Postgraduate, Danyluk Oksana
Vinnitsia National Agrarian
University, Ukraine
Investments and
innovations as a factor of development of agricultural enterprises
Trends of the
modern state of Ukraine's economy is quite clearly indicate problems in one of
the most important sectors of the country – agriculture. The most significant problem
of agriculture are insufficient or even lack of innovation. Innovation in
agriculture, primarily depend on the volume of investment that gets this or
that enterprise. To exit from a crisis condition it is necessary favorable
conditions and a favourable investment climate that will allow Ukrainian
farmers raise agriculture on essentially new level.
The
important stage of stable and competitive functioning of the agricultural
enterprises are moving on the path of innovation development. Innovative
development of agricultural enterprises is a process of change, which is based
on the deepening of enterprise's goals, its subsystems, the tasks of each
employee, who works in a team, improve their activities, improving business
processes for achieving the overall strategic goal. The management system must
provide integration of the goals, resources, personnel and their knowledge and
motivation, actions (processes and procedures of management), the continuous
development of the creative potential of employees, collective cooperation, etc
[1].
The
transition of the enterprises in the innovation way of development needs from
business owners significant investment. In case of shortage of funds the
enterprises appeals to the bank for a loan. According to the International
Finance Corporation, approximately 77% of agricultural producers use the loans
for the purchase of fuel and lubricants, 48% – to purchase plant protection
products, 36%-on purchase of seeds. Only 13% of businesses use loans for
technological renewal of production, and 6% on its expansion [2]. As you can
see, only a small part of agricultural credits goes to the expansion of
production and on innovation of enterprise, whereas this aspect is one of the
most important in the process of enterprise development. As you know, at
present, the interest rate on Cash loans in Ukraine is quite high and in the
case of the election of the investments in the form of a loan, the owner of
agricultural enterprises will prefer short-term loans that will meet the urgent
needs of the enterprise, but do not promote the long-term and stable development.
So most owners of agricultural enterprises are trying to attract domestic and
foreign investors, take part in all ukrainian tenders, etc.
According
to the World Bank's, agricultural potential of Ukraine used incomplete degree
due to the containment of the income of farms and the imperfect
policy of its
development, which led to decrease of private investment. Examples of
unreasonable measures policy are: restoring restrictions on the export of grain
(the most in 2010-2011, now these restrictions replaced export duties);
interference in the activities of the domestic food markets for the purpose to
control prices; the badly performance of the contracts, which prevented the
financing of manufacturing agricultural production and the introduction of mechanisms
of insurance of risks, as well as the unfinished process of land reform [3].
All the
above mentioned problems significantly affect on potential investment
attractiveness for both foreigners and domestic investors. Investment
attractiveness is a combination of internal and external factors of the
enterprise activity and a series of conditions, among which economic, political
stability and transparency, favourable climatic conditions, social improvement,
investment climate, which attests to the necessity and feasibility of
investment in activity of the enterprise, etc. Today, in conditions of economic
stagnation primarily suffers agribusiness.
Foreign
direct investment in 2013 in Vinnitsa region totaled 269.9 million USD. That is
by 8.7% increase over investments at the beginning of 2013 year and the per
capita amounted to 166.3 USD. From these investment, agriculture was allocated
about 13, 5 million USD [4].
The
dynamics of income investment in agriculture indicates a quite clear upward
trend of investment from year to year, but these investments are not enough to
provide all the needs of agriculture, particularly innovative.
The
development of innovation in the enterprise requires the development of
strategic planning and programs, that is the main driving force in the way of
innovative development of enterprise.
Strategic
planning is one of the economic triggers that aims to improve the indicators of
the long-term perspective activity of the enterprise to improve its
competitiveness, efficiency of operation, upgrade and expand production.
The strategic program of the enterprise except the
direction on a profitable activity in the long term, contains the
explìcation, namely the scientific explanation, plan for future
solutions that aim at sustainable development and stable position of the
enterprise in market, and forecasts the identification of enterprises in the
national economy.
Planning
the strategy of innovative development includes the following phases:
-
analysis of the external environment and forecast of development;
-
analysis of internal environment of the enterprise;
-
determination of the overall strategy of the enterprise;
-
definition of the innovative opportunities of the enterprise;
-
formation of the innovative strategic goals;
-
development of the concept of innovation strategy;
-
development and implementation of innovative projects [5].
The
creating of innovation strategy depends on certain external and internal
factors. External factors of influence include the conjuncture of the market,
investment climate, socio-cultural level of the population, natural-climatic
conditions, the development of information and computer technologies, producing
base of the country, etc.
Internal
factors of influence the following: forms of ownership of production and
administrative premises, the scale of production, marketing activities, the
availability and effectiveness of appropriate material and technical base of
enterprise, etc.
Considering
the variety of factors of influence, the owners of agricultural enterprises
would have to plan and develop a clear strategy in the first place to the
innovation lag took no more time than most factors are having an impact.
Increase
the efficiency of agricultural enterprises needs the use of different levers of
influence on their further development. The results of this activity and the
appropriate investment climate indicate on the vectors of innovation
development of agricultural enterprises. The introduction and implementation of
strategic planning, allow to choose the strategy of innovative development,
which will increase the efficiency and competitiveness of products of
agricultural enterprises in the long term.
References:
1. Pidkaminnyy I. M. Cystemni faktory
vplyvu na innovatsiynyy rozvytok pidpryyemstva [Elektronnyy resurs] / I.M.
Pidkaminnyy, V. S. Tsipurynda. – Rezhym
dostupu: http://www.economy.nayka.com.ua/?op=1&z=480
2. Dani
Derzhavnoho komitetu statystyky Ukrayiny za 2005-2013 rr. [Elektronnyy resurs].
– Rezhym dostupu: www.ukrstat.gov.ua
3. The
worldbank document October 2013 [Elektronnyy resurs]. – Rezhym dostupu:
http://www.worldbank.org/content/dam/Worldbank/
document/Ukraine-Snapshot-ukr.pdf
4. Dani
Vinnyts'koyi oblasnoyi derzhavnoyi administratsiyi za 2013 rik [Elektronnyy
resurs]. – Rezhym dostupu:
http://www.vin.gov.ua/web/vinoda.nsf/webgr_view/GrXJHHQ?OpenDocument&count=5&RestrictToCategory=GrXJHHQ
5. Plakida
V.T. Innovatsiynyy menedzhment [Elektronnyy resurs] /
V. T. Plakida. – Rezhym dostupu: http://eprints.kname.edu.ua/16718/1/KL,Innov.M-t,V.T.Plakida,N.M.Bohdan,pechatn.,26.04.10.pdf