PREREQUISITES AND FACTORS OF RURAL ENTREPRENEURSHIP DEVELOPMENT IN UKRAINE

Abstract

The article substantiates the theoretical and methodological foundations of rural entrepreneurship development in Ukraine and identifies the principal factors determining its dynamics amid socio-economic transformation, digitalization, and war-related uncertainty. The study focuses on the role of rural entrepreneurship in promoting the economic and social development of territorial communities. The analysis identifies key institutional, financial, infrastructural, demographic, human-resource, and social constraints limiting entrepreneurial activity in rural areas. Particular attention is devoted to insufficient social capital, limited access to financial resources, deficient infrastructure, demographic decline, shortages of qualified personnel, and inadequate adaptation of public policy to rural specifics.
The dynamics of entrepreneurial activity in Ukraine are analyzed, demonstrating a gradual recovery following the initial decline caused by the full-scale war. The study emphasizes the importance of micro- and small enterprises as key drivers of rural employment and local economic growth. The experience of Poland and the European Union is examined to identify relevant mechanisms for supporting rural entrepreneurship. It is substantiated that effective support must combine financial instruments with advisory, informational, educational, and organizational measures.
The study concludes that rural entrepreneurship contributes to employment creation, improved living standards, strengthened local fiscal capacity, and reduced rural out-migration. A comprehensive support framework is proposed, accounting for the spatial, demographic, infrastructural, and economic specificities of rural territories. These findings can inform regional and local policy development aimed at strengthening rural economies and supporting Ukraine’s post-war recovery.