Baltic Journal of Economic Studies 277 Vol. 10 No. 4, 2024 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 Manager of International Projects, Attorney, Human Rights Defender, Ukraine (corresponding author) ORCID: https://orcid.org/0000-0003-0171-5609 2 CEO Sherp North America, United States E-mail: Anton.shcheglov@sherputv.com ORCID: https://orcid.org/0009-0009-9644-563X DOI: https://doi.org/10.30525/2256-0742/2024-10-4-277-287 A MECHANISM FOR PROMOTING BUSINESS DEVELOPMENT IN THE CURRENT ENVIRONMENT Georgii Logvynskyi1, Anton Shcheglov2 Abstract. The subject of this research is the mechanism for promoting business development in the modern business environment. The purpose of the study is to analyse and identify tools, actors and other elements that contribute to business development in the context of modern economic, technological and social challenges, in order to formulate recommendations for optimising business processes and increasing the competitiveness of enterprises. Methodology. In conducting this research, a variety of scientific cognition methods were employed, including system analysis, dialectical reasoning, formal logic, structural-functional analysis, and a number of empirical methods. Results. The theoretical foundations of business development were examined, with particular focus on the concept of "business" and models of its development. It was observed that the term "business" is open to interpretation in international legislation, with its meaning dependent on the context and particulars of the document in question. In general terms, business can be defined as any commercial activity with the objective of generating profit through the production of goods or the provision of services. It can be demonstrated that at the national level of legal regulation, the meaning of the term "business" has undergone significant changes in both substance and content from the Soviet era, through the transition to a market economy, to the present day, undergoing a substantial transformation. It is observed that in Ukraine, a practice has emerged whereby businesses are categorised according to their size, with the categories designated as "small", "medium" and "large" businesses. Concurrently, a unified set of quantitative indicators for these categories has yet to be established. It is established that the fundamentals of business development may include a content-structural approach in relation to: 1) creation; 2) market research; 3) management; 4) expansion, scaling; 5) enterprise development; 6) implementation of modern technologies to optimise business processes; 7) implementation of quality standards and certifications for products or services; 8) monitoring and improvement of processes to increase efficiency; 9) risk management, which includes identification of risks associated with changes in the business environment, development of strategies to minimise them and the company's readiness to adapt business models in response to external challenges. The concept and typological characteristics of the mechanism for promoting business development have been the subject of study. The author's understanding of the legal category "mechanisms for promoting business development" is proposed as a system of organisational-legal, financial, technological, investment, and other means of influence, the development and implementation of which aims to promote business development. The types of business support mechanisms, depending on the industry focus and the chosen direction of development, are classified as follows: 1) innovative mechanisms (in particular technology implementation); 2) financial mechanisms (in particular investment, credit, state support); 3) organisational mechanisms (in particular business process optimisation, management structure); 4) marketing mechanisms (in particular promotion strategies, consumer needs analysis). The author identifies the services that can be provided by business incubators to promote the development of startups and young enterprises in different ways, dividing them into two main groups: 1) administrative services (professional advice; trainings and seminars, event organisation; legal services; networking services; services to provide access to resources; marketing and promotion services; infrastructure-related services; financial support and management services; 2) technical services (services aimed at providing access to the latest technologies; IT support services; research and development support; product testing services; project management tools). A comparative analysis is conducted based on criteria such as programme duration, target audience, focus, purpose, support and resources, and funding, in order to characterise the differences between a business incubator and a business accelerator. The article presents a number of case studies which illustrate the efficacy of contemporary Baltic Journal of Economic Studies 278 Vol. 10 No. 4, 2024 business development practices. These include the utilisation of modern business development assistance mechanisms, such as laboratories, accelerators, incubators, angel investors, investment funds and so forth. Keywords: globalisation, integration, interaction, partnership, synergy, business communication, business community, business, cooperation, incubation programme, investment, relocation, laboratories, accelerators, greenhouses, incubators, angel investors, investment funds. JEL Classification: F02, M21, E22 1. Introduction For an extended period, it was widely accepted that business is an autonomous entity that conducts its economic activities with a high degree of independence. The development and prosperity of a business are thought to depend more on the chosen business plan and strategic direction, and less on external factors. However, in the context of globalisation, scientific and technological progress, investment and other opportunities, the situation has undergone a significant transformation. In the current business environment, organisations are presented with a plethora of opportunities, spanning the development of strategies, enhancements to material and technical bases, the identification of potential clients, the expansion of customer bases, the acquisition of credit, the attraction of investment, the participation in grant projects, the attraction of investors, the organisation of educational processes, the conduct of research, the protection of intellectual property rights, the creation of brand books, and numerous other avenues. In the context of martial law, the provision of support for businesses is a multifaceted endeavour, encompassing both state and international levels. Consequently, alongside the advent of new opportunities, contemporary circumstances present novel economic, technological, and social challenges and threats that businesses must anticipate and develop effective strategies to overcome, reduce vulnerability, or adapt to. In light of the continually evolving landscape of business opportunities, it is crucial to examine the mechanisms through which businesses perceive and respond to developments in the modern business environment. This analysis should inform the formulation of recommendations aimed at enhancing business processes and strengthening the competitive position of enterprises. 2. Theoretical Foundations of Business Development: Concepts and Models of Business Development In order to facilitate a more comprehensive grasp of the subject matter, it is first necessary to define the conceptual and categorical apparatus. In regard to the term "business," it is important to note that there is no unified approach to its definition, despite its widespread use. In light of the aforementioned considerations, the term "business" is understood to encompass a range of meanings, with the specific content varying depending on the level of legal regulation (in particular, international and national) and the sphere of relations in question. The term "business" was introduced to international linguistics from English and has its roots in the word "busy", "business". This word has a number of synonymous interpretations, including "affair", "matter", "work" and "labour". Similarly, the term "business" in the economic context is used in a multitude of meanings. It is employed to signify any type of activity and individual specialisation, the general principles and technological features of conducting business, the production of material goods, their exchange and sale, the nature and type of people's occupation, and so forth (Polivchak, 2006). In the context of international legal regulation, the interpretation of the term "business" in international acts may vary depending on the specific context and the particulars of the document in question. In general terms, the term "business" encompasses a range of commercial activities undertaken with the objective of generating profit through the production of goods or the provision of services. The General Agreement on Trade in Services, adopted by the World Trade Organization, does not employ the term "business" but defines "legal entity" as "any entity duly constituted or otherwise organized under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally- owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association" (General Agreement on Trade in Services, adopted by the World Trade Organization, 1994). The Guiding Principles on Business and Human Rights, endorsed by the UN Human Rights Council (Deva, Surya, 2012), employ the term "business" without defining it. Furthermore, throughout the document, derivative or synonymous terms and legal constructions to the concept of "business" are used without disclosing their content. These include "business structures", "business entities", "transnational business activities", and others. The term "transnational business activity" is defined in the draft "Legally Binding Instrument to Regulate, Baltic Journal of Economic Studies 279 Vol. 10 No. 4, 2024 in International Human Rights Law, the Activities of Transnational Corporations and Other Business Enterprises" as "any for-profit economic activity, including but not limited to productive or commercial activity, undertaken by a natural or legal person, including activities undertaken by electronic means, that take place or involve actions, persons or impact in two or more national jurisdictions" (Guiding Principles on Business and Human Rights, 2018; 64). Western economists define the concept of business in a systematic manner while simultaneously extending its scope to encompass a multitude of meanings, including business, work, production, and the satisfaction of desires, as well as the lifestyle of individuals and the central highway of the socio- economic system of society. This multifaceted nature of business explains why foreign scholars often refrain from providing a clear and unambiguous definition of the term, given that the number of types, subtypes, and varieties of human activity is as vast as the definition of business itself (Polivchak, 2006). The term "international business" is also frequently employed to describe any firm engaged in international trade and/or international investment (Charles, 2014). In their definition of the concept of "international business", scholars S. Robock and K. Simmonds identify a set of business operations that are related to crossing national borders and the movement of goods, services, capital, and workers. Additionally, they include the transfer of technology, information, and data, as well as the management of performers, within this conceptual framework (Robock, 1983). In turn, I. V. Medvedeva puts forth the proposition that international business may be defined as a set of business operations conducted by partners (individuals, companies, and other private and public, non-profit organisations) from two or more countries beyond national borders, with the objective of generating profits (Medvedeva). As far as the national level of legal regulation is concerned, it is necessary to note the etymology of the term "business", the meaning of which has undergone significant changes in substance and content from the Soviet period through the transition to the market economy to the present day, from the understanding of it as "activities aimed at making profit without taking into account behavioural principles, but based only on personal interests, in some cases using such methods as extortion or dubious operations" to a new meaning – as useful activities to meet personal needs of life (Business- Encyclopedia of Modern Ukraine, 2021). The normative definition of the term "business" is provided in the Resolution of the Cabinet of Ministers of Ukraine "On Approval of the National Standard No. 1 'General Principles of Property and Property Rights Valuation'" of 10.09.2003 No. 1440, where it is understood as a certain economic activity that is carried out or planned to be carried out using the assets of an integral property complex (The Resolution of the Cabinet of Ministers of Ukraine "On Approval of the National Standard No. 1 'General Principles of Property and Property Rights Valuation'", 2003). In modern understanding, the term "business" is interpreted as – any activity, occupation or method aimed at making a profit; an economic activity that seeks to make a profit primarily through the sale or exchange of products or services that meet customer needs; may include one or more stages in the production chain, such as: extraction of natural resources, manufacturing, distribution, storage, sale or resale. Sometimes the term enterprise is used to refer to commercial premises where goods or services are sold, such as a restaurant, clothes shop, chemist's, and so forth (Dictionary, 2024). In addition to the term "business," modern economics also employs such concepts as "entrepreneurship." Some economists equate these two concepts. However, while the concepts of "entrepreneurship" and "business" both aim to generate profit from certain activities, each possesses distinctive features and specific content. Entrepreneurship is regarded as an activity associated with innovation, increased venture risk, and a novel quality of results obtained, thereby representing a unique and innovative form of business. In contrast to the narrower concept of entrepreneurship, the term "business" encompasses a much broader range of interactions within the context of a market economy. These interactions involve not only entrepreneurs but also consumers, employees, and government structures (Bundyuk). An element of business is entrepreneurial activity, which is based on two models: 1) the classical model, which is focused on maximising the return on resources available to an enterprise (firm, organisation); 2) the innovative model, which involves the use of any new business opportunities, even if own resources are insufficient for this (Bundyuk). Additionally, in Ukraine, a practice has emerged whereby businesses are categorised into three distinct groups: small, medium and large. Concurrently, a unified set of quantitative indicators for these categories has yet to be established. Furthermore, the specific nature of business as a distinct form of entrepreneurial activity (the term used in Ukrainian) has yet to be clearly defined. In particular, it is not yet clear what the object, subject, and method of this activity are (Pugachevsky, 2012). However, the Commercial Code of Ukraine divides business entities into 1) micro-enterprises (which include: individuals and legal entities with an average number of employees of up to 10 persons and annual revenue of up to 2 million EUR); 2) small Baltic Journal of Economic Studies 280 Vol. 10 No. 4, 2024 businesses (which include: individuals and legal entities with an average number of employees up to 50 and annual revenue up to 10 million EUR); 3) large businesses (which include: individuals and legal entities with an average number of employees up to 250 and annual revenue up to 50 million EUR); 4) medium-sized businesses (which include: other business entities) (The Economic Code of Ukraine, 2003). The number of employees is calculated on the basis of the reporting period (calendar year) and the income size. The Ministry of Economic Development has recently proposed amendments to the Economic Code of Ukraine, which would establish new criteria for classifying business entities as medium-sized enterprises. The project delineates the criteria for medium-sized enterprises, defined as legal entities of any organisational and legal form and form of ownership, in which the average number of employees for the reporting period (calendar year) does not exceed 250 people and annual income from any activity does not exceed the amount equivalent to 50 million EUR, determined by the average annual exchange rate of the NBU (Koznova, 2019). The fundamentals of business development include a substantive and structural approach to 1) creation (in particular, choosing an effective form of business activity, defining clear and measurable goals and strategies, and policies); 2) market research (in particular, analysing the potential customer base, identifying competitors and systematising customer needs); 3) management (in particular, introducing innovations, financial management, assessing investment opportunities, cost control, and human resources policy); 4) expansion, scaling (including entering the international market); 5) enterprise development (in particular, implementation of marketing strategies; use of digital business platforms, social networks, content marketing to promote goods or services); 6) implementation of modern technologies to optimise business processes (in particular, use of digital tools for data analysis and decision-making); 7) implementation of quality standards and certification of products or services; 8) monitoring and improvement of processes to increase efficiency; 9) risk management, which involves identifying risks associated with changes in the business environment, developing strategies to minimise them, and business readiness to adapt business models in response to external challenges. The aforementioned business development foundations will facilitate the creation of a robust platform for enterprise development, adaptation, and sustainability in a dynamic and competitive environment. 3. The Concept and Typological Characteristics of the Mechanism for Promoting Entrepreneurship Development In the contemporary business environment, organisations are confronted with a multitude of challenges and risks that may have economic, political, regulatory (in light of the constant evolution of legislation), social and environmental dimensions. In order to survive and thrive in this dynamic context, businesses must demonstrate the capacity for adaptation to changing business conditions. An understanding of the mechanisms that facilitate business adaptation to such changes represents a crucial aspect of the study. To illustrate, the global pandemic has already demonstrated the importance of flexibility and adaptability of business models. Another constant challenge for businesses is the necessity to operate in a competitive environment, which requires the implementation of strategies aimed at enhancing efficiency, developing and implementing mechanisms capable of optimising resources and time, and promoting business development. It is therefore important for the scientific community and practitioners in the field of business management to study the ways and tools that can be used to promote business development in the context of modern challenges. In general, it should be noted that virtually any legal category has its own system of elements that are arranged in a certain sequence, forming a structure, the components of which, interacting and functioning, form the relevant mechanism. According to the Explanatory Dictionary of the Ukrainian Language, a "mechanism" is: a) a device that transmits or converts motion; b) the internal structure, system of something; c) a set of states and processes that make up a certain physical, chemical and other phenomenon (Explanatory Dictionary of the Ukrainian Language, 2005-2024). In the context of scientific literature, the term "mechanism" is understood to refer to a system of means of influence, a way of functioning. Additionally, the term "legal mechanism" is used to describe a specific construction that provides for the action of sequentially organised legal means, allowing the achievement of a specific legal goal while following the appropriate procedure. Each component of the mechanism is a discrete complex of legal instruments (Tarakhovych). In light of the aforementioned considerations, it appears feasible to conceptualise the category of "mechanisms for promoting business development" as a system of organisational, legal, financial, technological, investment, and other means of influence. The development and implementation of these mechanisms are designed with the objective of promoting business development. Baltic Journal of Economic Studies 281 Vol. 10 No. 4, 2024 As for the gradation of business promotion mechanisms, it can be offered depending on the industry focus and the chosen direction of development, including: 1) innovation mechanisms (in particular, the introduction of technologies); 2) financial mechanisms (in particular, investments, lending, government support); 3) organisational mechanisms (in particular, optimisation of business processes, management structures); 4) marketing mechanisms (in particular, promotion strategies, analysis of consumer needs). In the context of innovative business promotion mechanisms, it is crucial to acknowledge the pivotal role that modern technologies, including the utilisation of AI and automation, digitalisation of processes, e-commerce, business platforms, and other such developments, will play. Concurrently, the increasing significance of technology, particularly AI and automation, necessitates novel methodologies for strategic business development. The examination of the potential for integrating these technologies into business processes is a topic of considerable contemporary relevance. The efficacy of the business promotion mechanism is contingent upon a multitude of factors, primarily the organisational and legal form of the business element in question and the sector in which it is to be involved. To illustrate, in the context of state policy aimed at supporting small innovative businesses, the business promotion mechanism will encompass a range of measures, including improvements to legal regulation, the promotion of enhanced small business structures, preferential taxation, credit and investment support, the provision of resources and product sales, the facilitation of access to small business insurance, accelerated depreciation, the implementation of foreign economic preferences, the delivery of information and consulting support, personnel training, scientific and methodological support, and the development of state-sponsored entrepreneurship support programmes. (Lukashyna, 2009). 4. Effective Tools for Promoting Business Development: Conceptual and Typological Characteristics and Comparative Analysis Business incubators are of significant importance in the context of innovation activities, serving as an integral component of the support infrastructure for nascent entrepreneurship, as well as a conduit for economic, social, structural, and innovation policy. Furthermore, business incubators are widely regarded as an effective instrument for regional economic development, specifically designed to provide comprehensive support to nascent and young enterprises at the critical initial stage of their development. The principal objective of a business incubator is to establish an environment conducive to the growth and success of nascent businesses. The ultimate goal is to facilitate the development of financially viable, independent, and thriving enterprises upon their departure from the incubator. The optimal duration for a business incubator programme is typically two to three years (Ivashova, Korzhova, 2013). The term "incubator" is defined in Regulation (EU) 2018/848 of the European Parliament and of the Council on organic production and labelling of organic products and repealing Council Regulation (EC) No. 834/2007. This definition, although related to animal rearing, is also associated with the place and early stage of development, as in business processes (Regulation (EU) 2018/848 of the European Parliament and of the Council on organic production and labelling of organic products and repealing Council Regulation (EC) No. 834/2007, 2018). With regard to the national level of legal regulation, the Law of Ukraine "On Innovation Activity" (No. 40-IV, 04.07.2002) provides a definition of the legal category "innovative enterprise (innovation centre, technopark, technopolis, innovative business incubator, etc.)" as an enterprise (association of enterprises) that develops, produces and sells innovative products and (or) products or services, the volume of which in monetary terms exceeds 70 percent of its total volume of products and (or) services. Concurrently, it is proposed that an innovative enterprise may be structured as an innovation centre, business incubator, technopolis, technopark, and so forth (The Law of Ukraine "On Innovation Activity", 2002). It is important to acknowledge that this definition is somewhat generalised and not aligned with contemporary realities. Therefore, it requires refinement to account for the distinctive characteristics inherent to each of its forms. On the other hand, the 2009 by-law, which is now no longer in force, contained the following terms: 1) "business incubator" – an organisation that provides specially equipped premises and other property to startup small and medium-sized enterprises on certain conditions and for a certain period of time in order to facilitate their financial independence; 2) "innovative business incubator" – a specialised business incubator that creates conditions for the development and application of innovative technologies by small and medium-sized enterprises (The Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for Registration of Organisations Aimed at Meeting the Needs of Small and Medium-Sized Enterprises", 2009). In order to facilitate the promotion of startup and young enterprise development, it is essential to distinguish the services that can be provided by Baltic Journal of Economic Studies 282 Vol. 10 No. 4, 2024 business incubators. They can be divided into the following two groups. 1. Administrative services, which include: – Professional consultancy (engaging professional coaches, mentors and experts in various fields to provide advice (management, HR, marketing, policy, strategy, finance, accounting, technology, including business plan development), as well as expertise in business management, strategic planning and business process organisation). – Education and training, event organisation (assistance in organising trainings, business meetings, seminars, workshops, roundtables, conferences and other events aimed at improving the skills of entrepreneurs in various aspects of doing business, sharing experience). – Legal services (support on legal issues, such as business registration, drafting contracts, protection of intellectual property rights). – Networking services (creating conditions for establishing contacts with potential investors, partners, suppliers, other entrepreneurs and stakeholders). – Services to provide access to resources (including technologies, laboratories, research centres or other resources that will be useful for the development of a startup). – Marketing and promotion services (support in formulating marketing strategies, conducting research and promoting goods or services in the market). – Infrastructure services (lease of office/production premises, workplaces, coworking spaces, equipment and infrastructure for doing business). – Financial support and management services (Ivashova, Korzhova, 2013) (may include attracting investment, access to funds, grants and loans necessary for the development of a startup, assistance in developing financial strategies, accounting, financial reporting and budget planning). 2. Services of a technical nature: – Services aimed at providing access to the latest technologies (software, laboratory equipment, information technology and other resources that may be useful for the development of products or services). – IT support services (providing startups with technical support, including the development and maintenance of software solutions, automation and data management systems). – Research support (access to research laboratories, as well as cooperation with universities and research institutions for research and development). – Product testing services (testing of products or services, which allows companies to receive feedback and improve their developments before entering the market). – Project management tools (providing access to software solutions for project management, progress monitoring, documentation management and collaboration). Through these administrative and technical services, business incubators can reduce the burden on startups, allowing them to focus on product development, customer acquisition and commercial success. Business incubators may be either commercial or non-profit organisations, and typically operate within a specific industry or geographical area. It is important to note that business incubators and business accelerators are not synonymous. Despite the common association between the two, they are, in fact, distinct categories with significant differences. The following are some of the key differentiating factors. In light of the aforementioned definition of a business incubator, which describes an organisation that provides support to startups and young businesses in their early stages of development, offering a range of resources and services to facilitate growth and success, it can be argued that a business accelerator is a legal entity that engages in independent economic activity. This is evidenced by its role in supporting or developing new innovative projects or startups of accelerator residents that are in the formation stage (Features of the legal status of a business accelerator as a new participant in innovation processes). The objective of a business incubator is to facilitate the growth and development of nascent enterprises, or even those that are in the conceptualisation phase, by providing a supportive environment for testing initial business hypotheses, formulating products, and ultimately, bringing them to market. The typical duration of support provided by business incubators is long-term, spanning a period of several months to years. In contrast, a business accelerator aims to support an existing business and take it to the next level by offering short-term programmes (usually 3 to 6 months) with intensive training modules. The conditions can be set in the form of a share in the business and/or other conditions. An interesting approach to terminology is in J. Christensen's work "Copying Y Combinator", namely the term "seed accelerator" (Copying Y Combinator, 2009). The term is also employed in the broader context of English-language literature. It may therefore be assumed that the authors wish to highlight the link between business accelerators and the financing of startups, which is inherently high-risk. Also, depending on the source, the concept of "business accelerator" is interpreted as – a company whose business is to help other companies (accelerator residents); a model of early-stage business support that involves intensive project development in the shortest possible time (Dyachuk, 2018); an intensive startup development programme from experienced mentors; a social institution to support startups. Baltic Journal of Economic Studies 283 Vol. 10 No. 4, 2024 In Ukraine, accelerators can exist both in the form of a legal entity and a programme (Features of the legal status of a business accelerator as a new participant in innovation processes). It is erroneous to conflate incubation programmes with acceleration programmes. The latter, in contrast to the former, permit the refinement of a product, the development of a sales methodology and the actual entry into the market. Both programmes provide consulting and mentoring assistance, whereby specialists in various fields work with entrepreneurs. These may include IT specialists, business consultants, financiers, marketers, lawyers, and so forth. Most of these programmes include master classes, internships and workshops in related fields (Georgii Logvynskyi, 2024). There are various typologies of business accelerators, the most prevalent of which are: a) industry-specific (e.g., smart city, IT, and others); b) stage-specific (e.g., pre-acceleration, startup accelerator, and late-stage accelerator); and c) macro-specific (e.g., general, vertical, corporate, state, social, student- and science-oriented). Each group of accelerators, although distinctive, can be of several types simultaneously (Horobets, 2021). The distinction between a business incubator and an accelerator can be elucidated through a comparative analysis of the key differentiating factors, including the duration of the programme, the target audience, the focus, the purpose, the support and resources provided, and the funding model. Criteria Business incubators Business accelerators Duration of the program Long-term support that can last from several months to several years. Short-term programs (usually 3 to 6 months) with intensive training modules. Target audience Early-stage startups that don't yet have a finished product or a clear business model. Startups that already have a ready-made product or prototype and are looking for ways to grow faster and enter the market. Focus Focus on development. Focus on acceleration. Purpose Help companies develop their product or service, improve their business model, conduct market research and provide the necessary infrastructure. The main goal of accelerators is to accelerate business growth, attract investment, and prepare a startup to present its achievements to investors. Support and resources Access to office space, administrative, technical and consulting services. Intensive training programs, mentoring and networking opportunities with potential investors. Funding Typically do not implement investment programs, although some may act as investment funds. Financing is offered in exchange for a stake in the business. The comparative table provides a comprehensive illustration of the distinctions between a business incubator and a business accelerator. 5. Effective Forms of Business Development Promotion: From Theory to Successful Practice The examination of successful practices assumes particular significance in the context of the search for effective strategies to facilitate business development. In this instance, utilising the contemporary business development assistance mechanisms as a case study, a detailed analysis of successful practices will be conducted. First of all, it should be noted that business incubators and business accelerators are an important tool in the business development mechanism, as they can help add value to a business and/or increase its level if the business already has at least some value. For example, a group of IT specialists has developed a game that generates monthly revenue of 100 thousand USD. In this case, it is possible to sell the rights to the game or the game itself, but not the business itself, since in this case the business has no value. In order for a business to have value, it must have the right legal form, registration, name, selected management bodies and other personnel (if necessary), a certain form of accounting (e.g., audit by the Big Four firms or other independent organizations, etc.), and so forth. The transformation of ideas pertaining to youth and students into successful businesses can be facilitated by the utilisation of business laboratories and business incubators. These provide a platform for individuals with business ideas to seek guidance in the development of their venture and the establishment of comprehensive connections. Furthermore, business laboratories may also be established within the context of universities. For example, at the National University of Life and Environmental Sciences of Ukraine, in accordance with the decision of the Academic Council, formalized by Protocol No. 7 of 03.03.2021, the Educational and Research Laboratory "Business Analytics" was established, the main tasks, activities, rights, responsibilities of the laboratory, management of the laboratory, financing and remuneration of laboratory employees are regulated by the Regulations on the ESPL "Business Analytics" (Educational-Scientific-Production Laboratory "Business Analytics", 2021). The rating of the best business incubators includes the following: – Y Combinator. Y Combinator is a highly esteemed and widely recognised business incubator, which has facilitated the establishment of numerous successful companies, including Airbnb, Dropbox and Reddit. Baltic Journal of Economic Studies 284 Vol. 10 No. 4, 2024 The Y Combinator programme comprises a three- month period during which participants receive initial funding, mentoring and access to a substantial network of investors and entrepreneurs. – Techstars. Techstars is a global network of business incubators, with operations in over 150 countries. The programme, which lasts for three months, provides startups with initial funding, mentoring and resources to assist them in developing their business. It provides access to a broad network of investors and entrepreneurs, thereby offering an optimal choice for startups seeking to extend their reach. – 500 Startups. 500 Startups is a business incubator that has facilitated the launch of numerous successful companies, including Udemy, Twilio, and Canva. The programme, which lasts for four months, provides initial funding, mentoring and resources to help startups develop their business. Additionally, 500 Startups provides its participants with access to a global network of investors and entrepreneurs. – Seedcamp. Seedcamp is a European business incubator that has facilitated the launch of numerous successful companies, including TransferWise and Revolut. The programme, which lasts for four months, provides initial funding, mentoring and resources to help startups develop their business. It also offers access to a network of investors and entrepreneurs across Europe. – Founders Factory. Founders Factory is a business incubator in the United Kingdom that has facilitated the launch of numerous successful companies, including Zego and Fy. The programme lasts for six months and includes initial funding, mentoring and resources to help startups develop their business. In addition, participants gain access to a network of investors and entrepreneurs in the UK and Europe (Top 5 Best Business Incubators: Helping Startups Achieve Success). The first business accelerator is widely regarded as Y Combinator, which was established by Paul Graham in 2005 in California. Innovators were presented with the opportunity to participate in a three- month group business programme, accompanied by a modest investment. Subsequently, in 2007, investors David Cohen and Brad Feld established the business accelerator Techstars, which has since established offices in various cities and provided support to entrepreneurs from around the world (Features of the legal status of a business accelerator as a new participant in innovation processes). With regard to Ukraine, an intensive business programme, designated the "Impact Business Accelerator", has been devised for enterprising Ukrainian entrepreneurs who aspire to augment overall business growth, facilitate the post-war recuperation of Ukraine, and engender long-term social impact. The accelerator is overseen by an international team comprising experts, entrepreneurs, and investors. The programme's objective is to facilitate the transformation of Ukrainian SMEs through the integration of social responsibility into their business models, the promotion of overall business growth, and the development of a network of cooperation with local and international partners. The results include the establishment of a robust foundation for the impact economy in Ukraine and an enhanced visibility and recognition of impact businesses. This paves the way for the flourishing of the impact entrepreneurship ecosystem in Ukraine. The program includes a set of activities such as 1) in-depth exclusive online workshops on measuring and managing social impact, as well as on financial management; 2) pitching and presentation skills; 3) a demo day, which consists of a presentation of one’s own business to investors (Impact Business Community: Impact Business ecosystem that supports continuous innovation and collaboration). It is proposed that business accelerators such as Sector X, IoT Hub, Radar Tech, UCU Entrepreneurship Center, Richelieu V, and others be considered as potential drivers of innovative development and entrepreneurship enhancement in Ukraine (Horobets, 2021). The success of accelerators is contingent upon their proximity to other innovative structures and manufacturing companies. A case in point is Startup Sauna, which is situated in close proximity to Aalto University, which in turn is home to the largest nanocentre in Europe, as well as technology corporations such as Nokia and Design Factory (Infrastructure of the national innovation system). When it comes to an operating business with a relatively stable income, it is possible to involve investment funds or angel investors in its development, who, using an individual approach, will develop a business development plan to ensure that the company grows (this may involve changing the management to people with high status, reputation and authority, attracting well-known powerful investors, conducting marketing and patent research, etc.), relocating the business, and so forth. The interest in business development for such mechanisms is predominantly financial, as these services are either remunerated or such mechanisms receive a package of shares in the business they are developing, or a success fee, which is obtained after increasing the income or value of the business. Angel investors are private individuals who provide capital to businesses or enterprises, including startups, typically in exchange for a stake in the company or convertible bonds. Typically, support for startups is provided at an early stage, when the risk of failure is relatively high. It is also provided Baltic Journal of Economic Studies 285 Vol. 10 No. 4, 2024 on a one-off or sequential basis, and when the majority of investors are not yet prepared to support them (McKaskill, Tom, 2009). Angel investors play an important role in funding businesses that may find it difficult to obtain finance from traditional sources such as banks or venture capitalists. As well as providing funding, they can offer timely advice, a network of contacts and experience to help businesses grow and develop. Notable angel investors include Jack Dorsey (co-founder of Twitter and Square, who invests in a range of technology-focused startups), Elon Musk (founder of Tesla and SpaceX, who invests in early- stage companies, particularly in the domains of technology and energy), and Richard Branson (founder of Virgin Group). Additionally, there are numerous other prominent figures in the field of venture capital and private equity, including: Harry Burn Stein, an investor and entrepreneur who supports startups in the technology sector; Mark Cuban, a renowned businessman and investor who invests in various startups and is also one of the judges on the show Shark Tank, and numerous others. It is crucial to acknowledge that business accelerators and other forms of business development can assist in mitigating the adverse effects of war. Furthermore, Ukraine is now taking steps towards the implementation of business development mechanisms, as evidenced by the regulatory settlement of certain aspects. In this context, particular attention is drawn to the Resolution of the Cabinet of Ministers of Ukraine "On the Implementation of an Experimental Project to Create a Network of Startup Schools – Incubators – Accelerators on the Basis of Higher Education Institutions and Scientific Institutions" of 23.04.2024 No. 430. This Resolution defines the procedure for implementing a pilot project on creating a network of startup schools – incubators – accelerators on the basis of higher education institutions and scientific institutions. The network of startup schools, also known as incubators or accelerators, is defined as a set of interacting startup schools created on the basis of higher education institutions and scientific institutions. These institutions provide a range of services, including financial, consulting, marketing, information and communication, legal, educational, and other services, with the aim of developing startups focused on the use and commercialisation of scientific and technical (applied) results. These services are provided at the initial stage of the startups' development, with the goal of stimulating the creation, implementation, and realisation of innovative products (The Resolution of the Cabinet of Ministers "On the Implementation of an Experimental Project to Create a Network of Startup Schools – Incubators – Accelerators on the Basis of Higher Education Institutions and Scientific Institutions", 2024). Recommendations for optimising business processes and increasing the competitiveness of enterprises may include 1) analysis of opportunities (information contacts, joining communities, monitoring open projects and proposals); 2) recruitment and ongoing training of personnel (if possible, introducing a position responsible for business optimisation and development, taking measures to create favourable conditions for the professional growth of employees); 3) monitoring and market research (analysis of competitors, consumer preferences, market trends); 4) introduction of innovations and modern technologies; 5) strategic planning based on the analysis of the external and internal environment, including the definition of goals, resources and ways to achieve them; 6) change management; 7) development and implementation of communication strategies to strengthen business relations; 8) organisation of effective financial management; 9) establishment of partnerships and alliances based on interests; 10) feedback and evaluation of results. 6. Conclusions The theoretical foundations of business development were examined, with particular focus on the concept of "business" and models of its development. It was observed that the term "business" is open to interpretation in international legislation, with its meaning dependent on the context and particulars of the document in question. In general terms, business can be defined as any commercial activity with the objective of generating profit through the production of goods or the provision of services. It can be demonstrated that at the national level of legal regulation, the meaning of the term "business" has undergone significant changes in both substance and content from the Soviet era, through the transition to a market economy, to the present day, undergoing a substantial transformation. It is observed that in Ukraine, a practice has emerged whereby businesses are categorised according to their size, with the categories designated as "small", "medium" and "large" businesses. Concurrently, a unified set of quantitative indicators for these categories has yet to be established. It is determined that the basics of business development may include a substantive and structural approach to 1) creation; 2) market research; 3) management; 4) expansion, scaling; 5) enterprise development; 6) introduction of modern technologies to optimise business processes; 7) introduction of quality standards and certification of products or services; 8) monitoring and improvement of processes Baltic Journal of Economic Studies 286 Vol. 10 No. 4, 2024 to improve efficiency; 9) risk management, which involves identifying risks associated with changes in the business environment, developing strategies to minimise them and business readiness to adapt business models in response to external challenges. The concept and typological characteristics of the mechanism for promoting business development have been subjected to rigorous academic scrutiny. The author's interpretation of the legal category "mechanisms for promoting business development" is presented as a system of organisational, legal, financial, technological, investment, and other means of influence, the development and implementation of which are designed to promote business development. The various types of business promotion mechanisms can be classified in accordance with their industry focus and the direction of their development. These include: 1) innovative mechanisms, which are particularly concerned with the implementation of new technologies; 2) financial mechanisms, which encompass investments, lending, and state support; 3) organisational mechanisms, which focus on optimising business processes and management structures; and 4) marketing mechanisms, which include promotion strategies and consumer needs analysis. The objective of this study is to distinguish the services that can be provided by business incubators to promote the development of startups and young enterprises. In order to achieve this, the services are divided into two main groups: 1) administrative services, which include professional consultations, training and workshops, event organisation, legal services, networking opportunities, services for ensuring access to resources, marketing and promotion services, infrastructure-related services, financial support and management services; 2) technical services, which include services aimed at providing access to the latest technologies, IT support services, research support, product testing services, project management tools. A comparative analysis is conducted based on criteria such as programme duration, target audience, focus, purpose, support and resources, and funding, in order to characterise the differences between a business incubator and a business accelerator. 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Available at: https://www.angelcapitalassociation.org/data/Documents/Resources/ McKaskill-_Intro_to_Angel_Investing.pdf The Resolution of the Cabinet of Ministers "On the Implementation of an Experimental Project to Create a Network of Startup Schools – Incubators – Accelerators on the Basis of Higher Education Institutions and Scientific Institutions" of 23.04.2024 No. 430. Available at: https://zakon.rada.gov.ua/laws/show/430-2024-п/ ed20240423#n20 Received on: 08th of October, 2024 Accepted on: 24th of November, 2024 Published on: 17th of December, 2024