The essence of enterprise financial potential within the framework of financial insolvency prevention - Статья

THE ESSENCE OF ENTERPRISE FINANCIAL POTENTIAL WITHIN THE FRAMEWORK OF FINANCIAL INSOLVENCY PREVENTION Inna I. Svitlana A. Simon Kuznets Kharkiv National University of Economics, Ukraine. Simon Kuznets Kharkiv National University of Economics, Ukraine. Problem setting. Due to unstable economic situation, characterized by deploy ment of crisis phenomena at micro- and macrolevels, and deterioration of financial situation of economic entities, the problem of diagnosing enterprise insolvency and searching for the sources of restoring and maintenance of enterprise solvency has become urgent. Recent research and publications analysis. To prevent or overcome insolvencies, an enterprise needs particular reserves available for timely response to negative influ ence of the factors of external and internal environment. The detection of these reserves has the become task of such scientists: N. Brehin (2004), L. Lihonenko (2005), K. Solomyanova-Kyrylchuk (2009), O. Tereshchenko (2006). Yet, despite numerous studies in this field, there is no agreement of opinions concerning the sources of restoring enterprise solvency. The research objective is to study the essence of bailout, anti-crisis and financial potential as the factors of preventing enterprise insolvency in Ukraine. Key research findings. As a result of a research it has been proved that the majori ty of authors consider bailout potential as the reserve of restoring enterprise solvency, others prefer anti-crisis potential. However, it is important to remember another type of potential - the financial one. The opinions of scientists concerning the definition of its essence are given in Table 1. Table 1. The results of the synthesis of scientists’ views regarding the concept financial potential, authors’ grouping Source Scope of notion Functionality V. Boronos (2013) Financial resources which become a cause for relations at an enterprise Achieving its efficient and cost-effective operation I. Brytchenko (2005) Amount of all available financial resources of an enterprise Operation of an enterprise N. Brehin (2004) Category, which includes separate constituents of financial resources of an enterprise, and in particular - statutory, additional and reserve capital, special purpose funding, accumulation fund etc. K. Ilyina (2009) Scope of enterprise opportunities, which are determined by the availability and organization of financial resources K. Ionenko (2007) Combination of financial resources and opportunities for their involvement and employment F. Yevdokimov and O. Mizina (2004) Scope of all available financial resources of an enterprise and opportunities of their effective distribution T. Paentko (2013) Multitude of financial resources Realization and increase of economic potential with the purpose of profit maximization P. Fomin and M. Starovoytov (2008) Relationship, occurring at the enterprise Achieving the maximum financial result After reviewing the essence of category financial potential, 3 approaches were discriminated. The representatives of the first approach, the most common approach to explaining the essence of financial potential, consider this category from the perspective of its composition. However, V. Boronos (2013), I. Brytchenko (2005), N. Brehin (2004), T. Paentko (2013) identify the financial potential of the enterprise as the amount of financial resources. The given definition does not provide an exhaustive list of financial resources, and moreover mentions floating assets, which relate to economic resources and character ize mostly production potential of an enterprise, rather than the financial one. A disadvantage of these authors’ representation of financial potential is consi dering the financial potential as the amount of financial resources, in other words, equation of these two categories. Nevertheless, in the light of financial potential rep resentation as the amount of resources and the opportunity to use them for achieving particular goals, financial potential implicates financial resources, but is a much wider notion and comprises also the opportunity of their efficient employment. The following specification finds validation in the works of the representatives of the first approach. They explain the financial potential of an enterprise as not only the amount of financial resources, but also, on the basis of the notion potential, as the amount of particular resources and opportunities for their involvement (Ionenko, 2007), employment (Iliyina, 2009; Ionenko, 2007), distribution (Yvdokimov and Mizina, 2004). From the given list of operations with financial resources mobiliza tion, disposition and employment were chosen as the ones that represent the whole turnover of financial resources. The followers of the second approach (Fomin and Staroviytov, 2008) define financial potential as the relations, directed at the achievement of maximum finan cial result, thereby, highly efficient and profitable enterprise operation. The given approac