Yevheniia Polishchuk

High-tech innovative SMEs’ development plays crucial role in economic growth of every country. It creates new work places and infrastructure, motivates people for creating new ideas. At the same time, SMEs still face with a huge number of problems in the business performance. The purposes of the research are: to define main barriers for high-tech SMEs’ development in the 4th industrial revolution era (4IR); to work out recommendations for policy-makers towards intensification of SMEs’ potential.
For this purpose, the authors reviewed studies devoted to the SMEs’ innovative development and revealed that main barriers of SMEs’ development are related to inefficient government support in this sphere. In order to work out recommendations for Ukrainian policy-makers in the area of SMEs’ development, the authors conducted a survey of local high-tech SMEs and on the basis of SWOT-analysis distinguished the main directions for their further improvement. Finally, a set of recommendations for improving SMEs’ environment in Ukraine, taking into consideration the challenges of the 4th IR, was developed.

The main aim of the given research is to develop an appropriate approach for creation of information FinTech platform with the EU standards compliance mainly for SMEs in order to support innovativeness of SMEs, improve their access to finance and simplify different financial processes. The authors defined the main features of FinTech platforms underlining types of FinTech, its participants and the most influential factors. The main trends of FinTech platforms development in the EU countries, such as the level of investment, impact of EU FinTech platforms on the global scale, features of investments into B2B FinTech, were determined. It was considered that in Ukraine, some positive changes in legislation were adopted, but the challenges like lack of finance, slow adoption of innovations in the financial market, not sufficient clarity of legislation remain among the main constraints for further development of FinTech platforms in Ukraine. The conducted analysis on the level of FinTech types performance by Ukrainian platforms showed only the great share of digital payments and money transfers, while other modern innovative FinTech instruments should not be underestimated for proper FinTech application in Ukraine. For this purpose, the authors have developed the Information Platform on Support for SMEs’ Innovations that consolidates interests of both SMEs and scientists. To determine both the SMEs’ opinion about the necessity of a particular Internet platform for them and the types of services that could be provided by the sme-sci.com platform, the authors conducted a survey in which 374 medium-sized and 380 small businesses took part. The results of the survey that are presented in the article confirm the necessity of the Information Platform on Support for SMEs’ Innovations and demand for it from the SMEs. Finally, the result of the research proves that such a unique informational platform as sme-sci. com that will serve as an interactive field for exchanging ideas and information of both representatives of scientific and business world is of great importance.

The article substantiates the necessity of development and implementation of ethical rules of doing business into the business practices of small and medium enterprises. Particular attention is paid to business entities in Ukraine as a country with one of the highest levels of shadow economy. The two-level structure of SMEs’ Code of Ethics designed by the author is being presented, which is based on the following key concepts: transparency of business entities activity, partnership integrity, environmental and social responsibility, which are interrelated and reflected in the individual modules of the Code.
The article presents the results of approbation of the author’s Code of Ethics for SMEs. The approbation is based on a personal and interactive questionnaire about the readiness of Ukrainian SMEs representatives to introduce ethical norms into their activities. The authors determined that Ukrainian SMEs are not well-informed about possible positive effects from following norms and rules in business, in particular, in terms of improving the business climate in the country, increasing the investment attractiveness of the economy as a whole and economic entities in particular, simplifying the access to financial and credit instruments.
The survey and questionnaire of Ukrainian SMEs confirmed the need for the development and implementation of the business Code of Ethics norms, as well as potential demand for it. The respondents recognize the importance of certain international ethical rules in conducting business, which may contribute to attracting investment in Ukraine; however, this is not the only factor affecting the investment attractiveness of domestic business. It is substantiated that the business climate improvement is a complex issue, and the Code of Ethics, in this context, creates the opportunities of guiding and encouraging participants to the active influence on the business environment: to declare zero tolerance to corruption and to form and to maintain clear position in interactions with the public authorities.

One of the main problems of the fiscal decentralization in Ukraine is the substantiation of the optimal proportion of the personal income tax distribution among the state and different types of local budgets in order to insure the sufficient financial resources for the territorial communities. Since period of the Budget Code adoption, the percentage of the personal income tax paid from salaries to the different levels of budgets has changed three times. However, the methodic of such distribution is not clear. The authors suggest approach of analyzing the logic of the personal income tax distribution on the game theory basis. They consider different ways of making decisions and prove that in all of the analyzed cases the winner was the central government of Ukraine. Such behavior of the central government in making decisions does not meet the goals of the fiscal decentralization reform. The main reason of such situation is that the decisions are made by the state government, but not by the local communities or their representatives. Besides, it is difficult to distribute the expenditures among different types of budgets according to the Governments’ competences. The authors suggest some recommendation of the personal income tax distribution in order to ensure benefits for all participants of the game: communities, local governments and central government. But they conclude that the active influence of people on the behavior of the local governments is the basic premise for the scientific research of the PIT optimal distribution.

The focus of the research is to develop recommendations of smart specialization (SS) for Ukrainian policymakers using European approaches. The authors revealed that the main SS projects are presented in such sectors as agri-food, industrial modernization and energy. More than 12 EU countries were the plot for conducted analysis of SS, as a result of which the level of activity of each country was determined. The creation of consortiums, including SMEs, associations, universities and other participants, disclosed the successful way of SS realization. The structure of SME’s innovative potential in Ukraine was identified underlining their main characteristic features like types of innovations and innovative activity, differentiation according to enterprise size, their regional distribution. The authors explored lack of innovations on regional and national level and significant territorial disparities, which could be eliminated through policy implementation of regional SS. The existing legislative norms for possibility of SS implementation in Ukraine were analyzed due to correspondence with the EU ones. The analysis provides the opportunity to consider them only as general framework documents without any action plans and sectoral prioritization at all. The weak points of these law documents are emphasized. As a result of research, the authors developed recommendations presented by direct action plan for Ukrainian policymakers, which include such activities as underlining key priorities (especially ICT applicability in every SS project) and their correspondence with the EU ones; eliminating regional imbalances by focusing on innovation development and reorientation of some regions according to SS priorities; respecting regional existing capacities; providing organizational mechanism for cooperation of stakeholders and financial mechanism for SS support through the EU structural funds.

Over the past three decades, the relative bank loan demand has changed due to the arising small and medium-sized enterprises (SMEs). Therefore, banks in their operations face the problem of processing an ever-increasing number of loan applications.
The aim of this paper is to develop an auxiliary approach to assessing the prior creditworthiness of long-term SME projects with nonstandard cash flows.
This study reveals how the principles of value-based management can be incorporated into the process of borrower’s creditworthiness assessment to improve the process of screening loan applications. For this, the internal rate of return was used as a criterion for loan granting decision at the initial stage of loan underwriting.
An algorithm for the preliminary evaluation of loan applications is proposed and is based on the principle of maximizing the shareholder value of banks. This algorithm helps to define the credit terms taking into consideration the distribution of positive cash flows throughout the project’s expected economic life, calculate the possible real effective interest rate concerning the borrower’s nonstandard cash flow schedule, make a rough analysis on the economic efficiency of lending and state the necessary criterion to initiate the procedure of loan underwriting for the projects with nonstandard cash flow schedules.
The proposed estimation algorithm stemming from the IRR-approach for the cash flow analysis can also be initially used by a borrower as a tool for credit solvency self-testing via screening of periods with corresponding cash flows that can be used for loan servicing.

Public debt can attract funds to finance public needs and stabilize the country’s economic development. This study aims to analyze the relationship between public debt and economic development considering the war actions in Ukraine. This paper uses bibliometric analysis, comprising in-built Scopus and WoS instruments, VosViewer, and Google Trends tools. The overall results show the close relationship between public debt, economic development, and war (armed conflict) concepts. The publications were examined according to key features: containing the keywords from the green and red clusters; covering the period 2015–2018 and 2022; and discussing public debt in Central and South-Eastern Europe. This improved the theoretical and methodological approach to the bibliometric analysis of public debt. Moreover, the study identified risks (based on selected scientific publications) to which the primary attention should be paid during the war and post-war periods in Ukraine: currency and demographic risks. Key recommendations were provided to ensure debt security during the war and post-war periods. However, the given recommendations should be implemented within the framework of the Recovery Plan of Ukraine, which would improve the credit rating and reliability of the state.

The devastating russian military invasion of Ukraine forced millions of people to flee their homes. Among those affected are highly skilled scientists, resulting in a significant loss of human capital for Ukraine, which is crucial for the post-war reconstruction. To address this pressing issue, the Young Scientists Council (YSC) at the Ministry of Education and Science of Ukraine launched the “Ukrainian Science Diaspora” initiative to mitigate the brain drain.
The purpose of this study is to outline the first steps taken by this initiative. Moreover, it demonstrates lessons learned from the pilot meetings. The essence of the initiative is to keep links with scholars who left Ukraine and join the efforts of different migration waves of Ukrainian scientists for the further rebuilding of Ukraine. The YSC and other institutions prepared the analytical report on the needs and plans of Ukrainian scientists abroad. In addition, the paper highlights various events and activities organized by the YSC and other self-formed associations of Ukrainian scientists worldwide, working together to establish networks that could take the form of public organizations or be part of local unions of scientists.
At present, efforts are focused on identifying Ukrainian scientists interested in joining this initiative, with the ultimate goal of identifying areas where Ukrainian scientists can participate in post-war reconstruction. The success of this initiative will undoubtedly play a crucial role in ensuring that Ukraine can retain its valuable human capital and continue to thrive in the face of adversity.

Acknowledgment
This study is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “Europeanisation of Doctoral Studies in Line with the Innovative Doctoral Training Principles in Europe: Towards a Common Future” 101083493 – EDOCS – ERASMUS-JMO-2022-HEI-TCH-RSCH https://edocs.snau.edu.ua/en/

The study investigates the financial behavior of Ukrainians residing in Ukraine and Poland, aiming to identify patterns for the development of customized financial literacy programs. Additionally, it assesses Ukrainians’ preparedness, within their behavioral patterns, for global crises leading to financial shocks. During January-February 2022, a survey method was used to collect data from randomly chosen two groups of representatives of Ukrainians in Poland (N1 = 280) and Ukraine (N2 = 341). Data were proceeded with SPSS. Common patterns were revealed for both Ukraine and Poland, which are based on traditions and personal beliefs: disciplined cash flows controlling of personal budget and forming reserves for different types of crises; concentration on short-term plans and avoiding long-term ones; lack of trust to financial institutions for saving money. Among distinguished patterns are the following: In Poland, Ukrainians are more responsible and attentive to consumer loans, regularly receive and pay bills. In Poland, the investment portfolio of Ukrainians has a more diverse set of instruments. Online financial services are preferable in Poland. The study helps to identify if financially Ukrainians were ready to resist the russian war in Ukraine. Almost 30% of Ukrainians in Ukraine and 25% in Poland had only reserve for the period 1-3 months. In both countries, they claim they are ready to cover sources of covering unforeseen expenses from their reserves (more than 50% of respondents).

Acknowledgments
The authors would like to express their gratitude to the Kirkland Scholarship Program, the Leaders of Change Foundation, the Polish American Freedom Foundation, the University of Wroclaw and personally to Marek Wróblewski, Professor at the University of Wroclaw, Associate of Ukrainian banks, and to those who helped to disseminate information about the survey, including the Foundation Ukraine, as well as to the respondents and all those who expressed interest in the results.

The russian war in Ukraine replaced not only millions of people but also businesses in the safer regions of Ukraine. The study aims to identify regional stakeholders’ emergency responses in reaction to the russian war in Ukraine associated with business relocations and their impact on the host region. Employing qualitative research methods, including focus group discussions and in-depth semi-structured interviews with 25 informants (representatives of departments of economic development of regional authorities and administrators of regional development agencies), the study was conducted between March and May 2023. The findings reveal a diverse range of relocation strategies, with a significant inclination toward safer western and central regions of Ukraine, which accounted for more than 70% of displaced businesses. The notable share of relocated companies are wholesale and retail trade companies and the processing industry companies – 40% and 32%, respectively. It is assumed that not capital-intensive companies were relocated first. The support from regional stakeholders played a crucial role in mitigating business challenges related to relocation (communication difficulties, market loss, supply chain disruptions, and employee relocation issues, providing comprehensive assistance, and facilitating integration into the new socio-economic environment). The study acknowledges potential biases in responses and emphasizes the importance of correctly interpreting results. The study results are helpful for policy-making regarding regional development and the post-war rebuilding of Ukraine.

Acknowledgment
The study was conducted within the framework of the State Budget of the Kyiv National Economic University named after Vadym Hetman on the topic “Displaced business in revitalization of regional ecosystems in Ukraine” (state registration number 0123U100357).

Wars not only disrupt economic stability but also displace numerous enterprises, altering the socioeconomic landscape of affected regions. This study aims to analyze the case of relocated businesses in Ukraine, particularly their needs and adaptation in the host regions. An expert survey method was applied for 58 relocated micro-, small, and medium enterprises. The survey and review of secondary sources allowed distinguishing that security is the main driver of relocation (65% of respondents). Although for more than half of the respondents, relocation led to an increase in business activity in the host region, their ability to cover their own needs at the expense of their own funds fell, which led to the demand for external sources of financing. The biggest challenges are the cultural and doing business differences, loss of suppliers, and energy costs. In addition to financing, the TOP-3 needs include access to new markets (60%), the need for new equipment (57%), and special local permits (47%). Host regional authorities, as well as foreign donors, played a crucial role in adaptation to their region. In turn, businesses also note their contribution to the development of the host regions through tax contributions and providing jobs for the population and higher-quality products. Businesses demonstrate their openness to cooperation with foreign donors more than with local sponsors. These results are helpful for policymaking regarding regional development and the post-war rebuilding of Ukraine.

In recent years, Ukraine has faced two major crises: the COVID-19 pandemic and Russia’s military invasion of Ukraine. Digitalization allowed the extension of financial inclusiveness for the recipients and building financial resilience through remittances. They became one of the most important sources of survival for vulnerable populations. The aim of the paper is to examine how remittances can help Ukraine during the crises. The main research methods are descriptive statistical analyses to examine remittance trends and patterns. The data were taken from the open sources of the National Bank of Ukraine, Statista, the European Commission, Migration Data Portal, World Bank, and CoinLaw. The results showed that the share of informal remittance channels, although present, tends to decrease compared with the official ones. Poland is the main supplier of money in Ukraine. The average transaction value has also decreased from USD 3,540 thousand in 2017 to USD 1,750 thousand by 2024, which is due to the increase in the number of platforms that allow small transfers. It also pushed the increasing numbers of users of digital remittance platforms from 1,500 thousand in 2019 to 2,700 thousand in 2024. It confirmed that remittances for Ukrainians during crises are one of the sources for survival and potentially for recovery. The study can be useful during the development of different programs of livelihood support and recovery of Ukraine by engaging the Ukrainian diaspora.

Regional development is related to the effective management of disruptive industries on the local level. In the European Union, the innovation regional development policy is based on a smart specialization strategy, which neighboring countries try to apply as well. In their regional strategies, they notice the goals which are designed within the Joint Research Center methodology. It allows revealing the most efficient industries in the region, leading to a new level of regional competence on the global level. The study aims to identify smart specialization priorities based on JRC methodology in certain Ukrainian regions and assess its applicability in emerging markets (Ukrainian case) and develop the set of recommendations considering the specificity of the national economy.
The methodology is based on the static and dynamic analysis of economic (the indicators of the growth of average salaries and the number of employees indicators are calculated) and innovation (the indicators of productive, process, organizational, and marketing innovations are analyzed) potential of the region, which is examined in the article. It is revealed that the JRC methodology in identifying the smart specialization priorities has limited application in Ukraine. The restrictions related to the lack of data on innovations and other economic indicators. The analysis of certain regions shows what industries should be recommended as the priorities of smart specialization. However, discussions of the calculated results with the key stakeholders have differences which are not acceptable in the regional innovation policy development. As a result, the experts’ opinions are recommended to consider the priorities of different regions in Ukraine and other developing countries, which are on the path of smart specialization during stakeholders’ communication sessions.

SMEs are the main drivers of economic development. As the debt crisis and coronavirus crisis show, despite their importance, they are extremely sensitive to economic downturns. Therefore, SMEs need to be supported through various tools. The paper is aimed at evaluating the SMEs’ bank and governmental support in the northern and southern EU countries in two crisis periods and assessing the financial state of SMEs on the eve of coronacrisis using micro-level data.
It was proved that bank loans and credit lines remain the main sources of SMEs’ financing. After the debt crisis, banks are becoming more loyal to SMEs.
It was proved that SMEs from the northern EU countries suffered less from the previous crisis and therefore started their recovery earlier than the southern ones in terms of profitability, liquidity and debt burden. In addition, it was shown that both groups on the eve of the new turbulence period were in better financial state compared to the previous debt crisis.
The southern EU countries suffered more from both crises. At the same time, due to effective governmental support and bank loyalty, their SMEs entered the coronacrisis at the same level of financial stability as the northern ones. Since the new support measures are concentrated primarily in the banking sector through loan guarantee schemes and reduced interest rates, it is essential to provide debt financing to high-quality borrowers and avoid the debt crisis in southern counties.