ENTREPRENEURIAL POTENTIAL: IDENTIFICATION OF ECONOMIC ESSENCE AND DIRECTIONS OF DEVELOPMENT IN THE CONTEXT OF FORESTRY MANAGEMENT

Abstract

The article explores the economic essence and significance of entrepreneurial potential, providing the author’s interpretation of this concept and emphasizing its role in forestry. The properties of entrepreneurial potential are described, with special attention paid to their characteristics in the context of forest management. The study analyzes the dynamics of business entities engaged in forestry and logging according to the Classifier of types of economic activity-2010 for the period 2019–2023, which makes it possible to trace the structural changes and development trends of the industry. Particular focus is given to the problems faced by forestry enterprises due to the armed aggression of the Russian Federation and the challenges caused by martial law, including financial instability, market disruptions, and decreased investment activity. The research highlights the key measures outlined in the Forest Management Strategy of Ukraine until 2035. These include the introduction of an electronic information system in forestry, full financing of forest management activities, expansion of forested areas, promotion of mixed forest stands and natural regeneration, reduction of clear cuts, biodiversity monitoring, and enhancement of fire safety systems. The Strategy also prioritizes transparent timber trade, obligatory certification of wood products, and a stronger economic contribution of forests to national development. In addition to these state-level priorities, the article proposes further directions for strengthening entrepreneurial potential. These include fostering public-private partnerships, attracting both domestic and foreign investment into forestry and wood processing, and stimulating innovative projects in bioeconomy and renewable energy. Support for small and medium-sized enterprises engaged in timber processing and high  value added production is seen as crucial. Moreover, international cooperation is emphasized as a way to expand access to global markets, while educational programs and digitalization are considered essential for developing modern entrepreneurial competencies and innovative business models in forestry. The procedure for using modern information technologies in the digitalization of accounting and management of forestry enterprises for their sustainable development has been clarified. The results show that implementing both strategic measures and additional entrepreneurial initiatives will mitigate the consequences of the war, improve the resilience of forestry enterprises, and ensure more efficient use of forest resources. Ultimately, this will significantly enhance the entrepreneurial potential of the forestry sector in Ukraine, contributing to sustainable development, ecological balance, as well as long-term economic growth.