Modeling Entrepreneurship Development in Chuvashia

Abstract:

The article considers the basis of entrepreneurial activity as self-movement, which is caused by contradictions. Such contradictions include export in opposition to import, the balance of which is determined by the mode of production, international division of labor, and type of the socio-economic formation. It is possible to adequately assess the essence of the matter and the conditions for the development of entrepreneurship in the sphere of distribution, at the level of international trade, when diversity of socio-economic formations of different nations leads to identity of differences. As a result of modeling the possibilities of entrepreneurship development in Chuvashia founded on the basic Cobb-Douglas function, taking into account the dynamics of international trade turnover, the dominance of the dynamics of average per capita money incomes of the population over the index of industrial production was revealed. On the one hand, this dominance makes it possible, due to the low values of per capita money incomes to maintain identically low levels of industrial production, and on the other hand, stimulation of the growth of industrial production, above the threshold level of profitability of entrepreneurship, will cause an increase in average per capita incomes of the population and international trade turnover. The increase in the level of profitability of entrepreneurship in Chuvashia is associated with the chemical industry. The main areas of implementing possibilities of entrepreneurship development in cooperation with the chemical industry are business services in the information and communication sector, financial intermediation and administrative services provided by females, as nascent entrepreneurs in particular. Business opportunities in Chuvashia are determined by the potential and conditions for overcoming the limits of its own economic structure, which are revealed in international trade.