The effectiveness of business entities is the basis for economic development

Abstract

The article is devoted to the assessment of business entities’ performance, which is based on achieving maximum efficiency in entrepreneurial activity with minimal costs. It is noted that the complexity of the wartime economy places business entities in challenging survival conditions; however, their effective functioning determines the potential for state budget revenues and overall economic growth. The study applies general scientific research methods such as analysis, synthesis, calculation and analytical methods, comparison, and generalization.

The assessment of business performance was carried out using key performance indicators, with a classification of enterprises into small, medium, and large. The findings reveal that the highest number of profitable enterprises and the highest profitability levels are observed in the agriculture, forestry, and fisheries sectors. The importance of supporting agricultural business entities is emphasized, given their crucial role in ensuring food security and contributing to economic growth.

The research establishes that small business entities in the agricultural sector play a key role in maintaining food security, preserving employment in rural areas, and stimulating economic activity. However, their operations are hindered by external instability, limited access to financial resources, high operating costs, and imperfect mechanisms of state financial support.

The conclusions highlight that, considering the significant role of small businesses in Ukraine’s economy, it is essential to implement measures aimed at their support and development. Such measures include improving financial support instruments, reducing administrative barriers, developing infrastructure, and ensuring access to modern technologies.