ECONOMIC ESSENCE OF ENTREPRENEURIAL POTENTIAL AND ITS SIGNIFICANCE IN THE CONTEXT OF THE DEVELOPMENT OF FORESTRY ENTERPRISES

Abstract

The article explores the economic essence of entrepreneurial potential and its significance for the development of forestry enterprises. The relevance of the topic is substantiated in the context of current economic instability, climate change, and institutional reforms, which  determine the need to enhance the efficiency and resilience of the forestry sector. Based on the analysis of financial and economic indicators, particularly the dynamics of profitability and structural changes in 2019–2023, the study reveals key tendencies: the increase in profitability despite the decline in the number of business entities and employees in the sector. This indicates the transition from an extensive to an intensive model of development, focused on resource optimization, innovation, and competitiveness. The paper emphasizes that entrepreneurial potential should be interpreted as an integrated category combining resources (human, financial, material, technical, and innovative), staff competencies, and managerial capabilities, which together ensure adaptability to a dynamic environment, the implementation of innovative approaches, and the achievement of competitive advantages. The authors propose a structural model of entrepreneurial potential that includes resource, intellectual, innovation, marketing, information, techno-technological, organizational, social, and financial components. Each component plays a specific role in enhancing the efficiency of forestry enterprises and strengthening their ability to operate sustainably. The study also highlights the multidimensional role of forestry entrepreneurship, which integrates economic objectives with ecological and social responsibilities, ensuring intergenerational sustainability. It stresses that entrepreneurial potential is not limited to financial indicators but extends to the capacity for innovation, strategic management, and social engagement. The research findings confirm that the ability of enterprises to mobilize and integrate resources effectively becomes a decisive factor in overcoming crises, building resilience, and achieving long-term growth. The results of the research provide a conceptual basis for identifying entrepreneurial potential as a key driver of economic sustainability and innovative development in forestry. They may serve as a foundation for developing practical recommendations and policy measures aimed at improving the efficiency, competitiveness, and long-term resilience of forestry enterprises under conditions of uncertainty and structural transformation.