Analysis of the factors influencing the development and competitiveness of territorial communities

Abstract

In order to create favorable conditions for the dynamic development of the territory, local governments today need to improve the methods and principles of management, as competition between territories is growing. Although territorial communities have the same powers, they differ in spatial parameters, resource capacity, historical and cultural heritage, and other characteristics. This encourages them to use their unique features to increase their competitiveness and attractiveness to various stakeholders. The decentralization of authorities and new boundaries of territorial communities have opened up new opportunities for attracting investments. Attracting investment for community development programs helps to improve its economic, intellectual, and production capacity, find commercial partners, and increase competitiveness. The article aims to examine the main components of improving the competitiveness of territorial communities. It analyzes the peculiarities of the development of territorial communities and identifies the main factors influencing the development and improvement of their competitiveness. The study outlines the main problems that arise in the process of community functioning: finances, governance, environment, personnel, interaction, migration, and infrastructure, and suggests ways to minimize and eliminate them. The decentralization reform and its impact on the socio-economic development of territorial communities are substantiated. The main proposals for increasing the investment attractiveness of the community are presented. The main areas that will facilitate efficient cooperation between local governments and private businesses are identified. The article proves that the main advantages of increasing the competitiveness of territorial communities include building and planning marketing strategies.