FINANCIAL AND ECONOMIC POTENTIAL OF AN ENTERPRISE: ESSENCE AND SIGNIFICANCE IN THE CONDITIONS OF NEGATIVE INFLUENCES

Abstract

The article substantiates the theoretical aspects of the essence and significance of the financial and economic potential of an enterprise in the conditions of negative influences. Analysis of scientific opinion regarding the category of financial and economic potential showed the presence of different approaches and assessments. It has been established that the financial and economic potential of an enterprise is formed on the basis of the functional relationship between financial and economic potentials, taking into account the specific features of each of them. The approaches to defining the content of the concepts of “economic potential of an enterprise” and “financial potential of an enterprise” are systematized, which interact and complement each other, creating a comprehensive picture of the financial and economic potential of an enterprise. This emphasizes the relevance and significance of financial and economic potential as a tool for management analysis and decision-making, especially in conditions of instability and transformations. It is found that financial and economic potential is associated with the process of attracting financial resources, their use, and is also closely related to the investment component of the enterprise’s strategy. It is determined that financial and economic potential should not be identified with financial resources, since it is a much broader concept and forms a mechanism for the dynamic transformation of resources into the results of the enterprise’s activities. The understanding of the financial and economic potential of separating the realized component (which is already used by the enterprise) and the reserve component (which can be activated in the future) has been deepened, which is important for making balanced management decisions in order to ensure the successful development and sustainability of the enterprise in conditions of market competition. It has been determined that full-scale invasion significantly affects the formation of the financial and economic potential of enterprises, determining new realities and challenges for the business environment.