IMPROVEMENT OF FINANCIAL SUPPORT MECHANISMS FOR MICRO-, SMALL AND MEDIUM-SIZED ENTERPRISES IN UKRAINE UNDER MARTIAL LAW AND THEIR IMPACT ON THE DEVELOPMENT OF TERRITORIAL COMMUNITIES

Abstract

Introduction. Supporting micro-, small and medium-sized enterprises (MSMEs) is a key priority of public administration, as this sector shapes employment, local budget revenues, and the socio-economic resilience of communities. The full-scale war in Ukraine has significantly restricted MSMEs’ access to financial resources, increasing the need for both state and international support. Despite the implementation of relevant programs, opportunities for MSMEs to obtain resources remain uneven and the effectiveness of existing mechanisms requires further improvement.

Purpose. The purpose of the article is to analyze financial support mechanisms for MSMEs under martial law, assess their impact on the development of territorial communities in Ukraine and identify directions for enhancing these mechanisms.

Materials and Methods. The study is based on Ukrainian regulatory and programmatic documents, statistical data from the State Statistics Service, analytical materials from government ministries, reports from international organizations and scientific research in public administration and economics. A systematic approach was applied, including analysis and synthesis, comparative and statistical assessment and logical generalization. For structural evaluation, a criteria-based matrix was developed, covering fiscal-economic, socio-adaptive and institutional-infrastructural dimensions.

Results. Key support mechanisms – state portfolio guarantees, grant programs and international financial initiatives – were analyzed, demonstrating their role in stabilizing the entrepreneurial sector and enhancing community resilience. The analysis indicates that these mechanisms stimulate the development of territorial communities, enhance their capacity, support entrepreneurial activity and ensure employment. Their effectiveness is limited by administrative and organizational barriers, uneven access to resources, and elevated risks for enterprises in frontline and de-occupied areas. Improvements should focus on regionally differentiated support, special programs for high-risk zones, resource consolidation and expanding digital services to facilitate enterprise access.

Prospects. Further research should focus on developing methodologies for quantitatively assessing the effectiveness of MSME financial support and its impact on local budget revenues, employment, the integration of vulnerable groups and the development of relocated enterprises.