Entrepreneurship's adaptation to the national ESG agenda

In: Vestnik Tomskogo Gosudarstvennogo Universiteta: naučnyj žurnal = Tomsk State University journal of economics. Ėkonomika, Heft 58, S. 208-223

Abstract

The concept of sustainable development of domestic entrepreneurship has a growing influence on the adjustment and change of adaptive business models. Today, ESG principles are the basis for ensuring the sustainable functioning of business structures, which occurs under the influence of setting and achieving the goals of companies' involvement in solving environmental, social and managerial problems. In the emerging context, we note the emergence and permanent strengthening of vector, regulatory and reputational effects on the activities and development of business structures. The subject of the research results presented in the article is the assessment of the impact on the adaptation of entrepreneurial structures of the implemented ESG approach as one of the key challenges in the activities of modern business. The methodological basis of the study is a consistent analysis of the impact of changing approaches on key aspects of small and medium-sized businesses, identifying qualitative and quantitative characteristics, assessing possible risks and benefits associated with the introduction of sustainable development principles by business entities. The result of the study is an assessment of the impact of the ESG approach on the adaptation of entrepreneurship to modern challenges, as well as on the financial performance of enterprises. As applied to small and medium-sized businesses, practical recommendations on adaptation risk management are proposed, which demonstrate the importance for the absolute majority of the company's activities. It is obvious that sustainable development makes it possible to improve modern models of adaptation of small and medium-sized businesses for the survival of people whose money is the goal of the economic agents of the system. If consumers do not buy the goods or services offered by the company, it means that the company cannot generate profit and, therefore, it is not viable.. Therefore, it is quite logical not only to build adaptive models for small and medium-sized businesses, but, equally important, to use new consumer motivation and a changing environment, social relations and corporate practices in the interests of business development. When a company's ESG activities are considered not so much as a way to neutralize risk, but also as a method of assessing and determining future opportunities, ESG becomes an area of increased attention and importance for institutional investors and creditors. The conclusions and recommendations made in the article may be significant for companies in various sectors of the economy if they are interested in improving the stability of their own financial situation and increasing the interest of investors in them.