The presented study explores opportunities for improving the efficiency of financial business support institutions with the purpose of enhancing the competitiveness of the regional economy.Aim. The study aims to identify opportunities and new tools for stimulating economic activity in regions through institutional business support measures.Tasks. The authors analyze the current performance and adequacy of financial business support tools utilized by development institutions at the regional level (through the example of the Rostov region) and formulate proposals on financial business support.Methods. This study uses general scientific methods of cognition (analysis, generalization, economic modeling, etc.) to examine the efficiency of business support provided by development institutions in various aspects and to identify the major directions for improving their operation.Results. Given the current economic situation in the national and global financial markets, the ability of regions to provide financial support to entrepreneurs (in particular, by reducing the cost of application of borrowed funds) is a key factor of their investment attractiveness. As a result, it is possible to achieve sustainable economic growth, which lays the foundation for the long-term competitiveness of the regional economy.Conclusion. Expanding the scope of institutional financial support at the meso-level in the basic non-resource industries and implementing a policy to support and maintain the financial stability of systemic companies in the region facilitates entrepreneurial activity and contributes to the development of the regional economy.
This chapter uses the relationship between behavioral factors and the creditworthiness of small-scale enterprises to increase access of SMEs to credit facilities. The inability of several small businesses to secure loans cannot be overemphasized. Heuristics affecting entrepreneurs are explained in this chapter, and a regression model showing the dependence of creditworthiness on behavioral factors is proposed. If banks consider using psychometric tools in testing for creditworthiness of small-scale entrepreneurs, access to credit facilities will be significantly increased and businesses will flourish. Regressesion models such as the one explained in this chapter may be imbedded in psychometric tools to enhance creditworthiness testing and improve the quality of loans that banks give.
People's IPO is a project that aims at distribution shares of state-owned entities to members of the public. Three Russian state-owned enterprises, VTB, SBERBANK, and ROSNEFT, conducted People's IPO between 2006 and 2007. The aim of these IPOs was to offer the general public an opportunity to own shares in state-owned enterprises. Such an investment opportunity would give ordinary citizens a stake in Russia's biggest state enterprises. Authors investigated the success or otherwise of these IPOs in distributing shares of government enterprises to ordinary citizens and gave recommendations on possible ways of improving public participation in People's IPOs. The aim of this chapter is to propose People's IPO as one of the ways of ensuring proper wealth distribution and eradicating injustice in the financial system. Authors recommend adoption of offer prices that friendly to small investors, creation of credit lines that would avail funds for investing in the IPOs. Companies going public should also adherer to the world's best to ensure growth in shareholders wealth.
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