Overview of existing approaches to business activity of enterprise assessment
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- Экономика и экономические науки
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Preservation of conditions, maintaining manufacturing quality stability must be confirmed by regular checking of observance of technological and production discipline. The methodological provision at this stage must include methods of justification of the selection of technological regulation indicators and methods of processing and generalization of the statistic information to conclude about manufacturing quality stability varying according to the types of manufacturing and production in general. The offered approach allows defining precisely the technical tasks in the
sphere of technology, solved under a state certification of the type, production and state tests of the final products, and at the same time to establish unambiguous link between them, realized in frames of particular enterprises-developers and product manufacturers.
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2. Guidelines. Self-evaluation of the organization'-s activity in concordance with criteria of the awards of the RF Government in the sphere of quality 2003. M: Ory BHMMC, 2003.
удк 658.1 Ye.A. Natsypaeva
OVERVIEW OF EXISTING APPROACHES TO BUSINESS ACTIVITY OF ENTERPRISE ASSESSMENT
The paper considers existing approaches to business activity of an enterprise assessment. The author provides their analysis, shows their strengths and weaknesses and suggests ways to improve them.
Key words: financial analysis, business activity, competitiveness, turnover rate, profit, profitability, equity capital.
АНАЛИЗ СУЩЕСТВУЮЩИХ ПОДХОДОВ К ОЦЕНКЕ ДЕЛОВОЙ АКТИВНОСТИ ПРЕДПРИЯТИЯ
В статье рассматриваются существующие подходы к оценке деловой активности хозяйствующего субъекта, проведен анализ, выявлены сильные и слабые стороны и предложены направления их совершенствования.
Ключевые слова: финансовый анализ, деловая активность, конкурентоспособность, оборачиваемость активов, прибыль, рентабельность, собственный капитал предприятия.
In a market economy enterprises must strive for a dynamic, efficient and sustainable development which is impossible without management of business activity for ultimately increasing competitiveness of a business entity Development of competitiveness of an enterprise is inextricably linked to the management of its business activity: only companies with efficient management of business activities may gain advantages in the market, which in turn is a prerequisite for the formation of competitiveness. «Competitiveness improvement, no doubt, is at the center of national economic interests, but it is defined not at macro level but at enterprise level» [13, p. 93]. Business activity of an enterprise determines the efficiency of using financial, labor, material and other resources across all business lines and activities and characterizes the quality of governance, economic growth potential and capital adequacy of an organization. Therefore, now one of the urgent challenges is to study business activity of economic entities at micro level, which will help solve specific problems in a specific market situation and lead to more effective management of enterprises.
In our opinion, the most accurately business activity can be defined as a set of activities in the process of business operation, based on active interaction with environment and aimed at economic growth and achievement of positive dynamics of an organization in order to enhance the competitiveness of an enterprise.
Analysis of business activity is a separate unit in the system of complex financial analysis of organization, its aim is to present economically sound evaluation of efficiency of using resources and to identify potential for their increase. Analysis of business activity of an enterprise, in particular, allows assessing financial situation of enterprises, ability to repay obligations incurred, capital adequacy for current operations and long-term investments, ability to build equity, rationality of using borrowed capital, etc. That is, assessment of business activity can complement and refine the data of financial stability analysis, solvency, liquidity and profitability. The level of business activity is an important indicator to potential lenders and investors without whose involvement businesses simply can not survive in competitive environment (one of the problems hindering the development of «new» economy in the Saratov region is the inaccessibility of loans [4, p. 39]). Thus, we can safely say that business activity is an indicator that characterizes viability of an enterprise.
Analysis of business activity involves the following tasks:
— studying indicators of business activity in their dynamics and assessment of changes-
— carrying out factor analysis to determine the effect of individual factors on changes in business activity indicators-
— concluding the analysis, development of specific activities in order to utilize identified potential reserves.
To solve the first task indicators of business which directly determine the level of business activity should be identified. The problems of managing business activity have been studied by many economists but a unified system of indicators of business activity has not been worked out.
Thus, according to E. V. Rogatenyuk and I. M. Pozharitz-kaya «generalizing indicators that characterize business activity of enterprises and its market status are the length of operational and financial cycles» [11, p. 92]. Of course, these indicators are important for determining the level of enterprise operation efficiency. But, in our opinion, these indicators are not enough to fully assess business activity of an organization.
A somewhat different approach to assessing business activity of an enterprise is presented by B. V. Prykin, who notes that the intensity of using invested (internal) capital is an indicator of business activity of an enterprise [9, p. 360]. A similar indicator is discussed by Russian economist S. M. Pyastolov who argues that «assessment of business activity of an enterprise is down to, ultimately, determining the effectiveness of managing disposable capital of an enterprise» [10, p. 126]. To characterize the intensity of using capital it is necessary to calculate its turnover coefficient (the ratio of revenue from sales of products and services to the average cost of capital), which is not an exhaustive indicator for assessing business activity
Thus, indicators of business activity, proposed by the authors in the above examples, ultimately boil down to turnover indicators. In their work «Methods of Financial Analysis» A. D. Sheremet, R. S. Sayfullin and Ye. V. Negashev argue that business activity can be characterized only by the rate of assets turnover [15, p. 85]. Many economists identify turnover indicators as the basis for the analysis of business activity of enterprises (L.V. Dontsova and N. A. Nikiforova, O. M. Yefimova and M. V. Miller [1, p. 234], Ye. S. Stoyanova [14, p. 342], A. P. Kiselev et al.) For example, L. V. Dontsova and N. A. Nikiforova point out that «analysis of business activity is aimed to explore the levels and dynamics of various financial ratios — turnover indicators» [5, p. 65]. A. P. Kiselev, in his book «Theory and practice of modern business» suggests that business activity is manifested in the dynamics of enterprise development and reaching its goals: «In market conditions, the main criterion for enterprise efficiency is effectiveness, profitability, and therefore one of the areas of business efficiency analysis is business activity, which manifests itself in financial aspect, especially in the rate of turnover of an enterprise «[7, p. 124].
These approaches to the analysis of business activities are extensive enough. The authors do not identify specific indicators reflecting the turnover of certain assets, whose analysis is needed to assess business activity of an enterprise. In addition, in our view, a significant drawback of this methodology is considering business activity as directly dependent on turnover indicators. In our opinion, turnover is a part of business activity of an enterprise assessment.
It is because of references in so many sources the phrase «rates of turnover» is used synonymously with «indicators of business activity of an enterprise». This emphasis on indicators of turnover in the analysis of business activity can be easily explained: financial situation of enterprises is largely determined by how quickly the funds invested in assets are converted into real money. Accelerating the turnover of circulating funds gives an opportunity to:
— take some working capital out of circulation with the same amount of sales-
— increase sales with the same amount of working capital.
L. Ye. Basovsky and Ye. N. Basovskaya [2, p. 196] identify not only main indicators of turnover needed for the analysis of business activity (working capital turnover (rate of turnover), inventory turnover, receivables turnover, turnover of the most liquid assets) but also such indicators as return on all assets (of all company'-s capital), returns on fixed assets, return on equity. This system of indicators is similar to the previous one: dependence of business activity from turnover of certain assets is observed. The positive side of the system is identification of specific turnover indicators, analysis of which, according to the authors'- methodology, allows a comprehensive assessment of business activity.
V. V. Kovalev and O. N. Volkova identify qualitative and quantitative criteria for assessing business activity. Qualitative criteria include «the size of product markets, products for export, reputation of a commercial organization manifested in well-known clients who use the services of a commercial organization, stable relationships with clients and others» [8, p. 105]. Quantitative assessment according to V. V. Kovalev and O. N. Volkova can be conducted in two ways:
— «execution of plan (established by the parent organization or enterprise itself) by the main indicators, achievement of target growth rates-
— the level of resource use efficiency of commercial organizations «[8, p. 106].
The system of indicators proposed by V. V. Kovalev and
O. N. Volkova is comprehensive enough. It takes into account the implementation of planned actions as well as resource use efficiency. Its significant advantage is the identification of qualitative indicators to measure economic activity, without which, in our opinion, there can not be a comprehensive assessment of business activity. But the criteria for evaluation of these indicators are not defined.
V. V. Bocharov complements the above discussed classification and subdivides quantitative criteria into absolute and relative. By absolute he understands sales volume, profits, value of capital advances, by relative — turnover ratio and turnover period of assets and liabilities [3, p. 172]. This methodology is a kind of supplement to the system of indicators discussed above. In our opinion, the selection of indicators such as profit and sales is fully justified, since they can be used to conduct a more comprehensive analysis of business activity.
Thus, analysis of business activity of an enterprise is understood by many researchers as ultimately the analysis of turnover indicators. A completely different approach to this problem is offered by I. V. Sidorenko in her dissertation [12, p. 11 — 14]. She is trying to address the shortcomings of existing methodologies for assessing business activity by considering it as a characteristic of business operation. To do this, I. V Sidorenko identifies three types of business activity: production, techno-economic, and financial and commercial. This division is based on the attachment of each of the proposed business activities to specific functions of an organization. For example, production activity is directly linked with the production of goods, technical and economic activity — with the overall technical and technological preparation for production, financial and
commercial activities — with sales, final financial results, investment activity of an enterprise, and financial management. Each of the proposed types of business activity have their own indicators for assessing business activity:
1. Manufacturing activity (labor productivity).
2. Technical and economic activity (return on resources, capital productivity, energy efficiency, turnover ratio of current assets, return on assets, return on investment).
3. Financial and commercial activity (sales profitability absolute liquidity ratio, total debt to equity own funds ratio).
For each of the indicators it is proposed to calculate
j = _y^_
chain index by the following formula n, charac-
terizing the dynamics of indicators change, and hence economic activity of units of an enterprise. The index of each type of activity should be calculated as arithmetic average of the indices of relevant indicators, and index of overall business activity — as arithmetic average of the indices of production, technical, economic, financial, and commercial activity.
The approach of I. V. Sidorenko is different from the above discussed approaches: it defines three aspects of business activity with their relevant indicators. The main advantage of this system of indicators is determining an index of overall business activity, making it possible relatively easily to conduct a comparative analysis of business activity of several businesses. However, in our opinion, such approach to the assessment of business activity does not provide a comprehensive assessment. This is due to controversial set of indicators presented and the lack of quality criteria for business activity assessment.
In summary, it should be noted that at present there is no generally accepted system of indicators to measure business activity The authors of existing methodologies offer various systems of indicators for business activity assessment. Each has its own advantages and disadvantages, which have been studied above. The authors of all discussed systems agree only in one thing: analysis of business activity is impossible without taking into account turnover indicators that allow to analyze the velocity of assets and liabilities within circulation of capital. In addition, «the higher the velocity, the more business activity is conducted by an organization» [13, p. 2 — 3]. As for the use of other indicators for business analysis assessment econ-
omists hold different opinions. Some consider turnover of certain assets as the single most important criterion for evaluating business activity. Others highlight such indicators as income, profitability, etc. In many approaches, special attention is given to qualitative indicators, without which, in our view, analysis of business entity would not be complete. Thus, the absence of a uniform system of indicators makes it difficult to analyze economic activity and raises doubts about the objectivity of already conducted assessments. That is why now there is an urgent need to develop a unified system of indicators to assess business activity of economic entities, which, in our view, should be based on principles such as relevance, completeness and accuracy.
1. Анализ финансовой отчетности / под ред.
2. Басовский Л.E., Басовская
14. Финансовый менеджмент: теория и практика / под ред.
УДК 37: 33 A.V. Nikitov
THE ROLE OF EDUCATION IN THE DEVELOPMENT OF INNOVATIVE ECONOMY
This article analyzes the role and place of education in the innovative development of economy. The author considers the fundamental changes in education policy- influence the quality of education in the innovative component of economic development. The necessity of modernization of education through creation of new types of educational institutions — the federal and research universities, the application of new information technologies, the formation of partnerships between the system of higher education and business with state support, to rethink its role and mission of developing new approaches and identify new priorities for development.
Key words: knowledge economy, education, national research universities, federal universities, the magnitude of the innovation sector, technological upgrading, industrial parks.