The Impact of Socio-Economic Volatility on Business Value Growth in Ukraine

Abstract

Today, financial markets are undergoing transformation and change under the influence of economic turbulence, accelerating technological development and globalization. There is a demand for entrepreneurship, which aims to maximize market value, innovation and social development. However, the relative importance of various factors that determine the general state of the business and the possibility of its growth is not yet clear. In general, this study emphasizes the need to study the impact of macro- and microeconomic indicators of the environment on business profitability in dynamics. To assess the impact of macroeconomic indicators on the profitability of small, medium and large businesses, based on the analysis of literature sources formed research hypotheses, which were tested by correlation and regression analysis. The research method used is based on the condition where the value of p <0.05 is significant. Among the independent indicators, the initial data were selected unemployment rate, inflation index, capital investment in enterprises and sales. The value of net profit among small, medium and large enterprises during 2010−2020 was chosen as a dependent variable. The regression coefficient R = 0.8883 indicates a high density of the relationship between net profit of enterprises and independent factors. Given the results obtained, it can be seen that the inflation rate was statistically significant for the model (p = 0.0249). The level of net profit and the overall level of business stability is growing due to the slowdown in inflation. This new understanding should help to improve forecasts of the impact of macroeconomic factors on business development, as well as the ability to anticipate further actions of owners and shareholders of such enterprises in a market instability. For further research, indicators of social and intellectual capital can be used as factors in increasing the value of business.