ANALYSIS OF TRADITIONAL AND INNOVATIVE INSTRUMENTS OF BUSINESS ENTITIES` FINANCING
Zakharkin O.
Sumy State University,
Sumy, Ukraine
Sumy, Ukraine
Zakharkina L.
Sumy State University,
Sumy, Ukraine
Sumy, Ukraine
Solomko Yu.
Sumy State University,
Sumy, Ukraine
Sumy, Ukraine
Ivnytska К.
Sumy State University,
Sumy, Ukraine
Sumy, Ukraine
Pages: 55-64
Original language: Ukrainian
DOI: 10.21272/1817-9215.2020.2-6
Summary:
The analysis of publishing activity on the use of innovative tools for financing business activities has shown a recent increase in scientific interest in this issue, which indicates its relevance. The purpose of this study is to analyze the possibilities of using traditional and innovative tools for financing business activities at different stages of satisfaction the investment needs of businesses. The study considers the main traditional and innovative mechanisms for raising capital for business development, as well as analyzes the financing tools of economic entities depending on the stage of business development. The main forms of bank lending to business entities are described, the main mechanisms of state financing and its legislative regulation are considered. The main differences between business angels and venture funds are analyzed. An innovative form of project financing through crowdfunding is considered. Possibilities of application of mezzanine financing and initial public offering of shares at different stages of realization of investment projects are analyzed. SWOT-analysis of such capital raising instruments as: bank lending, public financing, financing based on the 3F model, venture financing, crowdfunding, mezzanine financing, IPO was made. Based on the SWOT-analysis, the expediency of using certain tools at different stages of development of the business entity is substantiated. Research has shown that innovative financing instruments have significant dissemination potential, especially in the context of the rapid development of information technology. Further research in this area should be devoted to identifying the factors contributing to the spread of innovative tools for business financing. The obtained results can be used by entrepreneurs in choosing the optimal sources of financing investment activities. The results of the work deepen the knowledge about the possibilities of using innovative tools for the formation of financial resources.
Keywords:
financial resources, bank lending, public financing, model 3F, crowdfunding, venture financing, mezzanine financing, initial public offering.
Reference:
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1. Kasych, A. & Kanunikova, К. (2016). Innovatsijna aktyvnist' pidpryiemstv Ukrainy: dynamika, problemy ta shliakhy vyrishennia [Innovative activity of ukrainian companies: dynamics, problems and solutions]. Investytsiyi: praktyka ta dosvid, 22, 22-24
2. Mollick, E. (2013). Swept Away by the Crowd? Crowdfunding, Venture Capital, and the Selection of Entrepreneurs. SSRN's eLibrary. Retrieved from: https://repository.upenn.edu/mgmt_papers/263
3. Shelekhov, K. V. & Tarasenko, A. O. (2012). Perevahy pervynnoho publichnoho rozmischennia aktsij (IPO) iak investytsijnoho instrumentu zaluchennia kapitalu vyrobnychym pidpryiemstvom [Benefits of an initial public offering (IPO) as an investment vehicle for raising capital for a manufacturing enterprise]. Efektyvna ekonomika, 3. Retrieved from: http://nbuv.gov.ua/j-pdf/efek_2012_3_46.pdf
4. Kornieieva, Iu. V. (2018). Adaptatsiia mezoninnoho finansuvannia do potreb derzhavnykh pidpryiemstv [The Adaptation of Mezzanine Financing to the Needs of the State-Owned Enterprises]. BUSINESS INFORM, 4, 337- 343.
5. Baistriuchenko, N.O. (2010). Vplyv dynamiky struktury kapitalu na finansovo-ekonomichni rezul'taty diial'nosti pidpryiemstva [Influence of dynamics of capital structure on the financial and economic results of enterprise’s activity]. Candidate’s thesis. Sumy: SumSU.
6. Onyshko, S.V. (2004). Finansove zabezpechennia innovatsijnoho rozvytku [Financial support for innovative development]. Irpin': Natsional'na akademiia DPS Ukrainy.
7. De hroshi, Lebovs'ki: dzherelo finansuvannia Friends, Family, Fools (FFF/3F) [Where is the money, Lebowski: source of funding Friends, Family, Fools (FFF/3F)]. https://buduysvoe.com. Retrieved from: https://buduysvoe.com/publications/de-groshi-lebovski-dzherelo-finansuvannya-friends-family-fools-fff3f
8. Zakon Ukrainy «Pro rozvytok ta derzhavnu pidtrymku maloho i seredn'oho pidpryiemnytstva v Ukraini» [Law of Ukraine «On Development and State Support of Small and Medium Business in Ukraine»] (2012). https://zakon.rada.gov.ua/laws/main/index. Retrieved from: https://zakon.rada.gov.ua/laws/show/4618-17#Text
9. Zakon Ukrainy «Pro derzhavnu dopomohu sub'iektam hospodariuvannia» [Law of Ukraine «On Government Aid for Business Entities» (2014). https://zakon.rada.gov.ua/laws/main/index. Retrieved from: https://zakon.rada.gov.ua/laws/show/1555-18?lang=uk#Text
10. Sajt Ukrains'koho derzhavnoho fondu pidtrymky fermers'kykh hospodarstv [Site of the Ukrainian State Fund for Support of Farms]. https://udf.gov.ua/
11. Zakharkina, L.S. & Murai, V.Ye. (2016). Finansove zabezpechennia sub'iektiv hospodariuvannia [Financial support of business entities]. O.V. Prokopenko (Eds.), Ekonomichni problemy staloho rozvytku – Economical Problems of Sustainable Development: Proceedings of the International Scientific and Practical Conference dedicated to the memory of prof. Balatskii O.F. (Vols. 1), (pp. 276-277). Sumy: SumSU.
12. Abrams, R. (2014). Biznes-plan na 100%: Strategiya i taktika effektivnogo biznesa [The business plan is 100%. Strategy and tactics of effective business]. (translation from English). Moskva : ALЬPINA PABLIShER
13. Mekheda, N. H. & Zaporozhets T.L. Rol' «biznes–anheliv v investytsijnij diial'nosti Ukrainy» [The role of business angels in the investment activities of Ukraine]. www.rusnauka.com Retrieved from: http://www.rusnauka.com/34_NIEK_2010/Economics/75114.doc.htm
14. Zakharkina, L.S. & Murai, V.Ye. (2016). Do pytannia vykorystannia kraudfandynhu iak innovatsijnoho instrumentu finansuvannia sub'iektiv hospodariuvannia [On the issue of using crowdfunding as an innovative tool for financing business entities]. Proceedings from MIIM '16: X Mizhnarodna naukovo-praktychna konferentsiia «Marketynh innovatsii i innovatsii v marketynhu» – The Tenth International Scientific and Practical Conference «Marketing of Innovations and Innovations in Marketing». (pp. 90-91). Sumy: Tkachov O.O.