Abstract
The development and efficient functioning of entrepreneurship is the basis of a market economy, as well as the key to the country’s innovative socio-economic development and growing competitiveness on an international scale. The formation of a transparent and qualitative business climate is an incentive for the efficient entrepreneurship development. The paper is aimed at identifying structural-institutional transformations in the business environment and their impact on the development of small businesses. The analysis of socio-economic parameters of the business environment is based on the elasticity method and the system approach, which have been tested on the example of cities in the Western region of Ukraine. Outlining the features of setting up the business environment and its functioning has provided the grounds for detecting major problems hampering efficient business development. The comparative analysis has confirmed a close relationship between socio-economic transportation processes and conditions created for businesses. The evaluation of institutional environment has confirmed that cities striving to improve transparency in climate regulation and urban environment management achieve the growing investment activity and positive dynamics of small businesses development. The calculated elasticity coefficients prove that the growing investment activity positively impacts the number of small businesses and the volume of products sold by them. However, the expected growth in employment was not achieved due to the high level of shadow activity on the labor market and migration activity of the population.
Highlights
The development of the country’s competitive economy on market principles is impossible without effective development of the business sector
(gross capital investment, employment, the volume ita, GDP per capita and Doing Business Index is of sold products) contributes to determining the ef- calculated to detect the impact of transformationficiency of gross capital investment through evalu- al changes on the development of the countries’
The analysis shows that there is a certain positive trend in the creation of a favorable business environment in Ukraine
Summary
The development of the country’s competitive economy on market principles is impossible without effective development of the business sector. The transparent, simple, and stable business environment is the key to dynamic entrepreneurship development that further contributes to the efficiency and stability of the country’s economy both at the regional and global levels. The setup and development of the business environment in Ukraine are characterized by the low quality of public regulatory acts on entrepreneurial activity. Of entrepreneurship leading to falling business activity, growing transaction costs, deteriorating companies’ economic activities, impossibility of strategic planning of the entrepreneurial activity, falling the competitiveness of companies on domestic and foreign markets, deteriorating companies staffing, resourcing, and logistics, a high level of shadow activity in economic relations, decreasing investment-innovation base, etc. The study of institutional features of the business environment development becomes relevant in the context of socio-political instability and military conflict faced by the country, accompanied by reforms of governance system decentralization with the transfer of some regulatory competencies to the local level, etc
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
