Alternative sources of attracting investments in small and medium business: their advantages and disadvantages

Kornyshev Oleg Olegovich

the article considers the problem of the development of small and medium-sized businesses in Russia, which is associated with a lack of financial resources. Analyzed the key reasons why bank lending for small forms of entrepreneurship in modern conditions is not the most effective tool, therefore, the search for alternative sources of attracting investment is relevant. Listed and described the main models of alternative financing for the development of small and medium-sized businesses that are available to domestic entrepreneurs. Among such methods are venture financing from business incubators and accelerators, crowdfunding, state aid programs for SMEs, government orders and tenders, as well as factoring and leasing. Their key advantages and disadvantages are described. Based on the analysis, the results were summarized, within which, the most economically viable ways of attracting investments for the development of small and medium-sized businesses in Russia were identified.

Keywords:small and medium business; financing; investments; financial resources; venture financing; crowdfunding; crediting; leasing; governmental support; factoring.