Entrepreneurship Development in Ukraine: Factors Affecting Small and Medium Businesses Formation on the Regional Level

This paper attempts to identify the set factors and find their effect on the number of enterprises and individual entrepreneurs through panel data analysis. The data is collected on Ukrainian regions from open resources for the period from 2012 to 2020. The analysis showed that variables on gross regional product, expenditures on research and development, and regions’ revenue have statistically significant effects on the number of individual entrepreneurs while average monthly salary and expenditures on capital investment showed negative effects. Additionally, the effect of the variables was estimated separately for small and medium enterprises where only the number of large firms and salary have significant effects. Based on the findings of this analysis, recommendations that can be useful both for the business community and government institutions are provided. Insights and suggestions for future research in this area are also discussed.