Digital Entrepreneurship as a New Subject of a Modern Region’s Economy: State Stimulation and Market Mechanisms of Development

Abstract

Purpose: The purpose of the study is to develop a scientific approach to the management of digital entrepreneurship in the modern region (on the example of the regions of the North Caucasus Federal District of the Russian Federation) through the prism of the ratio of state simulation and application of market mechanisms of development. Design/Methodology/Approach: To determine the impact of government incentives and market self-governance measures on digital entrepreneurship in the regions of the North Caucasus Federal District of the Russian Federation in 2018, the authors use the correlation analysis method. Those management measures that have the most pronounced positive impact (positive correlation) are preferable and will form the basis of the approach being developed. In order to demonstrate the specifics of digital entrepreneurship, the impact of regulatory market measures is determined not only on the market but also on entrepreneurship as a whole. Findings: It has been revealed that digital entrepreneurship is a new subject of the modern region’s economy and therefore requires a new approach to managing the development of entrepreneurship. The concept of state regulation traditionally implemented in the regions of the North Caucasus Federal District of the Russian Federation has demonstrated its inapplicability to digital entrepreneurship. The concept of market self-administration proved to be more preferable. At the same time, market mechanisms have shown different results. Stimulation of free competition proved to be the most effective. The growth of foreign competition and investment in fixed assets (in innovations) is also welcome. Originality/Value: On the basis of the received conclusions the scientific approach to management of development of digital business in the regions of the North Caucasian federal district of the Russian Federation in 2018 is generated.