The influence of public-private partnership on strengthening the financial security of business entities

Abstract

Introduction. The uncertainty of clear prospects for the post-war recovery of the domestic economy creates significant obstacles in the formation of a reliable financial base for the development of the state and business entities. Such conditions actualize the development of new forms and methods of accumulating financial resources, in particular in terms of involving the state in the processes of restoring the full-fledged activity of a significant number of partially destroyed and damaged large enterprises, as well as supporting the development of medium and small business entities, with the aim of strengthening their financial security . One of the forms of state participation in providing business entities with financial resources on mutually beneficial terms is a public-private partnership. A public- private partnership is a collaboration between business and government officials for the implementation of a specific project. The business entity as a private partner implements it and receives a monetary reward, and the state receives the corresponding infrastructure object.Purpose. The purpose of the article is to develop theoretical and methodological principles and practical approaches to using the opportunities of public-private partnership at a qualitatively new level, to identify the main directions of the development of such a partnership to strengthen the financial security of business entities in the context of the post-war reconstruction of Ukraine’s economy.Methods. To achieve the goal defined in the research, general scientific methods were used: analysis and synthesis, induction and deduction (for the formation of theoretical foundations of public-private partnership); functional and statistical analysis, systematization, measurement, modeling (to assess the possibilities of applying public- private partnership); generalization, optimization, argumentation, (for the development of directions for increasing the efficiency of public-private partnership in order to strengthen the financial security of economic entities).Conclusions. A theoretical approach to uncovering the essence of public-private partnership has been developed, and an algorithm for its implementation is provided. The practice of using public-private partnership in Ukraine has been analyzed, problems have been identified, among which the most important is the need to reform the current legislation in order to simplify the procedure for involving business entities to participate in public-private partnership projects, and approaches to their solution have been proposed.Discussion. Prospects for further research are the need to solve the problems of effective use of modern forms of public-private partnership in the context of ensuring both the economic security of the state and the financial security of economic entities.