Assessment of Financial Potential as a Determinant of Enterprise Development
Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019). Atlantis Press. DOI:10.2991/smtesm-19.2019.
5 Pages Posted: 26 Nov 2019
Date Written: September 1, 2019
Financial potential is an important part of enterprise activities. The technique of the enterprise’s financial potential assessment is offered in the paper. It is presented by particular stages, where each stage is related to a certain task. The characteristics of the company’s financial potential, based on the analysis of the related literature, are determined. The implementation of each task is carried out. Thus, the study proposes a mechanism for managing the financial potential of enterprises, which allows to emphasize the elements that can be useful for economic development. It is based on the general strategic principles of the enterprise management. The study results can be used to assess enterprise purposes and develop the formation goals of its financial potential. It can also help to forecast and separate main directions of accumulation, formation, and distribution of financial resources. It should be noted, that analysis and control over the financial potential formation strategy, as well as the use of analysis results for specifying the strategic directions of the enterprise development, are of high importance. Therefore, the management of the financial potential is a system of rational management of business financing, which includes the formation of financial relations, emerging as a result of finance resources flow.
Keywords: assessment, financial potential, development, determinant, enterprise
JEL Classification: G39, O16
Suggested Citation: Suggested Citation