Mykola V. Kostel, Anastasiia V. Samoilikova
Innovation Strategy for Business: Financial Management Aspects
(original language – English)
https://doi.org/10.21272/mer.2019.83.05
Nowadays business is risk-oriented and profit-oriented market activity, the mean of functioning in a market environment, at the same time conditioned by the specifics of a certain branch of the economy. Entrepreneurship is an integral part of the business, its innovative element. Innovation in business is the driving force of economic growth under unstable conditions of the present, requiring rapid adaptation to the dynamic changes of the socio-economic and political situation in Ukraine and abroad. The critical problem of innovation efforts enhancing is the absence of a proper innovation strategy concerned with financial risk and scarce financial capital. Moreover, the market is a stimulus for business development, and the shortage of financial resources (equity and debt) is its limit. In this article, we explore an essence and the role of the innovation strategy for business and its financial management aspects. We argue that the effectiveness of innovation activity depends, above all, on management effectiveness. There are a number of managerial tasks arise coming from peculiarities of innovative projects. The financial management is a key component of the management system of innovation strategies for business, which is very important for ensuring business efficiency under current market conditions. It plays the role of an important means of competition and maintaining a leading position in the markets of goods and services. A timely financial risk assessment of business and the capital structure formation for an innovation strategy are the main prerequisites for ensuring effectiveness. We offer a concept of the innovation strategy for business and, in particular, its financial management aspects.
Key words: business, entrepreneurship, financial management, financial resources, financial risk, innovation, innovation strategy.
Placed in №1, 2019.
Affiliations:
Mykola V. Kostel, C.Sc. (Economics), Associate Professor, Department of Finance and Entrepreneurship, Sumy State University;
Anastasiia V. Samoilikova, Junior Researcher, Department of Finance and Entrepreneurship, Sumy State University
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