CAPITALIZATION ON MICRO- AND MESO-LEVEL: CROSS-CUTTING, PROBLEMS, METHODS OF IMPROVEMENT

Abstract

Increased practical interest to the problem of capitalization in recent years, as well as the theoretical and methodological ambiguity of a number of issues determine the feasibility of further scientific research in this area, primarily, the capitalization of the economy of the region and its primary links – enterprises. The purpose of this article is to investigate and to prove the interconnection between capitalization of enterprise and capitalization of the region’s economy, to establish their problems in current conditions and to determine the methods of improving the situation. The methodological base of the research was the developments of economic science according to the study of entrepreneurial activity, economics of enterprise, regional development, regional economy and capitalization. Results. The influence and socio-economic significance of activity of enterprises of various spheres of production on capitalization of the region’s economy is considered. The role of enterprises in capitalization of the region’s economy according to its functions (transformation function; accumulation function; reproductive function; investment function; stimulating function; strategic function; information function; forecast function; distributive function) is systematized. Also, within each of the functions the main problems of capitalization of enterprises in modern conditions are identified, which ultimately hinder the capitalization of the economies of the regions of Ukraine. The main directions of capitalization of enterprises (effective formation and usage of capital by enterprises; formation of a positive image of enterprises; increasing the investment attractiveness of enterprises; financial restructuring of enterprises) are substantiated on the way of capitalization of the region’s economy. The main methods of capitalization of enterprises are proposed. Conclusion. Capitalization as a characteristic of growth at the micro level affects on the parameters of economic growth in the region. Therefore, increasing the level of capitalization of domestic enterprises is an important factor in the development of regional and national economies and overcoming the current economic crisis in Ukraine