Tax incentives as a tool for entrepreneurship development in Ukraine under Conditions of digitalization and ESG transformation of the economy
DOI:
https://doi.org/10.26906/EiR.2026.1%20(100).4393Keywords:
tax incentives, tax policy, entrepreneurship, investment activity, innovation development, sustainable development, ESG policyAbstract
The article examines the role of tax incentives as an important instrument of state economic policy aimed at supporting entrepreneurship and stimulating economic development in conditions of economic transformation. The relevance of the research is determined by the need to identify effective regulatory mechanisms capable of strengthening investment activity, promoting innovation, and facilitating the modernization of production processes. In modern economic systems tax policy performs not only a fiscal function but also acts as a strategic tool that influences the behavior of economic agents and creates favorable conditions for sustainable economic growth and business development. The purpose of the study is to substantiate the role of tax incentives in shaping a favorable entrepreneurial environment and to determine the possibilities of their use for stimulating investment, innovation, and environmentally oriented development of enterprises. The methodological basis of the research includes theoretical generalization, system analysis, classification, and comparative analysis, which made it possible to determine the economic nature and functional role of tax incentives in the system of state regulation of entrepreneurial activity. The study systematizes the main types of tax incentives and defines their functional directions within economic policy. Particular attention is paid to the analysis of international experience, especially the practices implemented in the countries of the European Union. European practice demonstrates that tax incentives can effectively stimulate research and development, technological modernization, digital transformation, and environmentally responsible production. The results indicate that the implementation of a balanced and transparent system of tax incentives can stimulate entrepreneurial activity, increase investment flows, and strengthen the innovation capacity of enterprises. The research also highlights the prospects for adapting European tax policy instruments to the conditions of Ukraine’s economic transformation and post-war economic recovery.
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