Economic sciences/10. Economy of enterprise

K.E.S Karachina N.P.

Vinnytsya national technical university, Ukraine

Functioning of national enterprises: economic problems and behavior

The research of the economic behavior of national enterprises needs the determination of factors of influence and choice of priority factors. On the whole, making a research of the activity of enterprises as a whole, we may note that on its conduct the description and conditions of work, level of technology, wear of equipment, dependence on partners from CIS or foreign countries, and also factors, which characterize a market an enterprise operates on (producers and consumers, market structure, barriers of entrance) may make an influence. This static scheme is obviously not quite applied for transitional conditions. Besides it is not complete, as it concentrates attention on external conditions.

At the same time, the privatization of state enterprises also has set a question about its influence on their behavior. At the beginning of reforms the persuasions about positive influence of privatization on activity of enterprises, which strengthens their restructuring, were widespread. Now there is a point of view, when all negative processes in industry (sharp downstream, loss of scientific and technical potential, regressive changes in the structure of issue et cetera) are considered the result of privatization. In our opinion, influence of mass privatization must not be over-estimated. Directly mechanisms and forms of privatization were the not the condition of variation of economic behavior of enterprises, but its result, including the political lobbying of branch industrial structures and separate enterprises. With a transfer to money privatization and beginning of the second redistribution of capital pre-conditions for forming the real proprietors with clear interests, enterprises with a different joint-stock capital structure which influences the acceptance of strategic decisions are gradually created.

With strengthening of the economic stabilization, which is followed by sharpening of the competition, development of market institutes and mechanisms, the role of such factors, as distributing of ownership rights and market structure, grows. The first signs already appeared in 1995-1996 [1].

At the same time there are deep determinants of economic behavior, which are conditioned by formed and gradually transformational system of socio-economic relations. In the real Ukrainian economy more determinative factors, than measures of macroeconomic policy or formal transformations of propert, operate. We must select two connected groups of factors – external and internal. External terms – it is first of all the absence of market environment, mechanisms of competition and infrastructure of market (institutional and informative) which complicates the adaptation of enterprises. The operating economic system is already not command-administrative, but is early to characterize it as a market one, because the regulation by state and local powers in a number of sectors of economy is saved. Next to the «system» reasons operate other. It is a practical policy of the state. Thus financial streams into the economy were mainly carried out unsystematically and were a reaction on pressure, but not a result of carefully thought out industrial policy. Then in place of direct subsidies their indirect forms, which are related to the report of protectionism barriers which barrier a domestic producer from an external competition are used. At the same time many privileges were displaced on a regional level, where they are given by local power which in its queue tries to get the «support of regions» from the state. The internal determinants of the economic behavior of enterprises are conditioned by institutional factors. Most priority were actually «not state» character of public domain, washing out of their rights. It is also important to remember the traditions of soviet power with its strong bureaucracy and weak right which is supported by the system of informal relations [2].

In the Ukrainian economy, as well as before, there is a considerable role of corporate structures, which a greater part are reorganized from of branch ministries, their subsections. Most enterprises continue to be included to similar structures. This allows to get a help in supply, selling off, foreign economic activity, but, what is especially important, a financial sponsorship of corporate financial institutes, and also lobbying of interests in the overhead echelons of power. In place of the above mentioned it is required from the enterprises the observance of set rules, which often conflict with the market settings. In corporate structures connections which were folded, informal contacts, business information generators, are saved. The «director's» ethics which also influences the economic behavior of enterprises became informal part and a basis of maintainance of corporate structures. It foresees the presence of the proper norms in the mutual relations of leaders of a «certain circle», what not necessarily must be a part of any formal structure. For many leaders, in spite of their own financial problems, a sale of products to the traditional users on favourable terms remained a norm. At the same time a practice of price discrimination operated. An attitude towards new business corporations is watchful enough. However financial limitations washed out these norms gradually, abbreviating «the circle» to those traditional partners which help this enterprise actively.

The conducted researches considering the determination of factors of influence on the economic behavior of enterprises and their functioning confirmed the necessity of division and more detailed consideration of general factors, factors of influence on a transitional economy, factors of influence in a market economy (or close to the market) and factors of influence on economic behavior of enterprises in the conditions of crisis.

Literature:

1. T.G. Dolgopyatova, E. Evseeva. Economic behavior of industrial enterprises in a transitional economy // Questions of economy. – 1994. – №8. – P. 40 – 50.

2. A. Ikes, R. Riterman. From an enterprise to the firm: notes on the theory of enterprise of transitional period // Questions of economy. – 1994. – №8. – P. 31–39.