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УДК: 336.763.54

DOI: https://doi.org/10.36887/2415-8453-2024-1-57

Kondrat Oleksandr,
PhD of Economic Sciences, Commercial Director,
Limited Liability Company «APTT-TRADING LTD»,
https://orcid.org/0009-0001-2021-2639

JEL classification: G 10; G 20

This article explores using innovative financial instruments to support business growth. Starting with analyzing traditional financial instruments to support enterprises, the article considers innovative approaches. In particular, the advantages of using innovative financial instruments over traditional methods are investigated. In addition, the article analyzes the risks and challenges associated with the implementation of such innovative tools. The study reflects current trends and opportunities for businesses to use the latest financial tools to support their growth. The article discusses innovative financial instruments such as cryptocurrencies, crowdfunding and crowdlending, smart contracts, financial derivatives, distributed financial technologies (DeFi), and robotic investing (Robo-advisors). It also looks at how these new approaches can help raise capital for startups and small businesses with limited access to traditional funding sources. This article points out the prospects for the development of innovative financial instruments. The most important directions for possible further research in this area are also outlined.

The advantages of embracing innovative financial instruments are not just apparent, they are transformative. These tools can expedite access to capital, slash administrative costs, and foster a more efficient use of resources. Take crowdfunding, for instance. It opens the doors to a vast pool of investors through online platforms, revolutionizing the financing process for small and medium-sized enterprises. This is just one example of how innovative financial instruments can pave the way for a brighter, more prosperous future.

However, it’s crucial to acknowledge the risks and challenges that come with the territory of innovative financial instruments. Market volatility, regulatory constraints, and the potential for financial pitfalls can pose significant hurdles to the successful utilization of these instruments. The absence of a legislative framework limited public awareness, high technological demands, and a dearth of historical data are all factors that need to be considered. Therefore, the research and analysis of innovative financial instruments is not just a task, but a responsibility for enterprises. It’s a path that can lead to sustainable growth and enhanced competitiveness in the market, but one that must be trodden upon with caution and thorough understanding.

Keywords: Financial instruments, blockchain, innovation, investment, financing, capital, credit, enterprises.

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The article was received 10.01.2024