Structural components of the financial and economic potential of an enterprise

Abstract

The financial and economic potential of an enterprise is a driving force in the struggle against competitors and external environmental threats, as well as the foundation of its entrepreneurial activity, socio-economic development, and sustainability. Its role in enterprise activity is difficult to overestimate.

By the financial and economic potential of an enterprise, we mean the totality of the financial, material, labor and organizational resources of an enterprise that ensure its ability to effectively carry out entrepreneurial activities, develop stably and achieve strategic goals.

Understanding the structural components of the financial and economic potential of an enterprise makes it possible to more accurately identify opportunities for strengthening the activity of a business entity and to enhance its level of competitiveness under modern market conditions. There is no consensus among scholars regarding the composition of the structural components of the financial and economic potential of enterprises, which reinforces the relevance of research devoted to this issue.

The aim of the article is to examine the structural components of the financial and economic potential of an enterprise under contemporary economic conditions.

The research methods include logical analysis and systematization.

Given the large number of components of the financial and economic potential of an enterprise identified by scholars, and the absence of their systematization, the article proposes distinguishing two main types of potential within the structure of financial and economic potential, which are further detailed as follows:economic potential (production, resource, and human potential); financial potential (investment, borrowed, and own financial resources).

The resource potential also includes information, infrastructure, and interface potentials. Such an expanded structuring of the financial and economic potential reflects the latest conditions and requirements for enterprise activity, in line with the transformations associated with the transition from a post-industrial to an information- and knowledge-based socio-economic development, and ensures more stable market positions for enterprises.

Clarification of the structural components of the financial and economic potential of an enterprise is necessary for a comprehensive assessment of its capabilities and increasing the efficiency of managing its development. Since the financial and economic potential is a multi-component system, it is important to clearly define its components and the relationships between them.

The obtained results of the study deepen the theory of enterprise economic development and may serve as a basis for further theoretical and methodological research.