The Problems of Financing of Entrepreneurship Infrastructure in Developing Countries and Their Solutions

Abstract

The purpose of the research is to determine the problems of financing of entrepreneurship infrastructure in developing countries and their solutions. The authors use the method of logical analysis as to the level of national debt, volume of direct foreign investments, and cost of public-private projects in the infrastructure. The authors also use the method of correlation analysis for studying dependence of the level of national debt, volume of direct foreign investments, and cost of public-private projects in infrastructure on the index of development of transport and telecommunication infrastructure, as well as dependence of the values of the indices of development of transport and telecommunication infrastructure and the number of registered new companies. The information and analytical support for the research includes the materials of the World Bank, the International Telecommunication Union, and the World Economic Forum for 2016. The research objects are China, Brazil, Turkey, and Russia. The authors determined three key problems of financing of entrepreneurship infrastructure in developing countries: national debt which limits the state’s capabilities for financing of infrastructural projects, unattractiveness of domestic infrastructural projects for foreign investors, and institutional barriers on the path of implementation of the mechanism of public-private partnership in the infrastructural sphere. For solving the above problems, the authors offer the framework strategy and practical recommendations: reorientation of the international financial support for developing countries at the infrastructural sphere, development of special economic areas in the infrastructural sphere for attracting direct foreign investments, and development of institutional provision of public-private partnership in the infrastructural sphere.