Abstract

Determining the level of financial and economic security of an enterprise allows assessing the real possibilities to confront internal and external challenges and defining the potential for future development. To develop proposals on assessing this level, the study uses data on machine-building enterprises of Zaporizhzhia region (Ukraine) and applies integral method, regression analysis and normalization. The expert evaluation method was used to form the system of key parameters. The experts were economists, the accounting departments’ and the economic security departments’ members of the studied enterprises. The experts selected six indices that they consider to be the most representative of the financial and economic security of an enterprise. These parameters were used to calculate the integral indicator of the level of financial and economic security of enterprises. Harrington’s approach was used to group enterprises according to their level of financial and economic security (very high, high, steady, satisfactory and unsatisfactory). The calculations have shown that the integral indicator of financial and economic security of the enterprises of Zaporizhzhia region ranged from 0.32 to 0.66 for the period 2014–2018. It was justified that along with the support of financial stability, solvency, business activity, profitability, investment attractiveness and innovativeness and absent sharp changes in the environment, the level of financial and economic security of machine builders will increase from 0.4 to 11.9%. AcknowledgmentThe study was carried out within the framework of the state budget theme (state registration number 0117U000512), Establishment of Business Incubators on the Basis of Innovative Development and Ensuring National Financial and Economic Security (2017–2019), Faculty of Economics, Zaporizhzhya National University.

Highlights

  • Deepened international cooperation, both nationally and at the micro level, is accompanied by an increase in external and internal challenges and increased competition

  • The proposed approach was implemented at the ble intervals of their importance for each indicator machine-building enterprises of Zaporizhzhia re- group are determined: gion (Zaporizhzhia Mechanical Plant, Zaporozhye Heavy Crane-Building Plant (Zaporozhcran), w1 ∈[0.281;0.554]; w1 ∈[0.281;0.554]; Berdianski Zhnyvarky, and Energomash-Project Research and Production Enterprise) according to the following algorithm: w2 ∈[0.201;0.471]; w2 ∈[0.201;0.471]; w3 ∈[0.155;0.387]; w3 ∈[0.155;0.387]; Step 1: Analyze the statistical reporting of enterprises and systematize necessary w4 ∈[0.187;0.466]; w4 ∈[0.187;0.466]; w5 ∈[0.165;0.401]; w5 ∈[0.165;0.401]; information

  • Step 6: Forecast the activity of the machine-building enterprises depending on the level of The weighting parameters for each group will be financial and economic security based on as follows: regression analysis

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Summary

INTRODUCTION

Both nationally and at the micro level, is accompanied by an increase in external and internal challenges and increased competition. Ing advantage of resources and opportunities to prevent threats and increase competitive advan- Kyrychenko and Kudria (2009) define financial tages that will allow ensuring stable functioning security of an enterprise as activities on risk manand development to achieve business goals (2016). Polajeva can be extended by treating financial and economic security as a risk management activity Despite the multifaceted nature of the issues already and protecting the interests of the enterprise This addressed, it is worth noting that there is no single, study considers it necessary to combine all key systematic approach to assessing the financial and interpretations as one definition; this will allow pre- economic security of enterprises, which would alsenting the concept in the most comprehensive way low economic entities to adjust the indicaand revealing its essence. Will ensure the stable operation, development and implementation of strategic guidelines

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CONCLUSION

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