The role of state financial support in the development of small and medium-sized businesses

In the modern economic space, taking into account the prevailing macroeconomic shocks, state financial support has a significant impact on the state of small and medium–sized businesses, whose support is the most important tool for socio-economic development and financial well-being. Due to the imperfections in the functioning of the mechanism, the State needs to develop a number of measures to ensure the establishment of a balanced and sustainable economic space. The purpose of this study is to identify the most and least effective forms of government influence on business entities. The analysis methods used were a comparative approach based on the use of official data provided within the framework of interdepartmental cooperation, which revealed a low concentration of resources in the innovative and scientific component, which is a negative factor for the further smooth functioning of small and medium-sized enterprises as an independent institution, which is also supported by increased obligations in terms of value added tax. cost. This factor creates additional risks of instability, as well as the complexity and imperfection of the administration system. Taken together, the measures taken, on the one hand, aimed at increasing the inflow of tax deductions, pose a threat not only to the development, but also to the basic existence of business entities.