Entrepreneurship and Sustainability Issues

23-34

Authors: Ieva Astrauskaitė, Arvydas Paškevičius

The perception of alternative finances is stimulating the global financial markets and competition between banking funding and non-banking one. In order to encourage the demand of alternative funding the overall studies and researches concentrate on different relationships of economic indicators, describing lending, savings, prosperity, GDP per capita, etc. However, there is still a lack of encouragement to the market participants to provide the market with ideas and projects, which could be crowdfunded. In order to put the efforts for the better acknowledgement and demand incentives this paper was worked up. With the aim to introduce the key performing indicators (KPI’s) for successful projects, which were financed through crowdfunding platforms, the comparative analysis was made, using Pearson correlation. It has been found, that narrative of the project and visualization are among the successful factors for crowdfunding. However, the requested amount of money, location or category of the project seemed to have lesser effect to success of crowdfunding. The results of the research are adoptable for initial offerings in crowdfunding platforms, potential projects owners, as well as the further researchers developing the topic of crowdfunding. With the strong novelty and broad (regionally) sample, the research represents its value and contributes to the theoretical and empirical background of crowdfunding.

44-59

Authors: Egidijus Bikas, Vitalija Saponaitė

Modern scientists speak and write about investor’s psychological factors, decision-making processes, and the importance of financial behavior in the investment process. One of the modern theories – an efficient market – focused on rational investors. According to it, investors rationally manage their investment portfolio; rationally respond to constantly changing information and make rational changes to newly acquired information. However, the prospect theory has proven that irrational investor decisions play an important role in the investment process. An assessment of irrationality of investors is important for governments, fund managers and investors, eventually for all participants of financial market. For some, this is an opportunity to additional funds, to receive higher income, for others, would provide the added value, as they could identify themselves as investors. Understanding how decisions are influenced by behavior it is important both for self-education and investment decision-making. The article aims to identify the typology of the Lithuanian investors by distinguishing behavioral deviations that influence the behavior of investors’ decisions in the stage of the country’s economic growth. The research will identify types of physical entities, behavioral deviations, motives of investment decisions made. The qualitative and quantitative methods are used to perform the research: investor inquiry, correlation and regression analysis.

77-86

Authors: Inga Būmane

The financial statements of a company are used by external users as the main source of information in order to take financially informed decisions. The author of the article has summarized the study on one of the financial statements – a statement of comprehensive income (CI statement) that enables creditors and investors to assess the process of the formation of company’s profit and profitability. Purpose: on the basis of the study of the specificity of the preparation of the statement of comprehensive income to analyze and evaluate the influence of CI statement items on the profitability of Latvian companies. In order to achieve the purpose, the author has structured the research in two parts. In the first part of the article the author describes the theoretical framework of the core, type and content of CI statement and describes the components of other comprehensive income. In the second part of the article the author has analyzed the methodology for the preparation of CI statement at Latvian companies and impact of other comprehensive income on profitability. The subject of research was a sample of 26 financial statements of Latvian companies. The author applied quantitative and qualitative research methods generally accepted in economics: classification, comparative analysis and synthesis, statistical methods. The essence of research findings is that the core of items of CI statement and the division into the reclassified and not reclassified items of other comprehensive income (OCI) are important for the company`s financial result – evaluation of profit. Research showed that most of Latvian companies under research were influenced by reclassified items; besides, positively influenced - profitability ratios of ROE and ROA. The author believes that, when evaluating the profitability of assets and the equity of the company, the financial analysts shall take into account the reclassified items of OCI, and the calculations shall be performed using the modifications of ROE and ROA formulas.

100-114

Authors: Jonas Mackevičius, Ruta Šneidere, Daiva Tamulevičienė

Bankruptcy of enterprises is macroeconomic issue and a phenomenon of a dynamic and competitive market economy. It results in a lot of negative effects not only for the enterprise and its employees but also for other enterprises and institutions, as well as the state and society. The aim of the article is to carry out the analysis of bankruptcy of Latvian and Lithuanian enterprises. No such study has been carried out so far. Article analyses the dynamics of Latvian and Lithuanian enterprise bankruptcy, which manifest themselves in larger waves in certain periods and the factors that influence them. From 1993 – when the bankruptcy of enterprises was started to be officially registered – to 1 January 2017, 21,503 Latvian enterprises and 20,933 Lithuanian enterprises went bankrupt. The largest wave of bankruptcy took place in the period of 2008-2010, when the financial crisis started in both countries. The comparative analysis of Latvian and Lithuanian enterprise bankruptcies was carried out according to the economic activity types and enterprises legal forms. In both countries mostly wholesale and retail trade, repair of motor vehicles and motorcycles enterprises (30% on average) go bankrupt, while construction enterprises (13% on average) are the runners-up. Initiators of enterprise bankruptcy are studied, numbers of Latvian and Lithuanian enterprises that went bankrupt are compared to the overall number of companies in the country. The data of this analysis are valuable when forecasting enterprise bankruptcy and preparing the measures to avoid it. The main research methods: analysis of scientific literature and statistical data, case analysis, methods of collection, grouping, comparison and generalization of information.

125-138

Authors: Judita Narkunienė, Aurelija Ulbinaitė

The evaluation of a company’s performance is an integral part of the management of every company, which allows determining the impact of business management decisions on the performance results, as well as the direction of the results and the decisions that need to be made to improve them. Traditionally, a company’s performance is evaluated on the basis of an analysis of financial performance indicators, but it is noted that in today’s dynamic business environment the timely control of the performance is crucial, thus, there is an increasing attention on non-financial performance indicators. The aim of the article is to investigate and compare the modern methods for company performance evaluation that are based on the analysis of financial and non-financial performance indicators. The research is carried out using systematic analysis of scientific literature, comparison, and aggregation methods. First of all, the article unfolds the essence of the concept of the company performance evaluation and highlights the differences between traditional and modern performance evaluation systems. Moreover, the advantages of non-financial performance indicators are compared with financial indicators. Furthermore, a classification scheme for performance evaluation methods is provided; by identifying their main advantages and disadvantages the most popular and widely used modern performance evaluation methods are overviewed: economic value added method, balanced scorecard, performance prism, performance pyramid, six-sigma model and multi-criteria company performance evaluation method. Finally, according to certain criteria, a comparative analysis of the latter methods is performed. The comparative analysis confirms that non-financial performance indicators complement financial indicators; therefore, in the process of a company’s performance evaluation, modern performance evaluation methods, combining financial and non-financial performance indicators and allowing the performance to be evaluated both quantitatively and qualitatively, should be used. However, there is no single method that would be appropriate for all companies, so further work can be targeted at establishing a multi-criteria performance evaluation method that would satisfy the needs of a particular business’ activity and targets for evaluation.

176-189

Authors: Deimantė Teresienė

Central banks play an important role in financial system and are an essential part of overall public sector finances. Monetary policy responsibilities are common to all central banks. Financial stability is another area of central bank activity. Central banks provide financial stability by controlling the actions of the commercial banks. Central banks also are as lenders of last resort and payment mechanism managers. But the key issue in this article is to concentrate on foreign reserves management as a source of bank profit. The aim of this research is to create a performance valuation framework which could help to compare foreign reserves management results in different central banks. Quantitative and qualitative reasearch methods are used in this article. For quantitative analysis various statistical techniques are used and for qualitative analysis the main method is a case study. There are a lot of measures for commercial banks sector valuation but in practice we see a lack of analysis tools for central banks performance measurement. Foreign reserves management is an on-going process aimed at maximizing expected return over a defined investment horizon. Valuing foreign reserves management results we should concentrate on specified risk budget and the opportunity to have different kind of assets in the investment portfolio.

211-225

Authors: Svetlana Vegera, Elena Malei, Renata Trubovich

Since the end of the 20th century, in the context of developing rational consumption of natural resources, energy efficiency and solving environmental problems related to the management and burial of municipal waste, there is a need to take into account the consumption of natural capital, its degradation, as well as to determine the growth of gaseous energy resources in assessing economic growth in both the whole country, and in a separate organization that buries municipal waste and extract biogas. Therefore, the authors set forward the objective of the research: to develop the account of gaseous resources stocks (biogas) and assimilation resource as elements of natural capital. For the purpose of the achievement of aim, the authors apply generally accepted economic research methods. The article considers the economic essence of assimilation and gaseous energy resources of municipal waste as new objects of accounting. Both accounting objects are considered as long-term assets. The authors propose an accounting model for natural resources, which provides with information on the consumption of ecosystem capital and its degradation. It is proposed to estimate the assimilation potential of the environment at fair value (according to the current market) in the presented accounting model. As a result of the study on the possibilities of applying parallel accounting for long-term natural resources, we propose to account the gaseous resources in two assessments: on the one hand, based on actual costs associated with investing in the formation and attraction of alternative technogenic energy resources in economic activity, on the other hand - at the fair value (current market value) of the methane stocks.

253-267

Authors: Alexander Borisov, Diana Narozhnaia, Elena Tarando, Alexey Vorontsov, Nikolay Pruel, Olga Nikiforova

The article analyzes the results of an empirical study of the causes of destructive motivation of personnel in Russian commercial organizations. The study was conducted by questioning two hundred employees of commercial organizations in Moscow. The purpose of the research is to reveal the opinion of employees on the causes of destructive motivation of personnel and measures for their elimination. The empirical study revealed the influence of organizational factors on the existence of destructive personnel motivation in organizations, such as: labor organization; remuneration system, benefits and career management; control over the activities of employees; group communications and organizational culture. The study revealed the impact of personal characteristics of employees on destructive motivation. In the course of the survey, the degree of influence of various groups of reasons on the demotivation of employees in the studied commercial organizations was revealed, as well as on the micro-political motivation of employees. In the course of the questionnaire, assessments of the main forms of destructive behavior were obtained, which allowed for developing more detailed recommendations for limiting this negative phenomenon. The practical significance of the research is the results of an analysis of various factors of the internal environment of the organization and the personal characteristics of employees that are significant for the formation of destructive motivation of employees of Russian companies in a transitional economy.

289-310

Authors: Saule Ospandiyarovna Akhmetova, Mariya Shayahmetovna Suleimenova

On the basis of the conducted researches the strategic directions of development of the enterprise are scientifically based. The conceptual principles of creation and functioning of processes at Fudmaster Company JSC are formulated and the structural model of network of processes is created. The functional model and the mechanism of creation of process including its identification, formation, management and improvement are developed. The possibility of use of scientific methodology of FMEA analysis in technology of preparation of production "Kefir from Fudmaster" is shown. On the basis of the offered scientific and methodical approach the process of the production of fermented milk product "Kefir from Fudmaster" is structured. The standard of the organization for formation of processes of dairy production is developed and evidence-based.

329-341

Authors: Yevhen Mishenin, Inna Koblianska, Viktoriia Medvid, Yuliia, Maistrenko

The impossibility to define the clear and uniform operational guidelines for the implementation of sustainable development policy globally proves the necessity to consider the regional level as the key in terms of developing and implementing modern models of sustainable development, in particular, eco-industrial parks and circular economy projects. It substantiates the need to develop and use the modern innovative methodological approaches to the formation of the relevant regional policy. The circular economy proceeds from the flow-based understanding of the character of the production, distribution, exchange, and consumption of goods in the socio-economic system and, consequently, the turnover of resources and energy within this system. It determines the need for complex analysis and regulation of material and energy flows. These issues constitute the scope of research of industrial ecology and, at the same time, logistics. This causes the question of the integration of these disciplines within the system of scientific and methodological support of the processes of formation and implementation of the policy of sustainable region's development that is as yet little investigated. The article studies the theoretical and methodological foundations of the industrial ecology and logistics, such as objects, goals, methodological principles and approaches, methods, organizational forms, etc. On this basis the ontological unity of these disciplines is brought to light: they simultaneously study the different, mutually reinforcing aspects of the industrial system's performance through the accentuation of the flow form of the organization of the movement of resources, information, and energy as an object of regulation in such system. The integration of the "environmental" vision of material flows of the regional system, as is characteristic of the industrial ecology, with their "economic" content, which characterizes the structure of the regional economic system and constitutes the object of the logistics studies, should be considered as the basis for the formation and implementation of the policy aimed to achieve the region's sustainable development goals.

356-370

Authors: Ovidiu Niculae Bordean, Adrian Sonea

The present study aims to determine the perceived satisfaction of students enrolled in a tourism undergraduate program and to assess the impact perceived skills have on their intentions regarding future careers. This is a quantitative study based on the analysis of primary data gathered through a questionnaire. A sample of 114 students in their second year of study from the biggest university in Romania completed the questionnaire. The data collected were analysed using descriptive analysis, ANOVA and regression analysis. An ANOVA test and post hoc Tukey test were therefore used to determine differences in the means and variance of satisfaction, with the grade levels and course attendance set as the independent variables. A regression analysis was then conducted to identify the connections between perceived skills and the future career path of tourism students. The results show that students do not perceive satisfaction differently according to their grade levels, although there may be a relationship between levels of satisfaction and class attendance. Optimism was found to predict whether students would be interested in starting a business, while attitudes towards leadership and networking were found to predict whether students wished to pursue a management career.

398-410

Authors: Petrenko Elena, Sergey Pizikov, Nurlan Mukaliev, Anuar Mukazhan

Kazakhstan now actively supports the development of entrepreneurship and conducts diversification of the economy. However, the recent crisis has changed the world market and business performance in the country has deteriorated significantly. The presented research studies the directions and reasons for the growth of costs. Based on a mass survey of entrepreneurs, the impact of production and transaction costs on the activities of businesses was assessed. Reducing administrative barriers should also reduce costs across the entire front line between government and business. However, in the process of decisions development on priority areas for reducing costs, evaluations of experts unite and lose coherence. Economic assessments turn into political ones, while the degree of consensus (concordance) of opinions is low. This limits the reliability of the final data and the possibility of their application. In this study, the consistency assessment was carried out using the concordance coefficient.

429-445

Authors: Andrey Rogalev, Ivan Komarov, Vladimir Kindra, Olga Zlyvko

his paper provides a comparative entrepreneurial analysis of modern combined-cycle power generation technologies and future-oriented high-efficiency oxy-fuel combustion cycles with zero emissions. Considering the main criteria for sustainable development, we identify the generation technology that provides the lowest cost of electricity supply and the maximum economic efficiency of investments with equally high environmental indicators. Based on a comprehensive literature review and comparison of the technical and economic parameters of modern and forward-looking generation technologies under different economic conditions, the paper develops and presents the path of increasing the technical level of generation technologies, corresponding to the conditions of sustainable development at each moment of time. Furthermore, the paper analyses the technical and economic characteristics of the combined-cycle technology successfully applied in the world's energy systems and advanced oxy-fuel combustion cycles. In addition, the paper proposes a multifactorial economic-mathematical model that allows to evaluate the performance indicators of any of the considered technologies in accordance with the criteria for sustainable development.

456-471

Authors: Karine Oganisjana, Svetlana Surikova, Konstantins Kozlovskis, Anna Svirina

Social innovation brings to inclusion and wellbeing, improving the quality of life and socio-economic performance and enhancing the society’s collective power and resources. Therefore, it is of utmost importance to promote social innovation processes in any society, providing research for getting the understanding of different aspects of it, including the main actors and the extent to which they are involved in social innovation. The research presented in this paper reveals the main stakeholders of social innovation and analyses the methodology elaborated by the authors for determining the involvement of the society in social innovation processes at financial, organisational and informative levels. Corresponding indices defined and determined for the case of Latvia reveal that the level of overall involvement of the society in social innovation processes here is lower than average.