Scientific Bulletin of the Odessa National Economic University 2022, 7, 80-87
Tools of local economic development to support business in the conditions of war and deepening European integration of Ukraine
Smentyna Nataliia
Dr. of Sc. (Economics), Professor, Professor of the Department of Economics, Law and Business Management,
Odesa National Economic University, Odessa, E-mail:n.smentyna@oneu.ukr.educatio, ORCID ID: https://orcid.org/0000-0002-3205-1377
Cite this article:
Smentyna N. (2022) Tools of local economic development to support business in the conditions of war and deepening European integration of Ukraine. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Instrumenty mistsevoho ekonomichnoho rozvytku dlia pidtrymky biznesu v umovakh voiennoho stanu ta pohlyblennia yevrointehratsii Ukrainy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 7 (296), pp. 80-87.
Abstract
The goal is to generalize and characterize the tools of local economic development, identify business problems in the
conditions of martial law, and also find possible ways to support business in the conditions of deepening the European integration
of Ukraine. To achieve the goal, the synthesis method was used to generalize modern tools of local economic development that are
used in Ukraine and the countries of the European Union. Statistical analysis was applied to study the state and needs of business
under martial law conditions, including the analysis of the problem of business relocation, changes in the scope of business activity,
and the use of support opportunities provided by territorial communities and regional state (military) administrations). It was
determined that the changes formed under the influence of the war significantly affect local economic development and business,
in particular, the level of the Business Activity Index at the beginning of August 2022 was estimated at 25.16 out of 100 possible
points; 39.9% of enterprises have stopped or almost stopped their activities, and the average expected result of the business's
sales products according to the results of 2022 is estimated at the level of 50%. Regarding the business's own revenue forecasts for
2022 compared to 2021, it was noted that 20.5% of enterprises have a revenue forecast at the level of 50-80% of the level of 2021,
and 20.5% - up to 20% of the revenues of the previous period. Meanwhile, according to the survey, 76.1% of Ukrainian business
representatives do not interact with representatives of administrations and territorial communities. It was concluded that the
European Union can already help Ukrainian business through the spread of such local development tools as employment support
and financing of the voucher system. The practical significance lies in the further development of research into the tools of local
economic development to support business in the conditions of martial law and further European integration of Ukraine.
Keywords
local economic development, business support, human capital, territorial development, economic development support
tools, European integration.
JEL classification: R120, R580, F630; DOI: 10.32680/2409-9260-2022-7-296-80-87
UD classification: 658. 327 (477)
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