Economic Security of Entrepreneurship: Specifics of Management in the Context of Financial Instability

Lack of attention to the problems of the ES for entrepreneurial activity, even with high profitability, may make a business entity extremely vulnerable to various types of risks, which may entail its bankruptcy in the future. However, business growth causes a significant dependence on external sources of funding, which may entail a gradual loss of independence in making managerial decisions and affect its financial stability.

Crisis situations in the operation of business entities occur due to miscalculations in financial management, in allocation of resources and efforts to use them, and in plans. In other words, potentially profitable enterprises can go bankrupt only because they are unable to determine the onset of a crisis on time and have no clear plan of action in the event of crisis situations.

The key task for each business entity, both in the short, medium, and long term, is to achieve a certain steady state that would secure the development of the business entity, as well as balance among the main components of its activities.

The results of the study indicate that it is necessary to timely diagnose the financial condition of the company and the nature and depth of financial problems, which must necessarily include a diagnosis of the financial condition of the company and the likelihood of bankruptcy.

It is impossible to form the very essence of the strategy of financial recovery for a business entity and determine the composition and sequence of measures for its implementation without determining the causes of financial unrest. Deep understanding of the sources of the existing problems allows to clearly understand the nature of a specific crisis phenomenon and outline possible steps to overcome it.

In general, it must be noted that the foreign practice has many ways to prevent the bankruptcy of business entities. However, the strategic groups and primarily the state and the enterprise owners must be interested in the successful implementation of all the approaches discussed above. There is a need for a detailed study of the bankruptcy prevention methods and the development of practical tools for their improvement, as well as the formation of new approaches to the development of bankruptcy prevention systems in enterprises, taking into account the domestic specifics of conducting business and national economic and legal conditions.

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