Integral assessment of business environment security

  • Released On
    Monday, 25 December 2017
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ppm.15(4-1).2017.12
  • Article Info
    Volume 15 2017, Issue #4, pp. 280-292
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    2 articles
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The methodological approach to the integral assessment of business environment security is developed in the article; the blocks of factors of business environment security are identified and the indices which affect the formation of economic security of entrepreneurship are analyzed. The integral indicator for assessing business environment security is based on 6 indicators, which are the most significant elements of the business environment formation: the availability of basic economic freedoms, the favorable organizational conditions for doing business, the state of political and legal system, the level (quality) of life, resource provision and infrastructure development, innovation development. A comparative analysis of the integral indicator of business environment security of Ukraine with the Baltic countries, Black Sea region countries and the Visegrad Group countries is carried out. The article identifies interdependence between the business environment security and the share of unprofitable enterprises. The functional relationship of the business environment security with the number of bankrupt enterprises and the level of enterprises losses is substantiated as well. The model shows that the increase of environmental security leads to the decrease of a number of bankruptcies exponentially. The negative and positive factors which influence the formation of economic security of entrepreneurship are revealed.

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    • Figure 1. Dynamic of the integral index of business environment security in Ukraine and the countries-leaders of the groups
    • Figure 2. Business environment security in Ukraine and the countries-leaders of groups in 2016
    • Figure 3. Dynamic of the integral indicator of business environment security in Ukraine and “countries-outsiders”
    • Figure 4. Business environment security in Ukraine and “countries-outsiders” in 2016
    • Figure 5. Stability of the level of business environment security, %
    • Figure 6. Relationship between the level of business environment security and the share of unprofitable enterprises in Ukraine
    • Figure 7. Relationship between the level of business environment security and the number of bankrupt enterprises in Ukraine
    • Figure 8. Relationship between the level of business environment security and the volume of enterprise losses
    • Table 1. Elements of the integral index of business environment security