The potential of sustainable development of agro-industrial enterprises: understanding of the essence and components

  • Volodymyr Piliavskii International University of Business and Law
  • Mykola Mohylat Poltava State Agrarian Academy
Keywords: potential, sustainable development, enterprise, economic potential, social potential, environmental potential, innovative component, innovator

Abstract

The subject of research is the theoretical basis for understanding the essence of the potential and practical approaches to the formation of its componentsfor sustainable development of the enterprises, particularly in agricultural industry. The purpose of the research is to study the essential characteristics and components of the enterprise’s sustainable development potential, and to foremost determine the interaction of economic, social and environmental sub-potentials at the level of enterprise. Results of the research. Author's interpretation of the concept of enterprises’ sustainable development potential is proposed. It has been revealed that in the list of components of sustainable development potential, the innovative component acquires special significance, and forms an innovative field for the further development of economic, environmental and social potential.It has been determined that an innovative field in agro-industrial production should be formed by the large processing enterprises of agricultural industry.In order to further stimulate them, innovators should participate in management of innovative companies and be supported by the state.Summarizing of the essence and the author's definition of the terms «social» and «environmental» potentialof the enterprise’s sustainable development was provided.The basic structures of economic and social potential for sustainable development of agro-industrial enterprises have been developed.The interconnection between economic, social and environmental components of agro-industrial enterprises’ sustainable development has been exposed. Field of application of the results – the enterprises of agricultural industry, and further scientific research on evaluating the components, and forming the organizational and managerial directions of agro-industrial enterprises’ sustainable development potential’s use. Conclusions. The results of studying the theoretical views on the content of «enterprises’ sustainable development potential» phenomenon indicate a triple determination of the process of its creation and functioning.It is determined by the dynamics of the structure and direction of public needs, and also by the possibilities of interaction of one factor (environmental and social) with another (economic), providing balance between them.

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Author Biographies

Volodymyr Piliavskii, International University of Business and Law

Piliavskii Volodymyr, Candidate of Economic Sciences (PhD in Economics)

Mykola Mohylat, Poltava State Agrarian Academy

Mohylat Mykola, Candidate of Economic Sciences (PhD in Economics), Senior Lecturer at the Department of Economics of Enterprise

Published
2018-11-27
How to Cite
Piliavskii, V., & Mohylat, M. (2018). The potential of sustainable development of agro-industrial enterprises: understanding of the essence and components. University Economic Bulletin, (39), 38-44. https://doi.org/10.31470/2306-546X-2018-39-38-44
Section
Agrarian Еconomy