Theoretical Fundamentals Of Formation Of Innovative Development Of Entrepreneurship
Baltic Journal of Economic Studies
The article studies and analyses the theoretical fundamentals of the formation of the mechanism of the innovative development of entrepreneurship. Today, the global economy is gradually globalizing. No country in the world can avoid its influence on certain spheres of public life. The process of “globalization” affects the development of innovative entrepreneurship. Today, the driving force of the functioning of innovative entrepreneurship in ensuring economic growth is its development and it is one of the main preconditions for the successful functioning of entrepreneurship in various spheres of the economy, an incentive for increasing the efficiency of production. Innovative entrepreneurship is a special innovative process of creating a new, a kind of management, aimed at finding new ideas and opportunities for the commercial use of innovations. Investment and sufficient funding are required for the development of innovative entrepreneurship. It is investigated that the formation of innovative development of entrepreneurship is constantly based on the search for new methods, the general scheme of formation, and the model of innovative development, is based on innovations, new technologies, which involves expanding the boundaries of innovation activity. Innovative entrepreneurship is a process of creating something new, a management process, based on finding new opportunities, an orientation towards innovation. This is associated with the willingness of the entrepreneur to assume the risk of project implementation or improvement of the existing, as well as economic, financial, moral, and social responsibility. Therefore, innovative entrepreneurship is defined as an economic process that leads to the creation of goods (products, services) and technologies, which are best by their properties, through the practical use of innovations. It is analysed that reformation of the economy is a prerequisite that will lead to increasing competitiveness and provide for the renewal of organizational structures in accordance with the best world trends of innovation activity, taking into account the peculiarities of market transformations in the country, and proposes effective measures to improve the efficiency of innovative entrepreneurship development. The level of development of innovative entrepreneurship determines the country’s place in the global space. The low technical level of many sectors of the economy in comparison with industrialized countries (EU, USA) can be overcome only due to the updating of the production base of most enterprises of the country. The development of innovative entrepreneurship in the EU and the USA has become quite successful thanks to individual initiative, creating conditions for the fulfilment of the individual interests of the entrepreneur. Ensuring material wealth, finding appropriate forms of self-expression should represent strong incentives for highly effective work. Therefore, innovative entrepreneurship is considered as the most important tool for the development and transformation of the economic system in terms of modern scientific and technological progress (STP). The use of new types of techniques, management methods, technologies, and organization of production will significantly expand the range, quality, and volume of production, and this will lead to the transformation and reform of the country’s economy. The purpose of the study. The main purpose of the paper is to substantiate and deepen the theoretical and methodological provisions regarding the formation of innovative development of entrepreneurship. The object of the study is the processes that form the innovative development of entrepreneurship. The subject-matter of the research is a set of theoretical fundamentals for improving the formation of innovative development of entrepreneurship. Research methods. The theoretical and methodological basis of the study was the modern theories of enterprise management, monographs, publications, and scientific and analytical developments of scientists on the issues of formation of innovative development of entrepreneurship, as well as abstract-logical and graphical methods of research.