Analyzing the Factors Determining the Financial Sustainability of Entrepreneurial Entities in Azerbaijan and Their Contribution to the Competitiveness of the National Economy

Shams Aliyeva and Teyyub Aliyev

Economic Studies journal, 2025, issue 5, 180-197

Abstract: The purpose of this article is to conduct a comprehensive analysis of the factors influencing the financial stability of entrepreneurial entities across multiple sectors of the economy in Azerbaijan, and their impact on the overall competitiveness of the national economy. The study employs a comprehensive econometric analysis to assess the contribution of internal factors (such as liquidity, innovation, and financial planning) and external factors (such as political stability, inflation, and exchange rate volatility) in a quantitative manner. The regression results indicate that innovation and liquidity are the most significant positive predictors of financial sustainability, while exchange rate volatility hurts it. The model provides strong empirical support for the findings, with 84% of the variability in financial sustainability explained. The results provide valuable insights into the strategic financial management practices that can enhance business resilience in a rapidly evolving economic landscape.

JEL-codes: G32 L26 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2025:i:5:p:180-197

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