FINANCIAL INSTRUMENTS AS DETERMINANTS OF THE SUSTAINABILITY OF INVESTMENT ACTIVITIES OF SMALL AND MEDIUM BUSINESSES IN THE CONTEXT OF MACROECONOMIC VOLATILITY
DOI:
https://doi.org/10.29038/2786-4618-2025-01-62-70Keywords:
financial instruments, financial mechanism, investment activity, macroeconomic volatility, business sustainability, small and medium-sized businesses, investment risks, financing.Abstract
Introduction. In the current conditions of macroeconomic instability, small and medium-sized businesses face increased risks of investment activities. Fluctuations in exchange rates, changes in the discount rate and a decrease in the level of liquidity in the financial sector complicate the attraction and effective use of investment resources. Therefore, it is relevant to study financial instruments as key determinants of the stability of investment activities that contribute to the adaptation of enterprises to a volatile environment.
Purpose. The purpose of the study is to determine the role of financial instruments in ensuring the stability of investment activities of small and medium-sized businesses in conditions of macroeconomic volatility, to determine the mechanisms of their adaptation to an unstable environment and to substantiate risk minimization strategies.
Methods. The methodological basis of the study is a systematic approach, which involves the use of specialized analysis methods to assess the impact of financial instruments on the investment stability of enterprises. Content analysis was used to identify the dynamics of macroeconomic indicators that affect the financial mechanisms of small and medium-sized businesses. Abstract and comparative methods, as well as the method of logical generalization, were used to formulate conclusions regarding the role of financial instruments in stabilizing the investment activities of enterprises in conditions of macroeconomic volatility.
Results. The article considers the impact of macroeconomic volatility on the investment activities of small and medium-sized businesses. The mechanisms for using financial instruments that provide for hedging currency risks and insurance of investments to ensure the long-term financial stability of business entities are analyzed. The impact of monetary policy on the availability of financial resources for small businesses is studied. It is proven that the integration of modern financial technologies contributes to increasing the investment stability of enterprises. The effectiveness of combined approaches to financial risk management in an unstable economic environment is assessed.
Conclusions. The dynamic transformation of the economic environment necessitates a multi-vector analysis of investment risks, which results in the need to integrate multi-level financial forecasting algorithms and use complex capital management models. This approach requires the use of adaptive financial mechanisms that combine strategic diversification of capital sources and optimization of risk management. At the same time, the financial stability of small and medium-sized businesses is directly determined by the level of effectiveness of hedging currency and interest rate risks, which, in turn, depends on the depth of integration of financial technologies and the level of availability of insurance mechanisms.
References
1. Dziamulych, M. I. (2011) Osoblyvosti strakhuvannia investytsiinykh proektiv v umovakh nestabilnosti finansovykh rynkiv [Peculiarities of insurance of investment projects in conditions of instability of financial markets]. Ekonomichnyi forum – Economic forum. Vol. 1. Pp. 185–189 [in Ukrainian].
2. Dziamulych, M. I. & Chyzh, N. M. (2013) Strakhuvannia investytsiy ta dyversyfikatsiia investytsiinykh ryzykiv [Investment insurance and diversification of investment risks]. "Ekonomichni nauky". "Oblik ta finansy" series – "Economic Sciences". Series "Accounting and Finance". Vol. 10(37). Pp. 21–26 [in Ukrainian].
3. Dziamulych, M., Moskovchuk, A., Vavdiiuk, N., Kovalchuk, N., Kulynych, M., & Naumenko, N. (2021). Analysis and economic and mathematical modeling in the process of forecasting the financial capacity of milk processing enterprises of the agro-industrial sector: a case study of Volyn region, Ukraine. Scientific Papers Series “Management, Economic Engineering in Agriculture and Rural Development”. Vol. 21(1). Pp. 259–272.
4. Stashchuk, O., Boiar, A., & Dziamulych, M. (2021). Spetsyfika formuvannia podatkovoi politykb pry rozrobtsi vuhletsevogo podatku [The specifics of tax policy in the development of carbon tax]. Ekonomika ta suspilstvo – Economy and society. Vol. 31 [in Ukrainian].
5. Chyzh, N. M., Urban, O. A. & Dziamulych M. I. (2021). Perspektyvy naroschennia kredytuvannia v Ukraini [Prospects for increasing lending in Ukraine]. Ekonomichnyi forum – Economic forum. Vol. 3. Pp. 139–144 [in Ukrainian].
6. Shmatkovska, T. O., & Dziamulych, M. I. (2022), Stratehichnyi upravlinskyi oblik v umovakh tsyfrovoi ekonomiky [Strategic management accounting in the digital economy]. Galytskyi ekonomichnyi visnyk – Galician Economic Bulletin. Vol. 74(1). Pp. 61–67 [in Ukrainian].
7. Shmatkovska, T. O., Korobchuk, T. I., & Borysiuk, O. V. (2023). Suchasni informatsiino-komunikatsiini tekhnolohii v systemi oblikovo-analitychnoho zabezpechennia shchodo modeliuvannia biznes-protsesiv [Modern information and communication technologies in the system of accounting and analytical support for modeling business processes]. Ekonomika ta suspilstvo – Economy and society. Vol. 53 [in Ukrainian].
8. Shmatkovska, T., Volynets, L., Dielini, M., Magopets, O., Коpchykova, I., Kytaichuk, T., & Popova, Yu. (2022). Strategic management of the enterprise using the system of strategic management accounting in conditions of sustainable development. AD ALTA: Journal of interdisciplinary research. Vol. 12(2). Special Issue XXIX. Pp. 123–128.
9. Yakubiv V., Sodoma R., Shmatkovska T., Dziamulych M., & Brodska I. (2020). Digitalization of Payment Systems in Ukraine. International Journal of Recent Technology and Engineering. Vol. 8(5). Pp. 4590–4596.
10. Yatsukh, O., Demchenko, I., Ilnytskyy, D., Tsap, V., & Shmatkovska, T. (2021). Management of banking innovations in the conditions of digitalization. AD ALTA: Journal of Interdisciplinary Research. Vol. 11(1). Special Issue XVII. Pp. 123–127
11. Stashchuk O., Shykun V. (2024). Finansova bezpeka subʺyektiv hospodaryuvannya sektora maloho pidpryyemnytstva [Financial security of business entities in the small business sector]. Ekonomichnyy chasopys Volynsʹkoho natsionalʹnoho universytetu imeni Lesi Ukrayinky - Economic Journal of the Lesya Ukrainka Volyn National University. Vol. 1 (37). Pp. 105 – 110. [in Ukrainian].
12. Stashchuk O., Derkach O., Lozovyk V. Investytsiynyy klimat Ukrayiny ta napryamy yoho pokrashchennya [Investment climate of Ukraine and directions of its improvement]. Ekonomichnyy chasopys Volynsʹkoho natsionalʹnoho universytetu imeni Lesi Ukrayinky - Economic Journal of the Lesya Ukrainka Volyn National University. Vol. 1 (33). Pp. 52 – 60 [in Ukrainian].
This work is licensed under a 