Ways of Improving State Financial Support for Involving Low-Income Families in Entrepreneurship

Abstract

This article comprehensively analyses the theoretical and practical aspects of improving the mechanisms of state financial support for involving poor families in entrepreneurship. Within the study, the role and importance of state financial policy in reducing the poverty level, increasing employment and expanding sources of income are covered in depth. The financial support instruments currently in use, including the microfinance system, preferential lending mechanisms, subsidy and grant programmes and the system of state guarantees, are also scientifically assessed. The effectiveness of these instruments is analysed on the basis of economic and social indicators, and the problems and limitations in their current state are identified. The study identifies the main factors hindering poor families' entry into entrepreneurial activity: restricted access to financial resources, problems with loan collateral, low financial literacy, and bureaucratic barriers in institutional processes. At the same time, on the basis of international experience and the characteristics of the national economy, scientifically substantiated proposals have been developed for expanding the microfinance system, introducing digital financial services, developing collateral-free lending mechanisms and improving the system of targeted subsidies. The results of the study have important scientific and practical significance for organising state financial policy more effectively in reducing poverty, increasing economic activity and ensuring social stability.