The role of the state in improving the process of lending to small and medium-sized businesses

UDC 336.77, 338.49

Authors

Grachev A. M.
3rd year student of St. Petersburg University of Management Technologies and Economics, Saint-Petersburg, Russia

Abstract

Obtaining a loan for small and medium-sized businesses often plays a decisive role in maintaining the financial stability of the enterprise, and hence in the financial development of the country. Among the barriers on the part of banks, the main one is the difficult process of obtaining a loan due to the high risk of non-payment. Stabilization of the business lending process will have a beneficial effect both on the well-being of citizens and on the country’s budget, but without government intervention it may be delayed or not take place at all.

Keywords

The main barriers to lending, overcoming barriers to lending, small and medium-sized businesses, government support for small and medium- sized businesses.