EVOLUTION OF ENTERPRISE CONCEPTS AND FUNCTIONS IN A MARKET ECONOMY

  • Yevheniya Parfenyuk The Lviv Institute of the Private Joint Stock Company “Higher education institution “The Interregional Academy of Personnel Management” https://orcid.org/0000-0003-1308-0348
  • Nataliia Mahas The Lviv Institute of the Private Joint Stock Company “Higher education institution “The Interregional Academy of Personnel Management” https://orcid.org/0000-0003-4496-9262
  • Vasyl Lelyk The Lviv Institute of the Private Joint Stock Company “Higher education institution “The Interregional Academy of Personnel Management” https://orcid.org/0009-0003-3215-985X
Keywords: enterprise, evolution of enterprise concepts, enterprise functions, market economy, digitalization, dynamic competitiveness

Abstract

The article is devoted to the study of the evolutionary transformations of enterprise concepts and the identification of key functions necessary to ensure its dynamic competitiveness in the context of the digitalization of the market economy. The relevance of this research lies in the fact that at every stage of the formation of social relations, the enterprise acts as a continuous driving force of development, constantly acquiring new forms and tools of implementation - especially under the conditions of digitalization of economic processes. The article analyzes the evolution of ideas about the nature of the enterprise, starting from antiquity, when philosophers such as Aristotle and Plato condemned entrepreneurial activity that pursued profit as its primary goal. The research traces the development through classical theory (A. Smith, D. Ricardo), which for the first time emphasized economic risk and the role of the entrepreneur as the organizer of production factors, to the neoclassical concept focused on static profit maximization. A critical transition to modern institutional, behavioral, and evolutionary approaches is examined - approaches that view the enterprise as a complex organizational and institutional structure. According to evolutionary theory and the ideas of J. Schumpeter, the enterprise is a key figure in societal development, a driver of cyclical progress that constantly "destroys and creates" new combinations of production. It is established that the evolution of concepts reflects a shift from a simplified model of profit maximization to a complex structure that continually adapts to the external environment. It is proven that the key distinction of modern enterprise functions lies in the shift of focus from static efficiency to dynamic competitiveness. A set of critically important functions for the modern enterprise is identified, which ensure success not only through profit generation but also through continuous learning and the pursuit of innovation; knowledge management as a key resource of the knowledge economy; the development of flexibility and adaptation to new challenges; the integration of digital products into business operations; as well as risk management and corporate social responsibility. It is concluded that the modern enterprise functions as a dynamic actor and serves as a driver of continuous progress and societal development.

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Published
2025-11-11
How to Cite
Parfenyuk, Y., Mahas, N., & Lelyk, V. (2025). EVOLUTION OF ENTERPRISE CONCEPTS AND FUNCTIONS IN A MARKET ECONOMY. Sustainable Development of Economy, (5 (56), 572-576. https://doi.org/10.32782/2308-1988/2025-56-78