Scientific Bulletin of Mukachevo State University. Series “Economics”

Vol. 12, No. 3, 2025 14.10.2025 open access Open access

Financial integration of businesses and amalgamated territorial communities: Mechanisms for attracting alternative financing and cost assessment based on the example of enterprise activities

Mykyta Pyriesiev

DOI https://doi.org/10.52566/msu-econ3.2025.31 Pages 31 –44 Views 638 Views

Abstract

The study aimed to assess the effectiveness of public-private partnership programmes for Ukrainian communities and enterprises. To achieve this goal, a segmented analysis of official statistical indicators reflecting the financial potential of Ukrainian communities for the period 2020-2024 was used. A general trend of low local budget execution was identified, which did not exceed 100.72% during the period under review. The analysis found that 70.1% of amalgamated territorial communities (ATCs) in Ukraine are financially viable. The study determined that a hybrid form of public-private partnership is the most promising mechanism for alternative financing in the Ukrainian context. Business participation in such projects has demonstrated a significant economic effect: partner enterprises have invested between UAH 1.6 and UAH 3.8 million in the development of local infrastructure and production capacities, achieving profitability of 10-12% and return on sales of up to 15%. In addition, businesses have expanded their sales markets (entering national retail chains), optimised costs and increased the added value of their products. For communities, this meant an increase in the financial capacity index from 1 to 5 points, budget over-performance of up to 103% and the creation of 8-20 new jobs, which ensured stable growth in tax revenues and long-term socio-economic effects. For communities with low and critical levels of financial capacity (29.9% of all Ukrainian communities), the introduction of a hybrid model was proposed, in which private partners provide the main funding. The results of the study can be used by local authorities in Ukraine to develop effective models for the financial integration of businesses into the community

Keywords

local government bodies, private partners, public-private partnership, hybrid model, infrastructure

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Suggested citation

Pyriesiev, M. (2025). Financial integration of businesses and amalgamated territorial communities: Mechanisms for attracting alternative financing and cost assessment based on the example of enterprise activities. Scientific Bulletin of Mukachevo State University. Series “Economics”, 12(3), 31-44. https://doi.org/10.52566/msu-econ3.2025.31