Budgeting as the basis of strategic planning in enterprises of small and medium-sized businesses in Ukraine

• Main Authors: N.E. Dovbush, O.D. Hordei
• Format: Article
• Language: Ukrainian
• Published: Zhytomyr State Technological University 2019-03-01
• Series: Вісник Житомирського державного технологічного університету: Серія: економіка, управління та адміністрування
• Subjects: strategic planning; strategy; budgeting; strategically oriented budgeting; balanced system of indices
• Online Access: http://ven.ztu.edu.ua/article/view/163420/162772

The present-day competitive environment of functioning national enterprises of small and medium-sized businesses requires the implementation of effective methods of management of finances, one of which is budgeting. However, the introduction of budgeting will not be effective, if there is no interconnection with the enterprise’s strategy. The process of formation and fulfilment of strategic plans of entrepreneurship entities is long enough and requires the optimization of all the processes connected with budgeting. Thus, the article determines the role of the budgeting process in the system of strategic planning in enterprises of small and medium-sized businesses. The author studies the viewpoints of foreign and domestic authors concerning the definitions of the concepts «budgeting», «strategy», and «strategic planning», proposes the definition for strategically oriented budgeting. The necessity and peculiarities of the implementation of strategically oriented budgeting to reach the enterprise’s planned strategic goals are examined. Though, the issues and prospects of implementing budgeting in enterprises are described by many scientists and experts in their works, the problems of strategically oriented budgeting are studied by not a great number of researchers. There are some points of view concerning the conceptions of strategically oriented budgeting. The balanced system of indices developed by P.Caplan, and D.Norton is on the basis of one of the most spread conceptions. Due to strategic budgeting in enterprises of small and medium-sized business, one can reach the activation of economic processes and provide the economic growth in Ukraine.