FINANCIAL MECHANISM FOR MANAGING THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES
Authors:   International Humanitarian University, Horobets Tamara 
Published: March 2022

Forming a financial mechanism for managing the efficiency of small and medium enterprises, the author developed a number of theoretical, organizational and methodological innovations that provide scientific and practical foundations for its operation in the current economy of Ukraine, i.e.: 1) the concept of financial mechanism for managing the performance of SMEs as a system of combining financial methods, organizational structures, levers and tools, which forms a set of consistent management actions aimed at ensuring sustainable growth of added value and efficiency of SMEs. The basic financial method of performance management is chosen, on the basis of which the mechanism is formed – financial performance benchmarking, which is a method of management that provides performance management of enterprises, using mainly financial indicators and tools; 2) the proposed model of financial performance benchmarking provides both direct and feedback, as well as the possibility of using international performance benchmarking, which allows to invent best global practices for implementation in domestic SMEs and combine several key management functions and break the performance management process several successive stages; 3) substantiated the creation of specialized organizational structures – regional financial agencies to support SMEs (RFA), which ensure the implementation of important stages and most operations to manage the performance of SMEs and not only facilitate the work of SMEs to manage performance, but also significantly reduces time and resources for organization and implementation, which adds a competitive advantage to SMEs over large enterprises that spend large amounts of their own money on the organization and implementation of all processes and operations to manage the performance; 4) the system of motivation of personnel for SMEs' performance management is offered, which includes bonuses and other incentives and the tool of competitiveness, and forms unity of orientation of individual and business purposes and interests. It provides an increase in labor productivity, reduce material and energy consumption, reduce losses from shortages of products and poor quality services, which increases the added value and efficiency of SMEs; 5) developed a structural and logical model of the financial mechanism for SMEs' performance managing, which organizationally, methodologically and functionally provides SMEs' performance management PHC at three levels: micro-management – internal level of the enterprise; meso-level – regional-sectoral level; and the international level – the level of the best world practices. Strengthening the overall positive effect of each other, the organizational structures, financial methods and management levers and tools that shape the proposed mechanism focus on improving the processes, operations, departments and individual employees, using the achievements of each of the three levels to achieve the main task of performance management – sustainable improving business performance.