Development of Regional Entrepreneurship Systems in Russia

This research explores definitions related to the operation of private businesses in a region through a systemic approach. The authors evaluated the specified system and identified its characteristics and components. The research highlights the elements upon which the characteristics of entrepreneurship, as the outcome of the collaborative actions of economic participants, are based. It also examines ways to influence these elements to steer development in line with established objectives. Based on the results, the authors formulated the concept of a regional entrepreneurship system, incorporating all elements of this system and their interrelations. The relationships affecting the private business sector arise independently between the system’s entities and consider the organizational structures’ environment. Consequently, the authors concluded that the effective implementation of financial subsidies requires consideration of the organizational structures’ environment. To reach this conclusion, the authors developed a framework for analyzing the organizational cooperation of individual components within the regional private business system. The findings of this research indicate that the effectiveness of policies aimed at developing entrepreneurship systems depends on the current state of the regional private business system. It is demonstrated that the foundational components of the private business system, including its elements and their connections, must be transformed prior to implementing such policies. This conclusion can be applied in the design and implementation of new policies to foster private business development in the regions of the Russian Federation.