Essential Characteristics and Components of the Economic Potential of Business Entities
Year: 2025
Type: article
Abstract: Topicality. Modern environmental challenges affect Ukraine's economic process, especially russia's military aggression. We see further development and development of sustainable socio-economic relations in forming economic potential. Aim and tasks. The purpose of the scientific article is to study the structural filling of the economic potential of economic entities in modern conditions. This goal led to a number of tasks: to define the concept of "economic potential" using different approaches; to improve the conceptual and categorical apparatus of economic science; consider the components of the economic potential of economic entities; determine factors influencing the formation of economic potential; to analyze approaches to the assessment of resource potential as the basis of economic. Materials and Methods. The following methods were used: comparative analysis, theoretical generalization of scientific research, system analysis, modelling, structural, and logical analysis. The study is based on data from the State Statistics Service, forecasts of the Ministry of Economy of Ukraine, other analytical sources, and scientific publications. Research results. This article defines Ukraine's economic potential dynamics and forecasts further socio-economic development. Based on the content analysis of the concept of "economic potential", the author offered his definition, interpreting economic potential as the total availability of resources and assets for the production of products/services aimed at meeting the needs of society through distribution and consumption while enhancing the competitiveness of the country's economic entities. The economic potential's main components are determined: technical production, marketing sales, financial credit, project investment, competence labour, and organizational management. Integrity, dynamism, polystructurality, interconnection and interaction, system complexity, system capability, uniqueness, and synergy are studied as the key characteristics of economic potential. The significant factors influencing the formation of economic potential include labour shortage, inflation, and public debt. Methodological approaches to the resource assessment potential as the foundation of economic potential are analyzed: cost-effective, effective, cost-resource, rent, reproductive, monopoly-departmental. Possible threats and risks to the effective formation of the economic potential of business entities are identified and categorized into general threats and risks (macroenvironment), and specific threats and risks (microenvironment). Conclusion. We consider the transition from a raw economy to value-added production, stimulation of the development of small and medium-sized businesses, and the creation of industrial parks to be the following strategy for developing our country from the perspective of forming economic potential. Those mentioned above can contribute to economic growth, increase in income and replenishment of displaced persons. Therefore, the key recommendations for enhancing the utilization of the economic potential in an increasingly competitive environment are the integration of innovative resources, flexibility and adaptability, a systematic approach to resource management, investing in human potential, and long-term strategic planning.
Source: Economic innovations
Author: N.M. DASHCHENKO
Language: English
Topic: Economic Issues in Ukraine
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409952970