Entrepreneurship and Adaptation of Utilities Enterprises to Market Conditions

Abstract

This article sets out the main provisions of the formation of an entrepreneurial strategy for the development of the city complex of housing and communal services and its adaptation to market conditions. The content and tasks of restructuring the housing and communal services management system as an integral complex are revealed, in which the main principles are defined as innovative development, coordination of interaction between enterprises and public-private partnership (PPP). The concept of "entrepreneurial management adaptation" (EMA) as a set of measures of organizational and economic orientation to adjust the management system of an individual enterprise in coordination with the owner of the utility complex for full-fledged market relations, proposed a logical-structural model of joint efforts of the municipality and heat water supply in order to build an updated information and analytical support of the city complex and the conditions under which this process can be implemented. The organizational and economic components of entrepreneurial adaptation in the context of PPP strategies, investment support and innovative development of municipal enterprises of urban life support (MEULS) are determined. It follows that PPP's business strategy launches a mechanism to expand investment opportunities and innovative development of MEULS, which will contribute to the long-term success of this strategy, which is defined as "an integrated business model of the MEULS innovative development." The peculiarities of the relationship between the elements of entrepreneurial adaptation of MEULS enterprises and the city municipality are presented, which will change the nature of relations between local authorities and municipal enterprises and allow to launch a new mechanism for effective implementation of industry reform programs using PPP elements.