FINANCIAL CONDITION AS THE BASIS OF IMPLEMENTATION OF INNOVATION AND INVESTMENT PROJECTS

Abstract

The financial state of a business entity is rightly considered one of its most important characteristics, and in financial management, financial state management is the main object of research. The problem of managing the financial condition of business entities is not new in financial science, but the related theoretical concepts and practical aspects of implementation are constantly in the field of view of scientists and practitioners. The purpose of the article is to generalize theoretical and methodological approaches to the essence of the concept of «financial condition» and to identify its role in the innovation and investment process. The purpose of the article is to generalize theoretical and methodological approaches to the essence of the concept of «financial condition» and to identify its role in the innovation and investment process. The article presents an overview of theoretical approaches to the definition of the concept of «financial condition» and highlights the key aspects of its differentiation. It was found that the author's approaches to the definition of the concept of «financial condition»define it as: a system of financial relations; set of indicators; complex concept (complex characteristic); the enterprise's ability to conduct economic activity; the result of the interaction of all elements of the system of financial relations. Two approaches are distinguished, which are used to understand the category «financial condition» - scientific-theoretical and practical-analytical. The study showed that according to any approach (scientific-theoretical or practical) in the interpretation of the concept of «financial condition», the key aspect is the goal (task), for the achievement of which it is necessary to determine the financial condition of the economic entity. It has been established and substantiated that the financial condition is a key characteristic for the urgent implementation of investment and innovation projects, namely in the areas of making management decisions regarding the possibility of making investments and introducing innovations, identifying the real financial situation, which allows for strategic planning with the aim of implementing innovations and ensuring opportunities to attract external sources of financing for innovation and investment projects.