EVOLUTION OF THE CONCEPTUAL FOUNDATIONS AND STATE POLICY OF STIMULATING BUSINESS DEVELOPMENT IN UKRAINE

Authors

DOI:

https://doi.org/10.31470/2786-6246-2023-5-27-38

Keywords:

state stimulation, concepts of entrepreneurship development, state business support, deregulation, digitalization

Abstract

The state business promotion policy is defined as a system of consistent targeted actions and measures of state authorities regarding the development, practical implementation of methods, forms and means of an administrative, legal, economic, institutional and other nature to attract people to conduct business activities.

The systematization and generalization of the evolutionary stages of the conceptual foundations and state policy of stimulating business development in Ukraine shows significant shifts in the following policy directions: deregulation due to digitalization and electronic governance; increasing the significance of the system approach and cooperation in state business support, which is manifested in the active implementation of the business support program with international partners; strategic orientation regarding business stimulation; institutional and infrastructural changes due to electronic governance, popularization of entrepreneurial culture; development of national legislation on state aid to businesses, especially in the context of Ukraine’s European integration.

The article presents the author’s definition of the concept of state policy of business stimulation. The empirical analysis of the effectiveness of the state policy of stimulating business development in Ukraine based on the quantitative assessment of forms of state support for the years 1997-2022 makes it possible to draw the following important conclusions. In Ukraine, the most used forms of stimulating economic activity are: subsidies, current transfers, guarantees, subsidies, fiscal measures, providing tax benefits, reducing the tax rate, canceling the tax (especially for the private sector). The following forms of state support prevail in terms of the amount of financing: reduction of the tax rate, guarantees, increase of the state share in the authorized capital of economic entities, current transfers. Support and stimulation of the private sector remains quite low compared to the financing of state and communal enterprises. Thus, the theoretical concepts and postulates of the state policy of business stimulation in Ukraine are characterized by limitations in their practical implementation, in particular, as regards the volume of business financing in the form of support.

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Published

2023-12-04

How to Cite

Kosmirak А. (2023). EVOLUTION OF THE CONCEPTUAL FOUNDATIONS AND STATE POLICY OF STIMULATING BUSINESS DEVELOPMENT IN UKRAINE. Public Administration: Concepts, Paradigm, Development, Improvement, (5), 27–38. https://doi.org/10.31470/2786-6246-2023-5-27-38