APPROACHES TO FINANCING ENTREPRENEURIAL ACTIVITIES IN UKRAINE

Abstract

The article is devoted to the definition of approaches to financing business activities. After analyzing the essence of the concept of «financing», it is determined that financing is the attraction of the necessary funds to cover the needs of the enterprise in the main and working capital. It is revealed that the traditional approaches to financing the activities of enterprises are considered to be aggressive, moderate (compromise) and conservative approaches. There are also ideal, restrictive and absurd approaches. To date, a moderate (compromise) approach is more often used. When choosing a financing strategy for an enterprise, it should be guided by the provision of sufficient financial resources that are necessary to implement the plans of the enterprise. In the conditions of strengthening of influence of financial and political crisis of the national economy the most important factors in the successful development of domestic enterprises in the long term is the presence of fundamental development objectives and build an effective system of financial management designed to achieve this goal. The experience of developed countries, the development of managerial technologies, the introduction of cost-based approach to business management in Ukrainian enterprises has convincingly proved that the priority objective of development of an enterprise is maximization of its value. Financial management in market conditions aimed at increasing the market value and investment attractiveness of the enterprise. Effective financial management requires continuity, consistency and comprehensiveness of the use of methods and levers, by which the financial mechanism of the enterprise can best adapt to changes in the approval conditions of a market economy. For the formation mechanism of quality and efficient financial management of enterprises should follow the principle of systemacy and complexity that becomes particularly important in connection with economic and political instability in the world, globalization of business, increasing business risks and tighter competition. The level of financial capacity and conditions of the financial markets expand or restrict the possibility of forming companies of sufficient financial resources. All this necessitates the development of an effective policy of financial resources management as one of the most important elements in the overall strategy of activities and development of enterprises.