Administrative barriers in the Ukrainian economy and the conceptual formulation of the problem of their forecasting


Keywords: Ukrainian economy; administrative barrier; effective management.

Abstract

Active development of business initiatives, achieving a competitive advantage is the result of many factors: effective management, entrepreneurial flair, developed and implemented in the business product innovation, sound financial policy, efficient marketing strategy. However, before the business there are often administrative and economic, technological and organizational barriers, overcoming of which largely allows providing a competitive edge. Under the administrative barrier should understand the obstacles set by the state to organizations that impede their activities and do not lead to improvements in the functioning of the state.  The issue of the nature of administrative barriers continues to be a contentious issue. For V. Volchik, they represent part of the institutional barriers to the development of entrepreneurial activity consisting of two groups. One of them is formed by formal institutional barriers, which are direct consequences of the interventionist state economic policy, the other by informal ones, i.e., those associated with corruption factors that impede the creation and functioning of entrepreneurial structures, and introduce serious distortions to market coordination mechanisms. Barriers belonging to the first of these groups are called administrative [1, p. 56–57]. At the same time, there is a view according to which administrative barriers are those related to corruption factors. In line with this point of view, the administrative barriers are obstacles in the way of organization and realization of entrepreneurial activities of small businesses created some officials of the Executive authorities [12, с. 40–41]. (Look about it: [2, p. 40–41]).

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Published
2020-03-23
How to Cite
Kaplenko, H. (2020). Administrative barriers in the Ukrainian economy and the conceptual formulation of the problem of their forecasting. Fundamental and Applied Researches in Practice of Leading Scientific Schools, 37(1), 9-16. Retrieved from https://farplss.org/index.php/journal/article/view/667