Refining the essence of the concept of the financial and economic potential of an enterprise

Abstract

The financial and economic potential of an enterprise constitutes the foundation of its stable and sustainable development. Understanding and revealing the nature and essence of the financial and economic potential of an enterprise makes it possible to identify opportunities for its strengthening and effective utilization, as well as to enhance the level of competitiveness of a business entity under dynamic market conditions.

The problem of studying the financial and economic potential of an enterprise lies in the fact that this category is complex, multidimensional, and insufficiently unified in the economic literature. Reconsideration of the essence of the category of the “financial and economic potential of an enterprise” is also important in view of the new challenges of a transforming business environment, which require new solutions and the обеспечения sustainability of domestic enterprises in the long term.

The lack of an unambiguous interpretation in the scientific literature of the concept of "Financial and economic potential of an enterprise" justifies the relevance of this study. Clarification of the essence of the financial and economic potential of an enterprise is necessary for a comprehensive understanding of the enterprise's capabilities to ensure effective activity, financial stability and strategic development. This concept combines the economic and financial characteristics of an enterprise, therefore its clear definition is of great importance for science and practice.

The aim of the article is to examine the essence of the concept of the financial and economic potential of an enterprise. The research methods include literature analysis, logical analysis, and generalization.

The article presents an analysis of the content of existing definitions of the concept of the financial and economic potential of an enterprise. Based on the results of the study, the definition of the financial and economic potential of an enterprise has been further developed and is proposed to be understood as the totality of existing financial and economic resources, means, reserves, opportunities, capabilities, instruments, levers, and forces of an enterprise, as well as its potential ability to form, effectively allocate, utilize, reproduce, and expand them. This approach makes it possible to encompass the entire toolkit of financial and economic activity that ensures the effective implementation of business processes of reproduction and expansion, as well as the strategic development of the enterprise.

A refined concept of the financial and economic potential of an enterprise allows us to form a unified theoretical approach in scientific research, improve the quality of economic analysis, more accurately determine the structure of the enterprise's potential, carry out a comprehensive assessment of its capabilities, and increase the efficiency of resource management.

The results of the study contribute to the development of the economic conceptual and categorical framework and may serve as a basis for further theoretical and methodological research aimed at improving the financial and economic potential of enterprises.