The substance of a rational approach to entrepreneurship socio-economic development

Abstract

Making managerial decisions is the most difficult stage within entrepreneurial systems. The research authors suggest the resource-factorial approach, based on the human, technical-technological, natural, institutional, organizational and informational resources differentiation as the research methodic fundament. Cognitive modeling is applied to investigate the way the resources influence each other in the course of production. The authors make up a cognitive map, which is a scheme of cause-effect relations, defining the way the resources influence each other in the course of production. The authors suggest an algorithm for determining the figures, indicating how the resources influence each other. The article suggests an overview of how each separate resource influences the others and a method of regulating the share of the resources’ influence indicators, which is also applied in engineering forecasting. In conclusion, the authors define the substance of a business’s managerial decision, expressed in the order the resources are developed in the course of production.