PROSPECTS FOR DEVELOPING CREDIT MECHANISMS FOR SMALL BUSINESSES AND PRIVATE ENTREPRENEURSHIP

Abstract

Nowadays, the development of small businesses and private entrepreneurship stands as one of the critical prerequisites for ensuring sustainable economic growth, creating new job opportunities, increasing household incomes, and enhancing the competitive environment in the country. Operating across various sectors of the economy, small business entities possess the capacity to adapt rapidly to market demands, introduce innovations, and efficiently utilize local resources. Consequently, ensuring the financial stability of this sector and expanding its access to credit resources have emerged as key priorities of state economic policy.
Bank loans play a paramount role in financing small business and private entrepreneurship activities. Under conditions where entrepreneurs' own funds are limited, bank credits enable the expansion of production capacities, acquisition of fixed assets, formation of working capital, implementation of new projects, and scaling of service provision. The availability of credit resources heightens the investment activity of business entities and serves to elevate their competitiveness under market conditions.