Problems and Development Prospects of Public-Private Entrepreneurship

Abstract

The presented study addresses the problems of interaction between the public (government) and private sectors in the process of social reproduction. Evolution of the mechanism, models, and forms of public-private entrepreneurship has led to the widespread use of public-private partnerships (PPP) based on the utilization of innovation and investment resources of the business to solve economic and social problems. Economic restructuring spurred by digitalization, the pandemic, the shifting balance of power in the world, departure from unilateralism, financialization of economies, and globalization of economic crises decrease the productivity of traditional economic regulation measures taken by the government. Thus, it becomes obvious that further development of public-private partnerships requires enhanced public monitoring using cloud-based information systems, together with updated legislation in this area and new management personnel. The government should encourage innovations in the development of public-private entrepreneurship forms and facilitate interaction with business structures in the context of national and local budget deficit. These measures will help to improve the rate and quality of economic growth in Russia and transition to the sixth wave of innovation. Aim. The study aims to show the genesis and mechanism of interaction between public authorities and business structures and its role in economic development; analyze major forms of public-private entrepreneurship; identify problems and propose recommendations for improving government-business interaction within the framework of public-private partnerships in the context of slower economic growth and the government’s limited ability to implement large-scale investment projects, including in the social sphere. Tasks. The authors analyze the development of public-private entrepreneurship in Russia and across the world, highlighting the features and models of such interaction; examine the legislative features and mechanisms of public-private entrepreneurship; identify problems and opportunities for the successful implementation of government-business interaction in the investment sphere of the Russian Federation. Methods. This study is based on the historical and logical approach, systems analysis, critical examination of scientific literature in relation to the adopted legislation, elements of complex analysis, modeling of interaction processes between public institutions and business structures. Results. The authors prove that by enhancing the interaction between business structures and the government through the development of public-private partnerships in the creation and operation of infrastructure, information technologies, and the social sphere, it will be possible to increase the rate of economic growth, to reduce the burden on the national budget in the context of economic stagnation and recession, and to secure the government’s obligations in the social sphere. The proposed recommendations for improving public-private entrepreneurship include improving the quality of the legal framework regulating the type of partnership, improving its information infrastructure, having a targeted strategy and tactics for the development of public-private entrepreneurship at the national, regional, and municipal level, as well as developing managerial competencies in the field of public-private entrepreneurship process management. Conclusions. The study substantiates the need to form and train efficient project teams, whose tasks should include competent support of a PPP project at all stages, from concept definition to implementation, and using the infrastructure mortgage principle and public control in public-private partnership.