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Journal section "State regulation of territorial development"

Analyzing Business Activity from the Perspective of Incentives and Barriers

Ustinova K.A.

Volume 26, Issue 6, 2022

Ustinova K.A. (2022). Analyzing business activity from the perspective of incentives and barriers. Problems of Territory's Development, 26 (6), 165–184. DOI: 10.15838/ptd.2022.6.122.10

DOI: 10.15838/ptd.2022.6.122.10

Abstract   |   Authors   |   References
The article considers entrepreneurship as a driver of economic development that influences transformations. We highlight problems arising due to the insufficient level of development of entrepreneurship in Russia as compared to that in Europe, and also due to regional differences caused by socio-economic and institutional aspects. The research is aimed at identifying the incentives and barriers that influence the successful start of entrepreneurial activity, its progress and development. The paper structures the factors affecting entrepreneurship, taking into account their scope (special attention is paid to institutional, socio-cultural and psychological factors) and the nature of the influence (positive and negative). We use socio-cognitive theory, general scientific research methods and data from the federal and regional levels to analyze entrepreneurship from the standpoint of incentives and barriers affecting it. We show that representatives of the business environment tend to give satisfactory assessments of the current state of business and cautious forecasts regarding its development. We conclude that the assessments of the current state and prospects of development depend on the size of the organization, duration of its functioning in the market, and on the risks of doing business due to changes in the market situation, demand, and people’s purchasing power. We emphasize the role of institutional aspects caused by changes in legislation and the judicial system. At the regional level, the propensity to entrepreneurship is influenced by financial aspects, the tax system and the tax burden, the fact whether an individual has a long-term plan for the development of their business, as well as special type of character and abilities to manage an enterprise. As a practical significance of the study, we note the need for system-wide integration of measures to support entrepreneurship, information, legal support of projects implemented by entrepreneurs, synchronization of information flows and achieving consistency between priorities and strategic goals

Keywords

region, entrepreneurship, incentives, barriers, state support measures, Region

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