THE ESSENCE OF THE CONCEPT “THE INVESTMENT ATTRACTIVENESS OF ENTERPRISE”

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THE ESSENCE OF THE CONCEPT “THE INVESTMENT ATTRACTIVENESS OF ENTERPRISE”

Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 5, Issue 67

Abstract

Due to the modern development, investment is an important element of the development of both the national economy and the economy in general. The attraction of investments ensures an increase in the indicators of the country's economic activity, scientific and technological progress, and rapid economic growth. The problems of investing in the economy have always been the focus of economic science. The article is devoted to the problem of the genesis of the interpretation of the notion “investment attractiveness of an enterprise”. The factors of internal and external environment, affecting the investment attractiveness of the enterprise. The definition of these factors contributes to a better and more complete understanding of the very essence of the investment attractiveness of the enterprise. The views of leading scientists in the definition of the essence of the concept of “investment attractiveness of the enterprise”. To deepen the understanding of the existing terminology, the classification of the investment attractiveness of the enterprise was analyzed. The issue of activating investment processes for today is relevant for most countries of the world, and Ukraine is no exception. The current development of the Ukrainian economy is inextricably linked with investment processes, which are the driving force behind the integration of the economy into the world economy. Investment activity is one of the most important issues in the efficient operation of state enterprises and ensuring their competitiveness. Involve, use, or restrict investments, each enterprise’s management determines according to its socio-economic and national characteristics. In order to find and attract the right investor to invest in cash, the company must offer attractive prospects for further expansion and development of production, and provide the effectiveness of investments. That is, the success of this belief and the involvement of an investor depend on the investment attractiveness of the enterprise. As a result of the study of selected topics, the concept of “investment attractiveness of the enterprise” was clarified and generalized since for today there is no single universal definition of its interpretation. Also during the study, the influence of direct factors of the internal and external environment on the attractiveness of the enterprise was considered. The most influential of these are the internal factors of the enterprise, among which: enterprise costs, personnel potential, the status of the property, financial resources, and capital structure, duration of the investment program. It should be noted that the problem of assessing the investment attractiveness of an enterprise can only be solved after identifying all the factors affecting its level both externally, i.e. on the part of the state, and internally, on the part of the enterprise itself. That is why the improvement of indicators of these factors will positively affect the investment attractiveness of the enterprise and the arrival of investments in general.

Authors and Affiliations

I. I. Tkachuk, J. H. Spitsina

Keywords

investment investors investment activity investment attractiveness of enterprise external factors internal factors

EP ID EP562290
DOI 10.32782/2520-2200/2018-5-21
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