INNOVATIVE ASPECTS OF INCREASING THE MARKET POTENTIAL OF SMALL AND MEDIUM BUSINESSES

Abstract

The article examines the essence of an enterprise's market potential and its role in ensuring high results in the production, economic, and financial activities of enterprises, in particular small and medium-sized businesses, which ensure the sustainable development of Ukraine. It has been established that the growth of enterprises' performance significantly depends on their market potential. Currently, small and medium-sized businesses are becoming the flagships of the national economy's development, increasing their market potential through accelerated digitalization and automation; integration into European value chains; the creation of technological microclusters; energy decentralization; entry into global digital markets; and social adaptability, in particular for veterans, internally displaced persons, and other socially vulnerable groups. Many small and medium-sized enterprises have found their way to increasing their market potential by actively participating in various business support programs.

Innovative aspects of increasing the market potential of enterprises involve the ability of an enterprise to use scientific and technical achievements and untapped opportunities when developing innovative strategies, developing innovative infrastructure, attracting investments in order to reduce the gap between market capacity and demand, unsatisfied by the enterprise's current offering by increasing production capacity, creating new products/services, and improving processes of interaction with the market environment. Therefore, in the process of accumulating market potential, enterprises must not only respond quickly to changes in the external environment and be capable of mastering new types of resources, techniques, and technologies for the production of new types of products (services), but also be ready to move to hyper-personalized offerings in real time. All this will enable small and medium-sized businesses to achieve sustainable development and ensure a high level of competitiveness in the long term.