Comparative analysis of business profitability in Ukraine and Poland

This paper investigates the entrepreneurial activity in two countries (Poland and Ukraine) in terms of profitability. The research objectives are achieved through scientific inquiry and comparative data analysis on business profitability. The article aims to determine the relationship between profitable business operations and the variables affecting them. Also, identifying the most significant and influential variables from the set for each country and comparing national results. The authors conducted an intellectual multivariate adaptive regression analysis of business activities. Profitability is the dependent variable. The relationships are investigated for such inputs as the number of enterprises, number of employees, labor costs, country population, immigration, emigration, and capital investment. Analysis results and the matrix of model coefficients are obtained using the STATISTICA software, in particular the Data Mining/MAR Splines Analysis. The resulting equation of multivariate regression and splines regression panels indicates that enterprises can achieve optimal profitability under different conditions in the two countries, i.e., maximum values of different variables. The theoretical developments of this paper can be practically implemented, making it a valuable resource.