The determining factor in the ability of the united territorial communities to self-development is entrepreneurial activity. In the conditions of the reform of local self-government and territorial organization of the government, the business sector needs incentives for development. Today, the country, especially the countryside, loses its labor resources at a high pace. Achievement of welfare of the population and creation of powerful communities is impossible without the development of entrepreneurial activity, in particular youth. Entrepreneurship development will help increase local budgets, expand industrial and social infrastructure and reduce migratory flows of the able-bodied population. In the article investigated the role of entrepreneurial activity for the development of the unified territorial communities. Identified key problems and obstacles for the formation and development of entrepreneurship. The analyzed business potential of Lviv region and its influence on the creation of the unified territorial communities. It is established that in the areas with the lowest wages created the largest territorial communities. In order to determine the potential of entrepreneurial activity, community rankings on the density of population and regions of Lviv region by the share of young people, the profitability of enterprises and their financial result was carried out. The rapid decrease of enterprises in the Lviv region was revealed, which testifies to a number of problems of socio-economic and political character. Among the main causes is the under-utilization of the potential of the region’s development, the shortage of personnel due to proximity to the border and high labor migration of the population, the lack of tools for financial support for small businesses and the complexity of access to funds for its development, lack of information support entrepreneurs, complex procedures for connecting to electricity and obtaining permits, improper condition of transport infrastructure, lack of consolidated information on land and premises that can be used atm doing business. The considerable labour potential of the Lviv region for the development of youth entrepreneurship, in particular, in Yavoriv, Zolochiv and Zhovkva regions, was revealed. The smallest proportion of young people is observed in the mountainous regions of the region due to the highest level of migration of young people abroad and to large cities. The directions of formation and development of youth entrepreneurship in communities are offered. Among financial instruments for stimulating the development of united territorial communities, a significant proportion of infrastructure and social subventions is aimed at the development of entrepreneurship, in particular, youth. 

local self-government, decentralization, united territorial communities, youth entrepreneurship, labor potential, middle class 

One of the main strategic tasks of modernizing the territorial organization of power is the forming of effective local self-government. The key to successful implementation of the reform of local self-government and decentralization of power is the creation of united territorial communities. The effective functioning of the united territorial communities mainly depends on the financial, resource and institutional components. For Ukraine, the most acute problem is the loss of a human resource, which is actively diminishing due to the migration of labor abroad. Such a negative situation requires increased attention of local authorities to stimulation of entrepreneurship development. The article deals with the features of reforming the activities of state authorities and local self-government in the conditions of decentralization. The factors of formation of economically self-sufficient united territorial communities, in particular entrepreneurial activity, are determined. The algorithm of forming the potential of creating new united territorial communities in the Lviv region and the degree of dependence of the various factors on the basis of the regression model is constructed. The influence of lucrative enterprises and young people on the development and creation of new united territorial communities is highlighted. Therefore, stimulation of youth entrepreneurship should become a priority area for the development of the Lviv region. Among the instruments for promoting youth entrepreneurial activity, cooperation between state authorities, local self-government, educational institutions, large enterprises and financial institutions should be highlighted. It has been established that low living standards are the catalysts for the formation of new united territorial communities in the Lviv region, which make decisions to unite in new communities in order to improve the social and economic situation in their territory. Accordingly, an increase in the number of inhabitants and the expansion of the community increases the opportunities for the development of the area. The main source of filling local budgets of the community is tax revenues. In this case, the creation of new jobs, the use of existing and increased entrepreneurial potential will contribute to the successful reform of the territorial organization of power, the reduction of migration flows, and the development of infrastructure of the area. The consideration of social factors for the further research of forming of new united communities in the Lviv region is proposed. 

decentralization, united territorial communities, sustainable development, entrepreneurial potential, bodies of local self-government, average monthly nominal wages