The system of causal connections between entrepreneurial activity and economic development
The system of causal connections between entrepreneurial activity and economic development

Summary/Abstract: Introduction. Revealing, studying and applying the common factors of causal connections between changes of entrepreneurial activity and the level of states’ and regions’ socio-economic development form essential conditions for sustainable outcome. The complexity of analysing the above connections as well as synthesising well-grounded managerial decisions based on them are primarily embedded in the inhomogeneity of internal and external entrepreneurship environment. The purpose of the article is to define the peculiarities of the Ukrainian entrepreneurial activity causal field and provide comparative analysis with the other countries based at the Global Entrepreneurship Monitor (GEM) methodology and findings (since it has not covered Ukraine). Methods. To meet the purpose, economic analysis of statistical data, synthesis and expert survey have been used. Results. As the result of data processing, the actual pending status characteristics have been obtained forming the elements of the causal field of entrepreneurship. The GEM studies’ comparative analysis allows us forecasting such trends in Ukraine, as the growth of the number of micro-enterprises as well as entrepreneurs, engaged in self-employment. However, a certain part of entrepreneurial activity goes to «shadow»; the number of innovative enterprises will be cut down because of the reduction of both state and private funding; entrepreneurs are expected to reallocate their activities towards the business with fast funds turnover. Conclusion. To modify the existing negative trends in Ukrainian business activity, in the system of causal connections should be strengthened the following sectors: start-up funding; support of business incubator for the businessmen-beginners; nationwide assessment and monitoring of causal connections of Ukrainian entrepreneurial activity using the GEM methodology; increase of educational programs for entrepreneurs supported by leading Ukrainian universities.

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