Assessing the effectiveness of passenger car leasing programs for small businesses: a PEST and SWOT analysis

Abstract

The article examines the advantages and risks of using passenger-car leasing programs by small enterprises in the service and trade sectors under conditions of wartime and macroeconomic instability in Ukraine. The relevance of leasing is substantiated as a tool for ensuring mobility, supporting logistics processes, and maintaining the competitiveness of small businesses amid limited access to bank lending. To provide a comprehensive assessment of how external and internal environments affect the effectiveness of leasing mechanisms, the study applies PEST and SWOT analyses using the operations of BEST LEASING LLC as a case study.

The PEST analysis results show that political, economic, social, and technological factors create both drivers and significant risks for the development of leasing programs, particularly due to regulatory uncertainty, inflationary trends, exchange-rate volatility, and shifts in consumer behavior. The SWOT analysis identifies the key strengths of leasing for small businesses—an accessible entry threshold, cost predictability, integrated service packages, and fast processing—while also outlining major weaknesses and threats related to financial instability, rigid contractual terms, and external market risks.

The study concludes that passenger-car leasing is an effective instrument for the development of small entrepreneurship provided that risks are managed systematically and the macroeconomic and regulatory environment is taken into account when shaping financial strategies.

Keywords: easing; passenger car leasing; small business; service and trade sector; financial risks; PEST analysis; SWOT analysis; macroeconomic instability; regulatory environment; logistics and mobility