Economics and Business Management

Development of institutional structures of green business in rural areas under European integration and global challenges

Yurii Lopatynskyi, O. Shpykuliak, V. Kyfyak, D. Shelenko, V. Shpykuliak
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Abstract

The development of institutional structures for green businesses in rural areas is essential for promoting ecological efficiency, sustainable agriculture, and rural development in response to global environmental challenges. This article examined the interaction between governmental bodies, local communities, scientific institutions, and the business sector in shaping the institutional architecture of green business. The impact of European integration processes and the European Green Deal on the development of ecological entrepreneurship in Ukraine is analysed. Particular attention is given to the adaptation of institutional structures to crisis conditions caused by war, as well as their role in restoring the agricultural sector and ensuring food security through the development of organic farming. The study provided a comprehensive analysis of institutions that support the development of green business models, identified key mechanisms for increasing their effectiveness, and offered recommendations to promote the transition to environmentally friendly entrepreneurship. Based on European experience and the implementation of ecological standards, it has been confirmed that the development of ecological entrepreneurship and organic production contributes to the sustainable development of farming enterprises under European integration and global challenges. The research results indicate the active development of the green business in Ukraine, particularly due to state programmes, financial support, and international initiatives, which have contributed to the growth of organic production, increased profitability of farms, and the implementation of environmentally friendly technologies. It has been confirmed that effective interaction between state, financial, educational, and technological institutions facilitates the scaling of green businesses, enhances the economic efficiency of environmental initiatives, and creates new opportunities for the sustainable development of rural areas. The research findings can strengthen institutional structures, foster collaboration among key stakeholders, attract investment, and promote organic production to enhance agricultural competitiveness, job creation, innovation, and environmental sustainability within the framework of European integration

Keywords

organic products; green economy; sustainable development; ecological standards; entrepreneurship

Suggested citation
Lopatynskyi, Yu., Shpykuliak, O., Kyfyak, V., Shelenko, D., & Shpykuliak, V. (2025). Development of institutional structures of green business in rural areas under European integration and global challenges. Economics and Business Management, 16(1), 108-125. https://doi.org/10.31548/economics/1.2025.108
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