DIGITAL FINANCE AS A TOOL FOR THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE EUROPEAN INTEGRATION’s CONDITIONS
Abstract
The purpose of this article is to analyze digital finance as a tool for influencing the high-quality development of small and medium-sized enterprises, taking into account European integration aspirations. The article analyzes the impact of digital finance on the development of small and medium-sized enterprises. In particular, digital financial inclusion can ensure the high-quality development of small and medium-sized enterprises. The internal and external mechanism of the impact of digital finance on the development of small and medium-sized enterprises is considered. From the perspective of the internal mechanism, the social responsibility of business and green technological innovations of enterprises play an intermediary role in this process. From the perspective of the external mechanism, the efficiency of the allocation of financial resources and the modernization of the structure of enterprises also have a beneficial impact on digital finance on the high-quality development of small and medium-sized enterprises. The role of a comprehensive program to support the digitalization of small and medium-sized enterprises in Ukraine and a regulatory framework for digital finance commensurate with the EU is emphasized. Based on the constructed model of expected profit of small and medium-sized enterprises, it is proven that the financial characteristics of digital finance can increase the number of companies applying for loans from financial institutions, which will lead to an increase in the loan amount due to the low interest rate policy. Strengthening the facilitating influence of digital finance on the high-quality development of small and medium-sized enterprises is possible due to: constantly expanding the coverage of digital financial inclusion, effectively deepening the use of inclusive digital finance, constantly increasing the digitalization of small and medium-sized enterprises, encouraging small and medium-sized enterprises to actively engage in corporate social responsibility and increase investment in environmental technological innovations, improving the efficiency of the allocation of financial resources and promoting modernization, as well as improving the functioning of the listed mechanisms within the framework of regional development policy.
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