An economic analysis of the impact of "grand challenges" on sustainability and business continuity of economic entities

Abstract

Subject. "Grand challenges", creating risks and threats to economic development, are an important factor to assess new opportunities and reserves for business entities' development, which provide for business continuity. To manage business entities in the face of "grand challenges", it is necessary to devise accounting and analytical support and a system of indicators to ensure the sustainability of development and the continuity of operations. Objectives. The aim is to substantiate a model characterizing "grand challenges" and to determine quantitative and qualitative indicators that describe the sustainability of development and business continuity of economic entities at various hierarchical levels. Methods. The methodology of the study rests on the resource-oriented approach. We developed and tested it through the economic analysis of sustainable development of economic entities. Results. We present a model, describing "grand challenges", identify prerequisites for their emergence, on the basis of which a system of indicators is developed. We also identify indicators, characterizing the sustainable development and ensuring the business continuity at various hierarchical levels, and threshold levels of indicators of sustainable development in the face of "grand challenges". Conclusions. The developed model will enable to expand the methodology for economic analysis and build a system of indicators that help determine the reserves and new conditions for the functioning of business entities during the transition to a new stage of development.