The Category of Competitiveness as a Generalization of the Concept of Economic Potential of Enterprise

• Main Author: Brutman Anna B.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2018-02-01
• Series: Bìznes Inform
• Subjects: category of competitiveness; enterprise; economic potential; measurement methodology
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2018-2_0-pages-127_134.pdf

The article is aimed at analyzing the known definitions of the concept of competitiveness, in order to substantiate the methodologically more rigorous formulation of the definition of this concept, to identify the logical links between the concepts of competitiveness and indicators of the level of competitiveness, on the one hand, and the notions of economic potential of enterprise and its level, on the other. It is shown, that the postulation of the level of achievement of the main purpose of functioning of economic objects in defining the concept of competitiveness comes into logical contradiction with the substantial notions about competitiveness and the known methodical approaches to the measurement of its level. The definition of competitiveness of enterprise as ability of enterprise to generate net income in competitive environment without external assistance on a long basis is proposed. Logical links between the indicators of competitiveness and economic potential of enterprise have been disclosed, indicating that assessment of competitiveness is a generalized estimation of the forecast trajectory of the economic potential of enterprise, and the existing methods of assessing the level of competitiveness of enterprise and its economic potential need to be substantially elaborated in order to fully reflect the main features of the indicated characteristics in the relevant assessments.