Development of entrepreneurship
The main goal of entrepreneurship development is to create conditions for increasing the efficiency of small business entities, increasing the share of gross domestic product and increasing the number of new jobs.In order to effectively use entrepreneurship opportunities for the development of the regional economy, accelerate economic reforms, attract extra-budgetary funds and investments, and solve social problems in the city, significant attention is paid to and comprehensive support is provided for entrepreneurship development. In particular, modern credit and investment mechanisms for small business development are being introduced, microcredit programs for small business entities are being developed, the implementation of which is carried out through credit unions and other non-bank financial institutions, and free production premises of state and municipal enterprises are transferred to small business entities on preferential terms.
In recent years, the policy of the city authorities regarding support and further development of entrepreneurship and entrepreneurial potential has been aimed at creating a favorable business climate. Registration of business entities has been improved.
The Department of Entrepreneurship Development of the Lutsk City Executive Committee performed state registration of 1974 business entities.
222 business entities - legal entities were registered.
1752 business entities - individuals were registered.
The key problems in the field of entrepreneurship remain:
- imperfection and burdensomeness of the taxation system (unstable tax legislation, high rates, a large number of taxes, frequent changes in tax reporting);
- administrative obstacles in the field of entrepreneurship (the need to obtain a large number of permits and approvals, a large number and duration of inspections (on average 14 inspections of one enterprise per year, average inspection duration - 26 days), imperfect procedures for licensing, certification, and registration);
- unresolved issues of financing and lending (in particular, microcrediting of small entrepreneurship, legislative non-regulation of the creation and activity of the non-banking financial sector, absence of mechanisms for venture lending and investing);
- underdevelopment of the entrepreneurship support infrastructure (insufficient number of infrastructure facilities, in particular business centers and business incubators, underdevelopment of the consulting services market, insufficient level of professional training of entrepreneurs).
The main goals for creating a favorable entrepreneurial environment are:
- elimination of legal, economic and administrative obstacles to entrepreneurship development;
- development of entrepreneurship support infrastructure;
- improvement of the taxation system for small business entities;
- improvement of the financial and credit system for supporting small entrepreneurship;
- increasing the export potential of small business entities;
- activation and support of entrepreneurial activity at the regional level.
Strategic tasks and measures
- optimize the regulatory and legal framework for regulating entrepreneurial activity;
- reduce administrative barriers hindering the development of entrepreneurship;
- apply a transparent and legally regulated system for obtaining licenses;
- facilitate small enterprises obtaining unused premises and land plots for production use;
- ensure the development of entrepreneurship support infrastructure;
- improve the taxation system for small business entities;
- improve the mechanism of financial support for small enterprises;
- promote the development of the export potential of small enterprises;
- ensure support for the development of entrepreneurship at the regional level;