Safety and stability are the basis of the development of society. Constant revolutions and coups leading to a change of political course rarely contribute to raising the economy to a new level. And even if this happens, then only after years of gradual evolutionary development. Therefore, the internal stability of the state determines what the future awaits its citizens, both in the short and long term.
Micro and macro level
This rule applies to an individual. If you constantly change hobbies, then as a result, you can hardly learn anything. Achievement of the goals set both at the individual and at the state level always occurs in two stages: the choice of the right strategy and the urgent execution of the agenda for a sufficiently long period of time.
Political stability
The image of the state is formed under the influence of a number of factors. One of the most important of them is its ability to maintain its political course for a long time and provide a high level of public confidence in the current government. The legal aspects of doing business in a country largely determine the financial component of sustainability, so it is important to understand what parameters affect it. Among them, the main ones are:
- The effectiveness of the political system.
- Coordination of actions of public organizations and the wishes of the population.
- High level of trust in the government.
- The legitimacy and democracy of the regime.
- Clear legal structure.
- The correct distribution of powers.
- Protection of human rights.
- Harmonization of formal and informal rules.
- Lack of strong class stratification and conflicts between different groups.
The financial stability of the enterprise
Survival in a market economy is associated with a constant desire to improve production efficiency. This is achieved through the introduction of advanced achievements of science and technology, a more rational organization of labor, and motivation of staff activity. But in order to be able to implement these positive changes, the company must be financially stable. Otherwise, any unsuccessful step or unexpected change in market conditions - and it is on the verge of bankruptcy. Therefore, financial stability is the main object of analysis of the current state of the enterprise.
Assessment of the current situation
The financial condition of the enterprise is characterized by those resources that ensure its normal functioning and solvency. It can be crisis, unstable and stable. For the assessment, a number of indicators are used:
- The structure of assets and liabilities.
- Capital efficiency.
- The creditworthiness of the enterprise.
- Solvency.
- Reserve financial stability.
The stability of the enterprise is influenced by a combination of factors: market position, quality of products, potential, degree of dependence on investors and creditors, insolvency of debtors, production efficiency and staff productivity.
Components of business sustainability
A variety of factors that affect the current situation at the enterprise determines that stability is a combination of three main components. Internal stability is a financial condition in which a constantly high functioning result is provided. The overall stability of the system reflects such a cash flow in the enterprise, which ensures the excess of income over expenses. Financial stability allows maneuvering in the market and contributes to the uninterrupted process of production and sale of goods. The coefficients obtained during the assessment are compared with average or normal indicators, which allows you to establish the current state of the enterprise.
Stability factors
Financial stability is affected by both the parameters of the internal and external environment. The first group primarily includes the amount of profit, if it is enough to cover costs and ensure the modernization of equipment. Adequacy of profit depends on the quality and nomenclature of goods, reserves of the enterprise, stocks, the correct strategy and objectives, the rationality of financial management. External stability of the enterprise is determined by the economic environment in which it operates. Its components are the level of development of the national economy, a place in the industry, competitive advantages, relationships with local and state bodies, as well as customers, investors and lenders. In addition, financial, political, non-market, superficial and other factors have financial stability.
