Implementation of ICO European best practices by SMEs

The article deals with a new financial tool of attracting capital, known as Initial Coin Offering (ICO). In conditions of reduced banking lending and difficult access to finance for SMEs, ICO is viewed to be one of the possible ways to access capital. It considers the main advantages and disadvantages of ICO performance, including its typical features, challenges and regulatory approaches to tax regulation, cybersecurity. The authors of the article determine stages of the ICO mechanism, identifying potential risks and ways to mitigate them, focusing primarily on the need to control and regulate ICO projects. The authors identify the main types of ICO funding, including hybrid and pure funding. The research contains an analysis of ICO trends and their duration for the period of 2013-2017. The capital raised through ICO performance over the period of 2013-2017 is analysed, and determination of the exponential trend line showing the level of its approximation is determined. The study covers the territorial distribution of ICO, in which the top positions regarding the amount of capital raised by ICO are attributed to the USA and EU member states. The existence of ICO regulation in European countries, such as Switzerland and UK, was defined positive in terms of further development of the relevant regulation in the financial market. The article considers the best ICO practices in EU member states. To mitigate risks relating to ICO performance and to increase the level of investment, it would be reasonable to create regulatory rules in every country where cases of ICO performance are reported, based on the practice of the mentioned European countries. The authors give recommendations regarding ICO regulation in Ukraine, taking into consideration the relevant European experience

European smart specialization for Ukrainian regional development: path from creation to implementation

The focus of the research is to develop recommendations of smart specialization (SS) for Ukrainian policymakers using European approaches. The authors revealed that the main SS projects are presented in such sectors as agri-food, industrial modernization and energy. More than 12 EU countries were the plot for conducted analysis of SS, as a result of which the level of activity of each country was determined. The creation of consortiums, including SMEs, associations, universities and other participants, disclosed the successful way of SS realization. The structure of SME’s innovative potential in Ukraine was identified underlining their main characteristic features like types of innovations and innovative activity, differentiation according to enterprise size, their regional distribution. The authors explored lack of innovations on regional and national level and significant territorial disparities, which could be eliminated through policy implementation of regional SS. The existing legislative norms for possibility of SS implementation in Ukraine were analyzed due to correspondence with the EU ones. The analysis provides the opportunity to consider them only as general framework documents without any action plans and sectoral prioritization at all. The weak points of these law documents are emphasized. As a result of research, the authors developed recommendations presented by direct action plan for Ukrainian policymakers, which include such activities as underlining key priorities (especially ICT applicability in every SS project) and their correspondence with the EU ones; eliminating regional imbalances by focusing on innovation development and reorientation of some regions according to SS priorities; respecting regional existing capacities; providing organizational mechanism for cooperation of stakeholders and financial mechanism for SS support through the EU structural funds

The analysis of features of application of methods of integral evaluation of investment attractiveness of Ukrainian agro holdings

Метою статті є аналіз адекватності застосування інтегральної методики для оцінки інвестиційної привабливості агрохолдингів України, виявлення сильних та слабких сторін. The aim of the article is to analyze the adequaty of using of integral methodic of investment attractiveness evaluation of Ukrainian agro holdings and define strengths and weaknesses.В статті проведено аналіз особливостей застосування методики інтегральної оцінки для агропідприємств, яка розроблена Агенством з питань запобігання банкрутству підприємств та організацій, сутність якої зводиться до зведення окремих показників фінансового стану підприємств до єдиного – інтегрального. Для апробації цієї методика була зроблена вибірка підприємств за двома критеріями: наявне місце у Топ 100 агрохолдингів України та котирування акцій на Варшавській фондовій біржі. Розрахунок інтегрального показника проводився на основі фінансової звітності 2009–2013 рр. за такими підприємствами: Agroton Public (AGT), Astarta Holding N.V. (AST), Industrial Milk Company (IMC), KSG Agro (KSG) та Ovostar Union (OVO). Крім того було розраховано величину відхилення інтегрального показника оцінки інвестиційної привабливості агропідприємств України від середнього вагового коефіцієнту оцінки за 2009–2013 рр. При застосуванні методики інтегральної оцінки інвестиційної привабливості для аграрних підприємств було виявлено такі переваги: можливість оцінити різні аспекти господарської діяльності; можливість поєднати в одному показнику багато різних за назвою, одиницями виміру, вагомістю та іншими характеристиками чинників; додаткові можливості для інвестора оцінити конкретне підприємство без урахування інвестиційної привабливості країни, регіону або галузі. Але, окрім виявлених переваг існують і недоліки: відсутність врахування чинників специфічності сільськогосподарської галузі, наприклад сезонності виробництва, мінливості врожаю різних сільськогосподарських культур, впливу мінливості природних умов; необхідність наявності досить обширного масиву вхідної інформації для розрахунків; відсутність врахування зовнішніх факторів впливу на діяльність підприємства. Тому, в статті були запропонованi критерiї комплексної оцiнки iнвестицiйної привабливостi.The article shows the significance of the development of agro-industrial enterprises for development of the economic system of the whole country. It is proved that in modern conditions of underfunding of the corporate sector the sustainable development for all enterprises is impossible without the involvement of investment resources, including agricultural ones. Therefore, special attention is paid to questions of investment attractiveness of agricultural enterprises, in particular, the searching for optimal methods of its evaluation. The article includes the analysis of features for application of methods for integrated assessment of agricultural enterprises, which was created by Agency on prevention of bankruptcy of enterprises and organizations. The essence of this method is mixed to the construction of separate indicators of the financial condition of the enterprises to a single integral. For approbation of this method was made by extracting companies according to two criteria: the available place in the Top 100 of Ukrainian agro holdings and share prices on the Warsaw stock exchange. The calculation of the integral index was performed on the basis of the financial statements 2009–2013 for such companies: Agroton Public (AGT), Astarta Holding N. V. (AST), Industrial Milk Company (IMC), KSG Agro (KSG) and Ovostar Union (OVO). The integrated assessment consists of various components of the estimate of financial activity of the company, that includes the analysis of indicators of efficienct use of fixed assets, efficient use of working capital, financial stability, liquidity and solvency, efficiency and profitability, business activity and profitability of the issuanced corporate rights. In addition it was calculated the deviation of the integral index of assessment of investment attractiveness of Ukrainian agricultural companies to the average weight ratio estimates for 2009–2013. There were identified such advantages during applying the methods of integral estimation of investment attractiveness of agricultural enterprises: the ability to evaluate various aspects of economic activity, the possibility to combine in one indicator of many different ones, measurement units, weight and other characteristics of factors, additional possibilities for an investor to evaluate the company without considering the investment attractiveness of the country, region or industry. But, in addition to the identified benefits, there are drawbacks: the lack of consideration, that are relevant to the specificity of the agricultural sector, for example, the seasonality of production, variability of yield of different crops, the influence of variability of natural conditions; it requires a lots of background information for the calculations; the lack of consideration of external factors influence on enterprise activity. Therefore, the article proposed the criteria of complex assessment of investment attractiveness

Использование криптовалюты в деятельности малых и средних предприятий с целью повышения их инвестиционной привлекательности

The aim of the article is to analyze the main features of cryptocurrency with respect to the identification of main advantages and disadvantages of using cryptocurrency as a method of effecting cashless payments by small and medium enterprises in order to increase the level of their investment attractiveness. The article describes the basic characteristics of cryptocurrencies and Bitcon as the most common among them. The Bitcoin emission mechanism has been built and the dynamics of changes in the value, difficulty of its «extracting» or «mining», the market capitalization for 2009–2016 have been analyzed. In this connection the identified main trends and the relationship between the analyzed indicators are highlighted. The attitude of the authorities of different countries to «mining» and using cryptocurrency in calculations is shown, the monitoring of leading international financial institutions in terms of the use of Bitcoinis is carried out. In addition, the leaders among the existing cryptocurrency exchanges are determined, and the level of their market capitalization is shown, a comparative analysis of the traditional currency and cryptocurrency is conducted, an assessment of financial institutions that work with Bitcoin in Ukraine is performed, the attention being focused on the main advantages and disadvantages of using cryptocurrency in small and medium business. Taking into account all the positive aspects there justified the prospects of using the presented in the article finance cryptoinstruments, in particular Bitcoin, in order to improve the investment attractiveness.Метою статті є аналіз головних особливостей криптовалюти стосовно визначення основних переваг та недоліків використання криптовалюти як методу здійснення безготівкових розрахунків з метою підвищення рівня їх інвестиційної привабливості. У статті визначено основні характеристики криптовалют та визначено найбільш розповсюджену серед них. Побудовано механізм емісії біткоіну та проаналізовано динаміку зміни вартості, складності “добування” або “майнінгу”, ринкової капіталізації за період 2009–2016 рр, при цьому окреслені основні тенденції та залежності між проаналізованими показниками. Визначено ставлення влади різних держав до “майнінгу” та використання криптовалюти у розрахунках, провелено моніторінг провідних міжнародних фінансових установ на рахунок питань використання біткоіну, крім того визначені лідери серед існуючих криптобірж та показаний рівень їх ринкової капіталізації, проведено порівняльний аналіз традиційної валюти та криптовалюти, здійснено оцінку фінансових установ, які працюють з біткоін в Україні та наголошено на основних перевагах та недоліках використання криптовалюти у малому та середньому бізнесі. З урахуванням усіх позитивних сторін обгрунтовано перспективність використання окреслених в статті фінансових крипто інструментів, зокрема біткоінів, з метою підвищення інвестиційної привабливості.Целью статьи является анализ главных особенностей криптовалюты относительно определения основных преимуществ и недостатков использования криптовалюты как метода осуществления безналичных расчетов с целью повышения уровня их инвестиционной привлекательности. В статье определены основные характеристики криптовалют и определена наиболее распространенная среди них. Построен механизм эмиссии биткоина и проанализирована динамика изменения стоимости, сложности “добывания” или “майнинга”, рыночной капитализации за период 2009–2016 гг, при этом обозначены основные тенденции и зависимости между проанализированным показателями. Определено отношение властей разных стран к “майнингу” и использованию криптовалюты в расчетах, проведено мониторинг ведущих международных финансовых учреждений на счет вопросов использования биткоина, кроме того определены лидеры среди существующих криптобирж и показан уровень их рыночной капитализации, проведен сравнительный анализ традиционной валюты и криптовалюти, осуществлена оценка финансовых учреждений, которые работают с биткоин в Украине и акцентировано внимание на основных преимуществах и недостатках использования криптовалюти в малом и среднем бизнесе. С учетом всех положительных сторон обоснована перспективность использования указанных в статье финансовых крипто инструментов, в частности биткоинов, с целью повышения инвестиционной привлекательности

University Impact on Regional Development in the Context of Smart Specialisation

Regional development on the basis of smart specialisation entails the involvement of stakeholders in innovation processes such as business, public organisations, local government and academic sectors. Universities are the drivers of a region’s development because they have a broad research base. Using the methodology of the Joint Research Centre (European Commission), the impact of Sumy National Agrarian University on the development of the Sumy Region was assessed by such criteria as its cooperation with stakeholders, innovative infrastructure of the university, development of academic entrepreneurship, and its role in developing the region. The method of collecting qualitative data involved conducting structured interviews with the university administration and relevant departments. The collected data were analysed by content analysis. As a result of testing the methodology, its high level of applicability was noted in the Ukrainian academic space, outside the EU. It is recommended to use the method of assessing the impact of the university on the development of the region during the entrepreneurial discovery process, which follows the definition of priorities for the development of the region in the context of smart specialisation. The recommendations were given on the revival of cooperation with stakeholders, possible ways of developing academic entrepreneurship and building innovation infrastructure. The results of the research presented in this article may be used in university promotion within the region and the country as well in the context of smart specialisation. Policy makers may use the research results in order to provide regional innovation policy.Regional development on the basis of smart specialisation entails the involvement of stakeholders in innovation processes such as business, public organisations, local government and academic sectors. Universities are the drivers of a region’s development because they have a broad research base. Using the methodology of the Joint Research Centre (European Commission), the impact of Sumy National Agrarian University on the development of the Sumy Region was assessed by such criteria as its cooperation with stakeholders, innovative infrastructure of the university, development of academic entrepreneurship, and its role in developing the region. The method of collecting qualitative data involved conducting structured interviews with the university administration and relevant departments. The collected data were analysed by content analysis. As a result of testing the methodology, its high level of applicability was noted in the Ukrainian academic space, outside the EU. It is recommended to use the method of assessing the impact of the university on the development of the region during the entrepreneurial discovery process, which follows the definition of priorities for the development of the region in the context of smart specialisation. The recommendations were given on the revival of cooperation with stakeholders, possible ways of developing academic entrepreneurship and building innovation infrastructure. The results of the research presented in this article may be used in university promotion within the region and the country as well in the context of smart specialisation. Policy makers may use the research results in order to provide regional innovation policy

DIGITAL TRANSFORMATION OF INTERNATIONAL TRADE IN THE CONTEXT OF GLOBAL COMPETITION: TECHNOLOGICAL INNOVATIONS AND INVESTMENT PRIORITIES

In today's world, globalization and digital technologies are significantly transforming the landscape of international trade. Digital transformation has become a critical aspect that determines the competitiveness of countries and businesses in the international arena. The study aims to identify the impact of the digitalization of international trade on the economic development of countries and their competitiveness based on technological innovations that determine the future of global competition at the country and company levels, affect trade processes, and identify and justify investment priorities to support digital transformation in Ukraine. The study analyzes the impact of the digitalization of international trade on the economic development of countries, which is caused by the digital divide between developed and least developed countries (LDCs). Developed countries are characterized by Internet coverage and access of more than 90%, as opposed to LDCs, where the corresponding figure is less than 20%. Given the current conditions of access to the Internet, the countries of the latter group are not able to be fully involved in e-commerce and cross-border trade in digital products. An additional barrier to developing digital commerce in certain regions of the world is the need for more legislation on various e-commerce trade issues. The impact of the war in Ukraine on the e-commerce market is determined: the e-commerce market declined 12 times in 2022 compared to the pre-war period and began to recover gradually in 2023. The market is expected to recover almost fully in Ukraine by the end of 2023 or early 2024. The main challenge for Ukraine will be to expand the scope of the existing free trade agreements to cover services, e-commerce, and investment. Ukraine should become a significant player in several global markets for services and digital products, given the availability of an updated regulatory framework on these issues. E-commerce is expected to grow rapidly after the end of the war in Ukraine

Фінансовий інжиніринг як складова додаткового надходження фінансових ресурсів у банку

Метою дослідження є аналіз ролі фінансового інжинірингу у формуванні додаткових джерел отримання фінансових ресурсів банку, зокрема аналіз використання безконтактних карток в Україні та європейських державах та можливості застосування європейського досвіду у національній банківській системі. В статті розглядаються процеси створення банківських продуктів, сучасні інноваційні технології обслуговування на ринку банківських послуг. Також, виділяються основні напрямки розвитку фінансового інжинірингу для досягнення і отримання необхідних конкурентних переваг в банківській діяльності.The aim of the article is to analyze the role of financial engineering in the additioanl financial resources formation, analysis of contactless cards using in Ukraine and European countries in particular and and find ways for integration of European experience to Ukrainian banking system. In the article we describe creation of new banking products, modern innovation service in the banking market. Also, the main areas of financial engineering are identified for achieving operation strategic goals and obtaining the essential competitive advantages in banking activity.Целью исследования является анализ роли финансового инжиниринга в формировании дополнительных источников получения финансовых ресурсов банка, в частности анализ использования бесконтактных карт в Украине и Европейских странах и возможностей привлечения европейского опыта в национальной банковской системе. В статье рассматриваются создание банковских продуктов, современные инновационные технологии обслуживания на рынке банковских услуг. Также, автор выделяет основные направление развития финансового инжиниринга, достижение и получения необходимых конкурентных преимуществ в банковской деятельности

Government response on russian war in Ukraine: Relocating business

The russian war in Ukraine replaced not only millions of people but also businesses in the safer regions of Ukraine. The study aims to identify regional stakeholders’ emergency responses in reaction to the russian war in Ukraine associated with business relocations and their impact on the host region. Employing qualitative research methods, including focus group discussions and in-depth semi-structured interviews with 25 informants (representatives of departments of economic development of regional authorities and administrators of regional development agencies), the study was conducted between March and May 2023. The findings reveal a diverse range of relocation strategies, with a significant inclination toward safer western and central regions of Ukraine, which accounted for more than 70% of displaced businesses. The notable share of relocated companies are wholesale and retail trade companies and the processing industry companies – 40% and 32%, respectively. It is assumed that not capital-intensive companies were relocated first. The support from regional stakeholders played a crucial role in mitigating business challenges related to relocation (communication difficulties, market loss, supply chain disruptions, and employee relocation issues, providing comprehensive assistance, and facilitating integration into the new socio-economic environment). The study acknowledges potential biases in responses and emphasizes the importance of correctly interpreting results. The study results are helpful for policy-making regarding regional development and the post-war rebuilding of Ukraine. AcknowledgmentThe study was conducted within the framework of the State Budget of the Kyiv National Economic University named after Vadym Hetman on the topic “Displaced business in revitalization of regional ecosystems in Ukraine” (state registration number 0123U100357)