SmallBusiness FinancingMechanisms by Commercial Banks

Banks play an important role in the rapid development of small business and private entrepreneurship in our country, as the financial stability of entities is ensured as a result of loans provided by banks to small businesses. Small business provides high rates of resource turnover as a low-cost economic activity in the context of capital shortage. The article discusses the introduction and improvement of new forms of financing small business activities by commercial banks. On the basis of econometric analysis, the influence of loans provided by commercial banks on the economic development of small businesses and private entrepreneurship are studied, and ways to improve and expand the financing mechanisms for small businesses are also outlined.