Management of Business Activity of Territorial Communities: Case of Ukraine

  • Katerуna VASKIVSKA Ivan Franko National University of Lviv, Ukraine, and Catholic University of Lyubelsky Ivan Pavel II, Poland
  • Andriy LYNDYUK Lviv National Environmental University, Ukraine
  • Olena DANYLIUK Kamianets-Podilskyi Ivan Ohiienko National University, Ukraine
  • Anatolii KUCHER Lviv Polytechnic National University, Ukraine, and NSC “Institute for Soil Science and Agrochemistry Research named after O. N. Sokolovsky”, Ukraine
  • Yuriy VASKIVSKYY Ivan Franko National University of Lviv, Ukraine

Abstract

The article analyzes challenges and prospects of development of business activity of territorial communities (hereinafter – TC) in terms of decentralization. Particular attention is paid to the extension of the opportunities for entrepreneurs due to the establishment of TC and in the context of implementation of the European Green Deal. The principal powers concerning support of economic development, solving environmental problems and supply of social services on the territory are delegated to the local bodies. It is a positive aspect, but it requires improvement of human resources of the local governmental bodies to secure efficient use of the provided opportunities. The research substantiates directions of business activation in TC, particularly creation of favorable environment for enterprises development at the state level, supply of broader access to financing for small and medium-size enterprises, simplification of tax administrating for small and medium-size enterprises, promotion of business culture and development of business skills and sustainable thinking, support for internationalization and greening of small and medium-size business, improvement of competitive capacity and innovative potential of enterprises. The work suggests a model of efficient management of business activity of territorial communities. The authors define the principal criteria for setting local taxes and charges at the level of community. The research also marks the problems that have a negative impact on business development of TC, particularly, restraints for business running, development of local infrastructure, and employment of population. The article specifies the reasons and factors of the obstacles appearance and proposes the ways for them overcoming.


 

References

[1] Ahmad, E., Brosio, G. and Tanzi, V. 2008. Local Service Provision in Selected OECD Countries: Do Decentralized Operations Work Better? IMF Working Papers 2008/067, International Monetary Fund. Available at: https://www.imf.org/external/pubs/ft/wp/2008/wp0867.pdf
[2] Bahl, R. 1999. Implementation Rules for Fiscal Decentralization. International Studies Program. Georgia State University and School of Policy Studies. Available at: https://icepp.gsu.edu/files/2015/03/ispwp9901.pdf
[3] Borshchevskyi, V. V. 2014. Impact of institutional disfunctions on efficiency of employment of social-economic potential of rural territories development. Regional economics, 3: 149–161. Available at: http://nbuv.gov.ua/UJRN/regek_2014_3_17
[4] Goncharuk, N. T., et al. 2021. The capability of amalgamated territorial communities as a key factor in the socio-economic development of territories. Estudios De Economia Aplicada, 39(6). DOI:https://doi.org/10.25115/eea.v39i6.5267
[5] Horoshkova, L., and Khlobystov, I. 2021. Inequality in the distribution of income as a threat to the sustainable development of united territorial communities in Ukraine. International Journal of Global Environmental Issues, 20(2–4): 109–122. DOI: https://doi.org/10.1504/IJGENVI.2021.120984
[6] Khirivskyi, R., et al. 2020a. Assessment and analysis of sustainability of the socio-economic development of amalgamated territorial communities of the region. European Journal of Sustainable Development, 9(2): 569–578. DOI: https://doi.org/10.14207/ejsd.2020.v9n2p569
[7] Khirivskyi, R., et al. 2020b. Assessment and forecast of the efficiency of use of the financial resources of amalgamated territorial communities in the context of European integration. European Journal of Sustainable Development, 9(3): 607–615. DOI: https://doi.org/10.14207/ejsd.2020.v9n3p607
[8] Ladyka, V., et al. 2022. Directions and risks of legal rights enforcement by territorial communities after the opening of the agricultural land market in Ukraine. Problems and Perspectives in Management, 20(2): 291–301. DOI: https://doi.org/10.21511/ppm.20(2).2022.24
[9] Milczarek, D. 2005. Potential of the European Union in the international relations. Studia Europejskie – Studies in European Affairs, 33(1): 9–29. Available at: https://journalse.com/potencjal-unii-europejskiej-w-stosunkach-miedzynarodowych-czesc-1
[10] Morhos, P. 2006. Process of decentralization of some principal conceptions of power distribution between the state, regional, and local level of authorities. Economic Annals–XXI, 5–6: 39–42.
[11] Nazarchuk, Yu. 2013. Potential of development of investment activity of voivodeship and regions in Poland. Publishing House of the University of Warmia and Mazury, Olsztyn. Available at: https://depot.ceon.pl/handle/123456789/6900 (in Polish)
[12] Nepomnyashchyy, O. M., et al. 2022. Amalgamated territorial communities as a basis for the introduction of decentralization of power in Ukraine. Journal of Community Positive Practices, 22(Spec. Is.): 33–46. DOI:https://doi.org/10.35782/JCPP.2022.SI.04
[13] Patytska, K., Panukhnyk, O., Popadynets, N., and Kramarenko, I. 2021. Forming the territorial communities’ local budgets in Ukraine under decentralization: current condition and management tasks. Journal of Optimization in Industrial Engineering, 14(2): 23–30. DOI: https://doi.org/10.22094/JOIE.2020.677868
[14] Poniatovska-Yaksh, M. 2006. Direct foreign industrial investments as a source of competitive capacity of a region. Publishing House of the Warsaw School of Economics, Warsaw. (in Polish)
[15] Portukhay, O., et al. 2021. Agroecological bases of sustainable development strategy for the rural united territorial communities of the western Polissya region. Scientific Horizons, 24(6): 50–61. DOI:https://doi.org/10.48077/scihor.24(6).2021.50-61
[16] Pylypenko, V., Pylypenko, N., Khaminich, S., and Sokol, P. 2022. Empirical analysis of socio-economic determinants of development of rural territorial communities. Agricultural and Resource Economics, 8(2): 226–247. DOI: https://doi.org/10.51599/10.51599/are.2022.08.02.12
[17] Pylypiv, N., et al. 2020. Balanced scorecard for implementing united territorial communities' social responsibility. Problems and Perspectives in Management, 18(2): 128–139. DOI:https://doi.org/10.21511/ppm.18(2).2020.12
[18] Reichel, M. 2003. Initiation and factors of regional development. Some issues of regional development and management of organizations. Nowy Sącz.
[19] Shah, A. 2007. Local budgeting. Washington, DC: World Bank. Available at: http://hdl.handle.net/10986/6669
[20] Tarasenko, D., et al. 2021. Social-economic development of the united territorial communities and development of a strategy for sustainable development (case of Ukraine). WSEAS Transactions on Business and Economics, 18: 581–594. DOI: https://doi.org/10.37394/23207.2021.18.58
[21] Vaskivska, K. and Chopyk, O. 2019. Economic development of the business entities of suburban area. Ed K. Vaskivska. Lublin, KUL. Available at: https://wydawnictwo.kul.pl/ksiazki-obcoj%C4%99zyczne/3945-economic-development-of-the-business-entities-of-suburban-area.html
[22] Vdovenko, L. O., et al. 2021. Determinants of the growth of the financial-economic potential of rural territorial communities of Ukraine. International Journal of Agricultural Extension, 9(2): 119–139. DOI:https://doi.org/10.33687/ijae.009.00.3969
[23] Vozniak, H. V. 2015. Modern theories and paradigms of regional development: practical aspect for Ukraine. Global and national problems of economy, 5: 671–676. Available at: http://global-national.in.ua/archive/5-2015/138.pdf
[24] Voznyak, H., et al. 2022. Financial well-being of territorial communities and the economic growth of the regions of Ukraine: assessment and modeling of interrelation. Agricultural and Resource Economics, 8(2): 141–157. DOI: https://doi.org/10.51599/are.2022.08.02.08
[25] Yasnolob, I., et al. 2021. Conceptual bases of business activities' management grounded on sustainable development and energy self-sufficiency of united territorial communities in the context of the European green deal implementation in Ukraine. Journal of Environmental Management and Tourism, 12(7): 1838–1849. DOI: https://doi.org/10.14505/jemt.v12.7(55).09
[26] Zaiats, T., Kraievska, H., and Diakonenko, O. 2022. Social capital of rural territorial communities in Ukraine: problems of strengthening and directions of their solution. Agricultural and Resource Economics, 8(2): 158–178. DOI: https://doi.org/10.51599/are.2022.08.02.09
[27] Zhuk, P. V. 2019. Methodical approaches to the reforming of administrative districts in Ukraine. Economic innovations, 21(70): 37–42. Available at: http://nbuv.gov.ua/UJRN/ecinn_2019_21_1_6
[28] *** About approval of the Strategy for Small and Medium-sized Enterprise Development in Ukraine until 2020. Resolution of the Cabinet of Ministers of Ukraine № 504-р of May 24. 2017. Available at: https://zakon.rada.gov.ua/laws/show/504-2017-%D1%80#Text
[29] *** EBA 2019. European Business Association. Available at: https://eba.md
Published
2023-06-02
How to Cite
VASKIVSKA, Katerуna et al. Management of Business Activity of Territorial Communities: Case of Ukraine. Journal of Environmental Management and Tourism, [S.l.], v. 14, n. 3, p. 657 - 669, june 2023. ISSN 2068-7729. Available at: <https://journals.aserspublishing.eu/jemt/article/view/7791>. Date accessed: 08 nov. 2024. doi: https://doi.org/10.14505/jemt.v14.3(67).05.