ANALYSIS OF MODERN APPROACHES TO DEFINING THE CONCEPT OF FINANCIAL SUSTAINABILITY OF ENTERPRISE

Abstract

Market economy provides a broad freedom of action for enterprises. However, each company not only has the ability to dispose of its resources to achieve the highest profit, but also is compelled to confront the risks that can lead to bankruptcy. The company’s ability to counteract the threats that can lead to bankruptcy is called “financial sustainability of the enterprise”. The purpose of this article is to find out what modern scientists mean by the concept of financial sustainability, and which enterprise can be considered as financially sustainable company.
The opinions of scientists diverge as to what exactly represents the concept of financial sustainability. There are many variations of definitions that differ significantly from one another. In addition, this concept is often identified with a number of other terms, such as “financial stability”, “financial equilibrium”, “economic sustainability”, “financial condition”.
This article discusses the definitions of “financial sustainability of enterprise”, calculates the related concepts that are used most often in determining this term. The arguments and views of various scholars on the separation of the term of financial sustainability from other independent categories are presented.
In this article we collected a general view of scientists about the categorical connection of this concept with other terms. The closest concept is the “solvency”, because it is used most often, while scientists give quite convincing arguments. In the article the author proposes his own definition of this concept. In conclusion, we found that the concept of “financial sustainability of enterprise” can not be expressed by one simple indicator, it is interpreted by scientists in different ways and is complex and multifaceted.