ANALYSIS OF APPROACHES TO ESTABLISHING CRITERIA FOR ASSESSING THE VIABILITY OF THE ENTERPRISE

Keywords: survivability, viability, enterprise, methodical approach, remediation potential, remediation capacity

Abstract

In the current critical conditions of state management, many domestic enterprises are on the verge of survival. Therefore, the issue of assessing its level is relevant, which allows us to determine in advance the main factors that contribute to the deepening of such a negative process in order to develop and implement appropriate measures. It is grounded that the algorithm of determining the level of enterprise viability includes the assessment of remediation potential and evaluation of remediation capabilities. It is established that the assessment of the level of rehabilitation potential and rehabilitation capacity of the enterprise based on the analysis of the dynamics of a limited number of indicators does not take into account its systemic nature, and therefore has significant limitations. A significant part of the proposed methods is not allocated and does not quantify the impact of threats on the level of remediation capacity of enterprises. Therefore, it is advisable to take into account the degree of risk of transition from a satisfactory financial condition to a state of the financial crisis in terms of relevant factors. In the considered approaches to the assessment of the level of viability of the enterprise, the main attention is paid to the assessment of the level of remediation potential and remediation capacity in retrospective and current dimension, which does not provide complete information about the prospects of enterprise development. It was found that to assess the remediation potential, most researchers suggest taking into account mostly indicators that characterize the financial sphere of the enterprise but they are effective and do not allow to determine what is the root cause of the crisis in the enterprise. It is substantiated that the assessment of threats to the viability of the enterprise should be carried out not only in cases of economic difficulties but also in order to anticipate, avoid, effectively and efficiently use the remediation potential.

References

1. Bulovich T.V. (2009). Upravlinnia sanatsiinoiu spromozhnistiu pidpryiemstva yak peredumova yoho vyzhyvannia [Management of remediation capacity of an enterprise as a prerequisite for its survival]. Visnyk Khmelnytskoho natsionalnoho universytetu – Bulletin of Khmelnitsky national university, 4 (2), 161-167. [in Ukrainian].
2. Ligonenko L.O. (2000). Antykryzove upravlinnia pidpryiemstvom teoretyko-metodychni zasady ta praktychnyi instrumentarii [Anti-crisis management of an enterprise: theoretical and methodological principles and practical tools]. Kyiv [in Ukrainian].
3. Tsar O.Z. (2017). Finansova sanatsiia subiektiv hospodariuvannia v ekonomitsi Ukrainy [Financial remediation of business entities in the economy of Ukraine]. Candidate’s thesis. Lviv [in Ukrainian].
4. Lisnichuk O.A. (2016). Finansove upravlinnia sanatsiinoiu spromozhnistiu pidpryiemstv Ukrainy [Financial management of remediation capacity of Ukrainian enterprises] Candidate’s thesis. Irpin [in Ukrainian].
5. Bilokon T.M. (2008). Orhanizatsiino ekonomichnyi mekhanizm sanatsii pidpryiemstv kharchovoi promyslovosti [Organizational and economic mechanism of remediation of food processing enterprises] Extended abstract of candidate’s thesis. Kyiv [in Ukrainian].
6. Bagatska K.V. (2005). Problemni pytannia vyznachennia sanatsiinoi spromozhnosti pidpryiemstv [Problems of determination of remediation capacity of enterprises]. Derzhava ta rehiony – State and regions, ser: Economics and enterprise, 1, 56–62 [in Ukrainian].
7. Perederiyeva S. (2011). Kryterii otsinky sanatsiinoho potentsialu pidpryiemstva-borzhnyka [Criteria for evaluating the remediation potential of a borrower enterprise]. Ekonomichnyi Analiz – Economical Analysis, issue 9, part 3, 233-236 [in Ukrainian].
8. Larionova K., Donchenko T. (2012). Formuvannia sanatsiinoho potentsialu yak instrumentu upravlinnia sanatsiieiu pidpryiemstv lehkoi promyslovosti [Formation of remediation potential as an instrument of management of remediation of enterprises of light industry]. Sotsialno-ekonomichni problemy i derzhava – Socio-Economic Problems and State, issue 2 (7), 38-47. Retrieved from http://sepd.tntu.edu.ua/images/stories/pdf/2012/12lklplp.pdf [in Ukrainian].
9. Fedorova Y.V. (2016). Perspektyvy innovatsiinoho rozvytku Ukrainy: tekhnolohichni uklady [Prospects for innovative development of Ukraine: technological arrangements]. Visnyk Khmelnytskoho natsionalnoho universytetu – Bulletin of Khmelnitsky national university. Economical Sciences, 1, 123–126 [in Ukrainian].
10. Karachina N.P. (2010). Ekonomichna povedinka mashynobudivnykh pidpryiemstv: teoriia, metodolohiia, praktyka upravlinnia [Economic behavior of machine-building enterprises: theory, methodology, management practice]. Vinnitsya : Kniga-Vega [in Ukrainian].
11. Lisnichuk O.A. (2012). Rozrakhunok sanatsiinoho potentsialu pidpryiemstva zarubizhnyi dosvid ta vitchyzniana praktyka [The calculation of remediation potential of the enterprise: foreign experience and domestic practice]. Innovatsiina ekonomika – Innovative economy, 5 (31), 51–56 [in Ukrainian].
Published
2021-03-25
How to Cite
Bugai, V., & Gorbunova, A. (2021). ANALYSIS OF APPROACHES TO ESTABLISHING CRITERIA FOR ASSESSING THE VIABILITY OF THE ENTERPRISE. Bulletin of Zaporizhzhia National University. Economic Sciences, (1 (49), 20-24. https://doi.org/10.26661/2414-0287-2021-1-49-03