ENTREPRENEURSHIP IN A COMPETITIVE ENVIRONMENT: RISKS, IMBALANCES AND SECURITY

Author
, professor, Kharkiv, Pushinska, 77

In heading

 Economic theory;

Signed print

 26.05.2023

Issues number

 2023-№2 (53)

Page

 24-47

Type of articles

 Scientific article

Code UDK

 334.722:005.332.4

ISSN print

 2411-5584

Abstract

 Problem setting. The basic business motives of entrepreneurs are contradictory. The goal of entrepreneurs is to obtain business income. Its general economic form is profit, and derived economic forms are gross income, economic profit, accounting profit, net profit, etc. At the same time, every entrepreneur is interested in securing business. Such processes are interrelated, and if their implementation is
uncoordinated, imbalances arise.
Recent research and publication analysis. Many modern scientific publications are devoted to the problems of entrepreneurship development in conditions of competition. Scientists explore the issues of the functioning of an enterprise in the legal environment, providing business with effective consulting assistance to improve enterprise management, modern forms and types of competition, competitive advantages of a company, strategic competitive management, and the system of business economic security. However, studying
entrepreneurship in the context of imbalances in its development is a new direction of scientific research.
Paper objective. The purpose of the article is to justify the mechanism of safe development of entrepreneurship in a competitive environment, to overcome imbalances (inconsistencies) of basic business motives of entrepreneurs, competitiveness and economic
security of a business.
Paper main body. The authors of the article research three blocks of questions:
1) entrepreneurship and the imbalance (inconsistency) of the basic business motives of entrepreneurs and economic security. The direction of business to obtain various forms of entrepreneurial income occurs in conditions of uncertainty and unpredictability of the business environment, and numerous economic risks. Measures to form an effective system of economic security are becoming urgently needed. However, the business motives of entrepreneurial income and economic security should be reconciled. Otherwise, there is a threat of their imbalance, which is multi-level and includes: the mental and psychological level associated with the personification of business; socio-economic level, characterized by an imbalance of business goals in terms of maximizing business income and ensuring economic security; management and legal level, namely the imbalance (inconsistency) of the interests of stakeholders of the business;
2) competition and imbalances of competitiveness and economic security. Competition is a mechanism that is closely intertwined with the realization of the basic business motives of entrepreneurs. Taking part in competition entrepreneurs try to implement as much as possible their competitive advantages and gain access to rent streams. The greatest threat to business is the risk of inefficient competitive decisions by managers; unfair, subversive, asymmetric competition. The corporate economic security system is faced with the task of protecting the potential of business competitiveness. Moreover, any violation of the complementarity of the basic business motives of entrepreneurship can lead to the formation of derivative imbalances of competitiveness and economic security;
3) management of business imbalances. The authors of the article suggest the following measures:
a) assessment of the level of business competitiveness as an integral indicator of product competitiveness, innovative, intellectual, personnel and financial competitiveness;
b) assessment of the level of the system of economic security of business based on the system-functional approach;
c) business positioning according to the matrix «level of economic security – level of business competitiveness» with the determination of the threat of occurrence imbalances of competitiveness and economic security;
d) development and implementation of measures to ensure the complementarity of competitiveness and components of the system of economic security of business, overcoming their imbalances.
Conclusion of the research. Modern entrepreneurship is risky, and the basic business motives of entrepreneurs are contradictory. Their implementation may be uncoordinated, creating certain imbalances. Among them are: imbalance (inconsistency) of basic business motives of entrepreneurs and economic security; derivative imbalances of competitiveness and economic security. However, imbalances of business can and should be managed. In particular, the matrix «level of economic security – level of business competitiveness» allows to position the company’s business and identify safe and dangerous areas of doing business.
Research of risks and imbalances of business and competition should be continued. At this stage, the substantiation of traps of competition and the creation of an effective model of competitive security of business are relevant.
Short abstract for an article
Abstract. The authors of the article analyze the development of entrepreneurship in a competitive environment. They prove that entrepreneurs are simultaneously interested in obtaining entrepreneurial income and in the security of business as a complete economic and legal system. But the basic business motives of entrepreneurs are contradictory. The biggest threat is imbalances (inconsistency) of the system of business motives of entrepreneurial income and security, competitiveness and economic security of business. The article proposes an algorithm for managing business imbalances.

Keywords

 entrepreneurship, company, basic business motives of entrepreneurs, income, profit, competition, competitive «rent», economic risk, economic security of business, imbalance (inconsistency) of business motives of entrepreneurial income and security, imbalances of competitiveness, management of business imbalances, matrix «level of economic security – level of business competitiveness»

Reviewer

External reviewer

Article in PDF

 24-47

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Code DOI

 https://doi.org/10.31359/2411‑5584‑2023‑53‑2-24

26.05.2023