Inclusive business development in Ukraine as a tool for spatial equality: a theoretical and applied analysis

Andrii Skrylnyk
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Andrii Skrylnyk: National University “Yurii Kondratiuk Poltava Polytechnicâ€

Economic Synergy, 2025, issue 3, 175-192

Abstract: The article provides a comprehensive analysis of inclusive business development as a strategic tool for achieving spatial equality in Ukraine. It explores the structural disparities that persist between regions, emphasizing the significant differences in gross regional product per capita, income levels, employment, and business activity. The research applies a cluster analysis that classifies Ukrainian regions into four categories: leaders, industrially advanced regions, moderately developed areas, and depressed peripheries. Results show that Kyiv and several key industrial regions concentrate most economic resources and opportunities, while many territories remain structurally disadvantaged. The study highlights that small and medium-sized enterprises (SMEs) have the greatest transformative potential to reduce these gaps. SMEs generate more than half of the economy’s value added and nearly two-thirds of employment, making them a foundation for inclusive growth. However, their development requires institutional support, access to finance, infrastructure, and human capital investment. Based on international comparisons, the paper stresses the relevance of adopting EU cohesion policy principles and global best practices in fostering inclusiveness. Short-term measures proposed include monitoring spatial equality, targeted support for the most lagging regions, and pilot business incubators. Medium-term priorities involve the creation of special economic zones, regional clusters, and programs for human capital enhancement. In the long term, structural modernization of regional economies, integration into European cohesion policy, and reconstruction of post-conflict territories are considered essential. The findings conclude that inclusive business development must become a long-term paradigm of Ukraine’s state policy and business culture. By systematically involving vulnerable groups, peripheral regions, and local communities in entrepreneurial activity, the country can significantly reduce regional disparities, increase competitiveness, and strengthen social resilience. Ultimately, inclusive development is not only an economic necessity but also a social imperative, capable of ensuring sustainable national progress and balanced regional growth.

Keywords: inclusive development; business; spatial equality; regional policy; small and medium-sized enterprises; development strategy; social entrepreneurship; economic resilience; regional recovery (search for similar items in EconPapers)
JEL-codes: D63 L26 O15 R11 R12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2025:i:3:p:175-192

DOI: 10.53920/ES-2025-3-13

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