The system of causal connections between entrepreneurial activity and economic development

Abstract

Revealing, studying and applying the common factors of causal connections between changes of entrepreneurial activity and the rate of states and regions socio-economic development form essential conditions to get a stable and positive outcome. The complexity of analyzing the above connections as well as synthesizing well-grounded managerial decisions based on them are primarily embedded in the inhomogeneity of internal and external entrepreneurship environment. Purpose. The aim of the article is to define the peculiarities of the Ukrainian entrepreneurial activity causal field and provide their comparative analysis with similar GEM peculiarities in other countries. Methods. To meet this purpose economic analysis of statistical data, synthesis and expert opinion have been used in this article. Results. As a result of statistical data processing and the conducted surveys study, the actual pending status characteristics have been obtained forming the elements of the causal field of entrepreneurship. The GEM studies comparative analysis gives an opportunity to forecast such indices as: the growth of the number of micro-entrepreneurship entities as well as entrepreneurs, engaged in self-employment. However, a certain part of entrepreneurial activity will become “shady”; the number of innovative enterprises will be cut down because of the reduction both state funding and large businesses; the likely entrepreneurs reallocation according to business activity types towards the business with fast funds turnover is quite possible, the directions including trade, public services, food production. Conclusion. The system of causal connections to modify the existing negative trends in Ukrainian entrepreneurial activity has to take into account the following aspects: the rise of the volume of entrepreneurial activity start-up funding which is one of the state priorities with the account of the following lines: alternative power sources; increase of educational programs for entrepreneurs supported by leading Ukrainian universities; provision of the beginners of business incubator zones; assessment and monitoring of nationwide organization of Ukrainian entrepreneurial activity using the GEM methodology.