MODELLING THE FINANCIAL MANAGEMENT STRATEGY OF AN INNOVATIVE ENVIRONMENTAL ENTERPRISE
DOI:
https://doi.org/10.60022/sis.1.(01).1Keywords:
financial management, efficiency, innovative entrepreneurship, integrated assessment, ecology, reserves, systemAbstract
The modern conditions of the functioning of entrepreneurship are characterized by a high level of uncertainty, in particular, significant fluctuations in the market situation, intensifying competition, and actualization of security aspects of functioning. In addition, a significant anthropogenic impact on the environment and its destructive consequences increase public demand in the greening of economic activity. Therefore, the enterprise’s innovative activity is a response to modern challenges. However, in the context of entrepreneurship, innovative activity is associated with additional risks. Such an aggressive functional environment requires enterprises to ensure a high level of management efficiency, so the role of financial management is growing. It is thanks to the effective management of financial flows that the innovative enterprise manages to achieve the minimization of financial risks and maximization of profit. The study was carried out based on financial reporting, which characterizes the entrepreneurial activity of an innovative enterprise. The analysis of the obtained data made it possible to assess the effectiveness of the financial flow management system of the innovative enterprise and to determine reserves for improving the efficiency of financial management. In the research process, statistical and comparative analysis methods were used, statistical modeling and abstraction. The assessment of the effectiveness of financial management is a critically important element of the management system, which allows for identifying and eliminating management deficiencies. As a result of the study, a methodology was developed to assess the effectiveness of financial management of an innovative ecological enterprise. The implementation of innovative activities, such as the greening of economic activity, requires an enterprise to ensure effective management of the enterprise’s resources, in particular, the financial resources. The development and implementation of a highly effective mechanism for managing financial processes, which allows the realization of enterprise goals, is the key to the survival of an enterprise in modern conditions. One of the tools for improving the enterprise management system of financial conditions is the assessment of the effectiveness of financial management.
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