CC BY
6WAYS TO INCREASE THE ACTION OF THE PROCESS FOR FORMING THE STATE OF ECONOMIC SECURITY IN ENTERPRISES
Korniienko T.,
Pavlo Tychyna Uman State Pedagogical University, Uman, Ukraine,
Associate Professor Chvertko L.,
Pavlo Tychyna Uman State Pedagogical University, Uman, Ukraine,
Associate Professor Vinnytska O.
Pavlo Tychyna Uman State Pedagogical University, Uman, Ukraine,
Associate Professor DOI: 10.5281/zenodo.6616404
ABSTRACT
In the process of theoretical and analytical research, key positions have been identified to improve the formation of the state of economic security at agricultural enterprises. This is reflected in the existing conceptual foundations for increasing the efficiency of the process of forming this state, which, unlike the existing ones, are based on using the possibilities of state support for agricultural enterprises, functional improvement of the process of forming the state of economic security and a methodical approach to assessing the level of economic security.
Keywords: economic security, state, governance, threats, financial activities.
Introduction: The main prerequisite for the development of agricultural enterprises is to increase the state of their economic security, the comprehensive provision of which is possible with the transition of enterprises to the concept of sustainable development. At the same time, it should be noted that we distinguish between the concepts of "sustainable" and "sustainable" development. The concept of sustainable development means the inclusion at all levels of management in the process of making economic decisions, along with the economic component, as well as environmental and social. In contrast, the concept of sustainable development means increasing the sustainability of natural and cost results of economic activity..
Analysis of studies and publications. A large number of Ukrainian and foreign scientists paid attention to the issues of determining the content of threats, risks and their classification, in particular Kozlovsky A. V. [4], Mazur G. F. [4], Sokolenko L.F. [5], Reverchuk N. I. [7], Malik Ya. I. [7], Kulchinsky I. I. [7], Reverchuk S. K. [7], Muntiyan V.I. [8], Kozachenko G. V. [10], Ponomarev V. P. [10], Lyashenko E. M. [10], that in. However, scientific research does not sufficiently highlight the impact of threats, risks and dangers on the system of economic security of an enterprise and the mechanisms for their neutralization.
Purpose of the article. The purpose of the article is a theoretical substantiation and formation of practical aspects of improving the state of economic security of agricultural enterprises.
Presentation of the main material. Under the changing influence of factors of the natural and market environment, the formation of an appropriate level of economic security in each agricultural enterprise has a certain specificity, which is due to the size of the enterprise, the characteristics of its industry specialization, the technical, technological and innovative level of production, the level of investment attractiveness, and the qualification level of management.
Economic security is the state of the enterprise, within which it flexibly responds to existing threats and
risks for economic activity on the basis of: continuous monitoring of the impact of destabilizing factors, ensuring the effective implementation of current economic tasks, fulfilling current obligations and solving development problems.
The key to ensuring the long-term functioning of enterprises is the ability to achieve certain development goals, which cannot be achieved if the results of economic activity are unprofitable. In this regard, the key areas for ensuring the state of economic security of agricultural enterprises are: increasing the competitiveness of the enterprise and its products and increasing the sustainability of production volumes and incomes. At the same time, increasing the competitiveness of enterprises is achieved by rationalizing the ratio between income and expenses, deepening marketing, and increasing the level of production of products with a higher level of added value. In the effective implementation of these and other areas, an exceptional role belongs to innovation and raising the level of innovative production.
Modern conditions are characterized by the strengthening of the processes of world economic globalization; accordingly, it is important to increase the capabilities of enterprises in confrontation in the competitive struggle. At the same time, it should be noted that we are talking not only about internal, but also about external competition. Therefore, it is important to search for opportunities to modernize production and all components of the economic security of enterprises: operational, investment, financial, personnel, informational and protective.
Formation of the state of economic security of an agricultural enterprise is advisable to carry out according to the algorithm that makes up its management decision-making system. This algorithm substantiates the procedure for applying a certain mechanism for ensuring economic security, which is implemented in response to the actual impact of risk factors through a separate functional component of economic security in a specific target area.
For the sake of objectivity, it should be noted that there are much more functional components of economic security in practical activities. But as a result of our generalization, it is precisely these six given components that are singled out. This means the need for innovative renewal of agricultural production processes, the organizational procedure for attracting and using investments, financial support for economic activities, improving the professionalism of personnel at all levels of the enterprise, expanding the possibilities for using information and ensuring effective protection of the enterprise.
In the context of world economic globalization, individual domestic enterprises enter into competition with integrated large agricultural firms, the power of which is formed as a result of the use of state support funds. Under such conditions, effective opposition to such structures is possible due to the spread and variety of integration processes (horizontal, vertical, conglom-erative) to increase the economies of scale and the level of competitiveness of the enterprise and its products in the domestic and foreign markets.
The overall efficiency of work and the level of its competitiveness depend over a long period of operation on the achievement of sustainable development parameters. In this regard, it is important at the level of enterprises to develop tools, predict the impact of external factors on enterprises, change the overall performance of production and the level of economic security of enterprises. In the context of the above, one should focus on the preliminary preparation of scenarios for the development of enterprises, which take into account various options for changing the structural parameters of an enterprise in response to a possible configuration of the influence of environmental factors. With regard to the crop growing industry, we mean the justification of the procedure for varying the structure of sown areas and determining the feasibility of attracting additional pieces of machinery and equipment for the collection, transportation, processing and storage of grown products. For example, with the expected significant increase in grain production, it would be more appropriate to attract additional units of equipment on a lease basis than to purchase.
In the event of an expected significant decrease in yields and production volumes, especially forage crops, for the internal provision of the optimal functioning of the livestock industry, it is important to make a decision: either to reduce the number of livestock, or to transform the structure of sown areas in the direction of increasing the share of forage crops by reducing the area sown with commercial crops In any conditions, the adoption of a certain decision should proceed from the mission and main goals of the enterprise. In certain years, in order to maintain the implementation of the mission of the enterprise, it is advisable to consciously accept the unprofitability of the results of work. And even so, the issue of sources of unprofitability coverage should be resolved.
At the current stage of development, it is important for enterprises to increase activity in raising funds and use the financial opportunities of state support. In accordance with this, we note the need to develop a methodological approach at the level of each enterprise to increase its ability to become a participant in the state support program based on the formation of an appropriate business status of the enterprise, the level of its logistics and innovative production levels, increasing the level of investment attractiveness, stabilizing the results of economic activities and ensuring a sustainable state of economic security; improving the professional skills of specialists and managers in the preparation of tender documents.
Formation and ensuring the economic security of agricultural enterprises involves the adoption and implementation of a set of measures to reduce the level of threats discussed in the first chapter. To this end, we have developed measures to reduce the impact of destructive factors on the level of economic security of the agricultural sector.
Restoration of the expanded reproduction process, that is, an increase in the volume of production, in our opinion, should occur primarily by increasing soil fertility, increasing yields and productivity, and improving product quality.
The most acute problem in agriculture is the general technical and technological backwardness (Figure 1).
Figure 1. Scheme for reducing the level of threat "violation of the reproductive process" * * Source: author's own development.
Technical and technological modernization of the agrosphere is one of the main areas for updating the production potential. The experience of the leading countries with a developed agrarian sector shows that they all went through a kind of "technological revolution". Classical extensive agriculture is being replaced by clear-cut. Geoinformation technologies, multi-operational energy-saving agricultural units, selection of high-yielding plant varieties and breeding of highly productive animal breeds, creation of biologically active feed additives, new medicines for animals, modern methods of combating animal and plant diseases are widely used.
To ensure the effective functioning of an agricultural company and the production of competitive products, it is necessary to ensure mutually beneficial economic relations between all the structural elements of production.
The main measures for the modernization of technical and technological support should be:
- to provide in the programs of socio-economic development of the region the financing of measures aimed at creating a network of service centers, machine-technological stations, agricultural equipment rental points in the region both at the expense of local budgets and attracting additional investments;
- to implement incentive measures for agricultural enterprises that introduce environmentally friendly
technologies for the production of agricultural products, modernize irrigation and drainage systems;
- to initiate cooperation at the regional level of agricultural producers, representatives of research institutions, the machine-building complex to determine the possibilities for improving land reclamation systems with the introduction of water and energy saving technologies [4].
Today, agricultural enterprises do not have enough funds to cover their needs. Therefore, we have developed a scheme to reduce the level of the "loss of financial stability" threat, including measures for the financial recovery of enterprises (Figure 2).
First of all, these are measures to improve the mechanism of state management of agricultural enterprises in the region, namely:
- to modernize comprehensive regional programs for the development of rural areas. To consolidate the status of rural areas with the definition of territorial features and available resource opportunities for the production of certain types of agricultural products;
- to strengthen the practice of social partnership with the agricultural business at the regional level to attract extra-budgetary funds for the development of engineering networks for energy and gas supply, transport and information communications in rural areas;
Goal -\ -/ Measures for the financial rehabilitation of agricultural enterprises
55
ITi
83
O
S3
S3
S3
m
W)
S3
"ar £
O
J2
O
S3
4J
4)
.=
H
Improving the mechanism of state regulation of agricultural enterprises N Ensuring a high level of solvency of agricultural enterprises
n t : t
Tax incentives Introduction of innovative mechanisms for attracting investment
n t 2 C
Lending to agricultural enterprises Debt restructuring
Figure 2. "Loss of financial stability" threat reduction scheme * * Source: author's own development.
- provide for the preparation of a base for investment projects to attract new production technologies in order to increase productivity, primarily of farms in the region;
- to simplify access to state support programs for farmers by simplifying the procedure for concluding forward contracts, taking into account pricing policy in the grain market;
- development of a state program for the regulation of imports and exports.
The national strategy for the development of foreign economic activity in the agricultural sector, first of all, should be aimed at ensuring national interests and balances, firstly, between domestic production and imports, and secondly, between domestic consumption and exports. The development and implementation of a comprehensive system of measures to support such balances at the state level should be carried out through customs and tax regulation with the improvement of the current state of agricultural enterprises;
- stimulate an increase in the sale of agricultural products by developing regional systems for providing benefits for those types of agricultural products that are in significant consumer demand in the region, taking into account the possibilities of stimulating the export of products outside of it.
The impact of the state on the activities of agricultural enterprises is also manifested through the taxation system. The complexity and instability of the tax legislation in Ukraine, the most pronounced fiscal nature hinder the investment and innovation activity of agricultural producers, which negatively affects the socioeconomic development of agricultural production in the
region. Therefore, in addition to fiscal purposes, agricultural taxes should perform stimulating functions, in particular, stimulate the environmental behavior of payers in the direction of reducing the burden on natural resources and ensuring the protection of the natural environment. For example, in European countries, excise-type environmental taxes have been introduced on goods and services with a high level of environmental risk. Thus, in Poland a fee for products that do not meet environmental standards has been introduced, in Latvia - a fee for products that harm the environment, in Germany - a fee for products whose production or consumption pollutes the environment in the form of an increase in price [3, p. 11-18].
One of the principal taxes for agricultural business entities is the land tax. The application of this type of tax involves not only the filling of local budgets, but also a stimulating function, which consists in stimulating the effective use of agricultural land, leveling the socio-economic conditions of management on lands of different quality. Land tax benefits are related to environmental activities. For example, in the Netherlands, tax incentives are applied to agricultural enterprises that, in the course of their economic activities, implement measures to increase the fertility of the land. In Germany, when determining the land tax, the value of the assessment of agricultural land is based on the so-called "production possibility", taking into account the net income from the land, the quality of the soil and other natural and economic parameters. In the United States and Canada, the value is assessed not at market value, but at the cost of its real use, as a result, a significant decrease in the value of land, and hence the tax
base [5]. Therefore, based on the analysis of foreign experience, it is necessary to improve the system of taxation of the agrarian sector of Ukraine in the direction of increasing its stimulating effect.
State support for domestic producers of agricultural products pursues the goal of the country's food security. Protectionism is manifested in stimulating agricultural production in the country, increasing its efficiency, limiting food imports through quotas or customs tariffs.
To ensure the financial sustainability of agricultural production, it is necessary to use, first of all, mechanisms related to optimizing price ratios for products of all sectors of the agro-industrial complex and maintaining appropriate parities, as well as improving the efficiency of customs tariff and non-tariff regulation.
Thus, for the production of competitive products and a sufficient degree of security, it is necessary to take the following measures at the state level: to bring the legal framework of Ukraine on standardization, certification and compliance with standard and phytosanitary rules in line with the provisions and norms of the WTO; to create an effective customs-tariff mechanism for protecting the domestic market on the basis of raising tariffs differentiated by types of products and introducing protective duties; increase budget financing of the industry mainly from the state budget, taking into account its contribution to the formation of gross domestic product and increase the level of export subsidies; expand lending, introduce preferential taxation and restructure debt. These important measures to ensure the production of highly competitive products should include all levels of management and provide for competition in financial, material, labor resources and marketing systems.
Conclusions and offers. Consequently, the main prerequisite for the further development of agricultural enterprises is to increase the state of their economic security, the comprehensive provision of which is possible with the transition of enterprises to the concept of sustainable development. At the same time, the conceptual principles of increasing the effectiveness of the process of forming the state of economic security in agricultural enterprises are substantiated, based on the use of state support opportunities, improving the mechanism for managing the process of forming the state of economic security and the methodological approach to assessing the level of economic security. Strengthening the effectiveness of the process of forming the state of economic security of agricultural enterprises will be facilitated by an increase in the activity of participation of agricultural enterprises in competitions for obtaining funds under state support
programs, which can be achieved by forming the appropriate business status of the enterprise, the level of its logistics and innovative level of production, increasing the level investment attractiveness, stabilization of the results of economic activity and ensuring a sustainable state of economic security, improving the professional skills of specialists and managers preparing tender documents.
References
1. Blagoy V.V., Bazarnova E.O. Formation of a set of measures aimed at preventing the financial crisis of domestic enterprises. Young scientist. 2017. No. 4.4 (44.4). pp. 1-4.
2. Demchuk N.I., Khalatur S.M., Khidiryan M.O. Theoretical foundations of the analysis of the financial condition of agricultural enterprises. Economy and Society. Mukachevo State University. 2017. No. 9. S. 396-400.
3. Kozyumenko S.M., Volkovets T.V. Features of economic taxation in foreign countries. Bulletin of SSU. 2012. No. 1. S. 11-18.
4. Kozlovsky A. V., Mazur G. F. Modern measures to stimulate the development of agro-industrial production in Ukraine. Agrosvit. 2017. No. 8. S. 12-18.
5. Sokolenko L.F. Foreign experience of taxation of the agricultural sector of the economy. Business inform. 2017. No. 4. S. 55-59.
6. Kornienko T.A. Conceptual principles of increasing the effectiveness of the process of forming the state of economic security in agricultural enterprises. International scientific journal "Internauka". Series: "Economic Sciences". 2019. No. 4 (24). pp. 30-35.
7. Economic security in Ukraine: states, firms, individuals: textbook. allowance. / Reverchuk N. I., Malik Ya. I., Kulchinsky I. I., Reverchuk S. K.; ed. S. K. Reverchuk. Lvov: LFMAUP, 2000. 192 p.
8. Muntiyan V.I. Economic security of Ukraine: monograph. Kyiv: KVITs, 1999. 462 p.
9. Ermoshenko M.M., Goryacheva K.S., Ashuev A.M. Economic and organizational bases for ensuring the financial security of an enterprise: preprint of a scientific report / scientific. ed. M. M. Ermoshenko. Kyiv: National Academy of Management, 2005. 78 p.
10. Kozachenko G. V., Ponomarev V. P., Lyashenko E. M. Economic security of the enterprise: essence and mechanism of provision: monograph. Kyiv: Libra, 2003. 280 p.
11. Prokhorov. V. V., Prokhorova Yu. V., Ku-cherenko A. A. Management of economic security of enterprises: monograph. Kharkov: UKR DAZT, 2010. 282 p.
