HUMAN CAPITAL AS A KEY FACTOR OF A SUSTAINABLE BUSINESS MODEL FOR ENTREPRENEURSHIP

Abstract

The article is devoted to the study of human capital as a key factor in the sustainable business model of entrepreneurship. In the context of the rapidly evolving digital era, the paper emphasizes the necessity of appropriately assessing the significance of human capital, which is often undervalued in favor of financial and material investments perceived as more critical by potential business owners. However, the study highlights that neglecting human capital development can jeopardize long-term competitiveness. The research employs several general scientific methods, including theoretical generalization, analysis, synthesis, and induction. The literature review focuses on works by both domestic and foreign scholars who have explored the links between human capital theory and the adaptability and success of business models. The article identifies human capital as a multifaceted concept encompassing individual qualities such as skills, experience, health, and motivation that contribute to both economic and social development. The study also outlines the foundational components of a sustainable business model, highlighting the entrepreneur’s personal human capital, which includes adaptability, analytical abilities, and leadership skills. The practical significance of the article lies in its potential application in shaping a sustainable business model that leverages human capital effectively. The study further discusses the critical role of human capital in fostering organizational resilience through continuous adaptation to market fluctuations and the integration of technological advancements. By focusing on elements such as knowledge transfer, organizational relationships, corporate culture, and continuous professional development, the paper proposes a framework for enhancing business resilience and fostering innovation. The paper advocates for a strategic approach to internal entrepreneurship (intrapreneurship) as a means of cultivating innovation and maintaining long-term competitiveness. The recommended approach aims to create a collaborative environment conducive to creative problem-solving, thereby ensuring the long-term sustainability of entrepreneurial ventures.