FINANCIAL MECHANISM FOR THE DEVELOPMENT OF AGRO-INDUSTRIAL ENTERPRISES

Abstract

This article examines the theoretical and methodological foundations for developing a financial mechanism to support the growth of agro-industrial enterprises in the context of contemporary economic challenges. It summarizes scientific approaches to understanding the nature of the financial mechanism and defines its role in the system of financial resource management for business entities. Scientific approaches to defining the financial mechanism have been systematized according to key conceptual areas, which made it possible to identify its key characteristics as a management system comprising a set of methods, instruments, levers, and subsystems of financial support. The specific features of how the financial mechanism of agro-industrial enterprises functions have been substantiated, taking into account the seasonality of production, the duration of the production cycle, natural and climatic factors, risks, and government regulation. The mechanism for financially supporting the development of agro-industrial enterprises has been improved through the integration of digital financial instruments, ESG approaches, a comprehensive system for evaluating the effectiveness of financial flows, risk management mechanisms, and adaptation to industry-specific characteristics. An expanded set of structural components for the financial mechanism is proposed, encompassing financial methods, levers, instruments, resources, financial policy, and a system of performance evaluation indicators. The feasibility of incorporating financial stabilization methods, digital financial platforms, smart contracts, blockchain technologies, and modern financial and investment instruments into the mechanism is substantiated. It has been demonstrated that the implementation of the improved mechanism will contribute to enhancing the financial stability, investment attractiveness, efficient use of financial resources, and competitiveness of agro-industrial enterprises, ensuring their adaptation to changes in the external environment and sustainable development.