CONCEPTUAL FOUNDATIONS OF FINANCIAL SUPPORT OF INNOVATIVE DEVELOPMENT OF THE ENTERPRISE

Abstract

The objective of the article is a comprehensive study of the current state and substantiation of theoretical and practical aspects of financial support for innovative activities of enterprises in Ukraine. The results. The article highlights the importance of innovative activity for the viability of enterprises in modern conditions. The theoretical and methodological foundations, as well as the main aspects of innovative activity as a key element of the company's success, have been studied. Scientific novelty. Various sources of financing for innovation are explored, including internal and external sources such as bank loans, venture capital, franchising, and others. The specific problems of financing innovative enterprises were identified, the need to create specialized financial intermediaries, namely business angels and venture funds, was considered. The article provides an overview of the main trends in financing carried out by these intermediaries. A study of the advantages and disadvantages of each of these sources was conducted and, based on the scientific observations presented in the article, recommendations were made taking into account the specifics and needs of the enterprise regarding the choice of the optimal financing option for innovative projects. Innovation is necessary for the development of the enterprise. Therefore, business entities must innovate in order to remain competitive and maintain a stable position in the market. The level of flexibility in the market environment of enterprises, the ability to adapt new technological solutions under changing conditions of competition create opportunities for development. Meanwhile, strong competition among companies forces them to use innovation as a source of competitive advantage. Thus, business entities must innovate in order to maintain their position in the market. However, the level of innovativeness of enterprises depends not only on their ingenuity or creativity, access to new knowledge and technologies, but also largely on the availability and ability to attract financial resources. Practical significance. The introduction of innovations at enterprises requires significant costs, therefore increasing the potential of innovative development in financing is one of the most important tasks facing enterprises. The article analyzes the sources and possibilities of financing innovative activities, as well as defines their purpose for specific stages of the innovation process. In general, the choice of funding sources is a difficult task. Innovative projects are perceived by potential capital donors as inconvenient, complex and associated with high risk. They usually have a long payback period. They require considerable technical and market knowledge, as well as great flexibility. Obtaining financing is difficult and requires significant efforts on the part of the enterprise. Especially for companies that are just starting their activities. However, it is necessary to overcome mistrust on the part of both entrepreneurs and financial institutions and take advantage of the various opportunities they offer. Access to sources of financing is a key condition that significantly affects the creation of innovations.