Conceptual Framework of Financial Component of the Competitiveness of Economic Entities

Abstract:

The need for systematic monitoring of competitiveness is determined by the high number of economic entities operating in all regions of Russia. The competitiveness at the micro level is ensured by the efficient use of financial resources, therefore, the maintaining financial performance is the key to survival in modern business conditions at an appropriate level. This article is devoted to the development of the concept of territorial competitiveness and an effective mechanism for its systematic monitoring. To this end, this article conducted a study of the financial aspects of the territorial competitiveness of economic entities in the industry markets. The purpose of the study is to develop and substantiate the author’s conceptual position regarding the financial component of competitiveness, as a fundamental component of the strategic progressive development of an economic entity. The study is based on a systematic approach, general scientific methods of economic and comparative analysis, operational and strategic management of the financial component, as a test parameter of competitiveness. An author’s definition of the financial component of competitiveness has been developed according to the results of various studies, in relation to the views on the definition of “competitiveness” and assessment parameters. The article highlights the sectoral features of financial and economic activities of economic entities in the retail segment of the consumer market, analyzes the relationship between the main indicators of the financial component of the competitiveness, which reflect the results of socio-economic development of the region as a whole. The results of the study are significant enough for the development of the theory and practice of competitiveness, which increases the role and importance of the financial component and helps to ensure high rates of economic entities development.

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