STRATEGIC DIRECTIONS FOR BUSINESS DEVELOPMENT UNDER DIGITALIZATION AND SMART ENVIRONMENT CONDITIONS AT THE LOCAL LEVEL

Анотація

The rapid advancement of digital technologies has fundamentally transformed business operations, making digitalization a key determinant of enterprise adaptability, resilience, and competitiveness. These processes are particularly significant at the local level, where entrepreneurial activity is closely linked to the institutional capacity of communities, the development of digital infrastructure, and the quality of governance. The purpose of this article is to substantiate strategic directions for local business development under conditions of digitalization and the formation of a smart community environment.

The research is based on a comprehensive analytical approach that combines the analysis of scientific literature, statistical data, and the application of SWOT analysis. The study examines the transformation of local entrepreneurial activity, identifies the role of smart community environments in supporting business development, and assesses investment trends in digital and intangible assets at the regional level. Particular attention is paid to the uneven nature of business digitalization and the structural constraints limiting comprehensive digital transformation.

The findings demonstrate that while local businesses increasingly adopt individual digital tools, the level of systematic digital transformation remains insufficient, largely due to limited investment resources, shortages of digital competencies, and uneven development of digital infrastructure. The formation of a smart community environment is shown to play a critical role in mitigating these challenges by integrating digital services, e-governance instruments, open data, and collaboration platforms that enhance interaction between businesses, local authorities, and communities. The results of the SWOT analysis reveal significant development potential for local businesses, provided that identified weaknesses and external risks are addressed through coordinated strategic actions.

The article proposes a system of strategic directions for local business development, including digital infrastructure modernization, enhancement of digital competencies, institutional coordination, integration of businesses into smart community environments, and a focus on resilience and adaptability under conditions of heightened uncertainty. The implementation of these strategic directions is expected to strengthen the role of local businesses in socio-economic development and to contribute to sustainable and long-term growth of local communities, particularly in crisis and post-crisis contexts.

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