Chapter 4. Regional and Sectoral Enterprise Competitiveness in the Context of Economic Sustainability and Resilience

Abstract

The research objective of this chapter is to assess the competitiveness of Moldovan enterprises at the mesoeconomic level. The novelty of this work lies in the development of two new composite indices: the Sectoral Enterprise Competitiveness Index, comprising 24 indicators grouped into six pillars, and the Regional Enterprise Competitiveness Index, comprising 26 indicators grouped also into six pillars: Business structure and scale, Entrepreneurial base, and labour engagement, Productivity and resource efficiency, Financial results and profitability, Financial stability and capital structure, and Growth dynamics and intangible potential. The application of these indices to the analysis of regional and sectoral disparities revealed that the business sector in districts near customs checkpoints with the heaviest international freight traffic is the most competitive. In contrast, districts located away from major trade flows face challenges, such as low enterprise productivity and efficiency, and deteriorating infrastructure. The developed indices identify key institutional, structural, technological, and financial barriers. An analysis of enterprise competitiveness by sector of the national economy revealed that the lowest competitiveness was observed among enterprises in Sector D: Electricity, Gas, Steam, and Air Conditioning Supply. During the COVID-19 pandemic lockdown, the competitiveness of enterprises in Sector I: Accommodation and Food Service Activities significantly declined. However, in 2020, the competitiveness of enterprises in Sector N: Public Administration and Defense, Compulsory Social Security increased significantly. Sector J: Information and Communication is one of the most competitive sectors of the national economy, so this chapter proposes tools for enhancing regional resilience through digital transformation.