Subject. The article investigates how crises influence the finance of SME and startups, and what the State does to support them. Objectives. The article outlines lines of the governmental policy for startup finance so as to maintain the innovation-driven economy during the crisis caused by the COVID-19 pandemic. Methods. The study is based on the critical systems analysis of economic literature (research papers, reports of consulting companies and professional experts). I also apply methods of observation, collection of facts, synthesis, etc. Results. I outlined aspects of the governmental policy for startup finance during the COVID-19 pandemic: supporting the startups that just assumed their life cycle, the State should provide more direct finance, use special governmental funds and departments of State-owned companies, give more grants; supporting any startups notwithstanding their life cycle, the State should adopt some tax benefits in strategic sectors, simplify financing procedures in governmental funds and State-owned companies, lower interest rates on finance provided by State-owned banks. Conclusions and Relevance. The findings can be used by governmental institutions, which deal with SME, startups and innovative economy, inter alia, to outline programs, strategies, regulatory documents.
Ries E. Biznes s nulya: Metod Lean Startup dlya bystrogo testirovaniya idei i vybora biznes-modeli [The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses]. Moscow, Al'pina Pablisher Publ., 2020, 255 p.
Blank S. Startap: Nastol'naya kniga osnovatelya [The Startup Owner's Manual: The Step-By-Step Guide for Building a Great Company]. Moscow, Al'pina Pablisher Publ., 2019, 616 p.
Birch D.L., Medoff J. Gazelles. In: Labor Markets, Employment Policy and Job Creation. Pioneers in Entrepreneurship and Small Business Research. Vol. 8. Springer US, 1994, pp. 159–167. URL: Link
Birch D.L. Who Creates Jobs? National Affairs, 1981, no. 65, pp. 3–14. URL: Link
Wise S., Feid B. Startup Opportunities: Know When to Quit Your Day Job. 2nd ed. John Wiley & Sons, 2017, 208 p.
Salamzadeh A., Kesim H.K. Startup Companies: Life Cycle and Challenges. Proc. 4th International Conference on Employment, Education and Entrepreneurship. January 2015. Belgrade, EEE, 2015. URL: Link
Trachenko M.B., Kozhanova A.V. [Specifics of startup financing at different stages of the life cycle]. Finansovyi zhurnal = Financial Journal, 2019, no. 5, pp. 90–103. (In Russ.) URL: Link
Grigorovich D.V., Kozhanova A.V. [Financial and economic analysis of startups at the early growth stage]. Finansy i kredit = Finance and Credit, 2019, vol. 25, iss. 9, pp. 1987–2005. (In Russ.) URL: Link
Lee S.M., Trimi S. Convergence Innovation in the Digital Age and in the COVID-19 Pandemic Crisis. Journal of Business Research, 2021, vol. 123, pp. 14–22. URL: Link
Eggers F. Masters of Disasters? Challenges and Opportunities for SMEs in Times of Crisis. Journal of Business Research, 2020, vol. 116, pp. 199–208.
D’Amato A. Capital Structure, Debt Maturity, and Financial Crisis: Empirical Evidence from SMEs. Small Business Economy, 2019, vol. 55, pp. 919–941. URL: Link
Lee N., Sameen H., Cowling M. Access to Finance for Innovative SMEs since the Financial Crisis. Research Policy, 2015, vol. 44, iss. 2, pp. 370–380. URL: Link
Kudlyak M., Sanchez J.M. Revisiting the Behavior of Small and Large Firms During the 2008 Financial Crisis. Journal of Economic Dynamics and Control, 2017, vol. 77, pp. 48–69. URL: Link
Lisboa I. Capital Structure of Exporter SMEs During the Financial Crisis: Evidence from Portugal European. Journal of Management Studies, 2017, vol. 22, iss. 1, pp. 25–49.
Zubair S., Kabir R., Huang X. Does the Financial Crisis Change the Effect of Financing on Investment? Evidence from Private SMEs. Journal of Business Research, 2020, vol. 110, pp. 456–463. URL: Link
Balios D., Daskalakis N., Eriotis N. SMEs Capital Structure Determinants During Severe Economic Crisis: The Case of Greece. Cogent Economics & Finance, 2016, vol. 4, iss. 1, pp. 1–11. URL: Link
Demirgüç-Kunt A., Peria M.S.M., Tressel T. The Global Financial Crisis and the Capital Structure of Firms: Was the Impact More Severe Among SMEs and Non-Listed Firms? Journal of Corporate Finance, 2020, vol. 60, art. 101514. URL: Link
Harrison R.T., Baldock R. Financing SME Growth in the UK: Meeting the Challenges after the Global Financial Crisis. Venture Capital, 2015, vol. 17, iss. 1-2, pp. 1–6. URL: Link
Brown R., Rocha A. Entrepreneurial Uncertainty during the COVID-19 Crisis: Mapping the Temporal Dynamics of Entrepreneurial Finance. Journal of Business Venturing Insights, 2020, vol. 14, art. e00174. URL: Link
Zemtsov S.P., Krasnosel'skikh A.N., Tsareva Yu.V., Barinova V.A. [Support to small and medium-sized entities during the pandemic and crisis]. Monitoring ekonomicheskoi situatsii v Rossii. Tendentsii i vyzovy sotsial'no-ekonomicheskogo razvitiya = Monitoring the Economic Situation in Russia. Trends and Challenges of the Socio-Economic Development, 2020, no. 8, pp. 105–115. (In Russ.)
Papadopoulos T., Baltas K.N., Balta M.E. The Use of Digital Technologies by Small and Medium Enterprises during COVID-19: Implications for Theory and Practice. International Journal of Information Management, 2020, vol. 55, art. 102192. URL: Link