Innovation and Investment Model for the Development of Small and Medium-Sized Businesses in Ukraine
Abstract
The research topic, related to the use of an innovation and investment model in entrepreneurship, is relevant because it will contribute to the modernisation and digitalisation of the economy, which would facilitate more efficient use of information technologies and allow automating business processes. In addition, the introduction of an innovative investment model will help to create new markets and promising areas of development, which will support Ukraine’s competitiveness in the international market. The purpose of this study is to analyse innovative approaches and investments that can contribute to the growth and competitiveness of small and medium-sized businesses in Ukraine. The analytical method, statistical method, functional method, system analysis, deduction, synthesis, and comparison were used. The current state of entrepreneurship in Ukraine was analysed, including its size, structure and volume of production. Various innovative approaches and technologies that can be used by small and medium-sized enterprises for their development are revealed. The investment environment for small and medium-sized businesses is considered, including an overview of available sources of financing, the quality of the financial market, the availability of state support and other investment instruments. The main challenges faced by small and medium-sized enterprises in Ukraine in the context of the innovation and investment model are highlighted, and development prospects are considered. The practical significance lies in the use of the identified results, solving issues related to the use of an innovation and investment model in order to bring entrepreneurship to a new level.
References
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[19] Huggins, R., and Thompson, P. (2015). Entrepreneurship, Innovation and Regional Growth: A Network Theory. Small Business Economics 45(1): 103-28. Available at: http://www.jstor.org/stable/43553080
[20] Khodakivska, O., et al. (2022) Sustainable Development of Regions: Modeling the Management of Economic Security of Innovative Entrepreneurship. International Journal of Advanced and Applied Sciences, 9(3).
[21] Kucherenko, S., Levaieva, L. and Krasnozhon, A. (2023). Financial and Security Factors of Competitiveness of Agricultural Enterprises under Martial Law. University Economic Bulletin, 18(3): 68-73. DOI:https://doi.org/10.31470/2306-546X-2023-58-68-73
[22] Kutsmus, N., et al. (2024). War in Ukraine: Impact on Global Agri-Food Trade. Scientific Horizons 27(3): 130-142. DOI: https://doi.org/10.48077/scihor3.2024.130
[23] Lemishovska, O. (2023). Methodological Tools in the Processes of Income and Expenditure Accounting: Contemporary Discussions and Developments in Galicia at the Turn of the Century. Economics, Entrepreneurship, Management, 10(2): 35-47. DOI: https://doi.org/10.56318/eem2023.02.035
[24] Madiyarova, D., Łuniewski, A. and Ibraeva, A. (2019). Advancing Competitiveness and Developing the Innovation and Investment Potential of Industrial Enterprises Using Cluster Strategies. Journal of Advanced Research in Law and Economics, 10(8): 2417-28.
[25] Naradda G., et al. (2020). A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies 8(4): 79. DOI: https://doi.org/10.3390/economies8040079
[26] Podra, O. P. (2020). Innovative Development and Human Capital of Ukraine: Trends, Problems and Prospects. Management and Entrepreneurship in Ukraine: The Stages of Formation and Problems of Development, 2(2): 133-44. DOI: https://doi.org/10.23939/smeu2020.02.133
[27] Qiu, W., et al. (2021). The Role of Innovation Investment and Institutional Quality on Green Total Factor Productivity: Evidence from 46 Countries along the ‘Belt and Road’. Environmental Science and Pollution Research 29: 16597-611. DOI: https://doi.org/10.1007/s11356-021-16891-y
[28] Rauter, R., Globocnik, D., Perl-Vorbach, E. and Baumgartner, R. J. (2019). Open Innovation and its Effects on Economic and Sustainability Innovation Performance. Journal of Innovation and Knowledge, 4(4): 226-233. DOI: https://doi.org/10.1016/j.jik.2018.03.004
[29] Samedova, E., et al. (2022). Exchange Rate Regime in a Crisis: The Case of Azerbaijan. Journal of Eastern European and Central Asian Research, 9(4): 679–90.
[30] Semenda, D. K, and Semenda, O.V. (2022). The Role of the State in the Development of Entrepreneurship in Ukraine. Scientific Innovations and Advanced Technologies 4(2): 230-239. Available at: http://lib.udau.edu.ua/handle/123456789/9147
[31] Shtal, T. V., et al. (2021). Digitalization as a Tool for Ensuring Innovative Development of Restaurant Business. Estudios de Economia Aplicada 39(5). DOI: https://doi.org/10.25115/eea.v39i5.4898
[32] Slobodian, N., Levchenko, Y. and Slobodian, V. (2022). Legal Regulation of the Implementation of Innovative Strategies at the Enterprise. Ukrainian Journal of Applied Economics and Technology, 7(3): 114-21. DOI:https://doi.org/10.36887/2415-8453-2022-3-16
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[34] Toporkov, O. R. (2020). The Role of Innovations in the Development of Small and Medium Enterprises. International Relations. Economic Sciences Series, 22.
[35] Yurchak, O. (2022). Innovative Development in Industry – What Should War Change? Available at: https://www.industry4ukraine.net/publications/innovaczijnyj-rozvytok-v-promyslovosti-shho-maye-zminyty-vijna/
[36] Ziberi, B., and Zulfiu Alili, M. (2021). Economic Growth in the Western Balkans: A Panel Analysis. South East European Journal of Economics and Business, 16(2): 68-81.
[37] Center for Innovation Development. (2022). Regional Results of the Study of the State and Needs of Business in the Conditions of War. Available at: https://cid.center/regional-results-of-the-study-of-the-state-and-needs-of-business-in-wartime/
[38] Delegation of the European Union to Ukraine. (2022). EU Sets Up €20 Million Support for Ukrainian Start-Ups through European Innovation Council. Available at: https://www.eeas.europa.eu/delegations/ukraine/eu-sets-%E2%82%AC20-million-support-ukrainian-start-ups-through-european-innovation_en?s=232
[2] Acs, Z. J., Audretsch, D. B. and Lehmann, E.E. (2013) The Knowledge Spillover Theory of Entrepreneurship. Small Business Economics 41(4): 757-74. Available at: http://www.jstor.org/stable/43552897
[3] Amorós, J.E., Poblete, C. and Mandakovic, V. (2019). RandD Transfer, Policy and Innovative Ambitious Entrepreneurship: Evidence from Latin American Countries. The Journal of Technology Transfer 44: 1396-415. DOI: https://doi.org/10.1007/s10961-019-09728-x
[4] Andrusiak, N. O. (2019). Innovative Investment Tools to Stimulate Economic Development of the Regions. Bulletin of the Cherkasy National University named after Bohdan Khmelnytskyi. Economic Sciences Series 1: 4-10. DOI: https://doi.org/10.31651/2076-5843-2019-1-4-10
[5] Autio, Erkko, Martin Kenney, Philippe Mustar, Don Siegel, and Mike Wright. (2014). Entrepreneurial Innovation: The Importance of Context. Research Policy 43(7): 1097-108. DOI:https://doi.org/10.1016/j.respol.2014.01.015
[6] Barabash, O., et al. (2023). The Impact of the Relocation of Enterprises in Ukraine and Abroad on the Realization of Socio-Economic, Cultural and Labour Rights. Social and Legal Studios 6(4): 28-37. DOI:https://doi.org/10.32518/sals4.2023.28
[7] Berdar, M. M., et al. (2021). Innovation and Investment Development of Entrepreneurship. International Journal of Agricultural Extension 9 (Special Issue 2): 29-38. Available at: https://esciencepress.net/journals/index.php/IJAE/article/view/3959
[8] Bican, Peter M., and Brem, A. (2020). Digital Business Model, Digital Transformation, Digital Entrepreneurship: Is There a Sustainable ‘Digital’? Sustainability 12(13): 5239. DOI:https://doi.org/10.3390/su12135239
[9] Bortnik, S. (2022). Functioning of Small and Medium-Sized Enterprises in Ukraine: Current State and Development Prospects. Economy and Society, 36. DOI: https://doi.org/10.32782/2524-0072/2022-36-46
[10] Chernetska, O., and Chernetskyi, D. (2023). Enterprise Management System Analytical Tools. Economics, Entrepreneurship, Management, 10(2): 8-16. DOI: https://doi.org/10.56318/eem2023.02.008
[11] Demirel, P., and Danisman, G. O. (2019). Eco‐Innovation and Firm Growth in the Circular Economy: Evidence from European Small‐ and Medium‐Sized Enterprises. Business Strategy and the Environment 28(8): 1608-18. DOI: https://doi.org/10.1002/bse.2336
[12] Drobyazko, S., et al. (2019). Model for Forming of Optimal Credit Portfolio of Commercial Bank. Journal of Management Information and Decision Sciences, 22(4): 501-6.
[13] Dzwigol, H., Dzwigol-Barosz, M. and Kwilinski, A. (2020). Formation of Global Competitive Enterprise Environment based on Industry 4.0 Concept. International Journal of Entrepreneurship, 24(1): 1-5. Available at: https://abacademies.org/abstract/formation-of-global-competitive-enterprise-environment-based-on-industry-40-concept-9079.html
[14] Eniola, A. A., and Entebang, H. (2015). Government Policy and Performance of Small and Medium Business Management. International Journal of Academic Research in Business and Social Sciences, 5(2): 237-48. Available at: https://hrmars.com/papers_submitted/1481/Government_Policy_and_Performance_of_Small_and_Medium_Business_Management.pdf
[15] Gavrysh, O., Gavrysh, I., Matiukhina, A. and Vasylets, I. (2024). The First Year’s Impact of the Full-Scale War on Ukrainian Business. Economics of Development 23(1): 18-29. DOI:https://doi.org/10.57111/econ/1.2024.18
[16] Gherghina, Ș. C., Botezatu, M. A., Hosszu, A. and Simionescu, L. N. (2020). Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation. Sustainability, 12(1): 347. DOI: https://doi.org/10.3390/su12010347
[17] Grechan, A., and Babich, L. (2019). Innovative-Investment Activity as a Basic Precondition for the Sustainable Development of Business Entities. Scientific Bulletin of the Kherson State University, Series: Economic Sciences, 34: 27-32. DOI: https://doi.org/10.32999/ksu2307-8030/2019-34-5
[18] Gregori, P., and Holzmann, P. (2020). Digital Sustainable Entrepreneurship: A Business Model Perspective on Embedding Digital Technologies for Social and Environmental Value Creation. Journal of Cleaner Production 272: 122817. DOI: https://doi.org/10.1016/j.jclepro.2020.122817
[19] Huggins, R., and Thompson, P. (2015). Entrepreneurship, Innovation and Regional Growth: A Network Theory. Small Business Economics 45(1): 103-28. Available at: http://www.jstor.org/stable/43553080
[20] Khodakivska, O., et al. (2022) Sustainable Development of Regions: Modeling the Management of Economic Security of Innovative Entrepreneurship. International Journal of Advanced and Applied Sciences, 9(3).
[21] Kucherenko, S., Levaieva, L. and Krasnozhon, A. (2023). Financial and Security Factors of Competitiveness of Agricultural Enterprises under Martial Law. University Economic Bulletin, 18(3): 68-73. DOI:https://doi.org/10.31470/2306-546X-2023-58-68-73
[22] Kutsmus, N., et al. (2024). War in Ukraine: Impact on Global Agri-Food Trade. Scientific Horizons 27(3): 130-142. DOI: https://doi.org/10.48077/scihor3.2024.130
[23] Lemishovska, O. (2023). Methodological Tools in the Processes of Income and Expenditure Accounting: Contemporary Discussions and Developments in Galicia at the Turn of the Century. Economics, Entrepreneurship, Management, 10(2): 35-47. DOI: https://doi.org/10.56318/eem2023.02.035
[24] Madiyarova, D., Łuniewski, A. and Ibraeva, A. (2019). Advancing Competitiveness and Developing the Innovation and Investment Potential of Industrial Enterprises Using Cluster Strategies. Journal of Advanced Research in Law and Economics, 10(8): 2417-28.
[25] Naradda G., et al. (2020). A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies 8(4): 79. DOI: https://doi.org/10.3390/economies8040079
[26] Podra, O. P. (2020). Innovative Development and Human Capital of Ukraine: Trends, Problems and Prospects. Management and Entrepreneurship in Ukraine: The Stages of Formation and Problems of Development, 2(2): 133-44. DOI: https://doi.org/10.23939/smeu2020.02.133
[27] Qiu, W., et al. (2021). The Role of Innovation Investment and Institutional Quality on Green Total Factor Productivity: Evidence from 46 Countries along the ‘Belt and Road’. Environmental Science and Pollution Research 29: 16597-611. DOI: https://doi.org/10.1007/s11356-021-16891-y
[28] Rauter, R., Globocnik, D., Perl-Vorbach, E. and Baumgartner, R. J. (2019). Open Innovation and its Effects on Economic and Sustainability Innovation Performance. Journal of Innovation and Knowledge, 4(4): 226-233. DOI: https://doi.org/10.1016/j.jik.2018.03.004
[29] Samedova, E., et al. (2022). Exchange Rate Regime in a Crisis: The Case of Azerbaijan. Journal of Eastern European and Central Asian Research, 9(4): 679–90.
[30] Semenda, D. K, and Semenda, O.V. (2022). The Role of the State in the Development of Entrepreneurship in Ukraine. Scientific Innovations and Advanced Technologies 4(2): 230-239. Available at: http://lib.udau.edu.ua/handle/123456789/9147
[31] Shtal, T. V., et al. (2021). Digitalization as a Tool for Ensuring Innovative Development of Restaurant Business. Estudios de Economia Aplicada 39(5). DOI: https://doi.org/10.25115/eea.v39i5.4898
[32] Slobodian, N., Levchenko, Y. and Slobodian, V. (2022). Legal Regulation of the Implementation of Innovative Strategies at the Enterprise. Ukrainian Journal of Applied Economics and Technology, 7(3): 114-21. DOI:https://doi.org/10.36887/2415-8453-2022-3-16
[33] Tkachenko, A., et al. (2023). Modified Assessment Methodology ESG Competitiveness of Enterprises to a New Generation of Investors. IOP Conference Series: Earth and Environmental Science, 1254(1): 012126.
[34] Toporkov, O. R. (2020). The Role of Innovations in the Development of Small and Medium Enterprises. International Relations. Economic Sciences Series, 22.
[35] Yurchak, O. (2022). Innovative Development in Industry – What Should War Change? Available at: https://www.industry4ukraine.net/publications/innovaczijnyj-rozvytok-v-promyslovosti-shho-maye-zminyty-vijna/
[36] Ziberi, B., and Zulfiu Alili, M. (2021). Economic Growth in the Western Balkans: A Panel Analysis. South East European Journal of Economics and Business, 16(2): 68-81.
[37] Center for Innovation Development. (2022). Regional Results of the Study of the State and Needs of Business in the Conditions of War. Available at: https://cid.center/regional-results-of-the-study-of-the-state-and-needs-of-business-in-wartime/
[38] Delegation of the European Union to Ukraine. (2022). EU Sets Up €20 Million Support for Ukrainian Start-Ups through European Innovation Council. Available at: https://www.eeas.europa.eu/delegations/ukraine/eu-sets-%E2%82%AC20-million-support-ukrainian-start-ups-through-european-innovation_en?s=232
Published
2024-06-28
How to Cite
BERDAR, Marharyta M.; YAREMKO-HLADUN, Roman A..
Innovation and Investment Model for the Development of Small and Medium-Sized Businesses in Ukraine.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 15, n. 2, p. 174-185, june 2024.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8458>. Date accessed: 30 june 2024.
doi: https://doi.org/10.14505/tpref.v15.2(30).02.
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