The Scientific and Theoretical Foundations of Formation of Business Environment of Territories

Abstract

Creating new opportunities for Ukrainian business is one of the priority directions of activity in the short and medium terms. The subject of the study is the theoretical and methodological foundations of the formation of the bases of the mechanism for managing the business environment of territories. In the scientific literature, the concept of «business environment» is often replaced by related categories that are used as synonyms. The level of «business environment» in the structural hierarchy of the concept of «environment» on the principle of increasing the degree of coverage of economic relations is determined. The understanding of the concept of «territory» is outlined from the point of view of the decentralization reform, which continues in Ukraine. Decentralization of power can be territorial – the transfer of power from the central city to other territories, and can be functional – by transferring decision-making powers from the main body of any branch of government to lower-level officials. The formation of a mechanism for managing the business environment of territories is considered in relation to the hierarchy of territorial distribution: the territory of the State, the territory of the region, the territory of the amalgamated hromada. The analysis of the opinions of scientists regarding the definition of the essence of the category of «business environment» is carried out. It is defined that in scientific thought there is no clear identification of the content of this term and there is an urgent need to determine the structure-forming elements of the mechanism for managing the business environment of territories. It is determined that the formation of business conditions is influenced by a number of factors according to a certain territorial level. Factors of influence are the external business environment, entrepreneurial environment, macroeconomic environment of entrepreneurial activity, institutional environment of entrepreneurial activity. The carried out analysis of the theoretical foundations of the formation of the business environment of the territories made possible to highlight the main features of the business environment as a system and its features at different levels of the territorial hierarchy.

Keywords

• business environment
• management
• institutional environment
• entrepreneurial activity
• territory
• influence factors
• system
• hierarchy
• mechanism