Financing small businesses in Ukraine during the war

Abstract

Small businesses play a crucial role in maintaining the economic resilience of a country, particularly under conditions of martial law. The war in Ukraine has significantly affected the operation of small enterprises, leading to a decline in the number of businesses, reduced consumer purchasing power, disrupted logistics chains, and changes in demand structure. Despite these challenging circumstances, small businesses demonstrate adaptability, seek new opportunities for development, and strive to preserve jobs. The issue of financing small businesses becomes especially relevant during a crisis period, as limited financial resources pose a major obstacle to their sustainable operation. Banks, international donors, state support programs, and microfinance instruments play an important role in providing small enterprises with the necessary resources. This article analyzes the current state and problems related to access to finance for small businesses, outlining the trends, challenges, and prospects that arise in the context of war. Particular attention is given to the study of state support mechanisms, including interest rate subsidy programs, grant initiatives, and cooperation with international financial institutions. The study highlights the importance of ensuring flexibility in financial instruments, simplifying access to credit resources, and developing alternative sources of financing in the new realities. Such measures would enable enterprises not only to survive but also to transform in line with the changing environment. The article emphasizes the need to create a favorable financial environment for small businesses as a key factor in economic recovery and ensuring social stability in Ukraine.