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Regional business development assessment model

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Category: Economy and management

Last Updated on 29 July 2014

Published on 17 October 2013

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Authors:

N.V. Kasianova, Dr. Sci. (Econ.), Associate Professor, Donetsk National Technical University, Professor of the Department of Economic Cybernetics, Donetsk, Ukraine.

O.O. Tarasova, Cand. Sci. (Econ.), Donetsk National Technical University, Senior Lecturer of Department of Economic Cybernetics, Donetsk, Ukraine.

Abstract:

Purpose. To develop the scenario-dynamic model of regional policy based on the results of assessment of the the level of entrepreneurial activity in the region, which can improve the validity of the relevant management de-cisions based on fiscal, economic and social performance of business.

Methodology. The methodological ground of the research is the classic position and the fundamental works of foreign and domestic scholars, statistics, results of our own research modeling of regional economic policy. Method of simulation, comparative analysis of abstraction, and generalization of scientific experience of modern theoretical researches, systematic and comprehensive approach has been applied in the study.

Findings. We have proved that the efficiency of business development within the region is defined as the fiscal, economic and social efficiency achievement. We have proposed the scenario-dynamic pricing model of enterprise development, and have carried out the numerical experiment which resulted into various scenarios of small business development in the Donetsk region. Analysis of the performance indicator values under scenarios allowed us to determine the best option for implementation of the regional economy development policies with due consideration of the objectives and priorities.

Originality. We have provided the further development for scientific approach to study the effectiveness of business development within the region through the use of scenario-dynamic simulation model that allows us to simulate alternative business development, depending on the goals by affecting fiscal, economic and social efficiency.

Practical Value. The designed scenario-dynamic model is methodological basis for formation of regional economic policy focused on business development. The imitating mechanism of determining the standard parameters of fiscal, economic and social efficiency allows us to develop various scenarios for the development of the region and to make economically reasonable management decisions. 

References:

1. Закон України „Про Державний бюджет України на 2013 рік“ [Электронный ресурс] / Відомості Верховної Ради України (ВВР), 2013, № 5–6, ст. 60. – Режим доступу: http://zakon4.rada.gov.ua/ laws/show/5515-17

Law of Ukraine “About the State Budget of Ukraine for the year 2013”, Supreme Council of Ukraine, (2013), No. 5–6, Article 60, available at: http://zakon4.rada.gov.ua/ laws/show/5515-17

2. Тихомирова А.В. Оценка эффективности управления производством / А.В. Тихомирова. – М.: Экономика, 1984. – 164 с.

Tikhomirova A.V. (1984), Otsenka effektivnosti uprav-leniya proizvodstvom [Evaluation of the Effectiveness of Production Management], Economics, Moscow, Russia.

3. Дубровина Н.А. Оценка эффективности регионального управления / Н.А. Дубровина // Вестник Самарского государственного университета. – 2006. – № 8. – С. 54–59.

Dubrovina, N.A. (2006), “Assessment of the effectiveness of regional management”, Bulletin of the Samara State University, no. 8, pp. 54–59.

4. Покропивний С.Ф. Підприємництво: стратегія, організація, ефективність / С.Ф. Покропивний, В.М. Колот. – К.: КНЕУ, 1998. – 352 с.

Pokropivny, S.F. and Kolot, V.M. (1998), Pіdpryiem-nitstvo: strategіia, organіzatsіia, efektyvnіst [Entrepreneur-ship: Strategy, Organization, Effectiveness], KNEU, Kyiv, Ukraine.

5. Аніщенко І.В. Оцінка ефективності реалізації та фінансове забезпечення програм розвитку малого бізнесу в регіоні / І.В. Анішенко, Ю.Б. Пінчук // Економіка та держава. – 2005. – № 10. – С. 29–33.

Anіshchenko, І.V. and Pіnchuk, Yu.B. (2005), “As-sessment of the Effectiveness and finance support of small business development programs in the region”, Ekonomіka ta derzhava, no. 10, pp. 29–33.

6. Чубарева Л.И. Эффективность поддержки малого бизнеса и критерии ее оценки / Л.И. Чубарева// Економіка промисловості. – 2008. – № 2. – С. 102–111.

Chubareva, L.I. (2008), “Effectiveness of support for small business and its evaluation criteria”, Ekonomіka promyslovostі, no. 2, pp. 102–111.

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