Financial planning of innovative entrepreneurs in the system of institutional environment and public administration

Abstract

Innovative entrepreneurship is a key link in the transfer of innovation, which involves the movement of knowledge from the scientific sphere to the economic sphere in order to transform theoretical knowledge into new products and services that will have a positive effect in increasing social welfare. Innovative entrepreneurship functions in conditions of high turbulence of socio-economic processes, in particular changes in the institutional environment and the development of public administration in Ukraine. And there are certain external and internal restrictions in the process of development of innovative entrepreneurship and some of them are associated with inefficient financial management, which does not allow to create appropriate conditions for the intensification of innovative entrepreneurship. Financial planning is a main component of financial management of any business entity, and combines such elements as: analysis of current financial performance, definition of strategic financial objectives of the entity, development and implementation of the plan financial measures, analysis of the results of implementation of selected financial measures and their adjustment. The aim of the article is to study the methodology of financial planning of innovative entrepreneurship in the institutional environment and public administration, development of an integrated indicator of innovative entrepreneurship effectiveness and forecasting of financial efficiency using methods of economic and mathematical modeling. To conduct the research, empirical data were obtained from the State Statistics Service of Ukraine. The specified data characterize the innovative entrepreneurial activity, the economic efficiency of innovation for the period from 2015 to 2020. The collected data made it possible to build a forecast that allows to identify possible changes in the financial efficiency of entrepreneurship, in particular, helps to develop alternative measures. A parabolic trend is used for building a predictive model. The methodology of financial planning of subjects of innovative entrepreneurship in the system of institutional environment and public administration, development of an integrated indicator of effectiveness of innovative entrepreneurship and implementation of financial efficiency forecasting using the built economic and mathematical models was analyzed. Analysis of the integrated performance indicator of innovative entrepreneurship indicates that performance is characterized by significant fluctuations. The indicators calculated with the help of economic and mathematical models indicate the positive dynamics of the volume of sold innovative products. Also, positive dynamics is observed in revenues from innovation changes. The indicators calculated using economic and mathematical models indicate positive dynamics of the volume of implemented innovative products, which will amount to 1883.35 million € in 2021 and 2560.34 million € in 2022. Positive dynamics are also observed in the income from innovation activity, so the forecast value in 2021 is 1335.08 million €, and in 2022 - 2016.77 million €. According to forecast data, the profitability index of innovative products in 2021 is 2.63, and in 2022 - 3.71.