Economic and management approach to defining effective projects for enterprise development under risks and uncertainty

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Enterprise development is dependent on the implementation of projects that contribute to improving economic performance. Considering this the need to apply the economic and management approach to the definition of effective projects under risks of reduced enterprise profitability due to the uncertain economic environment is justified. The study used scientific abstraction, formalization, causal relationship, time series analysis, variational range-based standardization, parameter minimization according to maximum and minimum values. The approach is created to evaluate the profitability dynamics of the production, management and finance subsystems of the enterprise, to monitor the deviations in the established corridor of their sufficient levels, to systematically control for the dynamics of the enterprise development to form the effective project portfolio, as well as to manage the risk reduction for projects that are inappropriate for development. The approach approbation, using Ukrainian machine-building enterprises as an example, has found enterprises with the level of development dynamics lower than the corridor determined. This indicates the risks of implementing inefficient projects and the need for systematic adjustment of their portfolio. The enterprises whose business operations belong to the fourth technological paradigm should implement projects to increase the profitability of the production and management subsystems, and those from the fifth paradigm should execute projects for the rise in the finance subsystem profitability.

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    • Figure 1. Structural-logical scheme of economic and management approach to defining effective projects for enterprise development under risks and uncertainty
    • Figure 2. Graphical interpretation of the monitoring of the enterprise development dynamics to diversify projects in the enterprise portfolio
    • Figure 3. Distribution of machine-building enterprises according to the level of the production subsystem dynamic development in terms of project implementation consequences, %
    • Figure 4. Distribution of machine-building enterprises by the level of management system dynamic development in terms of project implementation effects, %:,
    • Figure 5. Distribution of machine-building enterprises by the level of financial system dynamic development in terms of project implementation effects
    • Figure 6. Distribution of machine-building enterprises according to the effectiveness of the projects executed in ensuring the development dynamics, %
    • Table 1. Target values of the enterprise production subsystem development to form an effective project portfolio
    • Table 2. Target values of the development of the enterprise management subsystem to form an effective project portfolio
    • Table 3. Target values of development of the enterprise financial subsystem to form an effective project portfolio
    • Table A1. Ukrainian machine-building enterprises under study