Abstract
The article examined the process of development and effectiveness of financial potential management of enterprises in modern market conditions, and it is established that the financial potential is the fundamental element, achievement and maintenance at high level of which leads to ensure high productivity, profitability and profit maximization. It is proved that the increase in financial potential and providing absolute stability in market leads to competitiveness, investment attractiveness, strengthening of stakeholders’ interests and further international markets entering. It is revealed that the overwhelming majority of interpretations of the definition of the concept of financial potential of the enterprise are ambiguous and imperfect; therefore, it was necessary to supplement the concept of financial potential of the enterprise with such constituent elements like: strategic financial capabilities of the enterprise and financial capital, which are estimated by the existing state and process of using financial resources; the stakeholders` participation, innovative orientation and clustering aimed at ensuring an effective positive direction and development of the company and the country in general. This gave an opportunity to propose an enlarged interpretation to the concept of financial potential of the enterprise — as a complementary combination of financial resources, financial capabilities and financial capital, which, under the influence of synergetic actions and at maximum interconnection with stakeholders will allow the company to achieve, maintain, and multiply its competitive positions in the market, as well as always be in a quick reaction to the dynamic process of a conjuncture and economic situation in the country in general. It is proved that in the process of development and volume increase, and as a result, effective management of the financial potential of the enterprise must adhere to the following actions: search for internal financial unused (potential) possibilities and reserves, as well as directions of their use; the use of leading international experience of leading specialists, enterprises and cluster associations, which will provide accelerated efficient development of the financial potential of the enterprise and will become a source of future financial reserves on enterprise. Opportunities for development and growth of financial potential have a close relationship with the use of innovative approaches, latest equipment and efficient managerial staff of the enterprise. It is established that the concept of financial potential, financial capital, financial resources and financial capabilities of enterprises is interdependent and mutually reinforcing each other concepts, and only in the presence of factors and conditions that will help to increase their volumes, their constant accumulation and efficient use, these key elements in a common system will give maximum results. It will also improve the development and management of financial potential for the future, to optimize it, prevent possible undesirable risks and always be competitive on a changing field of market environment.
Highlights
In the present changing market conditions, the dynamics of creation process, maintenance on an adequate level, and further development of financial potential determine the key strategic positions of the enterprise, its position on the market and interests of stakeholders at present and in the future. This condition achieves through research, comprehensive analysis, evaluation, monitoring, management process and further improvement of both the financial capacity of the enterprise, and its constituent elements that result in the uninterrupted, constructive, profitable activity of the enterprise as a whole, its sustainable development opportunities to resist competitors in the market and ensure leading positions in the industry [Korniychuk, 2016, p. 26—27]
Indicators and factors of ensuring the financial sustainability of the modern enterprise as an open socio-economic system is its internal potential, aimed at achieving economic development goals, and external economic conditions, which significantly affect the productive power of the financial and economic potential of any economy entity» [Gromova, 2017, p. 75—76].These affirmation must be supplemented with key factors of success, which have a place to achieve the efficiency of development and effective management of financial potential of the enterprise
As can be seen from the analysis, most interpretations of the definition of financial potential concept of the enterprise are ambiguous and imperfect, we consider the necessity to complement the concept of the financial potential of the enterprise with such elements as: strategic financial capabilities of the enterprise and financial capital, which are evaluated by the current state and process of using financial resources; stakeholders participation, innovative orientation and clustering aimed at ensuring an effective positive direction and development of the company and the enterprise as a whole [Levchenko, 2012, p. 114—117]
Summary
In the present changing market conditions, the dynamics of creation process, maintenance on an adequate level, and further development of financial potential determine the key strategic positions of the enterprise, its position on the market and interests of stakeholders at present and in the future This condition achieves through research, comprehensive analysis, evaluation, monitoring, management process and further improvement of both the financial capacity of the enterprise, and its constituent elements that result in the uninterrupted, constructive, profitable activity of the enterprise as a whole, its sustainable development opportunities to resist competitors in the market and ensure leading positions in the industry [Korniychuk, 2016, p. Indicators of financial stability, characterizing the result of current, investment and financial development of enterprises are important data field for investors and creditors on the ability to fulfil their obligations
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