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National Interests: Priorities and Security
 

Investment policy of financing of industrial enterprises

Vol. 10, Iss. 37, OCTOBER 2014

Available online: 8 October 2014

Subject Heading: STRATEGY OF ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 23-30

Tsyganov D.A. LLC CatranGEO, Moscow, Russian Federation
dimon-2260@mail.ru

Importance My article explores the modalities for the functioning of the industrial sector of the Russian economy and assesses the effectiveness of its methods of funding.
     Objectives I consider the development of the trends of investment policies of funding of the Russian manufacturing using a variety of resources to enhance the economic potential of this sector. Based on the statistical surveys data and comparative analysis of foreign experience, I assess the financial and institutional conditions of the Russian industrial enterprises development, which resulted in identifying of the main threats and risks of the financial stability loss.
     Methods I describe the trends of the Russian industrial enterprises taking into account the regional specifics, which specify the issues of the low competitiveness, insufficient investment, reductions in manufacturing of machinery products, the lack of strategic management within the operating activities and the high tax burden on business. In order to bring the industrial sector to the stage of the sustainable development, I identify the trends of the strategic development in order to overcome the economic threats and enhance economic growth. In addition to the above, I propose the management techniques in the development of a long-term strategy of the State industrial development. To solve these tasks, I recommend the funding mechanism, taking into account the criteria for assessing of the economic security of the economy sectors. The most important criteria are as follows: scope of finance of operating assets, level of profitability, productivity growth rate, the proportion of research-and-development activity in the volume of production (works), the pace of annual update of fixed assets.
     Results I have described the trends of functioning of the Russian industrial enterprises taking into account the regional specifics related with the problems of the low competitiveness, the insufficient volume of investment, reduction of release of machine-building production, lack of strategic management of operating activities and high tax load of the enterprises. In order to ensure the sustainable development of the industrial sector, I have identified the directions of the strategic development for the purposes of overcoming of economic threats and to enhance the economic growth.
     Conclusions and Relevance The realization of the offered methods of stimulation of the industrial enterprises will enable us to use the financial sustainability of the industrial sector of the Russian economy, and to ensure its competitiveness in the international markets and enhance the efficiency of the State investment processes.

Keywords: economic security, investment process, project financing, State financing, industrial financing, scientific financing, technical development financing, investment projects, efficiency management, industry, sustainable development, mechanism

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