Comparative and decomposition analysis of the concept of “Economic potential of an enterprise”

Abstract

At the current stage of development of the domestic economy, the effective use of resources and capabilities of the enterprise is of particular importance. One of the key categories that reflects the ability of enterprises to sustainable development and adapt to changes is their economic potential.

The economic potential is a fundamental and core characteristic of enterprise activity, which determines and ensures the state of its development and its prospects for growth. There is no consensus among scholars regarding the definition of economic potential, which underscores the relevance of this study.

Since this concept is complex and interpreted in different ways, its clarification is of important theoretical and practical importance.

The aim of the article is to conduct a comparative and decomposition analysis of the concept of “economic potential of an enterprise” and to refine its essence.

The vast majority of scholars consider the economic potential of an enterprise as a set of resources, capabilities, and capacities that can be mobilized to achieve defined objectives. At the same time, some researchers emphasize its dynamic nature. The understanding of the structure of economic potential remains ambiguous, as it is generally considered to include production, operational, marketing, and other functional potentials. The issue of determining the place of financial potential within the structure of enterprise potentials remains debatable, as some scholars regard it as a component of economic potential.

The article examines the essence of the economic potential of an enterprise and proposes a refined definition: the economic potential of an enterprise is a dynamic and comprehensive system of resources, capabilities, and capacities, the effective use of which ensures its adaptability to changes in the external environment, competitiveness, and sustainable development.

This definition most fully reflects the essence of the economic potential of an enterprise under contemporary economic conditions, as it is based on a systemic approach and integrates resource-based, functional, and result-oriented perspectives, taking into account dynamics, the influence of the external environment, and a focus on achieving strategic outcomes.

Clarification of the essence of the economic potential of an enterprise is necessary for the formation of a clear scientific definition and improvement of the categorical and conceptual apparatus of research. Also, a correct understanding of the essence of the economic potential allows for an objective assessment of the capabilities of the enterprise, the structure of its assets, to increase the accuracy of economic analysis and the efficiency of resource management, and to improve the system of functioning and management.

The results of the study can be used in further research for the comprehensive assessment of the economic potential of enterprises.