Factors of the business environment and their impact on the activities of enterprises in the Arctic zone

Abstract

The issues of smoothing spatial differentiation are particularly relevant when it comes to the territories of the North and the Arctic, as they are an indispensable condition for curbing the processes of their degradation. Maintaining the population, improving transport accessibility, social security, increasing the competitiveness of business and entrepreneurship are among the top-priority strategic tasks, the development of solutions to which is given the closest attention today. Since the purpose of this study is to specify the ideas about the Arctic zone as an environment for doing business, the paper presents an analysis of the financial condition of enterprises in the Arctic zone of the Republic of Sakha (Yakutia). As the main research method was chosen the economic and statistical analysis. The profit, which is a positive financial result, is an indicator of the success of a commercial organization. The financial result is important not only for the entrepreneurs, the economic activity of business structures has an impact on the level and quality of life in a particular territory. The study showed that entrepreneurial activity in the Arctic zone is carried out more out of necessity than for the commercial success, its contribution to the economy of the republic is insignificant. The main field of activity for most commercial enterprises and organizations is agriculture, enterprises are are low-profit, but in proportion the share of unprofitable organizations in most municipal districts, it is comparable to other territories of the Republic of Sakha (Yakutia). The implementation of major infrastructure projects on the territory of the republic in the coming years can improve the business environment and have a positive impact on the development of entrepreneurial activity in the Arctic zone of the Republic of Sakha (Yakutia) if the balance of interests of municipalities, on the one hand, and raw material corporations and natural monopolies, on the other, is maintained.