Economic capacity of small communities as the foundation of sustainable local development

Шлапак, Алла Василівна and Заболотний, Геннадій (2025) Economic capacity of small communities as the foundation of sustainable local development Європейський науковий журнал Економічних та Фінансових інновацій, 15 (1). pp. 385-394. ISSN 2617-8648

Text Shlapak_ESJEFI_1_2025_FEU.pdf - Published Version Download (988kB)

Abstract

In the current context of decentralization and the growing role of local self-government, the issue of the economic capacity of small communities is becoming particularly relevant. A capable community is not only an administrative unit, but also an effectively functioning territory with sufficient resources to meet the needs of the population, stimulate entrepreneurship, enhance investment attractiveness, and ensure sustainable development. In Ukraine, following the implementation of decentralization reform, small communities have received more powers, but also greater responsibility for economic growth, resource management, and the socio-economic well-being of the population. Economic capacity is defined as a community’s ability to independently generate budget revenues, ensure the efficient use of available resources, support local businesses, attract investments, and implement projects that promote socio-economic development. The purpose of this paper is to identify the features of the economic capacity of small communities as a foundation for ensuring sustainable local development. The main methods used in this study include the logical method, generalization, analysis and synthesis, and visualization methods, which helped to clearly present the key conclusions. The economic capacity of small communities is a key factor that determines their ability to self-govern, maintain the viability of local economies, and achieve sustainable development goals. In the decentralization process, financial stability, effective resource management, investment potential, and the ability to develop and implement local development strategies become the main criteria for assessing the success of communities. Small communities that demonstrate economic capacity can not only provide basic social services, but also actively contribute to employment growth, support local entrepreneurship, preserve the environment, and improve the quality of life of the population. At the same time, to ensure long-term resilience, it is important to implement modern management tools, engage the community in decision-making, develop human capital, and strengthen intermunicipal cooperation.

Item Type:	Article
Uncontrolled Keywords:	territorial community; development; sustainable development; decentralization; digital transformation; digitalization; digital economy; economic capacity; territorial development; economic inclusion
Subjects:	Статті у базах даних > Index Copernicus Статті у періодичних виданнях > Фахові (входять до переліку фахових, затверджений МОН)
Divisions:	Факультет економіки та управління > Кафедра міжнародної економіки
Depositing User:	Доцент Алла Василівна Шлапак
Date Deposited:	12 May 2025 09:12
Last Modified:	12 May 2025 09:12
URI:	https://elibrary.kubg.edu.ua/id/eprint/51787

Actions (login required)

View Item