International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Increasing Efficiency of Entrepreneurial Potential in Service Sector

Author(s): Olha Borysenko, Halyna Pavlova, Yuliia Chayka, Natalia Nechyporuk, Oleksandra Stoian

The article deals with a functional issue of ensuring an effective utilization of entrepreneurial potential in the service sector. When considering theoretical and methodological bases of forming and ensuring the effective use of entrepreneurial potential in a competitive environment, the emphasis is placed on the essence of the entrepreneurial potential, which is characterized by the ability of a business entity to form all types of economic resources that it can possess or attract from outside and the ability to effectively use it to satisfy needs of consumers and obtain economic benefits, increasing their value in the long run. The main types of entrepreneurial potential include basic means of doing business, commodity resources, labor resources, financial resources. The specifics of potential formation and utilization are considered in the study of economic mechanism of entrepreneurship functioning in the service sector, which aims at maximum satisfaction of consumer needs, formation of a wide range of products, development of flexible pricing policy, quality assurance of services, introduction of modern information technologies, use of economic levers and incentives that encourage entrepreneurial structures to obtain maximum positive results from presence on the market. The efficiency assessment of utilization of entrepreneurial potential with the use of differentiated and generalized indicators has been made. Results of such an assessment made it possible to suggest ways to improve the existing methodological assessment tools and to calculate weight coefficients that adjust the expected real value of the aggregate potential. The proposed assessment methodology for entrepreneurial potential provides two options for estimating value of its elements: pessimistic and realistic.

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