MANAGEMENT OF THE FINANCIAL POTENTIAL OF SMALL ENTERPRISES IN CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The article is devoted to highlighting the theoretical and practical aspects of managing the financial potential of small enterprises. The purpose of the article is to substantiate the theoretical and practical principles and formulate measures to increase the efficiency of managing the financial potential of small enterprises in conditions of economic instability. It is determined that an essential element of managing the financial potential of small enterprises is determining approaches to its implementation, namely: process, systemic, situational, structural, functional, resource, market, production, cost and target. The main tasks and principles of effective management of the financial potential of small enterprises are characterized. Based on the proposed methodology, an assessment of the level of financial potential of small enterprises was carried out, the results of which showed that during 2022-2024 they were in a financial crisis and were characterized by a critical level of financial potential. This indicates that enterprises are insufficiently provided with stable sources of financing for current financial and economic activities, and first of all, there is a deficit of their own working capital, necessary to cover the most mobile part of assets - inventories. It has been established that assessing the level of financial potential of small enterprises is an important tool for forming a future strategy for their development, aimed at reducing possible losses and minimizing financial risks associated with the implementation of activities. In this regard, effective management of the financial potential of small enterprises in conditions of economic instability, in our opinion, should include the following measures, namely: development of risk reduction strategies; diversification of the asset portfolio; use of financial instruments to mitigate the impact of negative factors; constant monitoring and control of the financial indicators and risks of the enterprise according to certain criteria in order to respond in a timely manner to changes in the business environment. In addition, it is important to ensure effective interaction between all structural divisions of the enterprise, increase the level of financial competence of personnel, as well as actively implement innovative approaches aimed at minimizing financial risks and increasing the efficiency of managing the financial potential of small enterprises in conditions of economic instability.