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DOI: https://doi.org/10.34069/AI/2022.58.10.24
How to Cite:
Syrtseva S., Ivaniuk, U., Fedotova, I., Hurina, O., Dovzhyk, O., & Nazarenko, O. (2022). Innovative potential and development of
Ukrainian small enterpris-es during the war (2022-2023). Amazonia Investiga, 11(58), 222-232.
https://doi.org/10.34069/AI/2022.58.10.24
Innovative potential and development of Ukrainian small enterpris-es
during the war (2022-2023)
Potencial innovador y desarrollo de las pequeñas empresas Ucranianas durante la guerra
(2022-2023)
Received: November 1, 2022 Accepted: November 28, 2022
Written by:
Svitlana Syrtseva102
https://orcid.org/0000-0003-4824-3741
Uliana Ivaniuk103
https://orcid.org/0000-0001-8845-9120
Iryna Fedotova104
https://orcid.org/0000-0002-3277-0224
Olena Hurina105
https://orcid.org/0000-0002-6315-6067
Olena Dovzhyk106
https://orcid.org/0000-0001-6547-1418
Oleksandr Nazarenko107
https://orcid.org/0000-0001-7546-174X
Abstract
The purpose of the article is to study the
development of entrepreneurship in Ukraine
during the war, taking into ac-count the need to
implement innovative solutions. This necessity is
caused by the uncertain environment of the full-
scale military aggression of the Russian
Federation against Ukraine, from the terrorist
acts of which civilian infrastructure and civilians
suffer. The uncertainty of the environment in the
conditions of hostilities makes it impossible to
plan the long-term and medium-term
development of entrepreneurship. That is why
the article considers the essence and struc-ture of
entrepreneurial innovations for the effective
organization of activities in the conditions of
hostilities. For the development of innovative
entrepreneurial activity in Ukraine, according to
the authors of the article, special investment
102
PhD (Economics), Associate Professor of Department of Accounting and Taxation, Faculty of Accounting and Finance, Mykolayiv
National Agrarian University, Ukraine.
103
PhD (Econ.), Associate Professor of the Department of Management Associate Professor Department of Management of
Organizations Lviv Polytechnic National University, Ukraine.
104
Doctor of Economic Sciences, Associate Professor, Professor ot the Department of Management Faculty of Management and
Business Kharkiv National Automobile and Highway University, Ukraine.
105
Doctor of Economic Sciences, Associate Professor Professor of the Department of Economics,Management and Finance Faculty
of Natural Sciences V.О. Sukhomlynskyi National University of Mykolaiv, Ukraine.
106
PhD in Economics, Associate Professor Department of Accounting and Taxation Faculty of Economics and Management, Sumy
National Agrarian University, Ukraine.
107
Doctor of Economics, Professor of the Accounting and Taxation Department Faculty of Economics and Management Sumy
National Agrarian University Sumy, Ukraine.
Syrtseva S., Ivaniuk, U., Fedotova, I., Hurina, O., Dovzhyk, O., Nazarenko, O. / Volume 11 - Issue 58: 222-232 / October, 2022
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conditions should be created. This issue takes on
particular importance in 2022-2023, when the
country's economy has shifted to a war footing.
The article states that small business should
become the main engine of wartime and post-war
period. Studying the experience of developed
countries, analyzing the structure of their
economies, the authors pro-pose to create special
business conditions for the development of small
and micro entrepreneurship.
Keywords: innovative development,
entrepreneurial activity, Russian-Ukrainian war,
investments, liberal economy, military aggres-
sion, energy crisis, digital economy, alternative
energy, government in a smartphone.
Introduction
The Russian Federation’s full-scale military
invasion of Ukraine has significantly affected all
spheres of the country’s socio-political life.
Undoubtedly, the constant terrorist acts of the
aggressor country, together with the occupation
of large territories, have had a significant impact
on the country’s economy. The loss of
confidence in the future has led to the closure of
some enterprises, a decrease in the pace of
development, and in some places production
facilities have suffered significant damage as a
result of terrorist attacks of the northern
neighbor. In the fall of 2022, the Russian
Federation regime resorted to massive attacks on
Ukraine’s critical energy infrastructure,
destroying more than 40 per-cent of important
and unique equipment. This act of terror led to a
reduction in the ability of the Ukrainian power
grid to meet the needs of not only private but,
above all, commercial subscribers. All of the
above entailed an urgent need to find innovative,
creative, and unprecedented measures to ensure
not only sustainable operation but also the devel-
opment of new business. The issue of introducing
economic innovations in the period 2022-2023
remains relevant, given the transition of the
country's economy to the military rails.
Specifically, the contradiction between the
difficult situation of the country to ensure the
safety of people and the need to find innovative
ways to overcome the effects of war clarify the
relevance of this study. In this regard, the
innovative potential for the development of
entrepreneurial activity in today’s environment
requires analysis.
The problem of research of innovative economic
potential of entrepreneurial activity is devoted to
a small number of studies. An important place in
the process of analyzing the innovation potential
of modern economic development is occupied by
studies devoted to the coverage of various
aspects of the war of the Russian Federation
against Ukraine.
Analysis of the literature shows the following
expediency of the classifications of
entrepreneurial innovations: the goals of
innovation; the significance of innovations; the
scope of innovation; the causes of innovation; the
nature of the needs to be met; the place of
innovation in the production system of the
enterprise (Zakeri et al., 2022). According to
Panduru & Scarlat (2022), the first stage of the
innovation strategy of the state should be to seek
funds to create an investment fund to finance
innovation at reasonable interest rates on a
competitive basis based on improving the
efficiency of the export of raw materials. Loans
should be granted for the purchase of advanced
technologies in order to modernize enterprises.
The innovation policy of the state is a set of
forms, methods, and directions of business in
order to intensify the development and
production of new types of products and
technologies (Buriak, Redko, Mashtaler &
Sydoruk, 2022).
The main goal of the state innovation policy is
the formation of an innovation economy,
characterized by the formation of a market of
innovation and scientific intellectual property
products (Zolkover, Rusina, Bielialov &
Neseniuk, 2020). Innovative activity is an
additional risk and uncertainty, so the state
should strive to form such an innovative
environment, where enterprises, realizing the
need for innovative transformations, undertake
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the organization and financing of research,
development, etc. Certainly, the understanding of
this necessity should be cultivated by the state for
a long time. Such encouragement of enterprises
should become part of state economic policy
(Ihnatko, Ihnatko, Ihnatko & Halas, 2022).
One should pay attention to the research of
Irtyshcheva, Kramarenko & Sirenko (2022). The
authors reveal the problem of the functioning of
the Ukrainian economy during the war. The main
range of issues requiring urgent solutions is
identified, in particular the problem of business
security and the loss of production infrastructure
due to constant massive attacks. Ben Hassen &
El Bilali (2022) examine the impact of the
Russian invasion of Ukraine in the context of
international food security. The authors analyze
the decline of food on the international market.
They point out the extremely negative impact of
the war on food security in the Third World. The
war did not leave the economies of European
countries unaffected. Prohorovs, A. (2022)
discusses the problem of the impact of Russian
military aggression on the pan-European
investment climate. Khudaykulova, Yuanqiong
& Khudaykulov (2022) address the need to
support the Ukrainian economy to maintain
global financial and economic stability. Ma et al.,
(2022) consider the issues of recovery of the
Ukrainian economy after the end of the war.
Studies highlighting the problem of economic
development during military conflicts (Wang,
Bouri, Fareed & Dai, 2022) should be singled
out. The research of the fears of innovative
transformation against the background of
military actions considers the latter as an element
of stimulation of managerial transformations of
the economic environment. This, in particular, is
stated in the study Alzoubi, Alshurideh, Kurdi,
Alhyasat & Ghazal (2022). The authors identify
promising areas for international cooperation.
The processes of restoration of civil
infrastructure and industrial facilities are
assessed. The authors pay special attention to the
issue of the energy sector. However, the
publications existing in the scientific literature do
not create a universal and systematic view of the
essence and structure of the innovative potential
of economic subjects, the importance of which is
reflected in the problems of modern discussions.
In addition, the developed methodological
approaches to managing the innovation potential
of a commercial organization do not allow you to
fully identify and assess the factors affecting the
effectiveness of its use, to develop focused
management decisions on the integration and
reconfiguration of the constituent elements in
accordance with changes in the external
environment. Proposed in the works of recent
years, innovation mechanisms require additions
and extensions in terms of their selective
application to the sustainable development of
enterprise innovation potential in line with the
priorities of digitization and technologization of
the Ukrainian economy in war conditions. All of
the above confirms the relevance of the topic of
the study and defines its goals and objectives.
Purpose and objectives
Based on the relevance of the mentioned topic,
the purpose of this article is to analyze the
innovation potential to actualize the issue of
entrepreneurship development in Ukraine during
a large-scale military invasion. In order to
implement the above goal, the following research
objectives should be considered:
• Determination of the conditions of
functioning of enterprises in Ukraine during
the war;
• To analyze the innovation potential of
entrepreneurial development against the
backdrop of extraordinary conditions of
uncertainty;
• Determine the optimal trajectories of
innovative solutions for the effective
development of entrepreneurial activity in
Ukraine during the war.
Methods
The methodological basis of the thesis is a set of
dialectical principles, which allowed to identify
the essential characteristics of the processes
under study, the forms of their manifestation, and
development trends. The research was conducted
using systemic, process, and structural-
functional approaches, methods of comparative
analysis, deduction and induction,
generalization, expert evaluations, economic-
mathematical and economic-statistical methods.
Results
The country’s transition to the war economy
mode, ensuring the dynamics of economic
growth in conditions of economic instability
revealed the need for practice-oriented
convergence of science and production, search
for new directions of effective development of
business structures, the introduction of
progressive ways to organize their activities and
increase in the rate of innovative products output.
One of the possibilities to activate state
innovative actions during the war is to optimize
approaches to the use of different types of
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resources by economic agents. Thus, under equal
conditions of economic management, it is the
possession of significant reserves of resources
and their rational consumption provides not only
additional competitive advantages to the
commercial structure and strengthens its
entrepreneurial activity, but also influences the
specifics of innovation creation and features of
formation of innovative potential of the
enterprise. In this regard, modern conceptual
understanding of the essence of innovation and
innovation potential of the organization, as well
as the use of effective mechanisms for their
management determine the ability of the
economic agent to develop fundamentally new
products, strengthen its competitiveness and
adequately respond to market changes in a
critically uncertain environment (Baghirov,
Humbatov, Aslanova & Seyidova, 2022). In
order to investigate the innovation potential of an
organization and its structure in more depth, first
of all, it is necessary to identify the concept of
“innovation”, because now in the scientific
literature there is no unified view that would
unambiguously reveal the relationship between
the categories of “innovation” and “innovation
potential”. Historically, the essence and
characteristics of innovation have been the
subject of diverse scientific disputes and
discussions. Specifically, the term “innovation”
first appeared in the XIX century in the works of
culturologists. At the same time, special
economic studies of innovation in international
practice began to be carried out only since the
XX century.
Despite the accumulated international experience
of conceptual and applied research of innovation,
in the modern scientific literature there are still
different interpretations of this term, which can
be grouped as follows:
• innovation as a result (Shaleny, Shtefan,
Krylova, Myronchuk & Tsurkan, 2022);
• innovation as a process (Kaplinsky &
Kraemer-Mbula, 2022);
• innovation as change (Slaviuk & Bui, 2022).
In turn, innovation is understood as a
qualitatively new style of reactions to a problem
in any area of human activity to improve its
effectiveness. Thus, a comparison of the above
definitions allows us to conclude about the
synonymous nature of the concepts of
innovation, innovation, and innovation in terms
of the similar essence of economic phenomena
denoted by these concepts (qualitatively new
additions or changes reflected in the final actions
or results). At the same time, the main
components (theoretical concept, technical
invention, commercial use) and properties
(scientific novelty; practical use; commercial
implementation) of innovation can be
structurally represented as follows (Fig. 1).
Figure 1. Properties and components of innovation.
(Source: authors’ own development)
Innovations
Components
Commercial use
Technical invention
Theoretical concept
Properties
Commercial implementation
Practical use
Scientific novelty
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Considering the links between the properties and
components of innovation, it should be noted that
the theoretical concept of innovative
transformation as a process of scientific and
technological creativity must necessarily include
a component of absolute novelty. The
development of the practical application of the
innovative concept and its transformation into a
real product (process) should be formalized as an
invention, which will be a new, practical object
that exists at the intersection of science and
technology. In the process of implementation, the
proposed innovation, becoming parts of the
production process from the theoretical plane,
acquires practical qualities. Thus, the purpose of
innovation activity on the one hand is to improve
existing production processes, and on the other
hand - to create qualitatively new approaches to
solving non-trivial problems arising under the
influence of an uncertain environment
(Khmarska, Kucheriava & Klimova, 2022).
It should be noted that in the study of the
innovation potential of the enterprise it is
important not only to understand the essence and
components of innovation but also to review the
grounds by which different types of economy are
distinguished. The analysis shows that it is most
appropriate to use the model presented in Fig. 2
as the main classification attributes of
innovation.
Figure 2. Schematic of the model of innovation attribute classification.
(Source: authors’ own development)
Such views on the structure of innovation and the
allocation of its individual components can more
fully justify the essence of the innovation
potential of the enterprise during the war and
identify the main directions of its functioning and
development. However, the interpretation of the
innovation potential of an organization is
impossible without a separate definition of the
concept of “potential”. The term potential (from
the Latin word potentia - force) has a fairly wide
scope of use in the natural science and
humanitarian literature to denote various
categories. In a broad sense, potential is a totality
of all available capabilities, means in any field.
In modern conditions of military aggression, a
great variety of types of commercial structures’
potentials should be distinguished, among which
the key importance, at the junction of a number
of other potentials of socio-economic systems,
belongs to the innovation potential as an
important condition for ensuring competitiveness
and economic efficiency of their functioning.
Based on the above-mentioned materials of the
terms “innovation” and “potential” and taking
into account the special in importance and
number of structural interconnections place of
innovation potential on other types of potentials
of socio-economic systems, we should stop to
consider the content of the concept “innovation
potential of a commercial organization” (Chaliuk
& Chaliuk, 2022).
In view of the world experience of the transition
of the economy to the war rails in order to create
favorable conditions for small business, the state
Reasons for innovation
Areas of application of
innovations
Significance of
innovations
Goals of
innovation
Characteristics of
Satisfied Consumers
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should carry out a low management reform. The
main factor in the development of the innovative
business during wartime is the creation by the
state of a special investment climate, which will
become attractive, given all the existing risks. In
particular, such reforms involve reducing the tax
burden on small business (Kentor, Clark &
Jorgenson 2022).
At the same time, most representations refer to
some individual aspects of the innovation
potential of the enterprise, take into account most
often only its static state (composition, structure)
and reflect the dynamic role of innovation
potential in the economic mechanism of the
commercial structure, the need for appropriate
market focus. It is important to understand that
resources form the innovation potential in the
case if they allow generating special conditions
for the proactive development of the organization
or producing complex-competitive products,
providing consumers with excellent fundamental
benefits. Given that resources are productive, it
is required to make certain decisions on their use,
combining, that is, the economic agent has
certain properties or unique competencies that
allow the enterprise to quickly adapt to changes
in the environment and create shared value with
counterparties. Competences (abilities) should
be understood as purposeful activities and
processes, special skills with which the enterprise
effectively uses its resources to achieve
competitive advantages. We are talking about
organizational and production knowledge and the
ability to acquire, coordinate the necessary
resources in a given ratio or a given
subordination, as well as to integrate the
numerous technological flows created by them.
As practice shows, only unique (rare) and
difficult-to-imitate resources and special (key)
competencies (abilities) of the organization are
strategically valuable and form the basis of
innovation potential.
In order to adapt quickly in an uncertain
environment, develop innovative flexibility, and
meet market needs under martial law, it is
necessary to understand the mechanisms of the
formation of innovative superiority from the set
of resources that the organization has.
Representatives of the dynamic capability’s
theory reveal the importance of organizational
procedures by which enterprise management
affects its resource base and reconfiguration of
resources, processes, relationships in accordance
with changes in the competitive environment
(Lupak, Mizyuk, Zaychenko, Kunytska-Iliash &
Vasyltsiv, 2022).
At the same time, in order to achieve the best
competitive position in the market, it is not
critical what resources and competencies an
economic agent possess at the moment, but rather
the speed at which it is able to create, integrate,
coordinate the placement of necessary resources,
taking into account changes in the parameters of
the market situation. The time factor and reaction
speed play a decisive role in the development and
dissemination of innovations. In this regard, it is
important to clarify the formulation of the
essence of innovation potential of a modern
economic agent through a combination of key
aspects of resource and content and performance
approaches. The innovation potential of the
commercial organization should be understood
as a rationally organized set of its resources and
key competencies, determining the dynamic
ability to carry out qualitatively new
transformations and ensure the effectiveness of
the results of innovation activities in accordance
with the needs of the external environment. In
turn, the intensity of activity to develop and
implement new or improved products in the
economic circulation of the enterprise is an
innovative activity (Semenenko, Marko,
Chernyshova, Koverga & Pekuliak, 2021).
The Ukrainian experience of doing business in
conditions of war has demonstrated a number of
promising areas of innovative transformation of
the economic environment. The first and main
condition for transformation is the creation of
optimal conditions for the creation, conduct, and
functioning of business. For this purpose, the
state has taken a number of measures. First, the
system of small-business registration was
considerably simplified. Secondly, the system of
permission and reporting documentation has
been significantly simplified, and many services
are provided in a specialized application for
business (Khudaykulova, Yuanqiong &
Khudaykulov, 2022).
It is obvious that the effectiveness of the
processes of formation and use of innovation
potential of commercial organization during the
war depends on a clear understanding of the
composition of its elements and their
relationships. At the same time, the existing
variety of models describing the structure of the
innovation potential of the enterprise makes their
analysis, systematization, and improvement of
the content urgent (Tkach & Hrushko, 2022).
Undoubtedly, the components of the innovative
potential of a commercial entity perform a certain
role in the processes of its functioning and have
a different impact on the ability to actually
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produce unique ideas and implement them, to
increase its competitiveness, to increase the scale
of activities and its market share. Optimal
involvement of resources in entrepreneurial
activity will allow more effective use of
innovation potential and achieve a positive
synergistic effect from the creation and
implementation of innovations, which will
favorably affect the development of competitive
advantages of the economic agent. At the same
time, since the formation of innovative potential
of a commercial organization is under the
influence of extreme conditions of war, the
effectiveness of its use will depend on both their
timely accounting and adjustment of the degree
of their impact.
Today the success of commercial activity of any
organization is directly determined by the state of
its internal environment, as well as the level of
integration of market infrastructure, socio-
demographic, political, technological, and other
conditions under which it operates. And such
circumstances can both contribute to and
complicate the formation of the innovative
potential of the enterprise. In this regard, of
particular importance in the study of the
innovation potential of a commercial structure is
timely accounting and analysis of the influence
of various parameters on the features of its
formation, which will not only develop targeted
and reasoned management decisions related to
the development of priority areas of use of
innovation potential of the enterprise but also to
identify possible risks and adverse conditions
affecting the management of innovation flows
(Zhang, Bouri, Klein & Jalkh, 2022). In general,
the variety of factors affecting the innovation
potential of an enterprise is conventionally
reduced to external and internal. For example, the
factor of destruction during military aggression is
now becoming increasingly significant as part of
the external factors affecting the innovation
potential of industrial enterprises. (Vasyltsiv,
Lupak & Voloshyn, 2021).
The variety of types of the innovative
infrastructure of enterprises is largely determined
by the economic model. Infrastructure in the
industrial model is aimed primarily at serving the
needs of extractive industries, enterprises of
primary processing, i.e., it has a production
orientation. In the post-industrial economy, the
infrastructure contributes to the development of
knowledge-intensive industries and
organizations engaged in the development of
high technology. The infrastructure is
represented by information, financial, insurance,
educational, trade networks, technopolises,
technoparks. These structures make it possible to
stabilize the economic situation. Even in
economically developed systems, they are
created in some cases during the economic
recession, structural adjustment, accompanied by
job cuts, reduction of budget allocations for
scientific development in conditions of
significant accumulation of scientific and
technological potential, in the absence of a
mechanism for bringing available ideas to a
particular consumer and achieving commercial
success (Krakhmalova, Krakhmalova &
Kozlovskij, 2019).
Expanded consideration of the impact of the
triggers of the business environment of the
organization with a focus on the stages of the life
cycle of innovation and the associated level of
capacity utilization will allow the development
of innovative flexibility in accordance with the
changes caused by them and understand the
mechanisms of formation of innovative
advantage from the set of resources that the
enterprise possesses. Thus, summarizing and
complementing most of the common scientific
opinions devoted to the development of
parameters affecting the formation and use of
innovation potential of the enterprise, allowed to
conclude that, despite the fact that the external
environment of the economic entity is largely
determining and not regulated by the enterprise,
the influence of the internal environment of the
organization on its innovation potential can be
successfully adjusted just by the competent
management at the enterprise. At the same time,
the priority importance of managing the state of
innovation potential of the modern enterprise is
due to the existing economic, organizational,
technological, and intellectual problems in the
economic activity of economic agents, in
particular:
limited information about the market needs for
innovative products, modern achievements of
scientific and technological progress;
the high level of management costs and lack of
financial resources
the lack or rapid “aging” of personnel and
knowledge-intensive technological means,
capable of effectively influencing the conditions
and results of the innovation process;
the existence of the phenomenon of resistance to
innovation on the part of personnel and the
difficulty of timely response to changes in state
policy in the field of innovation;
the lack of methods for a comprehensive
assessment of the innovation potential of
enterprises in conditions of free competition,
increased riskiness and uncertainty of the
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environment, and effective tools for its reflexive
management based on the results of various types
of assessments on the dynamics of changes in
external and internal parameters of management
(Omelchyk et al., 2022).
The solution of the formulated problems
associated with the effective use and systematic
building of the innovation potential of a
commercial organization should take place
within the concentration of the relevant
responsibility centers in the enterprise, not only
taking into account the influence of the above
factors but also through the use of specially
developed and effective leverage - management
mechanisms (Pacheco, Cuba, Ñañez & Pacheco,
2021).
Thus, innovative entrepreneurship during the war
should be understood as an entrepreneurial
activity based on the commercialization of
innovations demanded by the market, aimed at
creating high-tech products and services,
allowing to move away from the raw
development of the region. The distinctive
feature of this approach is the development of
innovative services. The terms
“entrepreneurship” and “business” are often used
synonymously. The terminological difference
between business and entrepreneurship is that
business uses the disruption of market
equilibrium caused by entrepreneurship. Thus,
entrepreneurship differs from business in its
innovative component.
In developed countries, small businesses in the
production sphere develop successfully with the
support of the big business. Small firms usually
seek either to occupy market niches, unfavorable
to the introduction of large companies there or
are financed by them, conducting innovative
developments, risky corporations. Corporate
entrepreneurship differs from classical
entrepreneurship in that if during the era of
traditional capitalism, the entrepreneur (owner of
capital) was a key figure in the economic field,
now the owners of shares are removed from the
management process “technostructure” - senior
management and specialists, organizing the
activities of the enterprise. At the same time,
power in a well-functioning corporation does not
practically belong to one person, which was
characteristic of previous eras. The management
needs of a corporation require a division of
power among a fairly large number of managerial
representatives (Vasyltsiv, Lupak & Voloshyn,
2021).
Undoubtedly, small business is a major source of
innovation in the country. But often the risk and
necessity of serious research efforts associated
with commercial development is beyond the
reach of small firms. Conversely, nonprofit
experimental laboratories are well prepared to
conduct high-tech developments, but more often
than not they remain at the stage of theoretical
rather than practical development.
Thus, an important direction of state innovation
policy during the war on small science-intensive
business, which is carried out at the state level, is
the attraction of private capital for its financing.
This is implemented mainly through venture
capital firms. For many small innovative firms,
the main problem remains finding financial
support for the development and accelerated
development. Venture capital enters small
innovative firms in different ways: through direct
financing, through special investment companies
of risk capital, a certain part of it small firms
receive from the state in the form of subsidies
(Ihnatko, Ihnatko, Ihnatko & Halas, 2022).
Today, Ukraine faces the task of forming a
competitive national innovation economy in the
context of war, capable of counteracting the
dangers caused by military aggression. Ukraine
must also ensure the promotion of its own
innovative products and technologies in the
global knowledge-intensive market. It is
necessary to take into account the positive
experience of the United States and other foreign
countries and to create and implement new
technologies and innovative innovations through
the innovative modernization of large companies
and the development of small businesses. For this
purpose, effective programs of support of small
innovative business should be developed at the
state level. It is interesting to consider the
peculiarities of small and medium
entrepreneurship support in the European Union
countries and Ukraine. The main purpose of EU
countries support of entrepreneurship in Ukraine
is to balance the interests of international
economic players. Therefore, it is supposed to
form a single economic space between EU
countries and Ukraine.
Discussion
Thus, a characteristic feature of innovative
entrepreneurship in a war today is the
involvement in the entrepreneurial process of an
increasing number of participants and the
distribution of the entrepreneurial function in the
form of distribution of decision-making among
managers of different levels. Managers differ
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from classical entrepreneurs by their business
qualities, values, corporate norms of behavior.
They are characterized by a desire for teamwork,
collectivism, and an awareness of the value of
cooperation (Radziwon, Bogers, Chesbrough &
Minssen, 2022).
Small and medium-sized businesses have
received considerable attention in the context of
war. This sector of the economy is characterized
by increasing output, responsiveness to
innovation, and consumer demands. As
international experience shows, more than 90%
of operating firms in the European Union belong
to the category of small and medium-sized
enterprises, use 2/3 of the EU labor force, and
produce about 60% of the gross domestic
product. These trends have continued over the
past two decades. Given this proportion of the
number of SMEs in their total number, their
competitiveness largely determines the overall
competitiveness of individual countries and their
position in the international market (Sakas et al.,
2022). Analyzing the potential of the Ukrainian
economy, taking into account international
financial support and the future reconstruction of
the country, we can state that post-war Ukraine
will receive a large amount of investment. This
will be a great impetus for the development of
innovative and creative business, taking
advantage of the advanced worldview of the
experience of implementing high-tech
production (Izadi, 2022).
It should be noted that the goal and objectives of
the mechanism of management of the innovation
potential of the organization should be clearly
formulated by the relevant management subjects,
taking into account the identified range of
problems and prerequisites of its innovative
development. In addition, it is necessary to take
into account that the management process on the
innovation potential of the enterprise is aimed at
finding, making, and implementing managerial
decisions on the priorities of this sphere and
should be built taking into account the functions
of planning, organization, motivation,
accounting, analysis and control, the
implementation of which consists in the
application of certain methods and principles of
innovation flow management. It should be noted
that the assessment of the innovation potential of
the commercial organization is one of the key
stages in ensuring the effectiveness of its
management and is a monitoring of the
components of the innovation potential in order
to compare its actual level at a certain moment
with the existing ideas about this level (Financial
club, 2022).
Consequently, the development of private
entrepreneurial initiative is the essence of
economic policy in a time of war. The support of
small enterprises, including small innovative
enterprises, is not just a component of this policy,
but its core. An important aspect of small
business development is the emergence of high-
tech, in particular, “venture” firms, where an
inventor and an entrepreneur act in one person.
In addition, forms of symbiosis between small
and medium-sized enterprises and large
companies in the market in the form of
subcontracting, franchising, dealerships, etc. are
being actively worked out abroad. Achievement
of leadership in modern knowledge-intensive
fields is possible under the condition of
innovative development of big business with the
participation of small firms. That is why Ukraine
is interested in the U.S. experience, where an
active policy to stimulate small innovative
business is conducted (Zaloznova & Azmuk,
2022).
Conclusions
Innovative entrepreneurship in war involves the
search for new ways to develop the enterprise,
which allows us to talk about the concept of
growth management or innovation. The practice
of entrepreneurial activity in any form usually
involves an innovation process focused on the
result. If production is based entirely on
innovation, the result is a new product or goods
with fundamentally new characteristics or
properties. However, the production and delivery
to the market of traditional goods can be carried
out using new elements or techniques. In this
case we can talk about the production of
traditional goods through the introduction of
partial innovation.
Thus, innovative activity in the modern economy
becomes a defining feature of entrepreneurship.
And innovation is just an invention or discovery,
it involves the practical implementation of the
entrepreneurial idea, that is, the
commercialization of new technical,
technological, organizational, and other
developments. An important aspect of the
development of entrepreneurship is the
emergence of high-tech, including venture
capital firms, where the inventor and
entrepreneur act in one person. The creation of
innovative infrastructure depends on the level of
economic and technological development of the
national economy and the economy of the region.
In the conditions of war, it is this tendency of
economic restructuring that seems optimal for
Ukraine.
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At the same time, to develop specific practice-
oriented ways to implement the mechanism of
management of innovation potentials of
organizations in modern conditions it is
advisable to conduct a study of the general
dynamics of changes in the innovation
environment of the country as a whole and in the
context of individual regions and types of
commercial structures, the results of which will
allow to identify features of formation of
innovation. potentials of economic entities and
formulate effective approaches to their
management.
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