Government support for the financial security of light industry enterprises in the context of European integration developments

Abstract

The article discusses Ukraine's light industry, which is a socially important sector that produces clothing, footwear, textiles and leather goods. It has been established that light industry enterprises provide jobs for thousands of workers and meet the needs of the domestic consumer market. It has been established that, on the one hand, European integration processes open up new markets and require adaptation to EU standards, while on the other hand, they intensify competition and require significant investments in modernisation. The purpose of the article is to analyse state measures for the financial support of light industry enterprises in Ukraine, assess their effectiveness in the context of European integration changes and identify gaps. The analysis confirms that the Ukrainian government has used a wide range of financial instruments to support light industry enterprises during the period of transformation and European integration. The introduction of tax incentives, credit guarantees and affordable ‘5-7-9%’ loans created the basis for modernisation and support of production capacities, which made it possible to provide financing to hundreds of entrepreneurs. It has been determined that the government is implementing measures for integration into European markets, including encouraging the localisation of production and exporters to achieve preferential conditions. It has been proven that the issue of state support requires integration with European standards and norms, which is significantly complicated by the insufficient preparedness of Ukrainian businesses for the requirements of the EU market. As a result, it has been established that state support for the financial security of light industry enterprises in the context of European integration has significant potential, but requires further improvement. The main steps in this direction are to increase the availability of financing for small and medium-sized enterprises, improve the coordination of state programmes, and intensify work on the technological modernisation of the industry, This will enable Ukrainian light industry enterprises to successfully adapt to the conditions of European integration and ensure their competitiveness in the international market. Prospects for further research lie in an in-depth analysis of methods of state regulation and stimulation of light industry in the context of European integration, which will contribute to the development of a more effective industrial policy and improve the financial security of enterprises in the industry.