Modeling the Mechanism of Financial Support for Small Entrepreneurship in the Context of Ukraine’s Economic Recovery

Abstract

Abstract. The article examines the theoretical foundations, methodological approaches, and practical mechanisms of financial support for small entrepreneurship in the context of Ukraine’s economic recovery. It is substantiated that small entrepreneurship constitutes the structural core of employment recovery, regional development, and the formation of a competitive market economy in the post-war period, while an effective system of its financial support is a necessary prerequisite for achieving an appropriate level of European integration. It has been established that under conditions of asset destruction, insufficient collateral, declining revenues, and the rising cost of credit resources, traditional bank lending mechanisms are fundamentally inadequate to meet the needs of small businesses, which necessitates the development of a comprehensive and scientifically grounded mechanism of financial support. A comparative analysis of five basic models of financial support for small entrepreneurship has been carried out, namely direct budget financing, concessional lending, guarantee support, microfinance, and blended finance, which are applied in EU countries and may be adapted to Ukrainian conditions. A five-block structural model of the mechanism of financial support for small entrepreneurship is proposed, encompassing regulatory and legal, institutional, financial and instrumental, information and analytical, and evaluation and control blocks. A four-phase model for the step-by-step implementation of the financial support mechanism in accordance with the stages of Ukraine’s economic recovery is developed, including stabilization, recovery, development, and European integration maturity, with the identification of priority instruments and expected outcomes for each phase. A comprehensive KPI system for monitoring the effectiveness of the mechanism of financial support for small entrepreneurship is proposed, covering six measurement groups: coverage and accessibility of support, financial volume, survival and development of small enterprises, employment and social effect, efficiency of state programs, and European integration compliance. Methodological recommendations for the implementation of the proposed mechanism are formulated, taking into account the risks of the wartime and post-war environment.