Financial Sustainability of Enterprises in the Digital Economy

Abstract

The aim of the article is to study the concept of financial sustainability of enterprise and digital economy, to analyze the impact of the digital economy on the financial sustainability of enterprises; identify and describe the positive and negative aspects of the functioning of enterprises under the influence of the transformation processes of the digital economy; to generate theoretical provisions on an effective mechanism for strengthening the financial sustainability of enterprises, which will be adapted to the current conditions of digitalization of the economy. In the course of the study, it was found that financial sustainability represents the basic indicator of the enterprise’s functioning and reflects its overall money balance, the availability of resources necessary for stable development. Due to a number of negative factors, the financial sustainability of domestic enterprises has been significantly shaken. However, the way out of the crisis was the active development of the digital economy, which is a system of economic relations where the basic means of production and driving factors are digital data and transactions on the Internet. It is found that Ukraine’s position in the ranking of the use of information and communication technologies has increased significantly. This suggests that enterprises have begun to rapidly and successfully adapt to new challenges. The article also analyzes the positive and negative aspects of the impact of the digital economy on enterprises and their financial sustainability. The negative aspects of digitalization of the economy are a significant obstacle for domestic enterprises, but they are not crisis ones and can be solved by developing and applying effective development strategies. To increase the financial sustainability of domestic enterprises, it was proposed to apply a number of measures that will strengthen the position of the enterprise in the market and allow it to be more active in the context of active development of the digital economy; allowing to qualitatively monitor the situation and respond in a timely manner to threats and risks associated with competitors, consumers, the State and international relations. Also, new prospects are opening up for the enterprise to attract funding and international partnerships, as well as prospects of an active training on international and domestic platforms remotely and free of charge.

Keywords

• financial sustainability
• digital economy
• digitalization
• financial management
• financing
• government programs