FACTORS FOR ACHIEVING STRATEGIC DEVELOPMENT AND MAXIMIZING PROFITABILITY IN CLUSTER STRUCTURES OF SMALL AND MEDIUM-SIZED BUSINESSES

Abstract. The article is devoted to the study of factors determining the possibility of achieving maximum profitability in small and medium-sized enterprises (SMEs) operating within cluster structures. The essence of the cluster approach as a tool for improving economic efficiency is revealed, and its advantages over the individual operation of enterprises are substantiated. The key factors influencing the profitability of cluster formations are identified and systematized: rational use of shared resources, implementation of innovations, development of network cooperation, optimization of logistics and distribution channels, and improvement of personnel qualifications. Particular attention is paid to the role of institutional support, business process digitalization, access to financing, and integration into global value chains as drivers of sustainable economic growth. Based on the conducted analysis, a conceptual model for managing interaction among cluster participants is developed, aimed at balancing costs and revenues and ensuring long-term profitability. The practical significance of the study lies in the possibility of applying the obtained results to develop SME growth strategies within cluster associations, enhance their investment attractiveness, and improve competitiveness in both domestic and international markets. Keywords: profitability, cluster structures, small and medium-sized enterprises, diagnostics, synergy, data mining methods.