Conceptual approaches to innovative development of human potential of small and medium businesses

The subject of the study is the concept of the formation and development of human potential.The purpose of the study is to analyze and generalize conceptual approaches to the innovativedevelopment of human potential in small and medium–sized businesses.Research methods. When writing the article, general scientific methods of studying economicphenomena and processes were used; methods of theoretical generalization, analysis, synthesis,induction and deduction to study conceptual approaches to the innovative development of humanpotential in small and medium–sized businesses.Results of the work. It was determined that human potential is a set of physical, intellectual,emotional and social abilities that a person can use for personal development, achieving goals andcontributing to society. Various concepts that explain the process of forming human potential areanalyzed, which are grouped into five blocks: humanistic concepts; socio–economic concepts; socio–cultural concepts; ecological concept; concept of innovative development. The author developed aconcept of innovative development of human potential of SMEs, the essence of which is to conductan analysis and assessment of the external environment, general conditions and obstacles, searchand optimal choice of new methods of training human potential, formation of an effective system ofpersonnel motivation, study of external factors that influence the innovative development of humanpotential. The directions of the innovative approach were formed and the stages of formation anddevelopment of human potential were determined, which should be emphasized in the process offorming and increasing the competitiveness of SMEs.Field of application of the results. Enterprise economics, national economy.Conclusions. In modern conditions, it is proposed to apply an innovative approach to the formationand development of human potential, which will contribute to increasing the competitiveness of SMEs.