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

Author

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  • Shams Aliyeva
  • Teyyub Aliyev

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.

Suggested Citation

  • Shams Aliyeva & Teyyub Aliyev, 2025. "Analyzing the Factors Determining the Financial Sustainability of Entrepreneurial Entities in Azerbaijan and Their Contribution to the Competitiveness of the National Economy," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 180-197.
    • Handle: RePEc:bas:econst:y:2025:i:5:p:180-197
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    File URL: http://archive.econ-studies.iki.bas.bg/2025/2025_05/2025_05_010.pdf
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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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