scholarly journals The small and large business interaction within national economy’s gross added value reproduction in Ukraine

2018 ◽  
Vol 9 (3) ◽  
pp. 403-417 ◽  
Author(s):  
Sergei Kalchenko ◽  
Natalia Trusova ◽  
Diana Hrybova ◽  
Biliaiev Serhii
Keyword(s):  
Small Business ◽  
Labor Productivity ◽  
Economic Activity ◽  
Value Added ◽  
Added Value ◽  
Business Sector ◽  
Macroeconomic Conditions ◽  
Gross Value Added ◽  
Employment Share ◽  
Main Indicator

Research background: The main background of this article is the thesis that sectors of small business and large business respond differently to shifts in macroeconomic conditions. Purpose of the article: This article is devoted to empirical evidence whether there are signs of small business ability to compensate for negative trends, emerging in the sectors of large and medium-sized business in Ukraine. Methods: The dynamics of gross value added was chosen as the main indicator of small business potential to create compensatory effect for reduction in employment, share of value added and GDP, observed in sector of large and medium-sized business. For factor analysis of actual gross added value dynamics, the authors have built a multiplicative term, which expresses the different characteristics of economic activity in small, large and medium-sized business impact on the gross added value dynamics. The authors have also evaluated the specific impact of these factors using the method of chained substitution. Findings & Value added: The results obtained by factors analysis did not prove the thesis about small business capacity to compensate for the negative trends observed in the sector of large and medium business. The trend of economic activity in small business sector, trend of labor productivity, and trend in dynamics of added value share in small business output were causes of gross value added decreasing in the national economy during the period researched. These results can be interpreted as a sign that in case of unchanged quality indicators of economic activity in small business sector (in the first turn, the labor productivity and share of value added in output) this sector ability to compensate for negative trends in large business will be very doubtful.

scholarly journals THE POTENTIAL OF SMALL BUSINESS TO IMPROVE THE QUALITATIVE CHARACTERISTICS OF EMPLOYMENT: PROBLEMS OF ESTIMATION AND REALIZATION IN UKRAINE

2021 ◽  
Vol 1 (36) ◽  
pp. 430-441
Author(s):  
O. Marchenko ◽  
L. Khitsenko ◽  
A. Maliy ◽  
K. Chernenko ◽  
I. Verkhovod
Keyword(s):  
Small Business ◽  
Economic Activity ◽  
Small Businesses ◽  
Added Value ◽  
Total Output ◽  
Productivity Level ◽  
Main Indicator ◽  
The Face ◽  
The Impact ◽  
Qualitative Characteristics

This main objective of this article is defining capacity of small business to act as compensator of negative trends, emerging in sphere of employment in large and medium sized business of Ukrainian economy. Authors are focused not only on the availability of working places created in small business for persons, vacated from large and medium sized enterprises, but on the small business capacity to create economic preconditions for improving qualitative characteristics of employment in this sector and in whole economy. Authors have built the multiplicative term, which expresses impact, caused by different characteristics of economic activity in small and large and medium sized business on the payroll dynamics as main indicator of economic potential for improvement characteristics of employment in appropriate economy’s sector. The first factor — is the total number of enterprises, as the expression of entrepreneurs’ economic activity and their preference to working in the official (registered) sector of the national economy. Second factor — is the average number of employees in enterprise of certain sector, as the expression of scale of resources, accumulated by average entity for economic activity. Third, the scale of output, created by unit employee in certain sector, as the expression of productivity level of labor resource, involved in this sector. Fourth, the volume of payroll is affected by the distribution of total output (which was used for estimation of labor productivity) between different directions of productive consumption, i.e. the share of payroll in the total revenue of small enterprises. The results obtained by factors analysis didn’t prove the thesis about small business capacity to compensate the negative trends, observed concerning employment in sectors of large and middle business of Ukrainian economy. The trends prevailing in creation and distribution of added value in small business does not contribute to improvement of quantitative and qualitative characteristics of employment in small business and whole Ukrainian economy. This situation indicates that small businesses in the face of negative macroeconomic dynamics have been unable to accumulate resources (at least by concentrating resources on fewer businesses that will be able to ensure higher efficiency) needed to improve the impact of the small business sector on the reproduction of employment in the economy of Ukraine. In addition, the significant lag in the level of wages in small business from large and medium and from the average level of the economy remains an important element of the mechanism for reproducing the low level of wages in Ukraine.

scholarly journals CONCEPTUAL PRINCIPLES OF EVALUATION OF ACTIVITIES OF ENTERPRISES AND THEIR CAPITALIZATION BASED ON VALUE ADDED

2018 ◽  
Vol 20 (3(68)) ◽  
pp. 155-164
Author(s):  
YU.A. NAZARENKO
Keyword(s):  
Gross Domestic Product ◽  
Economic Activity ◽  
Value Added ◽  
Point Of View ◽  
Gross Regional Product ◽  
Conceptual Basis ◽  
Gross Value Added ◽  
Main Indicator ◽  
Adequate Representation ◽  
Regional Product

Topicality. In today's financial and economic analysis of the company's main indicators are output and profit, but they have significant disadvantages. The indicator "output" includes the results of the activities of suppliers of goods and services and, accordingly, does not provide adequate representation about the results of the enterprise itself. And the indicator "profit" reflects the interests of only the owners of the enterprise. Its use encourages lower wages, social security financing and employee training, and also indicates a contradiction between the interests of society and the owners of enterprises. All this determines the relevance of the definition of indicators that will ensure an adequate representation of the results of the enterprise and a single conceptual framework for assessing the results of economic activity at the micro, mega and macro levels. Aim and tasks. Analyze the existing indicators of assessing the effectiveness of the enterprise, to determine their main disadvantages. Consider the possibility of using the indicator �gross value added� as the main indicator of an enterprise. Conduct a comparative analysis of the possibility of using different variants of the indicator �value added� to assess the performance of an enterprise. Consider using the indicator �gross value added� as a conceptual basis for evaluating the economic activities at the micro, mega and macro levels.. Research results. As the main indicators of the enterprise, using "output" and "profit". The first indicator consists of gross value added and intermediate consumption. The latter is the result of the activities of other enterprises. In this case, the external contribution can be decisive, and therefore the indicator "output" does not provide adequate representation of the results of enterprises. Another key indicator of enterprise activity is profit. At orientation to it, payment of labor, financing of social security and training of employees is the cost of the enterprise and the less they are, the greater the profit of the enterprise. But in modern conditions, in order to ensure sustainable economic development of a separate enterprise and the country as a whole, it is important to consider that hired workers are carriers of intellectual capital. Loss or reduction of this capital may lead to more significant losses than loss of physical and financial capital. Under such conditions, it is advisable to use the indicator "gross value added" as the main indicator of the effectiveness of the enterprise. Based on this indicator, the main result of the country's economic activity (gross domestic product) and regions (gross regional product) is determined. Gross value added is a very important indicator in terms of meeting the needs of all stakeholders in the productive activity of the company's: employees, owners of the enterprise, the state. The "gross value added" indicator is the main indicator of the company's activities from the point of view of the interests of the whole society, and the indicator "profit" is the main one from the point of view of the owners of the enterprise. The presence of these two indicators reflects the contradiction between the interests of society and the owners of enterprises. The use of the indicator "gross value added" as the main indicator of the company's activity provides a single conceptual basis for assessing the results of economic activity at the micro, mega and macro levels. The study of literary sources suggests the use of different indicators "value-added" to assess the performance of the enterprise. The greatest recognition was given to the "Economic Value Added" (EVA), "Shareholder Value Added " (SVA) and "Market Value Added" (MVA). According to the results of the analysis of these indicators, it was concluded that their general disadvantage is that they reflect the interests of the owners of the enterprise, and not society. Conclusions. Gross value added has a greater analytical value than profit, because, firstly, it gives a more adequate representation of the results of enterprises, and secondly, it determines the potential for capital accumulation. The use of this indicator provides a single conceptual framework for assessing the results of economic activity at the micro, mega-and macro level, since gross domestic product (GDP) and gross regional product (GRP) consist of the gross value added of all institutional units (residents), respectively, of the country and region.

scholarly journals GROSS VALUE ADDED AS THE MAIN INDICATOR PRODUCTIVITY OF ENTERPRISES

2020 ◽  
Vol 22 (2(75)) ◽  
pp. 25-33
Author(s):  
V.F. GORYACHUK ◽  
Y.A. NAZARENKO
Keyword(s):  
Economic Activity ◽  
Capital Accumulation ◽  
Value Added ◽  
Business Owners ◽  
Conceptual Basis ◽  
Important Indicator ◽  
Gross Value Added ◽  
Main Indicator ◽  
Adequate Idea ◽  
Regional Product

Topicality. Traditionally, output and profit are used as the main indicators of enterprise productivity, but they have significant shortcomings. All this determines the relevance of the search for new indicators that will provide an adequate idea of the productivity of enterprises and a single conceptual basis for assessing the results of economic activity at the micro, mega and macro levels. Aim and tasks. To analyze the existing indicators for assessing the productivity of enterprises, to identify their main short comings. Consider the experience of the Republic of Belarus in the use of gross value added as an indicator of productivity of enterprises. Justify the use of gross value added as a conceptual basis for assessing the results of economic activity at the micro, mega and macro levels. Identify the main indicators for assessing the productivity of enterprises on the basis of gross value added. Research results. As the main indicators of the enterprise, use "output" and "profit". The first indicator consists of gross value added and intermediate consumption and therefore it depends on the performance of other enterprises. In this case, the external contribution can be decisive and therefore the indicator "output" does not give an adequate idea of the productivity of enterprises. Another key indicator of enterprise activity is profit. With a focus on it, wages, social security financing and employee training are the costs of the enterprise and the smaller they are, the greater the company's profits. But in modern conditions to ensure sustainable economic development of the individual enterprise and the country as a whole, it is important to consider that employees are carriers of intellectual capital. The loss or reduction of this capital can lead to more significant losses than the loss of physical and financial capital. Under such conditions, it is advisable to change the benchmark, namely the use of gross value added as the main indicator of productivity of the enterprise. It is on the basis of this indicator that the main result of economic activity of the country (gross domestic product) and regions (gross regional product) is determined. Gross value added is a very important indicator in terms of meeting the needs of all stakeholders in the performance of the enterprise: employees, business owners, the state. The indicator "gross value added" is the main indicator of the enterprise in terms of the interests of society as a whole, and the indicator "profit" - the main in terms of the interests of business owners. The presence of these two indicators reflects the contradiction between the interests of society and business owners. Conclusion. Gross value added has a greater analytical value than the indicators "output" and "profit", because, firstly, it gives a more adequate picture of the results of enterprises, secondly, it determines the potential for capital accumulation and thirdly provides a single conceptual basis for evaluation of economic performance at the micro, mega and macro levels.

scholarly journals THE SPREADING OF SMALL BUSINESS AND THE DYNAMICS OF WAGE SHARE IN THE VALUE ADDED BY SECTORS IN THE UKRAINIAN ECONOMY

2021 ◽  
Vol 5 (40) ◽  
pp. 556-568
Author(s):  
I. Verkhovod ◽  
D. Grybova ◽  
K. Chernenko ◽  
L. Khitsenko ◽  
S. Biliaiev ◽  
...  
Keyword(s):  
Small Business ◽  
Economic Activity ◽  
Positive Impact ◽  
Value Added ◽  
Jel Classification ◽  
Social Consequences ◽  
Added Value ◽  
Economic Activities ◽  
General Number ◽  
The Impact

Abstract. The article has been devoted to the assessment of the impact of the spreading of the small business on the position of the employees in the relationship of the distribution of the added value. It has been researched how the potential of the small business as for the mitigation of the negative social consequences of the deterioration of the macroeconomic situation has been realized in the different types of the economic activity. As the indicator of the spreading of the small business, the part of the small business in the general number of the employees has been used. As the indicator for the assessment of the position of the employees, it is the part of the wages consisting of the added value. The limitation of the domestic statistics does not allow modeling the dependence of these indicators neither with the help of the constructing of the panel (the necessary data is available only for ten types of the economic activity) nor the dynamic database (the data is available only from 2012 to 2015). Accordingly, we have resorted to the grouping of the types of the economic activity using the average of the geometric tempos of the growth of both indicators. For 2012 and 2015, the dramatic reduction of the part of the value for the wages in the complex of the added value of the economy as a whole and all, except only one of the types of the economic activities has been taken place in the Ukrainian economy. Such tendency suggests that the burden of the deterioration of the macroeconomic dynamics puts, mainly, on the employees, the recipients of the wages, depriving the domestic economy of the important sources of the resources for the investing in the development of the human capital. Using as the indicator of the spreading of the small business of its part in the general number of the employees, we haven’t got the empirical confirmation that the growth of the part of the small business in the structure of the employment improves the economic situation of the employees as for the proportion of the distribution of the added costs value (the growth of the part of the value on the wages in the complex of the added value of the generated types of the economic activity). Accordingly, we consider that in itself the redistribution of the general number of the employees in favor of the small business is not a sufficient condition for the improving of the features of the conditions of the reproduction of the personal resources of the Ukrainian economy. The results of the research haven’t confirmed the positive impact of the spreading of the small business on the realization of the economic interests of the employees in the process of the distribution of the added value between the wages and other elements. Keywords: small business, part of employees in small business, part of wages in added value, grouping of types of economic activities. JEL Classification D39, E24, H25 Formulas: 0; fig.: 0; tabl.: 3; bibl.: 22.

Estimation of economic specialization of Ukrainian regions in the context of global trends

2019 ◽  
pp. 24-31
Author(s):  
Svitlana Ishchuk ◽  
Lyubomyr Sozanskyy
Keyword(s):  
National Economy ◽  
Economic Activity ◽  
Commodity Prices ◽  
Value Added ◽  
High Tech ◽  
Agricultural Commodity ◽  
Macroeconomic Factors ◽  
Gross Value Added ◽  
Its Regions ◽  
Economic Specialization

The scale and deep heterogeneity of the national economy of Ukraine in the regional context make the relevance of scientific research in this thematic area. The purpose of the article is to determine the economic specialization of the regions of Ukraine by key economic activities contributing to the formation of gross value added, as well as outlining the potential risks to the national economy, taking into account the situation on world commodity markets. The results of the research showed that one of the consequences of the unstable dynamics of industrial production in Ukraine under the influence of geopolitical and macroeconomic factors is the reduction of industrial specialization of the economy of a number of Ukrainian regions. Thus, in 2017 the manufacturing was the leading economic activity (with the highest share in the gross value added created) in 11 regions, compared to 15 in 2012. So Poltava, Donetsk, Dnipropetrovsk and Zaporizhzhya regions are considered to be “highly industrial”. At the same time, the agrarian specialization of the economy of Ukraine and its regions deepened – in 2017 agriculture became the leading type of economic activity in 11 regions (compared to 7 in 2012). The most “agrarian” in Ukraine (with a share of agriculture in gross value added over 30%) in 2017 became the Kherson, Kirovohrad and Khmelnytsky regions. Increasing the level of “agrarianization” of the national economy in the context of volatility of agricultural commodity prices on the world markets poses significant risks for the socio-economic development of Ukraine and its regions. These risks are exacerbated by the high amplitude of fluctuations in the volume and structure of domestic agricultural products and the low degree of processing of raw materials. To improve the structure of domestic commodity exports (in the direction of increasing its share of products with a higher degree of processing) and to deepen its diversification, a number of measures should be carried out aimed at stimulating export activity of enterprises (industrial and agro-industrial), carrying out technical and technological re-equipment of industrial and export production bases, creation of new high-tech industries on the basis of the implementation of powerful innovation and investment projects.

scholarly journals Modern condition of small entrepreneurship development in Ukraine and efficiency of regulatory policies in this sphere

2019 ◽  
pp. 46-54
Author(s):  
Marta Barna ◽  
Svitlana Moroz
Keyword(s):  
Small Business ◽  
Labor Productivity ◽  
Regulatory Policy ◽  
Business Environment ◽  
Business Development ◽  
Entrepreneurial Activity ◽  
Business Sector ◽  
Small Business Development ◽  
Entrepreneurship Development ◽  
Regulatory Policies

Іntroduction. The stable functioning and qualitative development of enterprises of the small business sector largely depend on the state's effective regulatory policy in a modern economy. Necessary are regulatory measures of the state in relation to entrepreneurship development, increase their efficiency, improvement of methods of influence on entrepreneurial activity, which will help to equalize cyclical tendencies in the functioning of small businesses, increase their social role in the social and economic development of regions and the country as a whole. In this regard, it is expedient to study the current state of small business development through the prism of identifying the advantages and disadvantages of regulatory policy in this area. Methods. General scientific and special methods are used: statistical analysis and systematization; empirical synthesis and generalization in the process of research. Results. The article covers the existing manifestations of improvement of certain important economic indicators: increase of sales volumes, growth of the share of small business in GDP and in the total number of economic entities, increase of assets and capital, increase of labor productivity and social parameters. The shortcomings of small business development in Ukraine were identified, among them: a decrease in the number of small business entities, low financial and economic efficiency, weak financial and economic status of small enterprises, high level of profitability of economic activity, small number of employed and self-employed in this sector of the economy, reduction of available workers places, critical imbalances and deformations in the development of the small business sector in the spatial and sectoral aspects. Discussion. Since regulatory policy plays a strategically important role in the functioning of the small business sector, the study of its effectiveness and the identification of deficiencies will allow to form a high-quality business environment favorable for the activation of the entrepreneurial activity of the population, the emergence of new ones, and the improvement of the efficiency of business activities of the small business actors, balanced development of the entrepreneurial sector of the national economy as a whole. Keywords: development, small business, regulatory policy, financial and economic condition, labor productivity.

SOURCES OF THE DYNAMICS OF LABOR PRODUCTIVITY CHANGES IN AGRICULTURE IN EUROPEAN UNION COUNTRIES BASED ON ECONOMIC ACCOUNTS FOR AGRICULTURE (EAA)

2018 ◽  
Vol XX (2) ◽  
pp. 72-77
Author(s):  
Joanna Jaroszewska ◽  
Włodzimierz Rembisz
Keyword(s):  
Labor Productivity ◽  
Analytical Approach ◽  
Positive Impact ◽  
Labour Productivity ◽  
Value Added ◽  
Agricultural Labor ◽  
Gross Value Added ◽  
Productivity Factor ◽  
Labor Inputs ◽  
The Empirical Analysis

The purpose of this analysis is to illustrate sources of dynamics of labour productivity factor performance based on the analytical approach adopted. The dynamics of gross value added and employment in agriculture were shaped to the dynamics of labor productivity changes. Derived analytical approach to the sources of dynamics of changes in labour productivity has been illustrated empirically. The empirical analysis was based on EU ROSTAT data. Economic Accounts for Agriculture and Statistics of Agricultural Labor Inputs. The positive impact of both sources of labor productivity growth and gross value added a tendency towards greater stability for the EU -15 countries has been demonstrated, the neutral nature of direct payments for changes in labor productivity was found.

scholarly journals Possible causes of the lowest labor productivity in the European Union

2021 ◽  
Vol 92 ◽  
pp. 07026
Author(s):  
Philip Ivanov ◽  
Mariana Usheva
Keyword(s):  
Labor Productivity ◽  
Global Economy ◽  
National Level ◽  
Value Added ◽  
Added Value ◽  
Global Markets ◽  
The European Union ◽  
Human Motivation ◽  
World Markets ◽  
Workplace Motivation

Research background: Numbery of researches of the world markets, directed the attention to the link between the low labor productivity and the competitiveness of the enterprise. Consequently, low competitiveness on microlevel, leads to similar levels of competitiveness on macrolevel. In particular labor is the main source for added value in different industries. Therefore, everything linked to the effectiveness of the labor is crucial. Workplace motivation is one of the most important aspects of the economic system of enterprises in the global economy. The motivators used on the workplace, could be, and often are, very important in the aspect of effectiveness of the labor. Therefore, examining the mostly used motivators on a workplace, could give very valuable information to theorist and practitioners. Purpose of the study: Showing the ever-worsening problem of, and finding the causes of the low labor productivity in Bulgaria, as a main cause for the low competitiveness on the global markets. Finding the most important motivators according to workers in governmentally owned enterprise. Methods: The methods used in the current research are metanalytical for attestation the labor productivity on national level. Survey among workers, using 5-point Likert scale. Findings & Value added: We describe the most important motivators in a Bulgarian governmentally owned enterprise. Our main finding is related to the link between human motivation and the productivity of the labor.

scholarly journals Self-sufficiency as an object of management in the system of economic support of forestry enterprises

2021 ◽  
pp. 77-83
Author(s):  
М.I. Pyrshin
Keyword(s):  
Economic Activity ◽  
Value Added ◽  
General System ◽  
Labor Cost ◽  
Added Value ◽  
Net Income ◽  
Internal Factors ◽  
Self Sufficiency ◽  
Economic Support ◽  
Forest Enterprises

The article investigates the essence of the concept of «self-sufficiency» of the state of the enterprise development. The main characteristics and conditions of economic activity functioning are offered. On the basis of the conducted analysis the external and internal factors that negatively affect the level of self-sufficiency of forestry enterprises are determined. It is established that today, most forest enterprises have a very low level of the management efficiency in terms of profits, investment formation due to depreciation policy and labor cost indicators. At the same time, in relative terms, this sector of the economy is characterized by the highest tax burden due to the payment of rent for special use of forest resources and payments from profits on two calculations of the general system of taxation and deductions from net income for state-owned enterprises. Summarizing the results of scientific research and applying content analysis, it is proposed to define the essence of the concept of «self-sufficiency» of forest enterprises as their ability to maintain and strengthen stable positions in certain market segments, optimize performance indicators that form added value and its structural elements on the level of systematic independent investment opportunity, and ensure the development of the relations of expanded reproduction of economic activity on the basis of rational use of its potential, as well as the creation of conditions for its increase. It is proposed to use the model of factor analysis of the ratio of value added, labor cost and net income to assess the level of self-sufficiency of forestry enterprises.

scholarly journals COMPLEX MECHANISM OF STATE REGULATION OF LABOR PRODUCTIVITY IN THE HEALTH PROTECTION SECTOR

2018 ◽  
Vol 64 ◽  
Author(s):  
S.H. Kryvusha
Keyword(s):  
Health Care ◽  
Labor Productivity ◽  
Health Sector ◽  
Value Added ◽  
State Regulation ◽  
Health Protection ◽  
Conceptual Scheme ◽  
Complex Mechanism ◽  
Gross Value Added

The article focuses on increasing the role of health care in increasing the productivity of labor employed in the economy, in connection with what is justified the need to develop a mechanism of state influence on its growth. The calculation of the labor productivity of the health sector based on the indicators of gross value added and the number of employed. The conceptual scheme of the mechanism of state influence on labor productivity in the sphere of health protection, which defines its main methods and instruments of state regulation in this sector, is proposed.

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