Integral assessment of business environment security

Abstract

The methodological approach to the integral assessment of business environment security is developed in the article; the blocks of factors of business environment security are identified and the indices which affect the formation of economic security of entrepreneurship are analyzed. The integral indicator for assessing business environment security is based on 6 indicators, which are the most significant elements of the business environment formation: the availability of basic economic freedoms, the favorable organizational conditions for doing business, the state of political and legal system, the level (quality) of life, resource provision and infrastructure development, innovation development. A comparative analysis of the integral indicator of business environment security of Ukraine with the Baltic countries, Black Sea region countries and the Visegrad Group countries is carried out. The article identifies interdependence between the business environment security and the share of unprofitable enterprises. The functional relationship of the business environment security with the number of bankrupt enterprises and the level of enterprises losses is substantiated as well. The model shows that the increase of environmental security leads to the decrease of a number of bankruptcies exponentially. The negative and positive factors which influence the formation of economic security of entrepreneurship are revealed.