The Economic Essence of Small Business Financing and the Strategic Role of Bank Loans.

This article examines the economic essence of financing small business entities, their strategic role throughout the business life cycle, and the system of financial resource formation sources. The study analyzes the problem of information asymmetry in small business lending, mechanisms for mitigating it, and issues related to ensuring a balance of interests between banks and entrepreneurs within the context of investment financing and working capital replenishment. Furthermore, the paper highlights the impact of the harmonization of government support measures and bank risk management practices on macroeconomic stability.