ANALYTICAL SUPPORT FOR MANAGEMENT OF VENTURE FINANCING OF INNOVATIVE ENTERPRISES

by | Jan 14, 2020 | DOI 2018

Mykola Gorodysky, Hanna Khomenko, Olena Syvak​
Zhytomyr State Technological University, Zhytomyr, Ukraine
DOI: https://doi.org/10.31410/eraz.2018.211

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4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia;  Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7

Abstract

This article deals with the peculiarities of innovative enterprises management in the conditions of risk and uncertainty of the economy. Innovative type of modern economy development envisages intensification of processes in the field of alternative sources search of business financing for enterprises support and development, as well as sustainable development in the country. One of the available sources of financing innovative activity of small and medium enterprises is venture financing.
The economic strategy of any country should be based on the fact that only the activation and effective use of its innovative potential will be able to ensure the sustainable development of the economy and society as well as will radically change the factors of its attractiveness for foreign investors.
Taking into account the need to provide management stuff with operational information on the availability and condition of venture financing at the enterprise, a two-step method of economic analysis of venture financing has been suggested aimed at improving the information base for the formation and use of attracted venture investments in the form of own and loan venture capital, its quantity and quality, which allows to define the further method of management of its elements in the operational mode.
Having calculated the suggested indicators based on the data of the activities of innovative enterprises of Ukraine, Russia, Poland and Bulgaria, we can conclude that the share of venture financing of innovative enterprises in the form of own venture capital (i.e, the acquisition of shares of the enterprise by venture capital investors) in the total amount of venture financing is larger, compared with a share of venture financing of an innovative enterprise in the form of loan capital (through the acquisition of venture company bonds). This is due to the fact that, first of all, venture financing is a risky investment, thus venture investors are trying to reduce the risks of such financing, mainly using financing in the form of acquiring shares of the innovative enterprise. As the result of research methodic provisions of the analysis of innovative enterprises venture financing have been improved by developing a complex analysis method of condition, availability and efficiency of venture financing in the part of factor analysis of the profitability of own as well as loan venture capital, by multiple regression model building for defining the impact of venture capital on the results of enterprise’s innovation activity, enable to identify cause-effect relationships for the development of appropriate measures to optimize risk venture funding as well as finding ways to attract additional financial resources from venture capital investors.

Key words

innovation potential, sustainable development, innovative enterprises, venture financing, multiple regression model

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