Baltic Journal of Economic Studies (Dec 2024)
A MECHANISM FOR PROMOTING BUSINESS DEVELOPMENT IN THE CURRENT ENVIRONMENT
Abstract
The subject of this research is the mechanism for promoting business development in the modern business environment. The purpose of the study is to analyse and identify tools, actors and other elements that contribute to business development in the context of modern economic, technological and social challenges, in order to formulate recommendations for optimising business processes and increasing the competitiveness of enterprises. Methodology. In conducting this research, a variety of scientific cognition methods were employed, including system analysis, dialectical reasoning, formal logic, structural-functional analysis, and a number of empirical methods. Results. The theoretical foundations of business development were examined, with particular focus on the concept of "business" and models of its development. It was observed that the term "business" is open to interpretation in international legislation, with its meaning dependent on the context and particulars of the document in question. In general terms, business can be defined as any commercial activity with the objective of generating profit through the production of goods or the provision of services. It can be demonstrated that at the national level of legal regulation, the meaning of the term "business" has undergone significant changes in both substance and content from the Soviet era, through the transition to a market economy, to the present day, undergoing a substantial transformation. It is observed that in Ukraine, a practice has emerged whereby businesses are categorised according to their size, with the categories designated as "small", "medium" and "large" businesses. Concurrently, a unified set of quantitative indicators for these categories has yet to be established. It is established that the fundamentals of business development may include a content-structural approach in relation to: 1) creation; 2) market research; 3) management; 4) expansion, scaling; 5) enterprise development; 6) implementation of modern technologies to optimise business processes; 7) implementation of quality standards and certifications for products or services; 8) monitoring and improvement of processes to increase efficiency; 9) risk management, which includes identification of risks associated with changes in the business environment, development of strategies to minimise them and the company's readiness to adapt business models in response to external challenges. The concept and typological characteristics of the mechanism for promoting business development have been the subject of study. The author's understanding of the legal category "mechanisms for promoting business development" is proposed as a system of organisational-legal, financial, technological, investment, and other means of influence, the development and implementation of which aims to promote business development. The types of business support mechanisms, depending on the industry focus and the chosen direction of development, are classified as follows: 1) innovative mechanisms (in particular technology implementation); 2) financial mechanisms (in particular investment, credit, state support); 3) organisational mechanisms (in particular business process optimisation, management structure); 4) marketing mechanisms (in particular promotion strategies, consumer needs analysis). The author identifies the services that can be provided by business incubators to promote the development of startups and young enterprises in different ways, dividing them into two main groups: 1) administrative services (professional advice; trainings and seminars, event organisation; legal services; networking services; services to provide access to resources; marketing and promotion services; infrastructure-related services; financial support and management services; 2) technical services (services aimed at providing access to the latest technologies; IT support services; research and development support; product testing services; project management tools). A comparative analysis is conducted based on criteria such as programme duration, target audience, focus, purpose, support and resources, and funding, in order to characterise the differences between a business incubator and a business accelerator. The article presents a number of case studies which illustrate the efficacy of contemporary business development practices. These include the utilisation of modern business development assistance mechanisms, such as laboratories, accelerators, incubators, angel investors, investment funds and so forth.
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