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

SME bonds in European countries as a new approach to financing

Nowadays a lot of new financial instruments for SMEs innovation projects are getting more popular in the business environment. A great number of them are traditional like credit loans at the same time we can observe the appearance of innovative ones. Variable set of financial instruments generalized on fig.1. This classification is giving by Organiztion of Economic Cooperation and Development ( OECD). As we can see from the fig.1 the classification is based on risk approach. For further research it is needed to сlarify these definitions. Firstly, asset based finance is the method of assigning structured turnaround capital and term loans, disbursement of debit portfolio, stocks, machines, funds, and / or real estate. This type of finding is suitable for SMEs beginners, refinancing existing loans, growth financing, mergers and acquisitions

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 "Ukrainian Science Diaspora" initiative in the wartime

The devastating russian military invasion of Ukraine forced millions of people to flee their homes. Among those affected are highly skilled scientists, resulting in a significant loss of human capital for Ukraine, which is crucial for the post-war reconstruction. To address this pressing issue, the Young Scientists Council (YSC) at the Ministry of Education and Science of Ukraine launched the "Ukrainian Science Diaspora" initiative to mitigate the brain drain. The purpose of this study is to outline the first steps taken by this initiative. Moreover, it demonstrates lessons learned from the pilot meetings. The essence of the initiative is to keep links with scholars who left Ukraine and join the efforts of different migration waves of Ukrainian scientists for the further rebuilding of Ukraine. The YSC and other institutions prepared the analytical report on the needs and plans of Ukrainian scientists abroad. In addition, the paper highlights various events and activities organized by the YSC and other self-formed associations of Ukrainian scientists worldwide, working together to establish networks that could take the form of public organizations or be part of local unions of scientists. At present, efforts are focused on identifying Ukrainian scientists interested in joining this initiative, with the ultimate goal of identifying areas where Ukrainian scientists can participate in post-war reconstruction. The success of this initiative will undoubtedly play a crucial role in ensuring that Ukraine can retain its valuable human capital and continue to thrive in the face of adversity

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

MODEL ELEMENTÓW SKOŃCZONYCH DO ANALIZY CHARAKTERYSTYK DRGAŃ ŁOPAT WIRNIKA OSŁONIĘTEGO

The paper presents the approaches to FE modelling of blade airfoil, contact between the shrouds and operational damage. The regularities are established concerning the influence of the finite element type, finite element mesh and model of contact interaction on the spectrum of natural frequencies of blade assemblies. The use of the developed computational models is substantiated to determine the forced vibration characteristics of the selected objects of investigation. Based on the performed numerical experiments it was substantiated of finite element model selection for analysis of characteristics of shrouded rotor blade vibrations.W artykule przedstawiono podejścia do modelowania elementów skończonych płata łopaty, styku osłon oraz uszkodzeń eksploatacyjnych. Ustalono prawidłowości dotyczące wpływu typu elementu skończonego, siatki elementów skończonych oraz modelu interakcji stykowej na widmo częstotliwości drgań własnych zespołów łopatek. Uzasadnione jest wykorzystanie opracowanych modeli obliczeniowych do wyznaczania charakterystyk drgań wymuszonych wybranych obiektów badań. Na podstawie przeprowadzonych eksperymentów numerycznych uzasadniono wybór modelu elementów skończonych do analizy charakterystyk drgań osłoniętych łopat wirnika

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)

Barriers and opportunities for hi-tech innovative small and medium enterprises development in the 4th industrial revolution era

High-tech innovative SMEs’ development plays crucial role in economic growth of every country. It creates new work places and infrastructure, motivates people for creating new ideas. At the same time, SMEs still face with a huge number of problems in the business performance. The purposes of the research are: to define main barriers for high-tech SMEs’ development in the 4th industrial revolution era (4IR); to work out recommendations for policy-makers towards intensification of SMEs’ potential. For this purpose, the authors reviewed studies devoted to the SMEs’ innovative development and revealed that main barriers of SMEs’ development are related to inefficient government support in this sphere. In order to work out recommendations for Ukrainian policy-makers in the area of SMEs’ development, the authors conducted a survey of local high-tech SMEs and on the basis of SWOT-analysis distinguished the main directions for their further improvement. Finally, a set of recommendations for improving SMEs’ environment in Ukraine, taking into consideration the challenges of the 4th IR, was developed

Prior credit assessment of long-term SME projects with non-standard cash flows

Over the past three decades, the relative bank loan demand has changed due to the arising small and medium-sized enterprises (SMEs). Therefore, banks in their operations face the problem of processing an ever-increasing number of loan applications. The aim of this paper is to develop an auxiliary approach to assessing the prior creditworthiness of long-term SME projects with nonstandard cash flows.This study reveals how the principles of value-based management can be incorporated into the process of borrower’s creditworthiness assessment to improve the process of screening loan applications. For this, the internal rate of return was used as a criterion for loan granting decision at the initial stage of loan underwriting.An algorithm for the preliminary evaluation of loan applications is proposed and is based on the principle of maximizing the shareholder value of banks. This algorithm helps to define the credit terms taking into consideration the distribution of positive cash flows throughout the project’s expected economic life, calculate the possible real effective interest rate concerning the borrower’s nonstandard cash flow schedule, make a rough analysis on the economic efficiency of lending and state the necessary criterion to initiate the procedure of loan underwriting for the projects with nonstandard cash flow schedules. The proposed estimation algorithm stemming from the IRR-approach for the cash flow analysis can also be initially used by a borrower as a tool for credit solvency self-testing via screening of periods with corresponding cash flows that can be used for loan servicing