The study is devoted to defining the main approaches to understanding the essence of the innovation potential of an enterprise. The paper identifies the key components of innovation potential, systematizes the factors of the external and internal environment that influence its formation, and analyzes the indicators for assessing innovation potential. The algorithm for assessing the innovation potential of sustainable development of enterprise should be used to characterize both the efficiency of the enterprise and the implementation of the innovation strategy to substantiate management decisions. When assessing the level of innovation potential of sustainable development, attention should be focused on the selected indicators, which allow not only to determine the innovation potential of an organization, but also to purposefully and timely adjust its activities based on the implementation of the most promising innovations. The modernized model of innovation potential for sustainable development of Private Agricultural Firm VATAL and Agricultural Limited Liability Company Slavutych helps the enterprise to ensure efficiency by promoting innovative approaches, introducing new technologies, and developing products and services based on the principles of sustainable development. The application of this model can help the company conserve resources, reduce environmental impact, increase competitiveness, and ensure sustainable development in the future.