Legal issues of control of budgetary financing of startups

Abstract

The article examines the legal issues of controlling budget financing of startups in Ukraine. The scientific work was carried out within the framework of the fundamental research topic “Theoretical and legal foundations of innovative development of the energy system” (state registration number: 0124U005149). The relevance of the topic is driven by the need to ensure the effective use of limited state resources amidst the active development of Ukraine’s innovation ecosystem and strategic defense requirements. The aim of the study is to define the means of ensuring the effective use of budget funds for financing startups within the innovation ecosystem. The theoretical framework is based on research and findings regarding the necessity of: utilizing budget funds based on the principles of efficiency and effectiveness, particularly under the conditions of the state’s limited financial resources; regulating state support and ensuring its alignment with the needs of business entities; combining various types of economic and legal instruments to achieve the highest level of efficiency in state regulation (including financial and economic audits). The mechanism for utilizing state funds cannot function without effective guarantees of legislative compliance, the foremost of which is the establishment of economic and legal sanctions. It is crucial to establish a systematic approach to the methods and forms of legal liability for relevant authorized bodies, institutions, and business entities to prevent offenses in the field of public finance. In conclusion, the conducted research can serve as a basis for defining the synergy between the innovative activities of startups as business entities and the state regulation of the innovation ecosystem in Ukraine. The result may lead to the optimal alignment of state support for startups with the characteristic risks and threats in their activities, as well as a robust financial and economic audit of budget funds. Finally, improving the control of budget expenditures will contribute to the fulfillment of part of Ukraine’s obligations to the EU.