Financial Potential of the Enterprise: Essence and Economic Analysis

Abstract

The article presents the results of the analysis of the evolution of scientific views on the economic content of the category «financial potential». The economic content and significance of the financial potential of the enterprise, the economic relations that arise between economic entities to assess the financial potential of the enterprise are studied. It is determined that the financial potential of the enterprise is important for the theory and practice of economic category. Its ambiguity and complexity in terms of forms of manifestation and semantic interpretation have been established. It is established that the lack of financial capacity leads to a lack of production capacity and the company is able to compensate for their more efficient use through innovation by attracting financial resources, lack of own development of new products or technologies can be compensated by purchasing a license, lack of staff – financial resources strengthening production cooperation. Under conditions of optimal use of financial potential, the company increases its market value and attracts potential investors, creditors, shareholders to invest in the company. The financial potential of the enterprise and its level are closely related to the competitiveness of the enterprise. It is one of the main factors that determines the success of the enterprise in modern market conditions. The process of forming the financial potential of the enterprise is inherently a complex phenomenon, which depends on many factors that are controlled by the entity. In modern research, this economic category does not yet have an unambiguous generally accepted interpretation. The financial potential of the enterprise is closely related to other types of potential (economic, resource, investment, innovation, etc.) and is part of some of them. In the economic literature, it is mainly considered in terms of resource and performance concepts. Further research on the disclosure of the economic nature of financial potential may be aimed at disclosing its specific qualitative characteristics, determining the place and role in the reproduction process and delimiting the scope of competence with related economic categories.