Capitalization of regional economic entities: strategic vector

Abstract

The process of capitalization of business entities is a rather important factor in the country's post-war recovery. There is cross-border and interregional capital movement, instability of financial markets and many traditional financial instruments, and increasing instability of global processes in the world. The concept of the development of the capitalization process is seen in the system of economic relations, where the subjects of the regional economy are the following market agents: representatives of business circles and regions as subjects of economic relations. Thus, there is an increase in the region's economic assets, which subsequently participate in global exchange processes and the reproduction of the gross regional product. This affects the region's investment attractiveness and the effective functioning of its business entities.

Aim and tasks. The purpose of this article is to define the category of «capitalization» and form capitalization strategies for business entities in the region. This goal allowed us to formulate the following tasks: to carry out a content analysis of the concept of «capitalization»; to investigate the manifestation of capitalization at different levels of management; to improve the conceptual and categorical apparatus of economic science; to propose strategies for capitalization of business entities in the region.

Materials and methods. This study was carried out on the basis of generally accepted scientific methods, namely: systems approach, reproducible approach, factor analysis, theoretical and methodological analysis. In addition, scientific articles, publications, statistical data and a predictive research method were used.

Research results. A content analysis of the concept of «capitalization» was carried out using various scientific approaches. The manifestation of capitalization at different levels of management was studied. The conceptual and categorical apparatus of economic science has been improved by introducing the concepts of «capitalization» and «capitalization of regional economic entities», which, unlike others, are based on the accumulation of the resource potential of regional economic entities. Strategies for capitalization of business entities in the region are proposed based on establishing their types, implementation mechanism, benefits and risks of implementation.

Conclusions. The increase in the level of capitalization of assets of business entities in the regions is due to the following factors: an increase in the specification and distribution of property rights between owners and consumers of resources; increasing efficiency and resource formation; updating production assets; developing new types of resources in the reproduction process (including knowledge, information, infrastructure, digital, innovative, technological, etc.)