EFFECTIVE CONFLICT MANAGEMENT IN THE PUBLIC ADMINISTRATION SYSTEM AS A FACTOR IN PROMOTING THE DEVELOPMENT OF THE BUSINESS ENVIRONMENT

The article examines the issue of conflict resolution between public authorities and the business environment, in particular within the framework of public administration. In today's dynamic and rapidly evolving economic landscape, entrepreneurship plays a crucial role in stimulating innovation, creating jobs and promoting economic growth. However, conflicts between business and government often arise due to inconsistencies in regulations, bureaucratic inefficiencies, corruption and an unstable legal framework. These conflicts can become significant obstacles to business development, reducing investment attractiveness and leading to a deterioration in the overall business climate. The purpose of this study is to examine the impact of effective conflict management on business development. It emphasises the importance of transparent communication between state institutions and entrepreneurs, the creation of a stable legal framework and the adoption of strategies that mitigate the adverse effects of conflict. In particular, the study seeks to understand how these factors contribute to a more favourable and predictable business environment that encourages investment and entrepreneurship, while building trust in government institutions. The relevance of this study is underscored by the growing role of entrepreneurship in promoting economic development, especially in emerging markets. Entrepreneurship is increasingly recognised as a driver of innovation and a key factor in creating jobs and raising living standards. However, this growth is often hampered by conflicts that arise between the public and private sectors. These conflicts are often related to regulatory ambiguity, excessive administrative burdens and perceived corruption in government. As entrepreneurship plays a vital role in the economic health of a country, addressing the underlying causes of such conflicts becomes essential to ensure sustainable economic development. Entrepreneurs often face a lack of transparency and consistency in government policy, which makes it difficult to do business. In addition, conflicts of interest between public authorities and private enterprises can lead to litigation, regulatory uncertainty and delays in implementing necessary reforms. Thus, studying conflict management in this context becomes extremely important for both practitioners and policy makers, as it can offer insights into how to create a business-friendly environment that supports entrepreneurship. The methodology of this study involves a comprehensive analysis of the existing literature on conflict management in public administration, as well as examples of conflict resolution between public authorities and business. In addition, the study includes a comparative assessment of the regulatory framework in different regions to identify best practices in conflict management in the business environment. The research uses several methodological approaches, including content analysis, which allows for an in-depth study of previous research on conflict management strategies in public administration. Another approach, case study analysis, is used to examine real-life examples of conflict resolution between businesses and public authorities. These case studies illustrate how specific strategies, such as mediation and legal reforms, have been used to manage.