The article is devoted to the development of mechanisms for stimulating entrepreneurial activity in conditions of economic instability, considering the territorial aspect. The study examines the current state of entrepreneurial activity in Ukraine, the specifics of regional business activity, and the structural changes caused by war, crises, and economic transformations. The key problems hindering entrepreneurship development are identified, including high business risks, reduced investment, changes in logistics, and the relocation of enterprises to safer regions. Additionally, the research highlights insufficient institutional support for certain functions at the micro and macro levels, particularly in terms of business registration procedures, deregulation, investment attraction, fiscal regulation, and monetary policy. The article proposes a comprehensive approach to stimulating entrepreneurial activity, encompassing fiscal, administrative-regulatory, infrastructural, and socio-psychological mechanisms. The main instruments include tax incentives, grant programs, affordable lending, business deregulation, expansion of public-private partnership opportunities, the creation of industrial parks and special economic zones, reducing the tax burden on small and medium-sized enterprises, encouraging job creation for internally displaced persons (IDPs) to ensure effective employment, establishing favorable conditions for investment attraction, and accelerating infrastructure projects, including through public-private partnerships. The proposed mechanisms for stimulating entrepreneurial activity in the regions take into account the territorial characteristics and the economic capacity of different regions, allowing them to be adapted to specific local business development conditions. Emphasis is placed on the need for business deregulation, simplification of permitting procedures, and fostering public-private partnerships to support local entrepreneurship. Regarding spatial development, diversification in the study is considered an alternative to regional specialization, aimed at reducing risks for the sustainable development of territories. Diversification is proposed as a means of ensuring the self-sufficiency of territorial communities, including through the stimulation of entrepreneurial activity. It is conceptualized as a complex process that simultaneously involves the diversification of production and economic activities of business entities, diversification of local capital, and diversification of resources, particularly human resources. Spatial diversification imposes specific requirements on the autonomy of local tax policy, necessitating the decentralization of fiscal policy, which is an objective requirement in the context of European integration. The effective implementation of the proposed mechanisms will contribute to stabilizing regional economies, reducing unemployment, attracting investment, and creating conditions for the restoration of economic activity in territorial communities. 

entrepreneurial activity, stimulation mechanisms, entrepreneurial development, territorial development, socio-economic development, economic instability, state support