Institutionalization of State Support and Development of Sectoral Entrepreneurship of Rural Areas

Iryna V. Forkun, Oleksandr S. Prystеmskyi, Olha S. Chernenko, Iryna A. Chkan, Inna Ye. Yakusheva


The article presents the implementation of the results of supporting sectoral entrepreneurship in rural areas as a multifunctional and multi-channel process of formation, attraction, and use of financial resources provided by the rules of the institutional environment of state policy. A methodical approach to the integrated assessment of indicators of the target direction of the involved financial resources of the state and their impact on the development of sectoral entrepreneurship in rural areas is presented. It is proved that the specific criteria that determine the scenarios of consolidation of tax revenues to local rural budgets are minimization of discretion, compensation, and compromise, budget adequacy, complementarities, as well as the sequence of changes in parameters and flexibility of the tax system which allows responding quickly to changes in the institutional environment of state support of sectoral entrepreneurship. Indicators of state support for risk insurance of sectoral entrepreneurship, volumes of accumulated revenues of local budgets in decentralized rural areas of Ukraine are analyzed. A cognitive model is proposed. It determines the hypothetical ability of the multifactorial system of the institutional environment of state policy to influence the level of financial capacity of sectoral enterprises, taking into account the tax burden and targeted use of state financial resources for production, processing, and storage of agricultural products as well as to update the technological process.


state support, sectoral entrepreneurship, local budgets, rural areas, financial capacity.

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"Public Policy and Administration" ISSN online 2029-2872 / ISSN print 1648-2603