Factors of Formation of Economic Stability of Agricultural Enterprises
The practice of management based on market principles requires the formation of economic stability of the agricultural enterprises , taking into account all the factors, it will balance the economic system, will ensure efficient operation and forms the basis of the high potential of development in t...
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| Date: | 2013 |
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Інститут економіки промисловості НАН України
2013
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| Cite this: | Factors of Formation of Economic Stability of Agricultural Enterprises / V.S. Dyachenko // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 160–164. — Бібліогр.: 3 назв. — англ. |
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| author | Dyachenko, V.S. |
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| citation_txt | Factors of Formation of Economic Stability of Agricultural Enterprises / V.S. Dyachenko // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 160–164. — Бібліогр.: 3 назв. — англ. |
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| description | The practice of management based on market principles requires the formation of economic stability of the agricultural enterprises , taking into account all the factors, it will balance the economic system, will ensure efficient operation and forms the basis of the high potential of development in the future.
У статті визначено, що практика господарювання на ринкових засадах вимагає від сільськогоспо- дарських підприємств формування економічної стійкості з урахуванням всіх чинників, що дозволить збалансувати економічну систему, забезпечить ефективне функціонування та утворить базис високого потенціалу їх розвитку в перспективі.
В статье определено, что практика хозяйствования на рыночных принципах требует от сельскохозяйственных предприятий формирования экономической устойчивости с учетом всех факторов, это позволит сбалансировать экономическую систему, обеспечит эффективное функционирование и образует базис высокого потенциала их развития в перспективе.
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160
Економічний вісник Донбасу № 4 (34), 2013
Introduction
Economic sustainability serves as a framework of
stable state of the enterprise and the conditions of its
continued operation. Accounting for the formation of
economic stability will balance the economic system of
agricultural enterprises and to ensure their sustainability.
Such scholars as O. Arefeva, E. Popkova, P. Sabluk,
Z. Shershnova and others have paid attention to the
studies of the formation of economic stability. In their
works they consider the problem of the formation of the
economic stability of the enterprises and the possibility
of evaluation of this economic category. However, it is
necessary to classify the factors shaping the formation
of economic stability of agricultural enterprises.
Aim. Classify the external and internal factors of
the economic sustainability of agricultural enterprises,
arrange them on the grounds of: the impact of the
method, place of origin, the nature of the action, the degree
of conditionality and justify the need for the formulation
of economic sustainability of agricultural enterprises
taking into account of whole complex the factors.
Results. Agro-industrial complex (AIC), as a part
of the economy that combines the production of
agricultural products, its processing and logistical support
of the village, belongs to one of the main areas, that
provide 16% of the gross domestic product of Ukraine.
Agricultural enterprises are the basis of AIC, so
the question of formation of economic sustainability
of agricultural enterprises is actually. Economic
sustainability is the ability to maintain a certain
(predetermined) level of achievement of the objectives
under conditions of dynamic transformations in the
business environment, it is one of the main factors of its
functioning in the present conditions, innovation
management contributes to its formation,i.e. the effective
management of the enterprise.
Management of agricultural enterprises is the
process of the direct influence with the aim of increasing
the efficiency of industrial, economic and financial
activities.
Management functions are interrelated and
interdependent, forming a repeating cycle of management.
The key to the success of the agricultural enterprise
and the basis of its development in a competitive
environment is the stability (economic stability). Different
factors affect it:
• strong business position in the market: the
production of goods and services that are in demand;
• the high material and technical support and
application of advanced technologies;
• established economic ties with partners;
• rhythm of the circulation means;
• the effectiveness of economic and financial
operations;
• a slight degree of risk in the implementation of
operational and financial performance, and the like.
Let’s classify the factors of economic sustainability
of agricultural enterprises on the grounds: by the method
of influence, by the place of origin, by the nature of the
action and by the degree of conditionality.
In the formation of the economic sustainability of
agricultural enterprises it is necessary to take into account
all of its factors, in particular, internal and external [1].
The internal stability of the enterprise reflects a condition
of its production potential, logistical and cost (value) of
the structures of production and its dynamics such that
upholds consistently high natural material and financial
results of operation of the business. Timely and flexible
management of internal and external factors is the basis
of achieving the internal stability of the enterprise.
External sustainability of the enterprise should
be based on the stability of the economic environment
in which it operates. It is achieved by appropriate
macroeconomic management of the market economy.
The overall stability of the enterprise can be ensured only if
the stable sales and an income sufficient in volume meet its
obligations to the budget, pay suppliers, creditors, employees
and the like. It is this situation that expresses the content of
economic stability, which is a major component of the overall
sustainability of the agricultural enterprise (Fig. 1 – 3).
Economic stability is the result of sustained excess
of revenue over expenses, its provides maneuvering of
enterprise funds and their effective use contributes to
the smooth process of production and sales. Solvency
of the company is the ability of the agricultural enterprise
to meet its payment obligations arising from trade,
investment and other payments transactions character.
That is, the economic sustainability of agricultural
enterprise is its ability to evolve in the face of internal
and external environment. To do this, the company must
have a flexible structure of resources and be able to
borrow funds, if necessary, i.e. be creditworthy. The
UDC 631.1
V. S. Dyachenko,
National University of Life and
Environmental Sciences of Ukraine, Kyiv
FACTORS OF FORMATION OF ECONOMIC STABILITY
OF AGRICULTURAL ENTERPRISES
V. S. Dyachenko
161
Економічний вісник Донбасу № 4 (34), 2013
V. S. Dyachenko
enterprise is creditworthy if it has the prerequisites to
obtain credit and the ability to timely return the loan taken
to the payment of interest due to account of profit or
other financial resources.
Determining factors in the management of internal
economic stability are:
• sectoral affiliation of the business entity;
• structure of the products or services that are
available now, its share in the total effective demand;
• size of paid-up share capital;
• size and cost structure, their dynamics compared
to cash income;
• the composition of assets and financial resources,
including reserves and provisions, their composition and
structure.
Among the set of internal and external factors it is
necessary to highlight those that create conditions for
the formation of economic stability farms.
Let us systematize the components of internal and
external factors shaping the economic sustainability of
agricultural enterprises (Table 1 – 3).
Availability of economically reasonable strategy of
development of agricultural enterprises is one of the
priorities for the formation of economic stability.
Production sustainability, financial stability, sustainability
of business activity and social sustainability are
components of the economic sustainability of agricultural
enterprises.
As the production stability, financial stability,
the stability of economic activity and social stability
are the components of the economic sustainability
of agricultural enterprises, so in order to identify
weaknesses in the enterprise it is necessary to assess
the components of the categories of economic stability
by using a set of indicators that characterize these
categories, therefore:
ANALYSIS
REGULATION PLANNING
CONTROL ACCOUNTING
Fig. 1. Management functions
Table 1
Factors formation of economic stability of agricultural enterprises
№ The grounds Factors
1. by the method of influence • stabilizing (positively influence the
level of economic stability);
• destabilizing (negatively affecting
the level of economic stability).
2. by the place of origin • internal;
• external.
3. by the nature of the action • direct;
• indirect.
4. by the degree of
conditionality
• objective (due to processes
developed to objectively);
• subjective (deliberately created by
separate groups of people).
162
Економічний вісник Донбасу № 4 (34), 2013
Table 2
Internal and external factors of formation of economic stability of agricultural enterprises
№ External factors Internal factors
1. Public legal factors Production potential
2. Macroeconomic factors Organizational and
management capabilities
3. Market factors Financial potential
4. Social factors Development Strategy
Table 3
Internal variable factors
V. S. Dyachenko
Factors Constituents
Production potential
Organizational and
management capabilities
• land (natural resources);
• capital and its structure;
• production capacites;
• technological methods of production;
• availability of workers.
• objectives;
• tasks;
• structure;
• management methods;
• management principles.
Financial potential
Development Strategy
Public legal factors
Macroeconomic,
scientific and
technological factors
Sources of funding:
• own;
• borrowings;
• resource (funds).
• availability and economic validity.
EXTERNAL VARIABLE FACTORS
• political stability;
• demographics;
• legal framework;
• state administrative resources.
• state and economic resources;
• foreign economic relations;
• the status of the development of science;
• the availability of modern technology.
Market factors • suppliers;
• distributors;
• consumers;
• competitors.
Social factors
• social system of society.
163
Економічний вісник Донбасу № 4 (34), 2013
• production sustainability is a factor of life and
renewal of fixed assets, depreciation of fixed assets ratio.
• social stability is the replacement ratio of staff.
• sustainability of business activities is a breadth of
markets, the volume of sales of products (works, services),
total capital turnover ratio, return on assets, etc.
• financial stability is the current ratio, the ratio of
financial stability, the coverage ratio, etc. [2, p. 56].
In turn, factors of impact of external environment
on the economic sustainability of agricultural enterprises
are divided into factors of direct and indirect action.
Phase of the economic cycle of the economy of
state has a significant impact on the economic sustainability
of agricultural enterprises. Rate of sales behind of the
production, in times of crisis is always the case, as
observed in recent years in Ukraine. The profits of the
business entities are falling down. All this leads to a
decrease in the liquidity of enterprises, their solvency
and increased competition. It is a significant external
factor of economic sustainability of agricultural enterprises
in turn.
Thus, the economic sustainability of agricultural
enterprises is determined by a variety of socio-economic
factors.
The overall stability of the agricultural enterprise
involves its ability to manage internal factors and adaptation
to the external factors of making optimum support of
effective management. Because availability of finance is
an important condition of the formation of economic
sustainability of agricultural enterprises. After all, the ability
of enterprises to dynamically expanded reproduction
process on the scientific and technical basis is dependent
on the availability of finance and its effective use.
Conclusions. In order to form an economic stability
of agricultural enterprises it is necessary:
• to сreate conditions for expanding the scope and
scales of demand, supply and distribution of scientific
and technical knowledge to become an integral part of
the national innovation policy [3, p. 30];
• to have flexibility and responsiveness to changing
market conditions, competitiveness of production, the
high investment activity, liquidity and financial stability;
Economic sustainability of agricultural enterprise
Technology strategy Innovation strategy Economic strategy
Social strategy Organisational strategy
Fig. 2. Strategic ensure of the economic sustainability of the enterprise
Factors of influence of environment on the economic
sustainability of agricultural enterprises
Factors of direct action Factors of indirect action
contracting
partners
Tax system
Investment policy Economic
Political stability
Corruption
Financial and credit
system
Economic
Legislative
Scientific potential Scientific
Po
lit
ic
al
suppliers, buyers, brokers, business
partners, banks, state
Fig. 3. Factors of influence of environment on the economic sustainability of agricultural enterprises
V. S. Dyachenko
164
Економічний вісник Донбасу № 4 (34), 2013
• to generate economic sustainability of agricultural
enterprises implemented taking into account all factors
that contribute to its stability.
After all, the practice of management based on
market principles requires that the agricultural enterprises
improve production efficiency by taking into account all
the factors in the formation of economic stability, the
use of the latest achievements of scientific and technical
progress and effective forms of organization of
production and labor, enhancing business activities in the
context of institutional changes that have taken place in
Ukraine.
References
1. Shershneva Z., Oborskaya S. Strategic
management / Z.Shershnova, S.Oborskaya. – M. :
Finance, 1999. – 384 p. 2. Zinkov D. Implementation
of outsourcing to increase the sustainability of the
company: Monograph. Tyumen State University. –
Tyumen: TSU Publishing, 2006. – 56 p. 3. Ermakov A.
Basics of methodology of scientific economic researches
[tutorial] / A. Ermakov, G. Pogrischuk, V. Chornodon. –
Ternopil: Textbooks, 2009. – 290.
Дяченко В. С. Чинники формування еконо-
мічної стійкості сільськогосподарських підпри-
ємств
У статті визначено, що практика господарюван-
ня на ринкових засадах вимагає від сільськогоспо-
дарських підприємств формування економічної стій-
кості з урахуванням всіх чинників, що дозволить зба-
лансувати економічну систему, забезпечить ефектив-
не функціонування та утворить базис високого потен-
ціалу їх розвитку в перспективі.
Ключові слова: економічна стійкість, чинники
економічної стійкості, сільськогосподарське підпри-
ємство, соціально-економічний розвиток.
Дяченко В. С. Факторы формирования эко-
номической устойчивости сельскохозяйственных
предприятий
В статье определено, что практика хозяйствова-
ния на рыночных принципах требует от сельскохозяй-
ственных предприятий формирования экономической
устойчивости с учетом всех факторов, это позволит
сбалансировать экономическую систему, обеспечит
эффективное функционирование и образует базис вы-
сокого потенциала их развития в перспективе.
Ключевые слова: экономическая устойчивость,
факторы экономической устойчивости, сельскохозяй-
ственное предприятие, социально-экономическое раз-
витие.
Dyachenko V. S. Factors of Formation of
Economic Stability of Agricultural Enterprises
The practice of management based on market
principles requires the formation of economic stability
of the agricultural enterprises , taking into account all the
factors, it will balance the economic system, will ensure
efficient operation and forms the basis of the high potential
of development in the future.
Key words: economic sustainability, economic
sustainability factors, agricultural enterprise, social and
economic development.
Received by the editors: 11.10.2013
and final form 04.12.2013
V. S. Dyachenko
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| id | nasplib_isofts_kiev_ua-123456789-123376 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 1817-3772 |
| language | English |
| last_indexed | 2025-12-07T16:58:05Z |
| publishDate | 2013 |
| publisher | Інститут економіки промисловості НАН України |
| record_format | dspace |
| spelling | Dyachenko, V.S. 2017-09-03T19:03:19Z 2017-09-03T19:03:19Z 2013 Factors of Formation of Economic Stability of Agricultural Enterprises / V.S. Dyachenko // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 160–164. — Бібліогр.: 3 назв. — англ. 1817-3772 https://nasplib.isofts.kiev.ua/handle/123456789/123376 631.1 The practice of management based on market principles requires the formation of economic stability of the agricultural enterprises , taking into account all the factors, it will balance the economic system, will ensure efficient operation and forms the basis of the high potential of development in the future. У статті визначено, що практика господарювання на ринкових засадах вимагає від сільськогоспо- дарських підприємств формування економічної стійкості з урахуванням всіх чинників, що дозволить збалансувати економічну систему, забезпечить ефективне функціонування та утворить базис високого потенціалу їх розвитку в перспективі. В статье определено, что практика хозяйствования на рыночных принципах требует от сельскохозяйственных предприятий формирования экономической устойчивости с учетом всех факторов, это позволит сбалансировать экономическую систему, обеспечит эффективное функционирование и образует базис высокого потенциала их развития в перспективе. en Інститут економіки промисловості НАН України Економічний вісник Донбасу Management Factors of Formation of Economic Stability of Agricultural Enterprises Чинники формування економічної стійкості сільськогосподарських підприємств Факторы формирования экономической устойчивости сельскохозяйственных предприятий Article published earlier |
| spellingShingle | Factors of Formation of Economic Stability of Agricultural Enterprises Dyachenko, V.S. Management |
| title | Factors of Formation of Economic Stability of Agricultural Enterprises |
| title_alt | Чинники формування економічної стійкості сільськогосподарських підприємств Факторы формирования экономической устойчивости сельскохозяйственных предприятий |
| title_full | Factors of Formation of Economic Stability of Agricultural Enterprises |
| title_fullStr | Factors of Formation of Economic Stability of Agricultural Enterprises |
| title_full_unstemmed | Factors of Formation of Economic Stability of Agricultural Enterprises |
| title_short | Factors of Formation of Economic Stability of Agricultural Enterprises |
| title_sort | factors of formation of economic stability of agricultural enterprises |
| topic | Management |
| topic_facet | Management |
| url | https://nasplib.isofts.kiev.ua/handle/123456789/123376 |
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