Ensuring the efficiency of forestry enterprises’ potential management as an element of sustainable development

Abstract

Abstract The paper is devoted to the problems of ensuring the efficiency of forestry enterprises’ potential management. It was determined that forest plays a crucial role in ensuring people’s living conditions, i.e., providing food, fuelwood, medicines, income, and employment, etc. Due to crisis tendencies in the forestry sector which were exacerbated by the full-scale war on the territory of Ukraine, the necessity of improvement of forestry enterprises’ potential management is beyond doubt. The main problems of the forestry sector of Ukraine were outlined. It was determined that the ways of improving the forestry enterprises’ potential management should be considered at national and individual enterprises levels. The peculiarities of the forestry sector reform and its planned outcomes were analyzed. It was proposed to supplement the measures of macroeconomic direction by enhancing the forest certification and implementing a participatory approach in management. Based on correlation and regression analysis, the main directions of measures for individual enterprises were defined. Such directions include reducing the duration of the operating cycle, increasing labour productivity, and increasing the rate of net income growth. The measures within each direction were proposed.