Theoretical Approaches to Understanding the Potential of Economic Growth of Agricultural Business Entities

Abstract

The article systematizes theoretical approaches to understanding the potential of economic growth, which allowed to consider it as factors and sources of growth and formation of economic power, as a result of productive forces in the industry and means of meeting social needs in general, and as processes of identifying and creating certain spectra of business opportunities; formation, structuring and construction of indicators of the maximum possible production capacities and criteria of optimality of production plans, in particular, for separate subjects of agrarian business. The potential for economic growth can be understood as an increase in the supply of goods (or services) created during a certain selected financial period. The potential for economic growth can be determined by many factors, the most important of which are the factors influencing supply and demand. Supply factors will determine the physical capacity of the potential to grow, and the following: quantitative and qualitative characteristics of natural resources; quantitative and qualitative characteristics of labor resources; volumes of capital; technological development and potential. It is outlined that the potential of economic development of business entities is currently associated with the growth of knowledge-intensive industries in the basic industries. It was found that special attention is paid to the sustainable potential of economic growth, especially the potential for increasing the welfare of economic entities. In addition, it was established that the potential for economic growth should be derived from the direction of development that will take into account the socialization of the economic system as a whole. Business, farming, entrepreneurship, and invention are potentially profitable activities, and those involved are respected. Positive attitudes towards innovation are important socio-cultural factors of economic growth potential. In the developed world, the potential for economic growth is considered as a great benefit to the people. Finally, over a long period of time, the potential for economic growth will depend on the political structure and organization of society. Keywords: potential of economic growth, economic development, subjects of agrarian business.