MANAGING ENTREPRENEURIAL ACTIVITY: THE ROLE OF CAPITAL IN CREATING COMPETITIVE ADVANTAGES

Abstract

This article explores the critical role of capital in the administration of entrepreneurial activities and its influence on the formation of competitive advantages. The authors examine various types of capital, including financial, human, social, and intellectual capital, highlighting their significance for the successful operation of enterprises in today's dynamic market environment.

The article begins by defining capital and its different forms, emphasizing how each type contributes uniquely to business performance. Financial capital is discussed in terms of investment strategies and funding opportunities that can enhance operational capabilities. Human capital is analyzed through the lens of workforce skills, knowledge, and experience, which are essential for innovation and productivity. Social capital is considered in relation to networks, relationships, and trust that facilitate collaboration and market access. Intellectual capital is highlighted for its role in fostering creativity and technological advancement.

Furthermore, the authors address strategies for optimizing capital utilization to improve efficiency and adaptability in the face of changing market conditions. They argue that a comprehensive approach to capital management can lead to enhanced decision-making processes and better resource allocation. The article provides practical recommendations for managers on how to integrate various forms of capital into their overall business strategy, thereby creating sustainable competitive advantages.

Through case studies and empirical evidence, the authors illustrate successful applications of capital management in different industries. The findings underscore the importance of a holistic view of capital that considers both tangible and intangible assets. Ultimately, the article concludes that effective capital administration is vital for long-term success and resilience in an increasingly competitive landscape. This work serves as a valuable resource for entrepreneurs, business leaders, and scholars interested in understanding the multifaceted role of capital in driving entrepreneurial success and sustaining competitive edge.