Entrepreneurial Activity in the Regional Economy: Based on Public-Private Partnership

Abstract

The article examines the theoretical aspects of the development of entrepreneurial activity based on public-private partnership (PPP) in the regional economy. The organizational and economic mechanism of public-private partnership development in the regional economy is shown. Its main elements include: justification of the conditions for using financial resources for a PPP infrastructure project; creation of organizational bases for implementing the public-private partnership model; implementation of a set of management functions (planning, organization, motivation and control) in the conditions of the entire investment cycle; achieving goal setting and ensuring the effectiveness of the PPP infrastructure project in the interaction of the state and business. It is proved that the process of implementing public-private partnership includes elements of institutional support for this system: regulatory support for the PPP Institute; formation of a system of state regulation of relations in the field of publicprivate partnership; formation of an organizational and economic mechanism for managing the development of public-private partnership in the regional economy. It is revealed that the institutional regulatory framework in the regional economy involves the creation of a regulatory framework for the functioning of the system of interaction of public authorities and business structures, forming an open competitive environment for public-private partnership, identification of the openness and transparency of the system of relations of public-private partnerships. It is shown that the use of the public-private partnership mechanism will ensure the necessary growth rates in the regional economy. Implementation of infrastructure projects is one of the forms of avoiding “institutional traps” in the context of crisis situations in recent years. It is concluded that a necessary condition for the effective implementation of a regional public-private partnership PPP project is to find the necessary financial resources and ways to use them most effectively for the socio-economic development of the region.