract

The purpose of this study is to investigate the specifics of forming funding sources for investment activities and to assess the impact of internal and external factors on the investment activity of the entrepreneurial sector under conditions of systemic challenges. In the course of the research, methods of logical generalization and synthesis, comparative analysis, statistical methods, graphical visualization, and econometric modeling were applied.

The article analyzes the structure and dynamics of capital investments by funding sources over the period of 2014–2024. A transformation of Ukraine’s investment model toward "self-financing" was identified, where enterprises' own funds account for over 71% of all investments. The dynamics of state and local investment resources were examined, illustrating the growing role of the state as an "investor of last resort" amid massive security shocks. The study demonstrates a critical reduction in foreign capital and bank lending as sources of development. Based on correlation analysis, a high determinancy of investment volumes by enterprises' financial results was established. A single-factor linear econometric model describing the dependence of capital reproduction on business profitability was constructed and verified. Scenario forecasting of investment potential for 2025 was conducted. It is concluded that under conditions of military risks, market lending mechanisms demonstrate limitations, while the internal capacity of the real sector to generate profit becomes the foundation of economic stability.