Summary

Improving mechanisms for financial support of business is one of the main factors of national economic growth. According to the World Bank, expanding access to finance for SMEs in middle-income countries can lead to an increase in labor productivity by up to 86%. Despite the development of subsidy and lending programs, SMEs continue to face various financial constraints. In 2020, the gap between the needs of SMEs in developing countries and available funds reached USD 5.7 trillion. The main reasons include high credit risk and transaction costs, lack of competition in the banking sector or the necessary non-bank financing instruments (stock market, crowdfunding, venture financing). Ensuring conditions for free access of small and medium-sized businesses to financing is a priority task of the state. Among the main recommendations of the World Bank are reducing administrative costs, creating favorable legal conditions, basic market infrastructure and supporting competition, stimulating the use of financial technologies and the development of alternative financial mechanisms.