Bìznes Inform (Nov 2020)
Assessing the Development of Economic Entities
Abstract
The article reveals the concept of "development of economic entity" and the formation of the concept of "one", "two" and "many" criteria for assessing its development. The development of the enterprise is considered as a process of acquiring new qualitative, quantitative or structural properties that involves changing the parameters of its state. The system is transformed through the growth, activation or structuring of the constituent elements. It is determined that growth (horizontal, vertical, diversified) involves the expansion of the size of the enterprise, its potential and scale of activity. Activation occurs due to the increase of business activity of enterprise, through the establishment and strengthening of communication with the contact audience (suppliers, customers, regional community, etc.). Restructuring is characterized by the rebuilding of relationships in the system and changes in enterprise management, i. e. the choice of a new leadership style, modernization of the organizational structure of management, and so on. The developed conceptual model for assessing the development of economic entity is based on the understanding of development as a threefold essence of potential, functional activity and effectiveness. Changing any of these elements affects development and characterizes it. An inherent property of enterprise development is the advancement of the rate of change of indicators of functional activity in relation to the pace of change of efficiency and potential. Based on the definition of development as a permanent process, which is always associated with the emergence in time of something qualitatively new or a new combination of existing elements, which leads to the formation of a new result, a triangle of development of economic entity is formed. Stages of the enterprise development assessment have been developed. The criteria for assessing the development of economic entity are defined.
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