Stimulation of Entrepreneurial Activity during Wartime: Experience of Ukraine

Abstract

Objective: The article aims to present different government methods and tools for stimulation of entrepreneurial activity in Ukraine during the full-scale war period. The purpose is to emphasize the necessity of SMEs government support due to the sharp economic decline.

Research Design & Methods: The article uses secondary data analysis, desktop research, case-study method, methods of analysis and synthesis

Findings: The research suggests that scholars from the developed countries underline mainly indirect influence of the state support through creating a favourable environment for fostering SMEs growth and performance. On the contrary, scholars from developing countries with transitional economies focus mostly on the direct government support, which is the relevant case of Ukraine. These direct methods of support (grants, affordable loans, deregulation) have proved to be efficient since their implementing.

Implications/Recommendations: This paper may be crucial for researchers of entrepreneurship development in transitional economies in crisis periods. Also it may be useful for policymakers, whose task is to foster economic growth through SMEs.

Contribution/ Value Added: This paper benchmarks different approaches of developed and developing countries to the government support of SMEs. The article showcases the experience of Ukraine.

Article classification: research article

JEL classification: H7, O52, E650