IMPROVING THE ORGANISATIONAL- ECONOMIC MECHANISMS FOR ENHANCING THE PROFITABILITY OF ENTREPRENEURIAL ACTIVITY

Abstract

This paper investigates the organisational-economic mechanisms for forming and enhancing the profitability of entrepreneurial activity in the context of contemporary international theories and the conditions of Uzbekistan’s economy. The explanatory potential of Resource-Based View (RBV), Dynamic Capabilities, entrepreneurial orientation, financial resource utilisation, innovation, and digital transformation concepts for interpreting entrepreneurial performance is systematically reviewed. Drawing on contemporary international studies published in 2026, the paper establishes that financing per se does not guarantee high performance; rather, the capacity to transform resources into competencies, innovation, and market opportunities is the decisive factor. As the principal contribution, this paper proposes an integrated organisational-economic mechanism grounded in the eight-stage value-creation chain: Resource → Financing → Cost Optimisation → Value Creation → Sales → Revenue → Profit → Reinvestment. The mechanism is reinforced by a feedback loop in which reinvestment rebuilds the resource base for the subsequent cycle and is moderated at all stages by the external institutional environment.