Business Financial Support Institutions in the Context of Enhancing the Competitiveness of the Regional Economy

Abstract

The presented study explores opportunities for improving the efficiency of financial business support institutions with the purpose of enhancing the competitiveness of the regional economy.Aim. The study aims to identify opportunities and new tools for stimulating economic activity in regions through institutional business support measures.Tasks. The authors analyze the current performance and adequacy of financial business support tools utilized by development institutions at the regional level (through the example of the Rostov region) and formulate proposals on financial business support.Methods. This study uses general scientific methods of cognition (analysis, generalization, economic modeling, etc.) to examine the efficiency of business support provided by development institutions in various aspects and to identify the major directions for improving their operation.Results. Given the current economic situation in the national and global financial markets, the ability of regions to provide financial support to entrepreneurs (in particular, by reducing the cost of application of borrowed funds) is a key factor of their investment attractiveness. As a result, it is possible to achieve sustainable economic growth, which lays the foundation for the long-term competitiveness of the regional economy.Conclusion. Expanding the scope of institutional financial support at the meso-level in the basic non-resource industries and implementing a policy to support and maintain the financial stability of systemic companies in the region facilitates entrepreneurial activity and contributes to the development of the regional economy.

A Study of the Policy Effects of Beijing‐Tianjin‐Hebei Synergistic Development Strategy on Regional Financial Development: Based on the Synthetic Control Method

“…Regional economic synergy is the main trend of global economic development, the core of economic globalisation, and very important for achieving global sustainable development [5,6]. Currently, most countries use regional nancial support (i.e., reducing the application cost of borrowed funds) to enhance the long-term competitiveness of regional economies and achieve sustainable regional economic growth and sustainable regional development [7]. Conversely, the depth of regional nance increases with economic growth (i.e., there is a strong feedback e ect of regional nance on regional economic growth) [8].…”