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Basic Provisions of the Organizational and Economic Mechanism of Entrepreneurship Development in the Woodworking Industry
Fedorchuk S. I.

Fedorchuk, Sergii I. (2024) “Basic Provisions of the Organizational and Economic Mechanism of Entrepreneurship Development in the Woodworking Industry.” Business Inform 9:253–259.
https://doi.org/10.32983/2222-4459-2024-9-253-259

Section: Problems of Business

Article is written in Ukrainian
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UDC 330.231

Abstract:
The article updates the issues of formation and implementation of the State policy for the development of entrepreneurial activity in the domestic woodworking industry. It was concluded that for such purposes, the State should build and implement an effective and efficient organizational and economic mechanism, which is endowed with a set of tools and means, as well as algorithms for their implementation, which are aimed at activating and increasing the efficiency of business in this branch of Ukrainian industry. Based on these principles, the aim of the article is to generalize the existing and develop new methodological and applied principles of the State policy of formation and implementation of the organizational and economic mechanism of the development of entrepreneurship in the woodworking industry. It was found that the organizational and economic mechanism of the State policy for the development of entrepreneurship in the woodworking industry conceptually consists of the following elements: a regulatory and legal framework that creates conditions for the transparent and stable activity of business entities; strategic planning of industrial enterprise development; resource provision necessary for the effective implementation of policy goals and objectives; the control and monitoring system, responsible for evaluating the results of policy implementation. It is shown that the purpose of the organizational block of the mechanism is to create and maintain an effective institutional structure that ensures coordination between all levels of management, business entities and other market participants, which includes the development of organizational and legal norms, development programs, as well as mechanisms for monitoring and controlling policy implementation. It is argued that the purpose of the economic block is to provide financial support, stimulate investment activity, optimize the resource potential of enterprises and promote their technological modernization. It is proved that the main focus should be on the provision of tax benefits, public financing, lending, as well as supporting enterprises through public procurement and subsidies. It is identified that the subjects of the mechanism are State authorities, enterprises of the production sector, financial institutions, elements of the market infrastructure. The participation of public organizations and international partners is also an important element of the mechanism, because it contributes to the spread of the best practices of entrepreneurship development and integration into the economic space.

Keywords: entrepreneurship, development of entrepreneurship, woodworking industry, State policy, State regulation, organizational and economic mechanism.

Fig.: 1. Bibl.: 13.

Fedorchuk Sergii I. – Postgraduate Student, Department of Accounting and Taxation and Marketing, Mukachevo State Unіversity (26 Uzhhorodska Str., Mukachevo, 89600, Ukraine)
Email: [email protected]

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