Factors shaping the fiscal environment for entrepreneurial activity stimulation in conditions of instability and war

Abstract

The formation of a fiscal environment capable of stimulating entrepreneurial activity is one of the key tasks of modern economic policy. In conditions of instability caused by global economic crises, warfare, the COVID-19 pandemic, and other factors, creating favorable conditions for business development is especially crucial. An effective tax policy that considers both external and internal challenges can be a powerful tool for stimulating economic activity, creating jobs, and ensuring sustainable development. Studying the factors that influence the formation of such an environment, as well as adapting the best international practices to the realities of Ukraine, are important for both scientific analysis and the development of practical recommendations. The article explores the factors shaping the fiscal environment that stimulates entrepreneurial activity in conditions of economic instability. Key challenges are considered, including the impact of warfare, the COVID-19 pandemic, and global economic changes, which create specific conditions for business operations. Factors of direct and indirect influence on the formation of the fiscal environment for stimulating entrepreneurial activity in conditions of instability and war are analyzed. The international experience in implementing tax incentives is reviewed, and recommendations for adapting effective practices in Ukraine are proposed. The author has grouped and refined the structural-logical scheme of factors shaping the fiscal environment for stimulating entrepreneurial activity in unstable conditions and their forms of manifestation. Particular attention is paid to the role of tax policy in ensuring the sustainable development of the entrepreneurial sector in crisis conditions. The research findings can be useful for developing strategies for fiscal stimulation of the economy and supporting entrepreneurship.