Social economics

SOCIAL ENTREPRENEURSHIP AS AN INCLUSIVE CLUSTER CONCEPT OF SUSTAINABLE DEVELOPMENT OF THE COUNTRY

Andriy Braunagel — 2023-12-28

The purpose of writing the article is the systematization of the elements of the cluster concept and directions for the implementation of the process approach in the management of social entrepreneurship, which will contribute to the acceleration of the implementation of the goals of sustainable development in the social economy. The main characteristic features of social entrepreneurship are presented. The theoretical and practical aspects of the formation of a cluster of social entrepreneurship and its influence on the mechanisms of development of the social economy in unstable conditions are studied. The relationship between the components of the cluster system of social entrepreneurship and process management tools to achieve the effectiveness of ideas regarding social impact, effects, values, and benefits is highlighted. The map of the inductive analysis of the narrative interview according to F. Schütze was developed and presented in the identification of the interests and needs of society in the activity of social entrepreneurship to achieve its sustainability and sustainable development. The scientific and practical tools of the process approach in the management of social entrepreneurship have been systematized. The article states that the clustering of social entrepreneurship determines the grouping of social enterprises and various social initiatives from entrepreneurs on the basis of common characteristics and specific features of their activity by territorial feature or context. It was revealed that the activities of the social entrepreneurship cluster are aimed at creating social value, convergence of the activities of the social entrepreneur and the stakeholders of the social enterprise, their market orientation and social innovations. It is noted that the process of social entrepreneurship determines the provision of social interests and needs through innovative and sustainable entrepreneurial approaches through the creation and management of enterprises or initiatives. A pool of tools for the effectiveness of social entrepreneurship has been identified: promising ideas, social innovations, socially responsible practices, and social institutions. The stages of the process map of social entrepreneurship to achieve sustainable development are characterized.

INFLUENCE OF SOCIAL CAPITAL IN THE FINANCIAL SUPPORT OF INNOVATION ACTIVITY OF ENTERPRISES

Natalia Riabinina — 2023-12-28

The present dictates to the Ukrainian society the latest approaches to solving the issue of socio-economic direction: the solution of economic problems provides an opportunity for the implementation of the social fulfillment of the state’s obligations to the population. A significant burden on the implementation of budget policy is borne by the financial sector of the economy, where the main role is assumed by a new economic concept – social capital, which determines and corrects the main role of a person. Society is responsible to the state, in turn, it requires full fulfillment of the state’s obligations to society. This chain of interconnection and interaction "person-business-state" is based on trust and mutual understanding, which is the driver of progress and innovation in all spheres of activity of the state and the Ukrainian people. Social capital has its own tendencies of development and influence on the financial provision and resource of innovation activity of enterprises, which can be identified as a unity of economic interactions and relations that are formed for the effective and comprehensive use of all possible sources of financial savings and resources and obtaining the maximum effect and further growth of efficiency and innovation. It is the management of an enterprise aimed at development and innovation activities aimed at an effective increase in production and economic activity, which affects the socio-economic balance between business and society under the strict control of the state. The development of the theoretical basis of innovations in the enterprise and its practical application in the future can contribute to the development of the financial sector of the state, which is extremely necessary and relevant in the conditions of crisis and war. The development of social capital introduces a new strategy and path of innovation into the system of economic relations, which is aimed at overcoming the crisis and prospects for the future development of the country.

ARTIFICIAL INTELLIGENCE AS AN OBJECT OF MANAGEMENT: A BENEFIT FOR CIVILISATION OR A THREAT TO MANKIND?

Iia Chudayeva — 2023-12-28

The authors of the article analyze the reasons for the rapid development and implementation of artificial intelligence achievements, which opens up great opportunities for solving problems in many industries and is a reliable assistant to people in everyday life. The article analyses different approaches to the definition of "artificial intelligence", possible threats to humanity from its implementation, and focuses on the need to increase the responsibility of developers of programs, algorithms, systems and strengthen control over the work of users of equipment and devices with elements of artificial intelligence. People around the world have long been dependent on technical inventions and devices. The achievements of artificial intelligence provide people with convenience and comfortable conditions. The development of intelligent machines is an important area of scientific and technological progress. Artificial intelligence technologies contribute to solving many problems related to various areas of life, including the economy. Today, artificial intelligence is a global trend in technology development and innovation. Advances in computing power, the ability to collect and process huge amounts of information, and instant access to the latest algorithms are important prerequisites for the evolution of intelligent technologies. The development of sophisticated computers and robots poses risks to the world’s people. Without the use of artificial intelligence, the development of scientific and technological progress is impossible. Key words: artificial intelligence, the achievement of civilization, a threat to humanity, strengthening control over the operation of machines. Therefore, the development of intelligent machines and devices must continue, but with the warnings of global authorities who warn of the existing threat to humanity.

FEATURES OF FORMING MARKETING OF AN ECO-ORIENTED ENTERPRISE

Nataliia Butko — 2023-12-28

The purpose of writing the article is to study the formation of marketing of an enterprise that operates on an environmental basis. It also aims to substantiate the objective need of implementing an ecomarketing strategy into it. We established that eco-friendly products have recently become increasingly popular. We enumerated the top 25 environmental programs implemented into enterprises in various fields of activity in Ukraine. We indicate marketing of an eco-oriented enterprise as product marketing, which includes a system of measures to increase people's interest in eco goods or services, encouraging them to take care of the environment with the consumption of eco-products. We counted out a number of effective methods of environmental marketing for environmentally oriented enterprises that were the first to implement environmental initiatives. The formation of environmental marketing at the enterprise is based on the algorithm of individual consecutive steps. It helps ensure the satisfaction of consumer needs maintaining environmental balance and public health. We analysed the aspects of implementing environmental marketing elements within the enterprise. We came to conclusion that marketing of an eco-oriented enterprise leads to the intensification of sales of products and obtaining additional profit by greening production. In order to implement the eco-marketing strategy, it is necessary to develop it that involves detailed planning and careful positioning of the enterprise as environmentally responsible and attractive to consumers who value environmental aspects. We described the sequence of actions for forming an eco-marketing strategy. The formed eco-marketing strategy includes the optimal set of strategies that ensure aspects of marketing activities within their limits. In Ukraine, for the further formation of marketing of an eco-oriented enterprise, it is necessary to take into account the principles and values related to the environmental aspects of conducting their economic activities, which are aimed to satisfy needs of eco-products consumers. Further research will be related to the study of the potential for greening innovative activities of enterprises.

TRENDS IN HR MANAGEMENT AT THE ENTERPRISE

Svitlana Babych — 2023-12-28

The purpose of this article is to assess the possibility of introducing new approaches to personnel management into domestic practice. Summarizing the results of the study, we can note the following: there is a discrepancy in the study of HR management issues in domestic scientific works and foreign scientific thought. Recent studies by Ukrainian scholars are related to the assessment of international experience in HR practices, adaptation of domestic HR systems to external challenges (war, pandemic, etc.). Foreign works are devoted to the disclosure of the theoretical and practical foundations of the application of new HR practices, empirical research of the effectiveness and efficiency of their implementation, and case studies. In the light of the trend in HR management to take into account the interests of the employee and ensure his/her well-being, the following newest HR practices have been selected for implementation in domestic enterprises: personalized human resource management; management practices based on corporate social responsibility; HR co-creation; Agile HR. Among the disadvantages and problems of applying personalized human resource management is the lack of time and personnel in the HR department to select an individual management strategy for each employee if the company is medium or large in size. The difficulty of assessing employee well-being can be an obstacle to implementing the principles of corporate social responsibility in human resources management. It is necessary to take a balanced approach to the formation of a system of direct and indirect indicators of employee satisfaction to obtain a true assessment. A rather patriarchal society, which is characterised by top-down implementation of innovations rather than the design of new HR management practices with the involvement of outsiders, may be an obstacle to the introduction of HR co-creation approaches. The main obstacle to the introduction of Agile HR may be the reluctance to change the organisational structure of HR management, as well as the reluctance of staff to abandon template solutions. Prospects for further research in the subject of this article are related to the assessment of the readiness of domestic enterprises to introduce innovations in the field of HR management.

IMPLEMENTATION FEASIBILITY OF ENTERPRISE FINANCIAL CONTROLING

Olena Golovko — 2023-12-28

In modern economic conditions, in order to ensure the viability of entrepreneurial activity, it is necessary to apply a high degree of rationality and systematicity in the management of own and borrowed financial resources. Enterprises must skillfully determine their strategy and tactics of actions on the market, carefully plan and control their activities to achieve specific goals. They include increasing the efficiency of operations, increasing the total value of the enterprise, ensuring the growth of the welfare of shareholders and owners, maximizing financial results, minimizing losses, ensuring long-term liquidity and financial stability, as well as implementing a financial control policy. Controlling, unlike other management systems, covers the entire process of enterprise management, starting with the formulation of strategy, development of plans and budgets, and ending with the analysis of deviations of actual results from the set goals of the enterprise. To improve the formation and functioning of the financial controlling system, it is advisable to introduce a balanced system of indicators. It allows to identify and correct weak points in the economic activity of the enterprise, to find out the possibility of preventing the deterioration of the financial condition, to determine the main reasons with the help of cause-and-effect relationship of financial indicators, to improve investment and innovation activities. The purpose of the article is to substantiate the expediency of implementing a financial controlling system at the enterprise in modern business conditions. The article developed a system of balanced indicators for «HSMEP» LLC. Based on the analysis, it was determined that the concept of value-oriented enterprise management should be implemented at the enterprise of «HSMEP» LLC. This will allow you to get an effective management method, with which you can improve planning, increase the efficiency of operations, as well as the ability to achieve a gradual increase in the value of the enterprise. Such a management system will make it possible to bring corporate management to a higher and more modern level. Calculated level scientific and practical effectiveness implementation of the balanced scorecard is 56%. This indicates a sufficient level of effectiveness of the provided recommendations and proposals, which provide an opportunity to improve the indicators of the company's financial condition and ensure its competitiveness both on the Ukrainian and international markets.

ESSENTIAL UNDERSTANDING OF THE CONCEPT "BANKING SYSTEM" IN THE CONTEXT OF SYSTEM ANALYSIS AND SECTORAL DIVISION OF THE ECONOMY

Nataliia Pohorelenko — 2023-12-28

The article is devoted to justifying the need to increase the effectiveness of regulations to ensure the financial stability of the banking system by conducting a theoretical analysis of the concepts "banking system" and "banking sector". This presupposes, first of all, a balanced consideration of the applied terminology, since the proper theoretical background allows not only to define, but also to describe in detail the scope and directions of the conducted research, to specify its main goal and main tasks.

The importance of this research is related to the fact that it is banking activity that significantly affects other components of the economic system, because it determines the coordination of a significant share of the movement of financial flows between business entities. The reason: in one way or another, researchers have to note the ramifications and volumes of such activities taking into account a single bank or some combination of them, where in particular such concepts as "banking system" and "banking sector" are used.

It was found that at the level of such features as the list of institutional elements of the studied groups and taking into account the systemic approach to the combination of individual elements, there are no significant differences between the studied definitions. This allows us to talk about the identity of their content.

At the same time, disagreements in the theoretical understanding of the essential content of these concepts according to the criterion of the structural organization of the banking sector and the banking system, their subordination to higher systems regarding the establishment of economic interaction between various economic entities and, accordingly, to the varieties and types of management influences formed - confirm the problem issues related to consideration of banking activity from the point of view of a number of banks or sectoral consideration of certain types of economic activity in general. In particular, the subordination of elements is not clearly defined; the banking system is characterized by an institutional and systemic structure with multiple structural units and connections between them.

INSTITUTIONAL DESIGN OF ANALYTICAL TOOLS OF THE FINANCIAL CONTROL INSTITUTION

Andrii Khmelkov — 2023-12-28

The article is devoted to the search for ways to achieve the stability of public finances, through the modernization of relations that positively change the infrastructure of the financial environment and, first of all, it concerns the institutions operating in it. The object of the research is the Institute of Financial Control. The subject of the study is analytical tools of diagnosis and assessment of the quality of state financial control in the country by agents of the Institute of Financial Control. The use of analytical tools with the specified purpose can be attributed to work with large data, i.e. "big data", and the process of using them as work with "raw data" with the help of "data mining" and "data extraction".

The current state of affairs with the quality of data in the reporting of controlling institutions, taking into account their volume, leads to the opinion about the possibility of a certain subjectivity in the reporting data of controlling institutions, which violates the objectivity of the obtained result for the user of their reporting. In turn, the lack of objective data in the specified section leads to negative causes and their consequences. This scientific search will be devoted to overcoming them.

The research will become the basis for solving an important task for the theory, methodology and practice of financial science, and, first of all, in matters of financial auditing (Government auditing), from the modernization of reporting, assessment, diagnosis and goal setting of controlling institutions to the improvement of work on processing and analyzing big data and establishing criteria for the possibility of using AI (Artificial Intelligence).

The main result of the carried out scientific research is the first proposed institutional design of both the powers of the financial control institute and its effectiveness in the form of indicators and parameters of the Effective Control Formula - i.e. their digitization, for their digital/numerical display. A formalized record was chosen as the design implementation method, which will be used to write down the powers and effectiveness as a set and, accordingly, the points of the set of its structure. The formalization was implemented with the help of the developed universal formula of the indicator (or Formula of the set of the indicator), written with the help of a certain abstract identifier for recording the point of the set as a structural element of one or another indicator. At the same time, the formalized record of the abstract identifier of the elemental structure of a certain indicator uses a specific code. The specified formula is an additional analytical tool (for individual tasks) and a tool used for in-depth analysis. The formula of the set of the indicator is, in fact, a converter for transforming standardized financial concepts (processes, phenomena, etc.), from the institutional sphere of financial control, into their digital/numerical form - that is, a digitization converter.

FINANCIAL STABILITY OF THE INSURANCE COMPANY AND KEY CONDITIONS FOR ITS PROVIDING

Olha Boronina — 2023-12-28

In the article, we considered the evaluation of the financial reliability of insurance organizations. The insurer’s financial reliability usually means the insurer’s ability to fulfill insurance obligations under insurance and reinsurance contracts in the event of adverse factors. We investigated that the financial stability of an insurance organization is a complex indicator that depends on both internal and external factors. We studied the main classifications of factors that affect the level of financial stability of an insurance organization: according to the possibility of management and depending on direct and indirect influence. We have analyzed the main approaches to assessing the financial reliability of an insurance organization. We proposed approaches using single indicators (liquidity indicator, solvency indicators, reinsurance indicators, etc.), systems of relative indicators and integral indicators. We identified the advantages and disadvantages of such approaches, analyzed the advantages and disadvantages of early warning tests for assessing the financial reliability of an insurance organization, and showed that the advantage of using integral indicators is the ease of application and the possibility of taking into account various factors. However, when using integral indicators, certain difficulties arise, which are associated with the fact that, as a rule, partial indicators that have different dimensions are combined into an integral indicator, therefore, for their combination or convolution, each of the partial indicators should be transformed into a dimensionless quantity using the appropriate scale. In order to build an integral indicator for assessing the financial reliability of an insurance organization, it is recommended to use the Harrington method and take into account the factors that characterize the activity of an insurance organization: internal: (level of payments; provision of insurance reserves; reinsurer participation; solvency ratio; current liquidity ratio; reinsurance ratio) and external factors that take into account the general economic situation in the country and the efficiency of the functioning of the state’s economy (inflation rate; GDP growth rates).

IMPROVING THE EFFICIENCY OF FOREIGN ECONOMIC ACTIVITY OF ENTERPRISES ON THE BASIS OF MARKET RESEARCH

Iryna Gontareva — 2023-12-28

The article is aimed at studying the status and trends in the development of foreign economic activity in Ukraine and in the world, and the impact of marketing research on their efficiency. The purpose of the study is to analyze the improvement of the efficiency of foreign economic activity of enterprises on the basis of marketing research using economic and statistical methods, to identify problems and prospects for development, and to develop ways for effective foreign economic activity in conducting marketing research. The article provides data on the volume of the marketing data market worldwide as of 2017-2021, the results of a survey of European companies on the benefits received after investing in sustainable marketing strategies as of July 2022.

To achieve the goal, the following tasks were set and solved: identifying the characteristic features of the organization's activities, familiarizing with the principles of accounting and financial reporting, analyzing the marketing and foreign economic activities of organizations.

The importance of the development of foreign economic activity and market relations due to increased responsibility and independence of industries and individual entities in the preparation and adoption of management decisions is determined.

The relevance of studying the theoretical aspects of improving the efficiency of foreign economic activity of enterprises based on the impact of marketing research on the functioning of these processes is substantiated.

The impact of investing in sustainable marketing strategies on the company's development is characterized. The main obstacles to entering a new market are indicated. The results are summarized and ways to improve the functioning of foreign economic activity in Ukraine in the course of marketing research in the company are proposed, through the implementation of certain measures.

It is determined that the main areas for further research should be: identifying the most attractive marketing strategies in international markets, how artificial intelligence can become a driving mechanism in the company's marketing, studying pricing strategies and developing financial marketing mechanisms in accordance with this data, the impact of e-commerce in international operations and the proper management of these strategies.

THE ROLE OF CROWDFUNDING IN THE FUTURE OF UKRAINE: PROBLEMS AND PROSPECTS

Natalia Grebeniuk — 2023-12-28

The purpose of writing the article is to find alternative sources of funding for restoration projects, forecasting the impact of their implementation on the state of Ukraine's economy. Analysis of the current state and study of the state's investment needs is the main vector in the direction of developing recommendations for finding and attracting financial assistance. Understanding the principles and basics of crowdfunding platforms is an important step on the way to using this tool to attract additional sources of funds in the future for recovery. There are different approaches to the classification of crowdfunding fees, each of which plays an important role in modern society. Each of them reveals the value of crowdfunding as a tool for supporting modern art, innovative technologies, charitable gatherings and organizations, political ideas in the form of projects. The article also contains statistics of successfully implemented projects on domestic crowdfunding platforms, features of the implementation of these projects and their impact on the present and future of the country. We consider the reasons for the appearance and principles of operation of popular platforms, both foreign and domestic counterparts. We also considered the influence of the Russian military aggression on the state of the crowdfunding market in the world, the trends of its further development and expected forecast indicators until 2027. The study also touched on the analysis of the advantages and disadvantages of crowdfunding as a system for both parties: both for project initiators and for investors. The biggest problem today is the imperfect legal basis. Prospective directions for investing in the country's post-war reconstruction were determined, and recommendations were made for the implementation of these principles.

DEVELOPMENT OF SMM DURING THE WAR IN UKRAINE

Lidiia Doroshenko — 2023-12-28

The study evaluates social media marketing (SMM) as a new field of marketing that emerged with the advent of social networks, particularly Facebook and Twitter. It describes the importance of social media in maintaining communication between brands and their audience, advertising goods and services, analyzing competitors, and gathering audience data. The article emphasizes that SMM is an essential tool for modern businesses because social networks allow them to find their target audience and maintain communication with it, promote their products and services, attract new customers, increase loyalty, and enhance their brand. The article examines the development of social media marketing (SMM) in Ukraine before the start of the full-scale war that began on February 24, 2022. The author claims that before the war, SMM was quite active, and companies used social networks to promote their brands and products. The article includes a diagram that shows the ranking of the most popular social networks in Ukraine before and after the war. The author also notes that the popularity of the Telegram messenger greatly increased after the start of the war. Additionally, the article discusses the example of the company LLC «Nova Poshta» as one of the largest logistics companies in Ukraine that actively uses social networks to interact with its customers and support its brand, development, and market leadership in logistics. The article examines in detail how the company uses its social networks to publish information about its services, promotions, news, useful tips for customers, answers to customer questions, and support for its corporate values and social responsibility. Furthermore, the article discusses the peculiarities of SMM development during the war in Ukraine and the opportunities it may create for companies to express their support and increase their awareness.

GOVERNANCE TOKENS IN THE CONCEPT OF ELECTRONIC GOVERNMENT

Oleksii Dotsenko — 2023-12-28

The purpose of writing the article is to evaluate the effectiveness of the use of governance tokens in the concept of electronic governance. We have found that traditional approaches to resource allocation and decision-making in the field of e-government often face a number of challenges, such as bureaucratic difficulties, lack of transparency in processes, and limited means of stimulating active participation from stakeholders. Governance tokens are defined as a form of cryptocurrency that gives holders the ability to influence the decision-making, management, development, and ecosystem of a particular blockchain project or decentralized platform. The study described the main aspects of governance tokens. We revealed the essence of governance tokens in the context of electronic governance. Also, we have found that governance tokens can be implemented through various technologies, including blockchain, smart contracts, and other digital solutions. The study turned out that blockchain has recently become a transformative technology, one of the latest participants in the comprehensive ideology of «smart cities». We emphasized that the use of blockchain technology raises significant privacy concerns, as many e-government services involve personal data that must be properly protected to avoid situations where the blockchain could become the target of attacks by attackers trying to obtain unauthorized access to the personal information of citizens.

The study presented modern examples of the use of governance tokens in the world. A SWOT analysis was conducted to identify the advantages and disadvantages of using governance tokens in the concept of electronic governance. The study established that the use of governance tokens in e-governance has its advantages, such as decentralization of decisions and encouraging participation, but also its challenges, such as technical barriers and the risk of vulnerability to manipulation. We noted that when implementing this approach, it is important to carefully balance the benefits and risks to ensure effective and sustainable e-government.

STRATEGIES FOR ENTERING FOREIGN MARKETS BY DOMESTIC ENTERPRISES

Viktor Rozhko — 2023-12-28

The article examines topical issues of how Ukrainian enterprises can enter international markets, as well as the methods they can use to successfully enter the market. Global markets bring great challenges, but also new opportunities in the context of globalization and competitive environment.

This article examines various approaches to entering foreign markets, such as exporting, investing in other countries, franchising, alliances, and others. Both the advantages and disadvantages of each of these methods are considered. In addition, advice is provided on how to select and use these methods.

Attention is paid to the analysis of possible risks and problems that Ukrainian enterprises may face when entering foreign markets, and information is provided on how to minimize them.

Managers and owners of Ukrainian enterprises who are considering the possibility of going outside their country and looking for ways to successfully enter foreign markets will find this article useful.

This article describes the different types of exports, including direct and indirect exports, and considers the logistical and regulatory aspects that Ukrainian companies must manage. It emphasizes the importance of market research and conforming products and services to international standards.

The article explores the collaborative strategies of franchising and forming alliances. It examines the role of partnerships and franchising agreements in mitigating risks and leveraging the strengths of local partners.

Cultural nuances and market adaptation strategies are explored to help Ukrainian enterprises tailor their products, services, and marketing approaches to align with the cultural preferences and expectations of the target international markets.

A critical aspect of the article focuses on the identification and analysis of potential risks involved in international market entry. It provides a framework for risk mitigation, emphasizing the importance of due diligence, legal compliance, and a proactive approach to addressing challenges.