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Vol. 41, Nº 78 (2023), 595-611
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Recibido el 12/04/23 Aceptado el 10/07/23
Government nancial support for
businesses in the period of global threats
DOI: https://doi.org/10.46398/cuestpol.4178.41
Iryna Gryshchenko *
Anna Barikova **
Volodymyr Oliinyk ***
Ivanna Kozak ****
Nataliia Lutsiv *****
Abstract
The aim of the article was to analyse the available approaches
to the formation and implementation of governmental nancial
support for enterprises in the period of global threats. The
research methodology is based on the identication of key
risks and their nature; graphical method of classication of
scal constraints; construction of scatter diagram; methods of
sociological study and comparison of groups; grouping of the main
approaches to government policy. The results identied the dependence
of scal instruments of government support on the possibility of internal
indebtedness and external economic problems in middle and low-income
countries. The conclusions of the case identied the most eective
instruments of government nancial policy as a whole and by economic
groups of countries and economic sectors. Finally, the need to expand the
nancial instruments of governmental support of enterprises in view of the
consequences of the Russian aggression in Ukraine is emphasized.
Keywords: global threats; asymmetric wars; public policy; nancial
support; enterprises and authorities.
* Department of Public Administration and Innovation Management, National University of Life and
Environmental Sciences of Ukraine, Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-0002-8191-
1177
** Department of Public Management and Administration, National Academy of Internal Aairs, Kyiv,
Ukraine. ORCID ID: https://orcid.org/0000-0002-9707-0106
*** Department of Public Administration and Innovation Management, National University of Life and
Environmental Sciences of Ukraine, Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-0002-4647-
2658
**** Department of Regional and Local Development, Lviv Polytechnic National University, Lviv, Ukraine,
Ukraine. ORCID ID: https://orcid.org/0000-0003-1801-8877
***** Department of Ecological Economics and Business, Institute of Ecological Economics and
Management, Ukrainian National Forestry University, Lviv, Ukraine. ORCID ID: https://orcid.
org/0000-0001-5588-7778
596
Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
Apoyo nanciero del gobierno para empresas en el
período de amenazas globales
Resumen
El objetivo del artículo fue analizar los enfoques disponibles para
la formación e implementación de apoyo nanciero gubernamental
para empresas en el período de amenazas globales. La metodología de
investigación se basa en la identicación de riesgos clave y su naturaleza;
método gráco de clasicación de las restricciones scales; construcción de
diagrama de dispersión; métodos de estudio sociológico y comparación de
grupos; agrupación de los principales enfoques de la política gubernamental.
En los resultados se identicó la dependencia de los instrumentos scales
de apoyo gubernamental de la posibilidad de endeudamiento interno y de
los problemas económicos externos en países de mediano y bajo nivel de
ingreso. En las conclusiones del caso se determinaron los instrumentos
más efectivos de la política nanciera estatal en su conjunto y por grupos
económicos de países y sectores económicos. Finalmente, se enfatiza en la
necesidad de ampliar los instrumentos nancieros de apoyo gubernamental
a las empresas con miras a las consecuencias de la agresión rusa en Ucrania.
Palabras clave: amenazas globales; guerras asimétricas; política
pública; apoyo nanciero; empresas y autoridades.
Introduction
It is necessary to take into account the constant inuence of the external
environment when creating and selling goods, performing works and
providing services by economic entities in the sphere of social production.
The external environment can have both a favourable and a negative impact
on the functioning of business entities, which must be constantly taken into
account both in current and strategic management.
The factors related to volatility, uncertainty, risks, threats or global world
crises quite often put pressure on business entities. Current experience
shows that the manifestation of global threats and crisis situations can lead
to a critical situation for entrepreneurship, which exacerbates the problem
of insolvency, mass bankruptcy, layos, and the impossibility of doing
business. The impact of the COVID-19 pandemic can be a vivid example,
which has caused negative global economic consequences that still aect
dierent countries and areas of economic activity.
Most governments have made enormous eorts to contain the spread of
the COVID-19 pandemic, even if it meant shutting down economic sectors
for varying periods of time and thus causing serious consequences for
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businesses and workers. At the same time, signicant government funding
is aimed at supporting businesses in overcoming the negative economic
consequences caused by the pandemic. More than 70% of enterprises were
willing to take advantage of government support, as it was calculated that
35.1 million jobs may be lost in the US if the crisis lasts more than 6 months
(Bartik et al., 2020).
It should be noted that the duration of the crisis forced the states to
urgently develop appropriate policies that would contribute to nancial
and other support for businesses. In general, the approaches to government
support and anti-crisis measures, their actual implementation had quite
signicant dierences between countries.
In response to the manifestations of the pandemic (Gentilini et al.,
2020), 80% of countries began to use various forms of nancial assistance
to business entities in order to minimize economic problems for enterprises
(International Monetary Fund, 2021). Dierent countries provided dierent
amounts of the large-scale nancial support, while certain middle- and low-
income countries provided partial support.
The realities of geopolitical processes constantly demonstrate the
consequences of ongoing military crises, intensifying the destructive
impact on the socio-economic condition of certain countries or regions.
Likewise, global crises should include the consequences of Russian military
aggression in Ukraine, which led to large-scale internal and external
migration, destruction of infrastructure, industrial facilities, housing, and
termination of business entities.
According to the calculations of the World Bank, the total needs of
Ukraine for the restoration and construction of new infrastructural,
production and social facilities are estimated at $349 billion, which is more
than one and a half times the size of the Ukrainian economy in 2021 (World
Bank, 2022a). The specied problem involves the combination of both
internal resources and the capabilities of the countries that help Ukraine to
reduce the negative impact of the crisis on society and promote the recovery
of all industries, including economic and entrepreneurial activities.
When implementing government nancial support for businesses,
it is important to clarify the possibilities of crisis management, choose
eective tools, and avoid ineective ways of state intervention. The issue
of promoting proper nancing with the aim of guaranteed support for the
solvency of viable enterprises is urged. Identifying the positive market
eects that aected the nancial access and costs of enterprises will help
to identify the most eective government nancial support programmes,
which prevented mass closing down of businesses, dismissal of employees,
improved the functioning of market mechanisms and the stability of the
credit system during the crisis.
598
Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
The aim of the article is to study existing approaches to government
nancial support for businesses in the period of global threats. The aim
provided for determining the issue, which is the search for eective tools
of government support for the nancial and economic state of enterprises.
This implies the need to identify the main crisis situations and threats
that arise in the market environment; measure the eects of global crises
on business; analysis of the state’s possible nancial instruments; search
for the main approaches to shaping state policy of nancial support for
businesses in the period of global crises.
1. Literature review
In the recent decade, an adaptive approach has dominated the state
monetary policy in the developed countries with the aim of strengthening
market liquidity and borrowing costs. At the same time, the growth of
corporate debt was facilitated by the provision of loans at signicantly low
interest rates. Global nancial reforms implemented by the G20 countries
could not protect against economic troubles at the beginning of the
pandemic, given low-quality assets, inecient work of the banking sector
and increased vulnerability of the market nancial system.
The public sector and enterprises increased debts under the inuence
of crisis phenomena during the COVID-19 pandemic in order to overcome
nancial and economic problems. Government policy focused on economic
assistance programmes, while businesses saw the possibility of continuing
to function through loans and debts (OECD, 2021).
Numerous studies on nancial assistance to businesses deal with the
approaches to public policy directions for countering the consequences of
COVID-19 in countries with a high level of economic development (Baldwin
and Di Mauro, 2020). Some researchers (Cororaton and Rosen, 2021; Core
and De Marco, 2020; Kozeniauskas et al., 2020) examine the features of
existing business support programmes in some countries of the European
Union and the United States of America. They focus on the analysis of the
problems of the eective state programmes to help businesses to overcome
the consequences of the pandemic (Chetty et al., 2020).
The existing studies on the issue under research refer to various
directions of crisis manifestation. For example, the use of high-frequency
data revealed the negative impact of quarantine restrictions on economic
activity based on the analysis of transactions using bank cards (Chetty et
al., 2020), income report data.
Another part of the academic literature concerns the dierences in the
impact of the pandemic on the labour market and business in dierent
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Vol. 41 Nº 78 (2023): 595-611
countries (Germany, Great Britain, USA) (Adams-Prassl et al., 2020). A
survey of almost 6 thousand American companies (Bartik et al., 2020)
proved their nancial weakness and the consequences of the pandemic
(temporary suspension of 43% of enterprises, reduction of employment by
40%), which indicated the importance of external nancial assistance.
Another direction was the analysis of the consequences of the state
policies implemented in dierent countries to minimize the manifestations
of the pandemic. Most of the mentioned studies were country-specic, for
example, the United States of America (Granja et al., 2022), Switzerland
(Bruülhart et al., 2020), Italy (Core and De Marco, 2020), and other
countries. Regarding the nancial support of American companies under
the Paycheck Protection Programme ($ 349 billion), which was supposed
to preserve jobs through non-refundable loans, the programme did not
provide the required eect. Many companies did not use loans for their
intended purpose (salaries and creation of reserves), but directed the funds
to other payments (Granja et al., 2022).
A survey on the impact of the pandemic on businesses was used in
(Nelson, 2021; Wagner, 2022; Webster et al., 2022) and other studies.
Some researchers studied developing countries and showed negative sales
and employment results, and revealed the problems of support policies
(Cirera, 2021).
A study (Nelson, 2021) examined 20 companies in developing countries.
It was found that the shutdown of businesses had a negative impact on
permanent workers, temporary employed were aected to a lesser extent.
Another study (Webster et al., 2022) concerned the situation on labour
markets in Central American countries and European companies (Janzen
and Radulescu, 2022).
The government nancial support policy to companies was based on the
principles of sequential or parallel use of various economic tools: prevention
of bankruptcy in order to simplify restructuring and fullment of corporate
objectives. Another approach was state regulation mechanisms: stimulating
the capital inow, suspending certain tax payments, which allows for debt
recapitalization and maintaining the openness of capital markets.
It is possible to provide direct government support in the form of debt.
It will remain important to determine the conditions that will stimulate
companies, and public authorities will gradually begin to minimize the
indicated tools based on the results of nancial recovery (OECD, 2020b).
Recovering from dicult conditions and consequences of the pandemic,
companies were unable to full their nancial obligations, which increased
the essential role of government support as an economic rescue programme.
During the crisis, more than 160 countries and institutional entities turned
to large-scale programmes for monetary and scal support (state guarantees
600
Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
for lending, debt moratoriums, direct loans and grants, tax breaks, direct
capital support).
These tools helped most companies that had limited access to nancing to
continue their activities. The results of the 2020 and 2021 OECD Committee
on Financial Markets (CMF) surveys emphasize that OECD countries have
suciently supported businesses by introducing government programmes
and a set of economic instruments. Another result was an understanding
of time limits and algorithms for exiting support programmes in order to
prevent the recovery rate decline (OECD, 2021).
2. Methods
The research design is based on several stages. The initial stage provided
for the identication of the key risks that may arise in the long run and
determining their nature based on the World Economic Forum methodology
(WEF, 2023). The World Bank data were used to determine the ranking of
scal restrictions for groups of countries with dierent income levels based
on a graphical method.
The next step is to build a scatter diagram to analyse the existing problems
of nancial instability arising in the post-crisis period, taking into account
the consequences of public policy actions (additional debt obligations of the
nancial system) by groups of countries with dierent income levels. The
method of sociological survey combined with group comparison identied
the government support programmes and the directions of the most
required support by groups of countries with dierent income levels and
main economic sectors. This is followed by a comparison to determine the
main approaches to the government nancial support for businesses, based
on the needs of updating the tools and starting new assistance programmes.
3. Results
Global threats and risks accompany human civilization, and the number
of threats is constantly increasing as society develops. The researchers
are concerned with issues of global threats and risks, which implies the
emergence of dierent approaches to their classication. the Global Risks
Report published by the World Economic Forum every year is one of the
well-known methods, which identies global threats that can turn into
signicant problems for the many economies around the world.
The latest report for 2023 denes the main clusters of global risks,
which include: deterioration of natural capital (water and forest resources,
living organisms); problems related to the deterioration of human health
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CUESTIONES POLÍTICAS
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(consequences of pandemics); violations of people’s security (ceasing
demilitarization, conicts); weakening of digital rights (reduction of
digital autonomy and privacy); decreased economic stability (debt crisis,
curtailment of social services). The indicated directions are not exhaustive
and carry warning information for the purpose of adjusting the relevant
state policy (WEF, 2023).
Table 1 presents the results of analysis of threats for the next 10 years.
Moreover, the majority of threats are predicted in the environmental
sphere, of which 4 are the most dangerous. But crises related to geo-
economic confrontation and geopolitical problems are no less global and
tragic in their consequences. For example, in addition to other tragic
consequences the Russian military actions caused signicant losses to
Ukrainian businesses, which were forced to stop their activities, save human
and material resources, relocate their businesses to the western regions of
the country, or were forced to go bankrupt.
Table 1. Global risks by degree of danger in the long run
Degree
of danger The risk The nature
of the risk
1 Failure to stop climate change Environmental
2 Failure to adapt to climate change Environmental
3 Natural disasters and extreme weather phenomena Environmental
4 Biodiversity loss and ecosystem collapse Environmental
5 Large-scale forced migration Social
6 Crises of natural resources Environmental
7Decrease of social cohesion and polarization of society Social
8 Wide spread of cybercrime Technological
9 Geoeconomic confrontation Geopolitical
10 Large-scale environmental events Environmental
Compiled on the basis of (WEF, 2023).
If we analyse the results of the state policy of mitigating the crisis for
businesses, it involved the provision of grace periods and the temporary
suspension of loan payments, which reached enormous scale (Figure 1).
Analysis of data on the response to the pandemic shows that scal action
is limited because of diculties in obtaining domestic borrowing in 72% of
low-income countries and 57% of lower-middle-income countries (Figure
1). States that have had signicant scal constraints will nd it very dicult
602
Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
to sustain business during the recovery period. In lower-middle-income
countries, recovery processes will depend signicantly on the reduction of
external economic problems.
Figure 1. Fiscal constraints in response to the pandemic by country income
group. Built on the (World Bank, 2022b).
Problems of nancial instability in the post-crisis period may be caused
by the consequences of government actions (Figure 2). Most states provided
nancial support to businesses during the pandemic at the expense of
new debt obligations of the domestic nancial system. As the state’s scal
position deteriorates, its credit rating decreases, limiting the ability of
nancial institutions to provide new loans.
So, the possibility of a combination of crises in the nancial sector and
public nances is increasing. The rating and forecast expectations of the
largest banking institutions are decreasing in some countries. The growth
of the banking sector can also disrupt the stability of the relationship
between the state and the banking sector, making it dicult for the state
management system to implement anti-crisis measures (Feyen and Mare,
2021).
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Figure 2. Public debt and banking sector volatility during the COVID-19 crisis by
country income group. Built on the basis of (World Bank, 2022b).
During the pandemic, the countries with dierent economic development
used dierent approaches to nancial support for businesses, depending on
the economic situation and the available capabilities of the country. The
conducted research on the provision of government support for enterprises
of 27 countries in dierent economic sectors demonstrated the advantage
of companies from key sectors of the economy, which mostly received
subsidies for wages and cash receipts.
Other companies were mostly supported through indirect government
measures (better access to credit, deferment of payments). So, the public
policy of dierent countries implemented their own approaches to the type
of support for businesses operating in key and non-key economic sectors
(Stemmler, 2022).
In general, the possibilities of nancial instruments (suspension of
interest payments, access to loans with deferred payments, extension of
debt obligations) and stimulating taxation (tax restrictions, discounts and
tax deferrals) have become the most necessary in the government business
support policy (Table 2). These approaches prevail over other necessary
tools, such as remittances (30%), wage subsidies (24%).
604
Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
Table 2. The most desirable government business support policy
(share of companies)
Monetary
transfer
Payment’s
deferral
Access
to credit
Tax
support
Wage
subsidies
Total 30.04 23.54 49.46 46.73 23.89
Low 9.53 8.43 25.65 50.38 14.19
Lower-Middle 29.80 26.02 59.16 46.07 16.64
Upper-Middle 36.06 23.77 49.37 46.52 41.96
High 31.52 15.00 25.39 65.24 45.99
Agro and mining 33.57 18.85 52.11 37.53 21.02
Manuf 30.00 22.94 49.85 46.40 24.77
Const and untilities 29.12 19.99 51.47 46.51 21.82
Retail and wholesale 28.22 25.09 48.97 48.75 22.37
Transp and storage 30.75 20.82 49.50 46.75 25.57
Accom 31.32 22.41 47.17 48.57 31.55
Food prep and serv 33.49 31.48 49.44 45.88 23.62
Info and comm 29.82 24.83 47.79 52.06 22.11
Fin serv 24.78 20.92 48.69 50.10 21.85
Other serv 30.62 26.76 47.69 46.27 26.13
Source: Cirera (2021).
Table 2 shows the dierences in the needs for nancial instruments
depending on income groups. The need for wage subsidies increases as
incomes rise. Remittance needs, deferred payments and access to loans are
important in middle-income countries. Tax reductions and deferrals are
used in low- and high-income countries.
Dierences and needs for government nancial assistance in relation
to various sectors were identied, but the general trends should also be
noted. The need to reduce and defer taxes are key priorities for businesses
from various groups. At the same time, the need to receive a wage subsidy
generally increases according to the income level in the country (Cirera,
2021).
The long duration of the pandemic forced the continuation or
introduction of new measures to limit economic activity, which intensied
the crisis state of businesses. As a result, the state was forced to expand
business nancial support programmes. Studies of government nancing
support programmes for businesses demonstrate ongoing provision of
loans and guarantees for them, for example, in some OECD member
countries (Table 3) (OECD, 2020a).
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Table 3. New programmes and notied changes to existing
nancial support programmes
New programmes Updating expiring programmes
New programmes for individual sectors
Recovery support programmes
Filling existing sectoral gaps
Changes to existing programmes Borrowing cost
Budget allocation
Lending criteria
Extending the duration of the loan
Acceptable pledge
Access to government programmes
Loan size
Sustainable development issues Inclusion of sustainability aspects in
government programmes
Source: OECD (2020a).
Further approaches to the government nancial support for businesses
involve the updating of already completed programmes based on changed
instruments, and the formation of new programmes that are aimed at
certain important industries. The tools are mainly focused on the improved
distribution of budget resources and the expansion of the programmes
by simplifying requirements, expanding compliance and sectors of
application). Regarding new programmes, the example of state guarantees
in Belgium is worth noting, where loans with extended repayment terms
are oered to businesses.
Starting in 2020, Finland directed new state nancial support to
companies that had a 30% decrease in turnover and problems with cost
refund because of the pandemic. Similarly, Greece introduced additional
business support measures of €3.3 billion to oset the costs of the second
national lockdown. Other approaches were aimed at change processes
at companies. For example, the Credit Guarantee Programme in Japan
provided subsidies to help businesses carry out reforms of the company
management system.
Lithuania introduced the Business Assistance Fund Programme, which
helps to obtain nancing for companies that do not have the opportunity
to obtain funds from nancial institutions. In this case, the support
involves obtaining debt securities, loans, and hybrid instruments. Slovenia
introduced funding opportunities for innovative research and development
and infrastructure projects aimed at combating the pandemic (OECD,
2021).
It can be argued that the need to increase nancing of dierent support
programmes by the state provides for special mechanisms and tools for
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Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
providing nancing and the possibility of receiving it by companies in
dierent countries to overcome the crisis. As the analysis of the instruments
introduced by the state to provide nancial assistance to businesses show,
the following main areas should be identied: interest-free loans, low-
interest loans, interest cancellations for cost compensation (rent, wages, bill
payments, employee protection), production support, business recovery,
subsidizing unemployment insurance, supporting infrastructure projects.
Fiscal measures should be dened as another direction in government
policy: tax reduction, tax benets, deferment of tax payment. Besides,
the provision of nancial assistance in the form of non-refundable grants
and nancial support of high-tech and innovative companies based on
the attraction of investment funds and the provision of scholarships for
research turned out to be appropriate.
4. Discussion
A general limitation of the study is the focus on nancial measures of
countries during the COVID-19 pandemic. There is no doubt that this crisis
became one of the largest and caused huge nancial problems in the business
system. The research was focused on the analysis of the said crisis because
of the availability of a signicant data volumes both on the companies’
performance and the government business support policy. At the same
time, it would be appropriate to expand the available cases on the impact
of crises related to global and local environmental, political, nancial and
geopolitical reasons and ways of solving them through government support
on businesses.
The study emphasized that the nature of problems in each country with
an emphasis on global trends but with strengthening/mitigation according
to local favourable or unfavourable internal factors is the peculiarity of the
consequences of crises and threats. In the same way, the formation and
implementation of the state policy of nancial assistance to businesses is
based on taking into account a combination of global and local problems.
This vision is conrmed, for example, by the results of identifying the
greatest risks for each country in comparison with the list of the degree of
danger at the global level (WEF, 2023). Moreover, it is methodologically
appropriate to expand the economic sectors in which government support
was provided and, likewise, to increase the number of government business
support policy instruments (Cirera, 2021).
The global crisis caused by the spread of the pandemic proved that
the need for government business support is the main mechanism for
compensating for private losses, bankruptcy, and unemployment.
CUESTIONES POLÍTICAS
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607
A signicant number of studies substantiated state restrictions and
necessary business support policies. Research ndings conrm the thesis
about the dierent impact of restrictions on businesses depending on
the economic sector (Gryshchenko et al., 2022). For example, quarantine
restrictions caused a 100% drop in sales in the hotel and restaurant
business. But this business makes up about 5% of the studied companies.
At the same time, manufacturing companies, which make up 55% of the
studied companies, were aected toa lesser extent (Janzen and Radulescu,
2022).
In general, the study identied potential threats and risks that can lead
to signicant complications of doing business, when one of the key ways will
be the provision of government support based on the available tools. But we
should dwell on individual issues. Some researchers focus on increasing
gender inequality.
The companies headed by women faced the greatest problems in
operation and restrictions on receiving nancial assistance during the crisis.
Another aspect of the problem emphasizes the decreased opportunities to
receive government nancial support for companies from countries with
lower economic development than in countries with a high income (Cirera,
2021).
The state’s initial vision for the possibility of providing support to
companies was based on exclusion, rather than a priority of strict direction.
This helped many companies that received support to survive the pandemic
without problems. Studies show that some public policy instruments (direct
liquidity inows based on loans and wage subsidies) have suciently
weakened scal constraints and reduced dismissals (Cirera, 2021).
Dierent instruments of state nancial support enabled companies to
overcome negative consequences. Some results show that the applied job
preservation tools compared to other support saved 0.74 to 1.5 jobs per
company were, which also proves the importance of government support
for businesses during the global crisis.
If it is impossible to implement the mentioned programmes, the
resulting sales losses may cause a loss of liquidity and the company’s ability
to operate, and consequently a loss of employment. Despite the signicant
costs for the budget, which in some cases led to excessive nancing of some
companies, the use of government support instruments can prevent further
deterioration in the labour market and contribute to the improvement of
economic situation in the long run (Janzen and Radulescu, 2022).
Taking into account the potential environmental, social, geopolitical risks
and threats, both on a global scale and at the country level, it is appropriate
to develop, a government nancial support strategy for businesses in the
event of crisis situations with due regard to the available experience. The
models of nancial support for businesses, which have already been used
608
Iryna Gryshchenko, Anna Barikova, Volodymyr Oliinyk, Ivanna Kozak y Nataliia Lutsiv
Government nancial support for businesses in the period of global threats
by many countries during past crisis periods, should be taken into account
when preparing the future recovery strategy of Ukraine. Existing approaches
need to be strengthened with various instruments of state compensation for
destroyed production facilities and priority nancing of new construction
or reconstruction of facilities, with the aim of stimulating business activity
on the territory of Ukraine.
Conclusions
The large-scale pandemic, which enveloped the whole world, caused an
unprecedented deterioration of the economic activity of business entities.
Measures to combat the spread of the disease had a negative impact on
businesses. As a result, a signicant number of companies ceased operations,
causing massive job losses. The issue of combating the manifestations of
crisis situations and threats requires the involvement of signicant nancial
resources, which are lacking in companies of dierent economic sectors.
It was found that the lack of working capital forced the businesses
to turn to the state for support. The results of the study prove that the
lack of existing experience made it dicult for the state to respond to a
large-scale crisis. The government nancial support policy to businesses
used programmes to support monetary and scal direction, namely: state
guarantees for loans, moratorium on debt obligations, direct loans and
grants, preferential taxation and direct capital support.
In general, the study demonstrated the essential role of government
nancial support for businesses, but revealed the heterogeneity of the
results of such support and the appropriateness of using dierent tools
depending on the economic state of the country and the economic sphere.
An important area of further research should be the development of a
strategy for the recovery of Ukraine with the involvement of international
institutions. The tools of government nancial support for businesses
should be expanded separately, taking into account the additional needs
for the construction of the destroyed transport and logistics infrastructure
and new facilities related to the intensication of entrepreneurial activity.
Acknowledgment and conicts of interest
The authors declare that they have no conicts of interest with respect to
the research, authorship, and/or publication of this article. The authors did
not receive any nancial assistance for conducting the research and writing
this article. Any errors or omissions are our own.
609
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Esta revista fue editada en formato digital y publicada
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Universidad del Zulia. Maracaibo-Venezuela
Vol.41 Nº 78
