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Microcredits for Sustainable Development of Small Ukrainian Enterprises: Efficiency, Accessibility, and Government Contribution

Author

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  • Olexandr Yemelyanov

    (Department of Business Economics and Investment, Institute of Economics and Management, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

  • Tetyana Petrushka

    (Department of Business Economics and Investment, Institute of Economics and Management, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

  • Anastasiya Symak

    (Department of Business Economics and Investment, Institute of Economics and Management, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

  • Olena Trevoho

    (Department of Theoretical and Applied Economics, Institute of Administration and Postgraduate Education, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

  • Anatolii Turylo

    (Department of Economics, Organization and Enterprise Management, Kryvyi Rih National University, 11Vitaliy Matusevych Street, 50027 Kryvyi Rih, Ukraine)

  • Oksana Kurylo

    (Department of Finance, Institute of Economics and Management, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

  • Lesia Danchak

    (Department of Business Economics and Investment, Institute of Economics and Management, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

  • Dmytro Symak

    (Department of Accounting and Taxation, The Private Higher Educational Institution Lviv University of Business and Law, 99 Kulparkovska Street, 79021 Lviv, Ukraine)

  • Lilia Lesyk

    (Department of Business Economics and Investment, Institute of Economics and Management, Lviv Polytechnic National University, 5 Metropolian Andrey Street, Building 4, 79005 Lviv, Ukraine)

Abstract

The purpose of the study was to assess the efficiency and accessibility of microcredits for small Ukrainian enterprises and to justify the feasibility of strengthening government contributions in lending to ensure the sustainable development of small businesses. Indicators for evaluating the efficiency and accessibility of microcredits are systematized. Methodological approaches to assessing the efficiency of lending for the creation and development of microenterprises have been improved. A model for evaluating the efficiency of microcredits aimed at the survival of microenterprises in a deteriorating environment was developed. It has been revealed that the level of efficiency of microcredit creation for firms in some time intervals depends quadratically on the share of microcredits in the total amount of funds directed to the creation of firms. A linear relationship between the relative amount of credit received and the growth rate of firms’ assets has also been established. However, there is no significant impact of the microcredit’s amount on labor productivity. A method has been developed for evaluating the budgetary efficiency of microcredits when such a lending is carried out using funds from state or local budgets. It was found that improving these lending conditions through budget financing can significantly increase its attractiveness for microenterprises without significantly reducing the budgetary efficiency of microcredits. This article substantiates the need to strengthen state support for microcrediting of small Ukrainian enterprises in the context of the COVID-19 pandemic.

Suggested Citation

  • Olexandr Yemelyanov & Tetyana Petrushka & Anastasiya Symak & Olena Trevoho & Anatolii Turylo & Oksana Kurylo & Lesia Danchak & Dmytro Symak & Lilia Lesyk, 2020. "Microcredits for Sustainable Development of Small Ukrainian Enterprises: Efficiency, Accessibility, and Government Contribution," Sustainability, MDPI, vol. 12(15), pages 1-32, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6184-:d:392841
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