ENTERPRISE LIFE CYCLE: THE IMPORTANCE AND ROLE IN DEVELOPING A SUSTAINABLE BUSINESS MODEL

Enterprises, regardless of their size and type of activity, go through several stages during their life, which successively form their life cycle. Businesses move through life cycle stages differently. The transition from one stage to another is perceived as a qualitative leap in business development, accompanied by economic, organizational, structural, managerial transformations. Knowing the specifics of the development of enterprises and the problems they face at each stage of its development allows to annihilate or reduce their negative impact. Determining which stage of the life cycle the enterprise is in is important for choosing a sustainable business model. Enterprises operate in a changing business environment. In this case, it is important to understand and evaluate the influence of external factors in business development, which demand a certain behavior of entrepreneurs, based on stress states and the confrontation with permanent imbalances and changes, not always predictable, of the environment in which they operate.