The Financial Results of Small Enterprises and Features of their Formation
The article is aimed at highlighting the features of formation of financial results of small businesses. Approaches to defining the essence of the concept of «financial result» and the factors influencing the formation of financial results of the enterprise’s activities are considered and generalize...
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2020-05-01
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| Series: | Bìznes Inform |
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| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-388_393.pdf |
| _version_ | 1819160853715353600 |
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| author | Ischenko Nina A. |
| author_facet | Ischenko Nina A. |
| author_sort | Ischenko Nina A. |
| collection | DOAJ |
| description | The article is aimed at highlighting the features of formation of financial results of small businesses. Approaches to defining the essence of the concept of «financial result» and the factors influencing the formation of financial results of the enterprise’s activities are considered and generalized. The procedure for forming the financial results of a small enterprise is defined. When considering the features of the financial performance of small businesses, it is identified that their incomes are decreasing and their costs are rising. This leads to an increase in the loss, and running at a loss is a sign of the crisis status of enterprise. The factors leading to strategic crisis, profitability crisis and liquidity crisis at enterprise are defined. The need to introduce anti-crisis management of enterprise in order to overcome the loss, as well as ensure sustainable development is substantiated. It is determined that the main role in the enterprise’s anti-crisis management system belongs to the wide use of financial stabilization mechanisms. It is determined that the financial stabilization of enterprise should be carried out according to the following stages: elimination of insolvency; restoring financial stability; changing the financial strategy to accelerate economic growth. According to the research results, it is advisable for small enterprises to apply effective, tactical and strategic financial stabilization mechanisms. |
| first_indexed | 2024-12-22T17:03:03Z |
| format | Article |
| id | doaj.art-cf87285a229b480eaba56c1a31df8917 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-12-22T17:03:03Z |
| publishDate | 2020-05-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-cf87285a229b480eaba56c1a31df89172022-12-21T18:19:18ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2020-05-01550838839310.32983/2222-4459-2020-5-388-393The Financial Results of Small Enterprises and Features of their FormationIschenko Nina A.0https://orcid.org/0000-0002-2150-8810Central Ukrainian National Technical UniversityThe article is aimed at highlighting the features of formation of financial results of small businesses. Approaches to defining the essence of the concept of «financial result» and the factors influencing the formation of financial results of the enterprise’s activities are considered and generalized. The procedure for forming the financial results of a small enterprise is defined. When considering the features of the financial performance of small businesses, it is identified that their incomes are decreasing and their costs are rising. This leads to an increase in the loss, and running at a loss is a sign of the crisis status of enterprise. The factors leading to strategic crisis, profitability crisis and liquidity crisis at enterprise are defined. The need to introduce anti-crisis management of enterprise in order to overcome the loss, as well as ensure sustainable development is substantiated. It is determined that the main role in the enterprise’s anti-crisis management system belongs to the wide use of financial stabilization mechanisms. It is determined that the financial stabilization of enterprise should be carried out according to the following stages: elimination of insolvency; restoring financial stability; changing the financial strategy to accelerate economic growth. According to the research results, it is advisable for small enterprises to apply effective, tactical and strategic financial stabilization mechanisms.https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-388_393.pdffinancial resultsformation of the enterprise’s financial resultsrevenues and expenses of enterprisecrisis of profitabilityanti-crisis management of enterpriseeffective mechanism of financial stabilizationtactical mechanism of financial stabilizationstrategic mechanism of financial stabilization |
| spellingShingle | Ischenko Nina A. The Financial Results of Small Enterprises and Features of their Formation Bìznes Inform financial results formation of the enterprise’s financial results revenues and expenses of enterprise crisis of profitability anti-crisis management of enterprise effective mechanism of financial stabilization tactical mechanism of financial stabilization strategic mechanism of financial stabilization |
| title | The Financial Results of Small Enterprises and Features of their Formation |
| title_full | The Financial Results of Small Enterprises and Features of their Formation |
| title_fullStr | The Financial Results of Small Enterprises and Features of their Formation |
| title_full_unstemmed | The Financial Results of Small Enterprises and Features of their Formation |
| title_short | The Financial Results of Small Enterprises and Features of their Formation |
| title_sort | financial results of small enterprises and features of their formation |
| topic | financial results formation of the enterprise’s financial results revenues and expenses of enterprise crisis of profitability anti-crisis management of enterprise effective mechanism of financial stabilization tactical mechanism of financial stabilization strategic mechanism of financial stabilization |
| url | https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-388_393.pdf |
| work_keys_str_mv | AT ischenkoninaa thefinancialresultsofsmallenterprisesandfeaturesoftheirformation AT ischenkoninaa financialresultsofsmallenterprisesandfeaturesoftheirformation |