Substantiating the influence of the results of a competent organization's functioning on the efficiency of the national economy

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Simon Kuznets Kharkiv National University of Economics

V. N. Karazin Kharkiv National University

Borys Grinchenko Kyiv Metropolitan University

Substantiating the influence of the results of a competent organization's functioning on the efficiency of the national economy

Inna Gruzina Candidate of Economy Sciences, Associate Professor of the Department of Management and Business, Oleksandra Kanova Candidate of Economy Sciences, Associate Professor of the Department of Management and Business, Olena Kozyrieva D,Sc, in Economics, Professor, Head of the Department of Management and Public Administration, Iryna Kinas Candidate of Economy Sciences, Associate Professor of the Department of Management and Business, Maksym Zhytar D.Sc. in Economics

Kyiv, Kharkiv

Abstract

European integration processes have changed the requirements for organizations, shifting attention from external factors to internal properties. Unique knowledge and experience, combined with resources and technologies, shape the organization's competence, determining its ability to operate effectively. The increasing number of organizations capable of achieving high-performance indicators, i.e. competent in conditions of market activities coloured by military actions, is considered a factor in the development of the national economy. This work aims to justify the predominant impact of the results of Ukrainian organizations' activities, as an indicator of competence, on GDP volumes as a comprehensive indicator of economic efficiency and state development. Methods such as information systematization, grouping and comparative analysis, correlation regression, content and logical analysis, scientific induction, and deduction have been used.

An obvious imbalance of the regional structure of the economy with the concentration of organizations in six leading regions (49,85%) was revealed, which does not always indicate their greatest impact on GDP volumes. This confirmed the inexpediency of considering the indicator of the number of organizations as a determining factor of influence on the national economy. The assumption of greater significance in ensuring the stable functioning of the economy based on the results of organizational activities has led to the analysis of the volumes of products produced and sold, their ratios, and projections of trends on GDP volumes. The higher performance of representatives of large and medium-sized businesses is explained by the presence of a wider list of competencies, therefore, higher competitiveness of organizations and the probability of resistance to external changes. Identity, but the unequal trends in production volumes and GDP outline prospects for further analysis of financial performance indicators in the context of their impact on the competence level of organizations, which most fully characterizes their ability to conduct successful activities, ensuring sustainable economic development.

Keywords: organization, competency, competence, efficiency, development, national economy, European integration

Анотація

Грузіна І, Канова О., Козирєва О, Кінас І, Житар М.

ОБҐРУНТУВАННЯ ВПЛИВУ РЕЗУЛЬТАТІВ ФУНКЦІОНУВАННЯ КОМПЕТЕНТНОЇ ОРГАНІЗАЦІЇ НА ЕФЕКТИВНІСТЬ НАЦІОНАЛЬНОЇ ЕКОНОМІКИ

Євроінтеграційні процеси змінили вимоги до організацій, змістивши увагу із зовнішніх чинників на внутрішні властивості. Унікальні знання та досвід у комбінації' з ресурсами й технологіями, формуючи компетентність організації', обумовлюють спроможність її ефективної діяльності. Зростання кількості організацій, здатних досягати високих показників діяльності, тобто компетентних у забарвлених воєнними діями ринкових умовах, уважають чинником розвитку національної економіки. Робота має на меті обґрунтувати превалюючий вплив результатів діяльності українських організацій як індикатора компетентності на обсяги ВВП як узагальнювального показника економічної ефективності та розвитку держави. Використано методи систематизації інформації, групування та порівняльного аналізу, кореляційно-регресійного, контент- і логічного аналізу, наукової індукції та дедукції.

Виявлено дисбаланс регіональної структури економіки з концентрацією організацій у регіонах-лідерах (49,85%), що не завжди свідчить про найбільший їхній вплив на обсяги ВВП. Це підтверджує недоцільність розгляду показника кількості організацій як визначального чинника впливу на національну економіку. Припущення про більшу значущість у забезпеченні стабільного функціонування економіки результатів діяльності організацій стало причиною аналізу обсягів виробленої й реалізованої продукції, їх співвідношення та проєкції тенденцій на обсяги ВВП. Вищі результати представників великого та середнього бізнесу пояснюються наявністю ширшого переліку компетенцій, отже, вищою конкурентоспроможністю організацій та здатністю протистояти зовнішнім змінам. Ідентичність, але нерівнозначність тенденцій в обсягах продукції та ВВП окреслює перспективи для додаткового аналізу фінансових показників діяльності в контексті впливу на рівень компетентності організацій, що найповніше характеризують їхню спроможність здійснювати успішну діяльність, забезпечуючи сталий розвиток економіки.

Ключові слова: організація, компетентність, компетенція, ефективність, розвиток, національна економіка, євроінтеграція

Introduction

The economy of Ukraine is characterized by the intensification of integration processes due, in particular, to the powerful influence of globalization factors. The effective activity of organizations and their striving to join forces with representatives of other countries is considered by most scientists as a prerequisite for the economic development of the country, the transition of the economy to a higher quality state with the corresponding maximization of gross income, increase in the welfare of the population due to the increase in material security, the minimization of public expenses, and obtaining a social effect. The analysis of trends in the creation of organizations, the dynamics of their functioning indicators and the influence on the state of the national economy improves the understanding of the role of organizations in today's conditions. There is an opinion that the successful activity of organizations is evidence of a high level of organizational competence and a factor of positive influence on GDP (Gruzina, 2022). Usually, an organization is considered competent when possessing a set of individual competencies, it forms organizational competencies through its internal development, ensuring its uniqueness compared to competitors and gaining sustainable competitive advantages in the long term. This definition places almost all responsibility for creating a competent organization on individual competencies, namely the employees, and their levels of knowledge, skills, and experience. The possibility of developing these competencies to the level of, for instance, synergistic organizational competencies seems doubtful (Gruzina, 2023). In the authors' view, the development of an organization's competence to a level that allows it to be called competent in the market, its segment, or a specific field of activity becomes possible with the presence of, in addition to individual competencies, a list of minimally necessary other organizational competencies, such as strategic, key, and functional (Gruzina, 2023). The development of the entire set of existing organizational competencies, achieving a high level of their manifestation in activities, allows for the acquisition of competitive advantages and identifies the organization as competent. As a result of refining the definition of a "competent organization" within the scope of the study, an organization will be considered competent if it possesses a broad set of competencies, the level of manifestation of which in activities ensures compliance with market requirements and the ability to quickly adapt to their changes, enabling the organization to solve tasks and achieve results that are unattainable for other market players. It is important to note that the concepts of a "competent organization" and a "successful organization" are not entirely identical, as this requires additional analysis and evaluation of the relationship between the level of organizations' competence and the results of their activities, which is a priority direction for further research by the authors. However, it can be confidently stated that a competent organization has a high chances of market success, especially in conditions of martial law and the intensified Eurointegration processes provoked by it in Ukraine. Organizations competent in the domestic and foreign markets play a leading role in establishing international cooperation, combining the efforts of states on the way to developing a general action program to solve world problems and creating the necessary conditions for its implementation (Hodanich, 2018). A high level of competence, contributing to the growth of the competitiveness of organizations and Ukraine among the member states of the European Union (EU), determines the rapid integration into the European space. Since the previous analysis did not reveal scientific developments aimed at evaluating the results of the organizations' activities not only in the context of the influence on the efficiency of the national economy but also as an indicator of their competence, it is considered appropriate to investigate the main indicators of the activity of Ukrainian organizations in order to formulate objective conclusions about the level of their competence and substantiate its importance in achieving market success.

Literature review

The Ukrainian scientific community is actively discussing the prospects for the development of the national economy, trying to understand the reasons for the main trends in its functioning, detect potential problems, and form ways of solving and preventing them in the future. Most scientists consider problems at the level of organizations to be the root cause of changes and devote their work to their analysis, as well as assessment of the influence of the results of organizational activities on the economy of Ukraine, which determines its current state.

Scientists in (Kosach et al., 2020; Ilyash et al., 2022) tried to determine the directions of development of the Ukrainian economy and possible problems on the path of the country's integration into the European space, supplementing the scientific search with an analysis of the most effective ways to solve them.

A similar direction was supported by H. Hodanich (2018), who placed the main responsibility in the process of European integration of Ukraine on public institutions, emphasizing their importance in the context of the intensification of integration processes, noting the need to transform public administration with a logical change in the strategic priorities of public policy.

N. Kuharska, et al. (2020) were involved in justifying the necessity of restructuring the national economy based on the study of theoretical aspects and deepening of the research methodology of modern trends, seeking the most rational direction for the development of the Ukrainian economy.

The importance of the state in creating an attractive investment climate, which is a stimulus for the development of organizations and their acquisition of competence in the market, was emphasized in the works by A. Korbutiak, et al. (2020). Supporting the study of this issue, V. Margasova, et al. (2020) directed scientific research to the development of monetary and credit policy in conditions of instability, noting its positive impact on the effectiveness of activities of organizations, in particular, innovative ones. The role of innovative activity of organizations in ensuring the development of the national economy has become the object of scientific research for such scientists as A. Zhalilo et al. (2016), N. Kholiavko et al. (2020), L. Antoniuk et al. (2017), and L. Melnyk, et al. (2022). However, the acceleration of the process of Ukraine's integration into the European economic space requires additional research due to the shortening of the planning period, the significant manifestation of negative impact factors and the forced revision of most innovative development strategies at the level of the country and organizations. market competence organization

Sharing the viewpoint of scientists, B. Prohorov et al. (2021) determined the priority of influence of public and private enterprises on the development of the national economy by comparing the results of their functioning. Recognizing the superiority of private sector organizations made it possible to make assumptions about a higher level of their competence and to outline guidelines for the search for directions for its improvement for public organizations.

The works of O. Radyeva et al. (2019) and S. Suhartini et al. (2022) are useful as they are devoted to substantiating the importance of cooperation and the activities of international organizations, to the study of their impact on the efficiency of the economy. Concentrating on the development of directions for state support for effective business collaboration and international cooperation, scientists emphasized the importance of organizations in ensuring the effective functioning of the country's economy. However, limiting the horizon of scientific research to one direction of support narrowed the scope of the recommendations.

Yu. Samayeva (2022) studied the results of the activities of Ukrainian organizations, focused on their ability to meet military needs, without examining the contribution to the functioning of the economy as a whole. This is understandable given the unpredictability of the situation and the difficulty of making any forecasts at the beginning of a military invasion.

Foreign scientists do not ignore the issue of substantiating the importance of organizations' activities for the development of the country's economy. E. Siskawati et al. (2022), identifying ways to increase its efficiency, emphasized the exceptional role of social investments and directed efforts to the development and implementation of investor motivation systems. Scientists consider rural enterprises to be the basis of national development, which is why the recommendations are characterized by a low degree of universality and adaptability to the economies of other countries.

Scientists in (Bencsik & Juhasz, 2023), shifting the emphasis of scientific research, tried to investigate the factors of negative impact on the activities of organizations, confirming the dependence of economic development trends on it. However scientists studied the technostress factor, the influence of which is important due to the intensive informatization of the world economic space, but not the only one that provokes a decrease in indicators of the functioning of organizations.

Despite the significant volume of scientific developments, insufficient attention is paid to researching the potential of individual spheres of the national economy, in particular, the trends of change in the number of organizations, the dynamics of the results of their functioning, and the contribution to the overall development of the economy.

In this context, it is possible to highlight the works of O. Morgulec (2015) and S. Nadvinichnij (2021), who investigated the direction and strength of the influence of the effectiveness of the activities of organizations in the service and agricultural sectors on the development of the national economy. By identifying shortcomings in the activities of organizations and developing recommendations for their elimination, which positively affect the level of organizational competence, experts have reduced the possibility of their application due to the specificity of the areas of economic activity chosen for analysis.

O. Poluyaktova (2016) and V. Maksimov (2022) focused only on individual problems of the regions. In particular, V. Maksimov (2022) studied the dynamics of employment and unemployment indicators due to a rapid contraction of business in the most dangerous regions with the beginning of a full-scale military invasion. In the context of considering the essential difference between the concepts of "economic growth" and "economic development", G. Melnik & Ye. Chemeris (2017) and A. Hodzhayan (2018) also paid attention to individual regions, but given the purpose of their research, the information is insufficient for an objective assessment of the level of competence of organizations and the need to improve it.

V. Fesenko & L. Voroncova (2020) and S. Kozlovskyi et al. (2019) studied the influence of positive and negative financial results of organizations' activities on the formation of the main trends in the development of the country's economy. However, scientists limited themselves only to the financial aspect of activity, which is an important but not the only indicator of organizational competence. K. Semenova (2021), T. Chernichko et al. (2016) та L. Sokolova et al. (2019) also focused on financial indicators. They explored the possibilities of improving the financial condition of organizations to ensure their sustainable development in the context of ensuring the efficient functioning of the economy. Scientists insisted on the need to make effective management decisions taking into account the threats and risks of the environment, which will have a positive effect on the financial stability and efficiency of organizations. Since both financial indicators and the effectiveness of the decision-making process are evidence of a certain level of organizational competence, the developed recommendations are considered valuable in view of the purpose of the study. T. Tomnyuk (2016), supporting this direction, substantiated the importance of reforming tax policy, which will have a prolonged positive impact on the financial performance of organizations, increase the probability of acquiring competence in the market, positively reflecting on the state of the Ukrainian economy.

Choosing the sphere of small entrepreneurship as a basis for analysis when determining the prospects for the development of Ukrainian organizations, scientists in (Marchenko & Haritonenko, 2021; Smentini, 2019) noted a number of factors inhibiting the productivity of their activities. These are a low level of production automatization and product quality, unable to ensure a stable level of demand and sales. The scientists' conclusions indirectly indicate an unsatisfactory level of competence, which reduces the competitiveness of organizations and complicates the process of integration into the European market.

The course chosen by Ukraine for full membership in the EU and the resulting intensification of integration processes contributed to the revitalization of the scientific debate. The causes of this event and its consequences for the Ukrainian economy are being actively investigated. Paying tribute to the scientific achievements of scientists, it should be noted that previous studies did not reveal any scientific works that note the importance of not only efficient, but more specifically competent organizations in the conditions of European integration, which is a broader concept, because it concerns not only the results of activities, but the factors that determine them.

Aims and objectives

The purpose of the study is to substantiate the predominant influence of the performance results of Ukrainian organizations as an indicator of competence on the GDP volumes, serving as a comprehensive measure of economic efficiency and the development of the state.

The main working hypotheses of the study are as follows:

increasing the intensity of the creation of Ukrainian organizations due to the simplification of their registration conditions under martial law, leading to a rapid growth in their number, positively impacts the GDP volumes, as one of the key indicators of the country's economic state and its economic achievements;

the competence of Ukrainian organizations, which is a prerequisite for achieving high results in their activities, has a positive impact on the GDP volumes and the overall state of the national economy.

Methods

The methodological basis of the research was the provisions of modern economic theory and management, works of foreign and domestic scientists (Marchenko & Haritonenko, 2021; Semenova, 2021; Fesenko & Voroncova, 2020; Ilyash et al., 2022; Siskawati et al., 2022; Bencsik & Juhasz, 2023) devoted to the problems of creating and developing competent organizations, evaluating the results of their activities in the context of the influence on the state of the national economy, substantiating the need for state support as a factor in ensuring the competence of organizations in conditions of intensification of European integration processes.

Research results were obtained using methods of statistical analysis, generalization and systematization of information from official databases of the State Statistics Service of Ukraine (2022), the World Bank, and the Organization for Economic Cooperation and Development (European Bank for Reconstruction and Development, 2020). The results of international observations of the European Bank for Reconstruction and Development (European Bank for Reconstruction and Development, 2020; International Monetary Fund, 2019) were taken into account; as well as statistical data on the functioning of organizations (International Monetary Fund, 2019; OECD National Accounts Statistics, 2017); materials of periodicals and the results of the authors' own research.

The assessment of the dynamics of the number of Ukrainian organizations with an analysis of the proportionality of their distribution by regions and branches of the economy, which was carried out by methods of generalization and systematization of information with its consistent grouping and comparison, allowed to reveal the uneven concentration of organizations by regions and spheres of economic activity. According to the first research hypothesis, the regions with the highest concentration of organizations should contribute the largest share of GDP volumes. This became the reason for the analysis of the dynamics of the regional contribution to the total volume of GDP and the growth rate of the number of organizations in the region. The GDP indicator is one of the key performance macroeconomic indicators that provide information about the state of the national economy, allowing conclusions to be drawn about its efficiency over the course of a year or shorter periods. Certainly, macroeconomic efficiency, which characterizes the performance of a country's economy, taking into account the efficiency of resource utilization in the production of the national product, the achieved level of overall well-being, and the degree of satisfaction of societal needs, has many manifestations due to the complex structure of the economy and is determined by a system of various indicators. However, the primary statistical performance indicator that reflects the outcomes of the activities of resident economic entities, hence the results of the functioning of the national economy, remains the GDP, complemented by the calculation of national income as an indicator of the country's prosperity level. Since the object of the study is the activities of Ukrainian organizations and their results, the main focus was on examining the main trends in GDP volumes and the role of competent organizations in their maximization.

Identification of regions with low or negative growth rates in the number of organizations (Dnipropetrovsk, Odesa, Poltava, and Kharkiv regions), which provide a significant share of national GDP, as well as regions with a rapid increase in the number of organizations (Kyiv, Lviv regions and the city of Kyiv), which sometimes give lower volumes of regional GDP, made it possible to assert the absence of a direct relationship between the number of organizations in the region and its share in the national GDP, therefore, to refute the validity of the first hypothesis.

The assumption about the predominant impact on GDP levels and the state of the national economy lies not in quantity, but in the results of organizations' activities determined the need for a systematic analysis of the results of the functioning of organizations. The indicators were determined based on the study of their essence thanks to the use of methods of content and logical analysis. The choice of organizations of the entrepreneurial sector as a base for analysis revealed a significant difference in the volumes of products manufactured and sold and their ratio among representatives of large, medium and small businesses. This can be caused, in addition to the effect of objective and subjective factors, by different levels of organizational competence and, therefore, by different opportunities to achieve entrepreneurial success. The substantiation of the relationship between the competence of organizations, the results of their activities and the prospects for the development of the national economy was carried out using the methods of scientific induction and deduction. The assessment of the dynamics of production and sales volumes, their correlation with GDP volumes and the identification of trends confirmed the hypothesis regarding the dependence of the GDP indicator, and consequently, the state and efficiency of the national economy on the competence of organizations, as manifested in their high-performance results. However, the different intensity of both positive and negative changes in indicators requires additional studies of organizational activity, in particular, indicators of financial state, and the number of offered jobs in the context of the impact on the balanced functioning of the labour market. This is considered useful for giving recommendations for the development of relevant competencies of organizations in order to strengthen their competitive positions in the domestic and foreign markets. To confirm or refute the formulated conclusions and hypotheses, the method of correlation and regression analysis was employed.

Solving the issue of visual presentation of information in order to justify the conclusions and simplify their perception became possible thanks to the use of formalization methods and the graphic method. The processing and use of data for the construction of diagrams and graphs, necessary for obtaining thorough results, was carried out by using computer technologies, in particular, the special software and technical application Microsoft Excel.

Results

In 2014, 1 932 161 organizations operated on the market, unevenly concentrated by regions and spheres of economic activity (State Statistics Service of Ukraine, 2023). The largest share was occupied by wholesale and retail trade organizations as well as organizations that repair motor vehicles and motorcycles - 988 694 organizations (51.2%). However, following the dynamics of their number, it showed a stable tendency to decrease, reaching negative growth rates in 2022 - 661 158 organizations (-33.13%). Almost all other groups of organizations were distributed in shares within 7%. In 2021, the share of organizations operating in the field of wholesale and retail trade remained the highest (39.74%), however, the growth rate continued its decline, reaching -5.9% in 2021. Organizations supplying electricity, gas, steam and air conditioning, and water supply; sewage, waste management organizations; educational institutions and institutions carrying out financial and insurance activities had the smallest shares. Despite the challenging conditions, it cannot be said that the year 2022 brought an exacerbation of negative trends for all sectors of the economy without exception. Positive dynamics were demonstrated by such economic sectors as transportation, warehousing, postal and courier activities, professional, scientific and technical activities, education, healthcare, and social assistance. Despite some slowdown (within the range of 1-5%), the growth rates of the share of organizations in the information and telecommunications sectors, as well as financial and insurance activities, remain positive. However, despite the growth, the number and share of organizations in the financial and insurance sectors, and education sector remain consistently low - 9 261 organizations (0.53%) and 17 450 organizations (1.01%), respectively. Regarding the latter, the negative growth rates of the number of organizations in 2022, with a decrease of 1 194 units (-2.66%), are critical in the context of the development of the knowledge economy and the significant dependence of organizations' competence and, consequently, the results of their activities on knowledge, skills, and competencies of employees. Art, sports, entertainment and recreation remain an industry with a small number of organizations - 13 548 organizations (0.78%). The COVID-19 pandemic years and the subsequent years of war have dealt a blow, first of all, to representatives of this sphere, making its full functioning impossible. Forecasts for the development of the industry are also disappointing due to russia's military aggression against Ukraine and the logical change in Ukrainian society's priorities.

Considering the organizations' structure, there is a decrease in the share of organizations in such crucial sectors of the economy as agriculture and manufacturing - by 22 379 organizations (a decrease of share by 0.84%) and 28 991 organizations (by 0.89%), respectively. This happened at a time of rapid growth of the share of organizations in the field of information and telecommunications - 295 912 organizations (17.08%) in 2022, against 114 355 organizations (5.92%) in 2014. The impetus was the active informatization of the global economic space, which requires the creation of appropriate infrastructure and stimulates the development of organizations in this field. A significant increase in the number of organizations in 2020 - by 6 589 units (21.26%) - is observed in the field of healthcare and social assistance. This is primarily associated with the increased workload in this sector due to the global COVID-19 pandemic and the corresponding growth in the number of specialized organizations. In 2021, these growth rates slowed down and demonstrated a negative trend, but forecasts for a substantial expansion of this sector in conditions of military actions are almost 100% (the growth rate of the share of organizations in 2022 is 5.22%) (Figure 1).

Figure 1. The structure of organizations of the national economy of Ukraine. (Source: created by the authors based on Kuharska et al, 2020; State Statistics Service of Ukraine, 2023)

significantly adjusted the situation, keeping the city of Kyiv - 312 542 organizations (15.98% of organizations in their total number), Kharkiv region - 167 691 organizations (8.57%), Dnipropetrovsk region - 153260 organizations (7.83%) and Zaporizhzhia region - 76 176 organizations (4.89%) as leaders, and adding Odesa region - 132 857 organizations (6.79%) and Lviv region - 132740 organizations (6.79%) to them. These regions (except for Zaporizhzhia and Odesa regions), despite the crisis years, demonstrate an increase in the number of organizations. Figure 2 shows an extremely uneven distribution of organizations by region of Ukraine: 49.85% of organizations are concentrated in six regions, leaving about 50% for 20 others (Figure 2).

Figure 2. The distribution of the number of organizations by region of Ukraine in 2021. (Source: created by the authors based on Economic profile of the region, community, cluster, 2022; State Statistics Service of Ukraine, 2023)

The smallest shares are in the Luhansk region with 21 091 organizations (1.08%), the Kirovohrad region with 37 186 organizations (1.9%), and the Ternopil region with 38 225 organizations (1.95%). Slightly larger, just over 2%, are the shares of the Chernivtsi, Volyn, Chernihiv, and Sumy regions with 40 272, 41 089, 41 305, and 41 739 organizations respectively. The reasons should be sought taking into account the size of each individual region, the presence of an economically active population, and the dynamics of the employed and unemployed, which is a prerequisite for the successful functioning of organizations and the expediency of creating new ones.

The intensification of military operations in 2022 has already led to significant shifts in the distribution of organizations by regions as a large number of them, in particular, from Kharkiv and Zaporizhia regions, and to a lesser extent, from Odesa and Dnipropetrovsk regions, have moved their main activities to the less dangerous western regions of Ukraine. Probably, this will have a negative impact on the effectiveness of the national economy functioning as a whole, due to the difficult adaptation period, the lack of knowledge of regional features, consumer behaviour, and the specifics of competition, which causes an insufficient level of organizational competence. However, the need to solve new tasks stimulates the development of new competencies with a positive effect on the overall level of organizational competence both in the post-war Ukrainian market and the European market.

Figure 3 demonstrates the dynamics of the regional contribution to the total GDP and growth rates of the number of organizations in the region, which make it possible to assess the expediency of their development within individual regions, increase the amount of state support, identify existing problems and choose ways to solve them.

The growth rates of the number of organizations in most regions of Ukraine showed negative values. The largest losses (almost 1/5 of the total number) were noted in the Donetsk region, which is explained by the consequences of the deployment of military operations and the partial annexation of the region. The significant decrease in the number of organizations occurred in the Zakarpattia, Zaporizhzhia, and Kherson regions, where the negative growth rates exceeded 16%. The reduction in the number of organizations was slower (within 15%) in the Volyn, Zhytomyr, Luhansk, and Chernivtsi regions. The most substantial growth was observed in Kyiv and Kyiv region, with increases of 85 207 and 19 007 organizations (37.48% and 20.12%), respectively. The growth rates were lower in the Lviv and Rivne regions, with an increase of 15 008 and 1 572 organizations (12.75% and 3.75%), respectively. The further development forecasts for the organizations in most of the regions, in particular, those located in the immediate vicinity of the border of russia, due to massive shelling, infrastructure damage, and the relocation of a significant share of the business to safer areas, are not encouraging.

Figure 3. Dynamics of the number of organizations and the share of regional GDP during 2014 - 2021. (Source: created by the authors based on Economic profile of the region, community, duster, 2022; Comprehensive assessment of the economic situation in Ukraine in 2014-2015, 2015;

Kuharska et al, 2020; State Statistics Service of Ukraine, 2023)

If comparing the growth rates of the number of organizations in 2021 with a share of the regional GDP, it can be noted that, for example, the contribution of the Dnipropetrovsk region to the GDP, where the number of organizations increased by 0.02%, is almost 11%. The city of Kyiv, which was characterized by the development of new organizations (almost 3%), provides 26% of the GDP. That is, the growth rates of the number of organizations in the regions differ by almost 150 times, while their shares in the GDP are only 2.36 times different. So, there is no direct relationship between the number of organizations in the region and their share in the national GDP; the results of each organization are more important. To confirm the conclusion, it is useful to compare the growth rates of the number of organizations in the region and the volumes of regional GDP.

Figure 4 shows that the growth of the regional GDP occurs at a much higher rate than the growth of the number of organizations, which is a positive trend.

Figure 4. Dynamics of the number of organizations and regional GDP, 2014 - 2021. Note: the numbering on the horizontal axis is similar to Figure 3. (Source: Created by the authors based on the Economic profile of the region, community, cluster, 2022; Kuharska et al, 2020; European Bank for Reconstruction and Development, 2020; OECD, 2017)

This confirms the previous conclusion, because the highest growth rates of organizations, for example, in the city of Kyiv, do not indicate the highest growth rates of regional GDP. In the same way, the decrease in the number of organizations does not always have a negative effect on GDP growth. This can be seen from the results of the analysis of indicators in Volyn, Dnipropetrovsk, Zakarpattia, Zhytomyr, Zaporizhzhia, Ternopil, Kharkiv, Kherson, Khmelnytskyi, Cherkasy, Cherniv- tsi, and Chernihiv regions, i.e., in the vast majority of them. Namely, the number of organizations in the region is not a determining factor of influence on the national economy, which allows to refute the first research hypothesis, as confirmed by the results of the correlation and regression analysis (Table 1).

Table 1. Regression models depicting the dependence of the efficiency of economic functioning on the intensity of organization creation. (Source: created by the authors based on Economic profile of the region, community, cluster, 2022; State Statistics Service of Ukraine, 2023)

The regression model depicting the dependence of the share of gross regional product in total volumes on the growth rate of the number of organizations demonstrates low quality, as it only accounts for 44% of the independent variable's impact on the outcome. Additionally, this dependency exhibits excessively high data variability (88%), confirming significant differences among various regions of Ukraine from 2014 to 2021. In other words, the overall impact of the intensity of changes in the number of organizations on the share of gross regional product is weak and negative - with a 1% increase in the number of organizations in the region, the corresponding share of gross product decreases by 0.14%. The use of absolute values as model variables slightly improved the quality of the regression model, allowing for the description of 85% of the impact. Thus, the growth of gross regional product occurs 1.5 times faster than the growth of the number of organizations. However, this model still exhibits high variability (46%), confirming the earlier conclusion about higher growth rates of regional GDP compared to the growth rates of the number of organizations. This prevents considering the number of organizations as a key factor in determining the factors influencing the efficiency of the national economy. Therefore, the active creation of new organizations does not always provide an opportunity to build a positive forecast for economic development. More important is the economic effect, which is manifested in the volumes of manufactured and sold products, their ratio, and contributes to increasing the organization's profitability, the number of jobs, the level of employment and the level of the population's welfare.

Taking into account the patterns of European economic development, it is worth paying attention to the place of entrepreneurship in ensuring a stable socio-economic state of countries. Today, a similar situation is observed in Ukraine because it is the organizations of the entrepreneurial sector that provide employment for the largest number of the population, are one of the most important sources of filling the state budget and the main factors in the formation of the sociodemographic structure of small regions and cities (Maksimov, 2022; Melnik & Chemeris, 2017). They are able to ensure maximum efficiency in solving problems, such as the development of science-intensive technologies and their introduction into production, which contributes to the saturation of domestic and foreign markets with competitive high-quality products.

The economic activity of entrepreneurs is considered one of the factors of the economic growth of the country (Morgulec, 2015). The number of small organizations is predominant in the total number of business entities in Ukraine - 1 716 977 organizations (more than 99%), among them 1 971 558 organizations (about 97%) belong to micro-organizations. The active influence of political and economic factors led to a change in the status of small entrepreneurship - it turned into a leading sector of the state economy (Melnik & Chemeris, 2017). Small business organizations are producers of 50-60% of GDP in European countries, providing 50-70% of employment (Antoniuk et al., 2017). Ukrainian small organizations show lower indicators - about 16% of GDP and about 50% of employment. For comparison, the share of GDP for large and medium-sized organizations remains at 45% and 40%, respectively. The percentage of the employed population is approximately 25% for large businesses and 35% for medium-sized ones. Thus, as in highly economically developed countries, small business organizations, more than others, saturate the market with everyday goods, contribute to the competition development, and demonstrate a high level of budget revenues, becoming a decisive factor in overcoming certain socio-economic problems (State Statistics Service of Ukraine, 2022; Antoniuk et al., 2017).

Confirmation of the formulated conclusions requires an analysis of the results of the organization's functioning, in particular, the volumes of products manufactured and sold, and their ratio, which is determined by the influence of a combination of objective and subjective factors. Due to the inability of the State Statistics authorities to provide up-to-date information on the volumes of products produced in recent years, the analysis was conducted on the basis of data from 2013-2020, however, it is still appropriate to confirm the dependence of the progress or regress of the Ukrainian economy on the results of organizations' activities, it allows to investigate trends in their development and forecast the prospects of growth for Ukrainian organizations and their attainment of competent status in the modern market. The effective activity of organizations is not only a source of revenue for the state budget, which forms its interest in their creation and development but also evidence of a high competence level both in the domestic and foreign markets, a necessary resource for building up their own capacities and economic potential (Fesenko & Voroncova, 2020).

Traditional in the field of research on the activities of organizations in dynamic conditions is the analysis of their profitability, which determines the periodic publication in scientific papers of the results of the analysis of organizations of individual industries or regions of the country, taking into account the types of economic activity, sizes and other important characteristics with the corresponding reflection of growth or decline trends in indicators of financial results in the corresponding periods (Sokolova et al., 2019; Chernichko et al., 2016). This is important for determining the main statistical benchmarks from the point of view of strengthening the financial stability and solvency of Ukrainian organizations, determining potential opportunities for increasing profitability, justifying the need to acquire relevant competencies to strengthen competitive positions and the corresponding development of the Ukrainian economy and budget replenishment (Dorosh, 2018). However, profitability indicators do not always make it possible to fully characterize the results of the functioning of organizations in terms of their impact on the socio-economic state of the national economy. Indicators characterizing the volume of products manufactured and sold, their ratio, labour productivity, and specific GDP are important. This will make it possible to investigate the prevailing trends in the activity of Ukrainian organizations: stability, continuity and efficiency of functioning, rational use of financial resources, formulate conclusions about the general level of their competence in modern conditions, identify the causes and forecast the consequences for the economy of Ukraine as a whole. In any case, the set of indicators for an analysis should be determined by its purpose and main tasks, the available information base, the specifics of organizations, etc.

Analyzing the volume of goods and services produced in Ukraine in dynamics, during 2012 - 2020 it is possible to observe their significant growth - by 2 or more times - for all groups of organizations. Micro-organizations and small organizations as a whole demonstrate the highest growth rates - at the level of 491.51 and 348.51%, respectively. The lowest, however, equally positive, rates of increase in the volume of products produced were noted among representatives of large businesses (92.86%). However, examining the share of the products produced by various groups of organizations in their total volumes, then the undoubted leaders here are large organizations, the share of which, despite the marked downward trend, remains consistently high during the analyzed period - on average at the level of almost 43%. Medium-sized organizations, whose share is fixed at the level of about 40%, do not significantly lag behind by this indicator. The share of micro-organization products produced, despite rapid growth, shows the lowest level - 9.2% of its total volume in Ukraine. However, unequivocal conclusions should not be drawn without comparing the volumes of manufactured products with the corresponding volumes of their sales, because they are interdependent indicators and, ideally, should be balanced. The volume of production of products becomes of primary importance in conditions of limited production possibilities and unlimited demand. Ukraine's confident position on the path to joining the European economic space will provoke a rapid saturation of the market with goods from European manufacturers, an obvious aggravation of competition. This leads to the sales volume indicator acquiring primary importance, which can become the basis of the development of a program for the production of products in volumes that are feasible for implementation (Margasova et al., 2020). The analysis of the mentioned indicators and the degree of their balance will allow to identify the directions of profit maximization through the increase of sales of profitable products by expanding the market share, to find effective ways of increasing the quality and volume of production of products based on the disclosure of internal reserves of production (Radyeva et al., 2019).

The growth throughout the analyzed period, but at a less rapid pace, of the volumes of products sold for all groups of organizations by 2 or more times is obvious. The trend towards leadership of micro-organizations is maintained - the growth rate is at the level of 231.47%; they are inferior to medium-sized organizations - 146.37%; the lowest, but at the same time higher, compared to the volume of production, the growth rate of the volume of product sales in large organizations remains - at the level of almost 106%. The distribution of shares of the sales volume of various groups of organizations in the total volume of their sales has undergone a change. Large organizations lost the first place to medium-sized ones because the share of their volumes is 3,01% lower and does not reach 40%. The share of micro-organizations' sales volume has not changed and remains the lowest - at the level of 6.01% (it was 5.99% in sales volumes of products manufactured) (Figure 5).

Figure 5. Dynamics of volumes of products manufactured and sold by organizations of Ukraine. (Source: Created by the authors based on Economic profile of the region, community, cluster, 2022; Kuharska et al, 2020; State Statistics Service of Ukraine, 2022; OECD, 2017)

Therefore, the share of organizations representing large and medium-sized businesses in the volumes of both manufactured and sold products remains stably high during the analyzed period, which is confirmed by the corresponding indicators in the calculation per one organization, where the situation is similar. In the same way, the absolute predominance of the volumes of products produced and sold by large and medium-sized organizations over the results of production and sales of representatives of small businesses is recorded. However, it should be noted that a certain stability in the indicators may indicate the relative immutability of the basic operating conditions of organizations and the lack of motivation for the development of Ukrainian entrepreneurship on the part of the state, small businesses, in particular. Official sources of statistical information (State Statistics Service of Ukraine, 2023) provide data on the volumes of products sold by organizations in 2022, indicating a decrease of UAH 1 116 099.66 million (-21.71%), UAH 993 237.22 million (-16.74%), UAH 1 760 599.55 million (-44.94%) compared to 2021 for representatives of large, medium, and small businesses, respectively. Thus, small enterprises experienced the most significant losses once again. There is an unchanging thesis about the low performance of small organizations in Ukraine, the small number of people employed by them and the low productivity of their work, which is due to a number of reasons of an objective and subjective nature. Among the main ones, scientists single out the low level of production automation and the level of demand, pressure and dumping of prices by large corporations and an extremely high level of competition, as well as a deliberate decrease in the statistics of the volume of products sold without their reflection in accounting (Melnik & Chemeris, 2017; Antoniuk et al., 2017). This is quite understandable because if turning to the structure of organizational competence, representatives of large and medium-sized businesses have a much wider list of its components. This is, for example, a synergistic component, which is a combination of unique corporate knowledge, abilities, skills, and organizational experience, supplemented by technologies and resources, and ensures the growth of business value, the value of goods and services, and practically unrepeatable competitive advantages. Thus, large and medium-sized organizations most often occupy positions of organizational leadership or, even, a monopoly position in certain market segments or markets as a whole, in certain branches of economic activity or their aggregate. They have stable authority in broad administrative and business circles, are able to influence the adoption of necessary organizational decisions and lobby organizational interests. All this is almost inaccessible to representatives of small and, especially, micro-businesses. However, they can significantly increase the level of their own competence by actively using its root component, that is, the list of those competencies that are part of it. It is the diversification of activities and mutual cooperation with strategic partners - world leaders - through participation in strategic alliances. This, in addition to strengthening market positions, will provide an opportunity to exchange knowledge, information and experience in achieving goals, and manage resources and business processes, which will significantly increase the level of organizational competence and expand the prospects of activity in modern markets.