Theoretical bases of the business capital management

: pp. 38 - 45
Ternopil National Economic University

The article reveals the importance of capital for effective business activity. The purpose of the research is to systematize the theoretical bases of the business capital management. The tasks of the research are: to determine the essence of capital, its types and main characteristics; to generalize principles, tasks, methods and features of the business capital management; to develop a general scheme of the business capital management; to determine the main directions of improving the efficiency of capital management.

Capital is a key element for the successful founding of a new enterprise. The essence of capital through the prism of analysis of the main approaches is investigated. Multidimensionality and ambiguity of capital are revealed. There are many manifestations (financial, material and intellectual) and forms of capital. Taking this into account, the necessity of using an integrated approach to its interpretation is established. The analysis of the main approaches to the interpretation of the essence of capital shows the variability of scientific views on this concept, both in retrospect and at the present stage. The general definition of capital as a resource used to generate income is proposed. At the same time under the notion of «resource» we understand monetary, material, intangible and labor resources. The advantage of this definition is in its conciseness and accuracy.

The main characteristics and classification of capital according to the main classification criteria are considered. The general scheme of the business capital management is developed. The principles, tasks and methods of capital management are defined. The principles of capital management are: taking into account the prospects of enterprise development; the balance; estimating the value and expediency of raising capital; minimizing the cost of capital formation; the efficient use of capital. The advantages and disadvantages of equity capital as a source of financing of the enterprise activity are analyzed.

Capital is a multi-faceted, dynamic and heterogeneous structure. It is extremely important to the functioning of each enterprise. Therefore it is necessary to establish an effective capital management system. It should be based on the relevant principles. Capital management must be systematic, comprehensive and reasonable. An enterprise should formulate a clear list of tasks for managing capital over a certain period of time.

The priority directions of increasing the business capital efficiency in management are proposed. These are: ensuring maximum exploitation of the internal sources of the capital formation; the optimal limitation of the capital formation from external sources; ensuring control of the average value of the attracted capital of the enterprise.

For successful implementation of the capital management strategy an enterprise must provide an appropriate mechanism for capital management. Also an enterprise must identify management objectives and monitor the process of their achievements. This will help to optimize the capital structure and to ensure capital productivity growth.

1. Smit A. (2018) Doslidzhennya pro pryrodu i prychyny bagatstva narodiv [An Inquiry into the Nature and Causes of the Wealth of Nations]. Kiev: Our format. (in Ukrainian).
2. Marks K. (1983) Kapital. Kritika politicheskoy ekonomii [Capital. A Critique of Political Economy]. Moscow: Political Publishing House. (in Russian).
3. Fisher I. (1919) The Nature of Capital and Incom. London: Macmillan & Co.
4. Bekker G. S. (2003) Chelovecheskoe povedenie: ekonomicheskiy podkhod. Izbrannye trudy po ekonomicheskoy teorii [Human behavior: an economic approach. Selected Works on Economic Theory]. Moscow: GU- VSE. (in Russian).
5. Chemchykalenko R. A., Koval E. V. (2018) Osoblyvosti formuvannya optymalnoyi struktury kapitalu pidpryemstva [Special features of the optimal structure of capital for enterprises]. Global and National Problems of Economic, no. 22, pp. 855-859. Retrieved from: (accessed 10 May 2019).
6. Schmalenbach E. (1961) Kapital, Kredit und Zins in betriebswirtschaftlicher Beleuchtung. Köln: Westdt Vlg.
7. Blank I. A. (2008) Upravlenie ispolzovaniem kapitala [Capital Management]. Kiev: Nika Center. (in Russian).
8. Ponomarov D. E. (2016)  Kapital pidpryyemstva: sutnist ta analiz formuvannya i vykorystannya [Enterprise capital: essence and analysis of formation and use]. Investments: practice and additional, no. 5, pp. 53-58.
9. Kuchmenko V. O. (2017) Ekonomichna sutnist ponyattya kapitalu pidpryyemstva ta jogo struktury [Economic essence of the concept of enterprise capital and its structure]. University Economic Bulletin, vol. 33/1, pp. 232-237. Retrived from: (accessed 10 May 2019).
10. Xarchuk S. A. (2015) Suchasni problemy upravlinnya kapitalom pidpryyemstva ta shlyaxy yix vyrishennya [Modern problems of enterprise capital management and ways of solving them]. Economy and State, no. 6, pp. 110-113.
11. Blank I. O. (2006) Finansovyj menedzhment [Financial management]. Kiev: Nika-Center. (in Ukrainian).
12. Savelyeva T. M. (2014) Napryamky udoskonalennya upravlinnya kapitalom pidpryyemstva [Areas of improvement of enterprise capital management]. Economics of construction and urban economy, vol. 10, no. 3, pp. 191- 196.
13.Rubaxa M. V., Ovchar O. A. (2015) Teoretychni aspekty polityky upravlinnya vlasnym kapitalom pidpryyemstva [Theoretical aspects of enterprise equity management policy]. Odessa I. I. Mechnikov National University Herald, vol. 20, no. 3, pp. 142-145. Available at: (accessed 10 May 2019).
14. Koshelok G. V., Tereshhenko O. M. (2016) Optymizaciya spivvidnoshennya vlasnogo ta pozykovogo kapitalu pidpryyemstva [Optimization of the ratio between the equity and loan capital of the enterprise]. Scientific Journal of Kherson State University. Series Economic Sciences, vol. 21, pp. 116-121. (in Ukrainian).