Introduction

Conclusion

Introduction

The development of a market economy requires business entities, on the one hand, to increase their competitiveness, and, on the other, to ensure the stability and sustainability of their functioning in a dynamically changing economic environment. The development of society as a whole and individual economic entities is based on the expanded reproduction of material values, ensuring the growth of national property and, accordingly, income. One of the main means of ensuring this growth is investment activity, including investment processes or investment.

An increase in investment demand is one of the distinctive features of the recovery growth of the Russian economy. Today in Russia, the state of production, the position and level of technical equipment of fixed assets of enterprises, the possibility of structural restructuring of the economy, and the solution of social and environmental problems depend on the effectiveness of investment policy.

The economic nature of investments is slightly different than capital investments. Firstly, investments are a fairly broad economic category than long-term capital investments in the economy and (production assets), since they can be implemented in various forms: real, financial, intellectual, innovative. Secondly, unlike capital investments, investments are made only in highly effective projects, the result of which is profit, income, and dividends.

Today, investments occupy a special place in the Russian economy. There is an annual increase in investment activity in various sectors of the country's national economy.

In connection with the intensification of investment activity in the real sector of the economy, the topic of the course work, devoted to the consideration of the role of investment in the functioning and development of enterprises, seems very relevant.

Thus, from all of the above, we will determine the main goals and objectives of this course work.

The purpose of this article is to determine the place and role of investments in the development and functioning of an enterprise.

The main objectives of this course work are:

give the concept and list the types of investments;

characterize the principles of the enterprise’s investment activity;

reveal the investment attractiveness of an economic entity;

give the concept of investment strategy and its role in the development of the enterprise;

reveal the role of investments in increasing the market value of an enterprise;

describe how the expansion of production affects the activities of the enterprise.

The methodological basis for conducting research in the field of investment is modern economic theories, scientific developments of scientists on the development of the investment sector of the economy, as well as legislative and regulatory acts on investment activities.

The works of E.R. are devoted to the theoretical and methodological foundations of investment activity. Bershedi, I.O. Blanca, P.P. Borshchevsky, M.S. Gerasimchuk, B.V. Gubsky, I.I. Dyakonova, V.E. Kolomiytseva, T.V. Mayorova, O. Makhmudova, A.A. Transplants, S.I. Prilipka, O.O. Smirnova and others.

The course work consists of an introduction, main part, conclusion, and a list of sources used.

1. The essence of investments and investment activities of the enterprise

1.1 Concept and types of investments

It should be noted that the concept of investment is quite broad; in various areas of economic science and practical activity, its content has its own characteristics. Investments are a set of recorded cash, property, securities, property rights and other valuables necessary for the initial creation, effective functioning and development of a business.

Such a concept as “investment” can be found in the vocabulary of literally every person, as well as in journalistic and scientific literature. Moreover, it often contains the most varied content, not only at the level of everyday thinking, but also in specialized literature.

First of all, let's turn to the origin of the word itself: from the Latin investice - to clothe. Then we can assume that these are some actions, thanks to which, or through which certain new or not brought to their logical conclusion ideas, as a result of certain transformations, are clothed in an ideal form. At the level of ordinary consciousness, investments usually mean any investments of funds, more often capital ones, such as the acquisition and construction of real estate, shares, production equipment, jewelry, etc.

In the scientific literature, there is a great variety in the definition of investment. This diversity, in our opinion, is explained by different angles of view on the problem, differences in emphasis on certain components of the above-mentioned question. However, at the same time, the main idea runs through all the definitions of different scientists as a red line - this is money necessary for the growth and development of the country’s economy, or in a narrower interpretation - for the development of an enterprise or any project.

The most common point of view is that equates investments with capital investments. In all educational and encyclopedic literature, these two concepts are almost identical, with the only difference being that the concept of investment is more capacious; some scientists consider capital investments to be a component of investment. They explain this by the fact that when interpreting and explaining the concept of “capital investments”, new methods of investing and, accordingly, raising funds, such as the sale of securities, their issue and all the necessary relevant procedures, were not taken into account. These new methods correspond to the concept of “investment”, which includes both old and new methods of financing.

Investments are investments in the assets of an enterprise in order to produce new products, improve their quality, increase the number of sales and profits. The enterprise's investments ensure simple and expanded reproduction of capital, the creation of new jobs, an increase in wages and purchasing power of the population, and an influx of taxes into the state and local budgets. Investments involve risk. If the profitability forecast is not confirmed, then this threatens the loss of funds invested in the business.

Investments are classified:

according to natural material embodiment. This type of investment is divided into tangible, intangible and financial;

by purpose - direct, aimed at acquiring fixed and working capital, and portfolio - for the purchase of securities;

by sources of financing - own (depreciation, profit and proceeds from the sale of property) and borrowed (loan, leasing, etc.);

by origin - national and foreign;

by purpose - to achieve profit, social or environmental results;

by timing of implementation - short-term, medium-term and long-term;

by object - production and non-production;

in the direction of production investments - to update fixed capital, to increase real estate and working capital, to create new products and improve the quality of products.

The approach to the essence of investments emerging in the economic literature is based on the recognition of the connection between investments and the increase in capital value in the form of net income as a motive for investment activity, consideration of investments in the unity of resources, investments and return on invested funds, as well as the inclusion of any investments that generate income in the investment objects (profit) or other beneficial effect. However, the very characteristics of income generated by an increase in capital value differ when viewed from macroeconomic and microeconomic positions. At the macroeconomic level, income is expressed in the growth of social capital, which is achieved by investing investment resources in objects of activity of the real economic sector. At the microeconomic level, income is the result of any investment of individual capital made with the aim of increasing it.

The productive nature is inherent in investments that ensure the reproduction and growth of not only individual but also social capital; The subjects of productive investment are enterprises in the real sector of the economy, which determines the decisive importance of their investment activities for the economic system of society. Unproductive investments act as investments from the position of an economic entity; they are associated with the receipt of net income as the investor's target setting, however, at the macroeconomic level, their implementation leads to a transfer redistribution of the total income of society, rather than an increase in real capital.

1.2 Investment activity of the enterprise

In an enterprise, it is important to coordinate investment plans and financial capabilities over time.

The investment activity of an enterprise includes the following components: investment strategy, strategic planning, investment design, analysis of projects and the actual effectiveness of investments.

An investment project can be presented in the form of a feasibility study or a business plan. A feasibility study (feasibility study) of an investment project is a study of the technical, economic, environmental and financial possibilities of making investments with a given profitability. The feasibility study includes geological research, technical designs of buildings and structures, technical preparation of production, environmental studies of the impact on the environment, marketing research, calculation of financial and economic indicators. A business plan for an investment project is a standard form of presenting investments, generally accepted for all developed countries. Planning methods and criteria for assessing the effectiveness of investment projects are the economic language of business communication, ensuring mutual understanding among owners, entrepreneurs, investors, bankers, employees of government agencies and international financial organizations.

For large investment projects, the feasibility study and business plan differ in the level of detail of the research and the set of accompanying documents. For small investments, a feasibility study and a business plan can be identified.

Analysis of the effectiveness of investment projects consists of three parts: general economic, technical and economic and financial. General economic analysis is a description of a favorable or unfavorable national economic situation and criteria for the national economic significance of investments.

The main criteria for the feasibility of investments in a social market economy: saturation of the national market with goods and services (formation of a competitive environment); creation of jobs and consumer demand of the population; taxes to state and local budgets.

The technical and economic analysis concerns the technical part of the project with proof of the economic advantages of a particular technical solution.

Financial analysis of investments is based on the study of cash flows of capital and current value. Capital value is calculated in the draft investment balance sheet (assets and liabilities). Current value is revenue from the sale of goods (services), cost and taxes. Cash flows and financial analysis are reflected in the financial part of the business plan of the investment project.

Investment activity plays a key role in fundamental economic processes occurring both at the level of the entire economy and at the level of individual enterprises.

The milestone and long-term goals of the enterprise's investment activities are identified. The milestone goal is associated with the implementation of a separate investment cycle, which is understood as the movement of investments from the moment of mobilization of investment resources to the recovery of invested funds and the increase in capital value in the form of income. At the same time, the movement of investments during the investment activities of enterprises is of a constantly recurring and renewable nature, which forms the basis for its analysis in the long term and determining the long-term goal of the enterprise’s investment activities. The latter consists of a stable excess of investment income over invested investment resources, ensuring in the long term, taking into account the dynamism and uncertainty of the market environment, an increase in net present cash income, and in the light of modern finance theory, can be considered as an increase in the investment value of the enterprise.

The implementation of investment activities of Russian enterprises in the context of the transition to a market investment model is associated with the search for effective solutions in the field of identifying possible sources of investment financing, methods of their mobilization and use.

investment market value strategy

Figure 1 - Sources of financing investment activities and invested capital of the enterprise

In Fig. 1 presents the classification of sources of financing the investment activities of enterprises, the composition of internal and external sources, own, attracted and borrowed funds.

Financing the investment activities of an enterprise is considered as a system of financial relations of an enterprise associated with the mobilization of internal and external sources of financing investment activities through the use of special methods and tools in order to form the invested capital of the enterprise. This system is represented by a certain set of internal and external financial relations of the enterprise. Internal financial relations include relations that arise in connection with the use by enterprises of part of net profit, depreciation charges and other own sources of investment activity. External financial relations arising in the process of financing investment activities cover a wide range of economic relations of the enterprise with other economic entities regarding the mobilization of a variety of attracted and borrowed sources of financing investment activities. The financing method is understood as a mechanism for attracting investment resources in order to finance the investment activities of an enterprise. The work clarifies the composition of the main methods of financing the investment activities of an enterprise, which include: internal self-financing, equity financing, credit financing, leasing financing, budget financing, and mixed financing. The implementation of these methods is carried out through the corresponding tools.

The variety of sources of financing the investment activities of enterprises determines the need to find solutions that ensure optimization of their structure. The structure of sources of financing investment activities is understood not only as the ratio of equity and borrowed capital, but also their components (profit, depreciation, issue of shares, bonds, bank loans, commercial loans, leasing, etc.).

Within the established tradition of accounting analysis, the problem of forming the optimal structure of an enterprise's invested capital comes down to ensuring such a ratio of equity and borrowed capital that achieves the required values ​​of standard financial ratios (financial leverage, earnings per share, return on equity), as well as determining equilibrium points, allowing comparison of alternative financing options.

Solving the problem of forming the structure of sources of financing the investment activities of enterprises from the standpoint of optimality requirements involves the development and implementation of a financial and investment approach, which, unlike traditional ones, considers maximizing the investment value of an enterprise as an optimization criterion.

The financial and investment approach requires the adoption of a set of complex and informed decisions regarding the structuring of investment transactions, the selection of specific financial instruments, the development of a schedule for planning cash receipts and payments to different types of investors, the regulation of risks arising when using different financial instruments, and the formulation of the terms of investment agreements and contracts.

1.3 Investment attractiveness of an economic entity

The decision on the possibility of investing funds by an investor is directly influenced by investment attractiveness. The concept of investment attractiveness is complex and is interpreted rather ambiguously. In a broad sense, investment attractiveness is a contradictory unity of two characteristics: economic content (investment) and psychological form (attractiveness) - subjective assessments of objective reality (as subjective factors influencing the decision to invest, one should consider the investor’s subjective assessment of the indicators of the state of an economic entity and individual risk appetite).

Investment attractiveness is considered as a set of measures that together determine the potential effective demand for investments, stimulating their attraction in the medium and long term, in order to maintain and (or) create competitive advantages of an economic entity, establish the required scale, structure, sources of receipt and areas of use investments.

The mechanism for assessing investment attractiveness is formed through the mutual influence of the components of the actual state of an economic entity and the component of its perception by investors.

A set of factors of the actual state that have the maximum impact on the value of investment attractiveness should be formed based on which investors are planned to be attracted in the future, since the set of characteristics that determine the attractiveness of an economic entity is different for different groups of investors.

The perception component is formed by the economic and socio-cultural environment, the value systems of individual investors and society as a whole. Consequently, when forming factors of investment attractiveness, attention should also be paid to groups of people who have a significant impact on the activities of an economic entity and are interested in obtaining information about the state of investment attractiveness.

In relation to an economic entity, the following main groups can be distinguished (Table 1).

Table 1. Groups of an economic entity and their main information interests when considering investment attractiveness

Groups Information interests Internal Owners profitability of a business entity, prospects for its development, efficiency of its management Top management information allowing the development of management decisions to improve the efficiency of the business entity Employees information about the profitability and stability of the business entity, providing confidence in the availability of work and wages External Main counterparties information indicating the positive business reputation of the business entity and the ability to fulfill their obligations State (in addition to its interests as an investor) information for carrying out management functions, conducting statistical monitoring, identifying insolvency and making decisions on the closure or rehabilitation of an economic entity Public information allowing to assess the contribution of an economic entity to the economy of the region, the country as a whole, prospects for employment of the population, its investments in environmental projects, projects for the development of social infrastructureInvestors are different, depending on the investment goals

The most significant components of the investment attractiveness of an economic entity can be divided into two groups: external in relation to the economic entity, which exert a control influence on the economic entity from the outside (location, industry, nature of interaction with government bodies, reputation of the owner), and internal (production potential, quality of management, financial condition and its transparency, business reputation, development prospects, activity in the field of improving business reputation and attracting investors).

An economic assessment of investment attractiveness is a study of information about an economic entity with the aim of:

making informed decisions by investors on financing investment projects (programs), based on the criterion of investment attractiveness of an economic entity;

an objective assessment of the achieved value of investment attractiveness, analysis of changes in this value compared to the previous period under the influence of various factors;

identifying obstacles to increasing the investment attractiveness of an economic entity.

Based on the essence and content of the investment attractiveness of an economic entity and the purpose of its economic assessment, it is also possible to identify the main objectives of the assessment:

Identification of the scale of influence of systematic risks and uncertainty of external factors on the investment attractiveness of an economic entity.

Development of alternative options for the behavior of a business entity, allowing to minimize the impact of systematic risks if they arise.

Analysis of the influence of internal factors on changes in the investment attractiveness of an economic entity, including:

changing the organizational management structure;

increasing the efficiency of the system of training and advanced training of personnel;

change in the financial stability of an economic entity;

change in the solvency of a business entity;

improving the quality and competitiveness of products;

increasing the transparency of the activities of an economic entity;

increasing the level of business reputation;

assessment of the development prospects of an economic entity.

Development of management decisions that influence internal factors and are aimed at increasing the investment attractiveness of an economic entity.

Development of a number of specific promising projects, the implementation of which requires investment (indicating a feasibility study).

Increasing the level of awareness of potential investors and interested parties about promising projects of an economic entity.

Targeted dissemination of information that allows you to create a positive image of an economic entity.

So, investments represent capital expenditures in business objects to generate income in the short or long term. The economic category "investment" is used in a market economy.

From an economic point of view, investments are considered as the accumulation of fixed and working capital. From a financial point of view, investment is the freezing of resources in order to generate income in a future period. From an accounting point of view, investment is the combination of capital expenditures made into one or more assets and liabilities of the balance sheet

Investment attractiveness is one of the key factors influencing the investment decision of potential investors.

2. The role of investments in the activities of the enterprise

2.1 The concept of investment strategy and its role in the development of the enterprise

An investment strategy is a system of long-term goals of an enterprise's investment activity, determined by the general objectives of its development and investment ideology, as well as the choice of the most effective ways to achieve them.

An investment strategy can be represented as a master plan of action in the field of investment activity of an enterprise, defining the priorities of its directions and forms, the nature of the formation of investment resources and the sequence of stages in the implementation of long-term investment goals that ensure the envisaged overall development of the enterprise. The combination of a system of goals and ways to achieve them in an investment strategy determines the boundaries of the enterprise’s possible investment activity and the investment decisions made in the directions and forms of its investment activity in the long-term period. The investment strategy of an enterprise can also be characterized as a system of formalized criteria by which it evaluates and implements its investment opportunities, models its promising investment position and ensures its achievement. Summarizing the above, it can be stated that an investment strategy is a systemic concept that connects and guides the development of an enterprise’s investment activities.

The development of an investment strategy is an extensive creative process, including setting goals for investment activities, determining its priority directions and forms, optimizing the structure of generated investment resources and their distribution, developing investment policies on the most important aspects of investment activities, maintaining relationships with the external investment environment.

The process of developing an investment strategy is the most important component of the overall system of strategic choice of an enterprise, the main elements of which are the mission, general strategic development goals, a system of functional strategies in the context of individual types of activities, methods of formation and distribution of resources. At the same time, the investment strategy is in a certain subordination with other elements of the strategic choice of the enterprise.

Understanding the relationship between the investment strategy and other important elements of the strategic choice of an enterprise allows you to more effectively build the process of its development.

The relevance of developing an enterprise investment strategy is determined by a number of conditions.

The most important of these conditions is the intensity of changes in factors of the external investment environment. The high dynamics of the main macroeconomic indicators related to the investment activity of enterprises, the pace of technological progress, frequent fluctuations in the investment market, the inconstancy of state investment policy and forms of regulation of investment activities do not allow the effective management of enterprise investments based only on previously accumulated experience and traditional methods of investment management. Under these conditions, the absence of a developed investment strategy adapted to possible changes in factors of the external investment environment can lead to the fact that investment decisions of individual structural divisions of the enterprise will be multidirectional, leading to contradictions and a decrease in the efficiency of investment activities as a whole.

One of the conditions that determines the relevance of developing an enterprise's investment strategy is its upcoming transition to a new stage of the life cycle. Each stage of the life cycle of an enterprise has its own characteristic level of investment activity, directions and forms of investment activity, and features of the formation of investment resources. The investment strategy being developed makes it possible to adapt the enterprise’s investment activities in advance to the upcoming fundamental changes in the possibilities of its economic development.

Finally, an essential condition that determines the relevance of developing an investment strategy is a fundamental change in the goals of the enterprise’s operating activities associated with the emerging new commercial opportunities. The implementation of such goals requires changes in the production range, the introduction of new production technologies, the development of new markets for products, etc. Under these conditions, a significant increase in the investment activity of an enterprise and the diversification of the forms of its investment activity should be predictable, ensured by the development of a clearly formulated investment strategy.

The development of an investment strategy is based on the preliminary identification of the achieved strategic investment level of the enterprise. In the process of such identification, a clear understanding of the following parameters should be obtained that characterize the possibilities and limitations of the development of the investment activity of the enterprise:

What is the level of strategic thinking of the owners, managers and investment managers of the enterprise?

What is the level of knowledge of investment managers (their information awareness) about the state and upcoming dynamics of the most important elements of the external investment environment?

What investment resources does the enterprise have, what are the possibilities for their future formation, how is their anti-inflationary protection ensured during the accumulation process?

Does the level of investment activity of the enterprise correspond to the current and future requirements of its development, how fully is its investment potential used?

Does the enterprise have a holistic strategic concept in the form of a mission, general strategy, system of strategic development standards, etc.; To what extent is this strategic concept structured across individual business units?

What is the effectiveness of the investment analysis, planning and control systems operating at the enterprise; To what extent are they focused on solving strategic problems?

Does the organizational structure of managing the investment activities of an enterprise correspond to the tasks of its long-term development?

What is the level of the enterprise’s investment culture, how closely does it correspond with its overall organizational culture?

The process of developing an investment strategy is associated with the preliminary selection of objects of strategic management of the enterprise. From the standpoint of investment management, there are usually three main groups of objects of strategic management: investment activity of the enterprise as a whole; investment activity of the strategic management zone; investment activities of the strategic investment center.

The development of an investment strategy plays a big role in ensuring the effective development of an enterprise. This role is as follows:

The developed investment strategy provides a mechanism for implementing long-term general and investment goals for the upcoming economic and social development of the enterprise as a whole and its individual structural units.

It allows you to realistically assess the investment capabilities of an enterprise, ensure maximum use of its internal investment potential and the ability to actively maneuver investment resources, provides the ability to quickly implement new promising investment opportunities that arise in the process of dynamic changes in factors of the external investment environment.

The development of an investment strategy takes into account in advance possible variations in the development of factors in the external investment environment uncontrollable by the enterprise and makes it possible to minimize their negative consequences for the activities of the enterprise. It reflects the comparative advantages of an enterprise in investment activities in comparison with its competitors.

The presence of an investment strategy ensures a clear relationship between the strategic, current and operational management of the investment activities of the enterprise. It ensures the implementation of the appropriate mentality of investment behavior in the most important strategic investment decisions of the enterprise.

In the investment strategy system, the value of the main criteria for the selection of real investment projects and financial investment instruments is formed.

The developed investment strategy is one of the basic prerequisites for strategic changes in the overall organizational management structure and organizational culture of the enterprise.

The effectiveness of the investment strategy developed by the enterprise is assessed according to the following main parameters:

Consistency of the enterprise's investment strategy with the overall strategy of its development. In the process of such an assessment, the degree of consistency of goals, directions and stages in the implementation of these strategies is revealed.

Consistency of the enterprise's investment strategy with expected changes in the external investment environment. In the process of this assessment, it is determined how well the developed investment strategy corresponds to the projected development of the country’s economy and changes in the investment market conditions in the context of its individual segments.

Coherence of the investment strategy of the enterprise with its internal potential. Such an assessment allows us to determine the extent to which the volumes, directions and forms of the investment strategy are interconnected with the possibilities of generating internal investment resources, the qualifications of investment managers, the organizational structure of investment activity management, investment culture and other parameters of internal investment potential.

Internal balance of the investment strategy. When carrying out such an assessment, it is determined how consistent the individual goals and target strategic standards of the upcoming investment activity are with each other; to what extent these goals and standards correspond with the content of the investment policy on certain aspects of investment activity, to what extent are the measures to ensure its implementation coordinated with each other in areas and over time.

Feasibility of investment strategy. In the process of such an assessment, first of all, the potential capabilities of the enterprise in generating the required volume of investment resources from all sources and in all forms are considered, how technologically advanced the investment projects chosen for implementation are, whether there is a sufficient list of financial instruments on the investment market that ensure the formation of an effective investment portfolio, what organizational and technical capabilities for the successful implementation of the chosen investment strategy.

Acceptability of the level of risks associated with the implementation of the investment strategy. In the process of such an assessment, it is necessary to determine to what extent the level of predicted investment risks associated with the activities of the enterprise ensures sufficient financial balance in the process of its development and corresponds to the investment mentality of its owners and responsible investment managers. In addition, it is necessary to assess to what extent the level of these risks is acceptable for the investment activities of a given enterprise from the standpoint of the possible size of financial losses and the generation of the threat of bankruptcy.

Economic efficiency of implementation of investment strategy. The assessment of the economic efficiency of an investment strategy is carried out, first of all, on the basis of forecast calculations of the previously discussed system of basic investment ratios and specified target strategic standards, compared with their basic level.

Foreign economic efficiency of investment strategy implementation. In the process of such an assessment, the growth of the business reputation of the enterprise, the increase in the level of controllability of the investment activities of its structural divisions (when creating “investment centers”), the increase in the level of material and social satisfaction of investment managers (due to an effective system of their material incentives for the results of investment activities, higher level of technical equipment of their workplaces, etc.).

If the results of the assessment of the developed investment strategy are positive, corresponding to the selected criteria and the mentality of investment behavior, it is accepted by the enterprise for implementation.

2.2 The role of investments in increasing the market value of an enterprise

The main economic goal of sound management is to create and increase the market value (value) of the enterprise.

The value of an enterprise is the difference between the market value of the enterprise's equity capital and the market value of the enterprise's liabilities.

The economic meaning of the category “enterprise value” is that the value of an enterprise is the real wealth that the owners of the enterprise possess (and can receive in cash if they so desire and sell their property).

The creation of market value of an enterprise depends on three groups of factors:

selection and implementation of investments of all types;

use of resources to conduct competitive, effective activities (production management);

selection and use of funding sources (financial management).

The value of an enterprise is really determined not by how large its capital is (with the possible exception of capital in the form of the most liquid assets), but by the position this capital provides the enterprise in the market for its goods and services. Meanwhile, this situation is precisely determined by the directions of the enterprise’s investments: if they increase its competitiveness and provide an increase in the return on its capital, then the value of the enterprise increases and its owners become richer. Otherwise, investments, formally increasing the liabilities of the enterprise (through investments of equity capital or raising borrowed funds that increase liabilities), will lead to a decrease in the value of the enterprise, since the market valuation of its capital will fall following a decrease in its competitiveness and profitability.

Thus, investments should be assessed primarily in terms of how they affect the market value of the enterprise.

2.3 Expansion of production and the role of financial resources

If an enterprise has existed on the market for more than 3 years and does not occupy the lowest place in the industry, while its capitalization or annual turnover is already quite large, then the problem of business development and expansion is quite acute for it. In market conditions, you cannot maintain the positions you have already gained without constant resource development of the business and increasing its financial stability. If there is still somehow enough money to maintain production at the same level, then it is already quite difficult to carve out funds for development from the enterprise’s annual budget - this money needs to be attracted.

The most common three ways to raise money for enterprises that are firmly on their feet or have good market potential:

Loans

Direct investments

Portfolio investment.

Let's look at each of these methods in more detail.

Loans. For most businesses, this is the easiest and most well-known way to quickly get money for their specific projects. Positive aspects include the relative simplicity of registration, the speed of receiving money, and the lack of influence on the distribution of property between the owners of the enterprise. The negative aspects include the need to return money and interest. In this regard, the enterprise bears a large burden of responsibility. Often the interest on loans also exceeds the income from the project. In addition, today credit money is mostly “short”, i.e. The maximum loan term that can be obtained from a commercial bank is one year.

The difficulty in attracting credit money also lies in convincing employees of the credit institution of their ability to return the borrowed money. That is why this method of raising funds is used primarily by those managers who have very close connections in banking and credit institutions. Or those enterprises that have something to put as collateral. If there are no such connections or collateral opportunities, or the amount of money that the management of the enterprise can attract with the help of credit lines does not satisfy all the needs of the enterprise, then the following two methods of raising money remain, which are associated with the participation of organizations investing in the enterprise, in its share capital.

Direct investments. This is a way to attract money to an enterprise by issuing additional shares, or transferring a package of already issued shares to investors. Most often, investors are investment companies or specialized investment funds that accumulate funds from institutional and private investors in order to increase them by investing in profitable assets.

It must be admitted that today in this market there are mainly either foreign funds or Russian companies that accumulate funds from foreign investors. Investments are made by them directly into any specific project aimed at developing production. In this case, an additional issue of shares of the enterprise is issued, which is purchased by the investor. In direct investment, the resulting ownership shares in the enterprise are usually negotiated, or the project is spun off into a separate legal entity with fixed ownership shares.

A positive feature of direct investment can be a professional investor who will be very interested in the project and can help not only with money, but also with professional management. In addition, the company does not have to return interest, as in the case of loans. Often, after private negotiations, the company's managers also receive their share of shares in new issues. And the investor helps increase the value of these shares - after all, both he and the manager’s stakes grow in value equally.

The investor's direct interest is to receive his benefit after some time, when the investment project is implemented and the value of the company's shares increases several times. Then he will begin to actively sell his stake in order to receive his invested money with the proceeds back. It is at this moment, and not when a foreign investor comes to the enterprise who wants to invest his money in its development, that managers should be afraid that they will be bought up by an unwanted owner.

So the main problem of Russian enterprises, which do not want direct investment, fearing that they will be immediately bought up by foreign capital, arises only when the investor wants to return the invested funds. But at that moment, the enterprise must already be firmly on its feet (otherwise the price of its shares will not be attractive for the sale of an investor’s stake) in order to prepare for the purchase of its own shares.

Portfolio investment is an offer to various investors of securities of the issuing enterprise. That is, raising money in this case occurs by issuing additional issues of securities (shares or bonds) of this enterprise in the amount of the required investments and placing them on stock exchanges within the country or abroad. In this case, there can be many investors, and a smaller amount is required from each of them than in the case of direct investment. When issuing shares, it is not necessary to return money to investors, but when issuing bonds, it is necessary. It is also completely unnecessary to separate the project into a separate legal entity.

It is therefore not surprising that many enterprises resort to this method of financing their projects.

Of course, you have to pay for everything. The issuance and placement of securities is specially regulated, so the company must pay intermediaries (investment companies and consultants) to raise capital and to assist in issuing shares. This amount usually ranges from 3 to 10 percent of the capital raised. Moreover, the company will have to comply with information disclosure requirements. It is also important to then take care of the liquidity of the market for your securities.

But all this can pay off handsomely - as long as the enterprise functions normally and makes a profit, this source of financing cannot end. In addition, managers can often negotiate their share of shares during the placement process - just as with direct investments.

Conclusion

An objectively necessary link in the reproduction process is the replacement of worn-out fixed assets with new ones, which is carried out using the mechanism of accumulating depreciation charges and their use for the purchase of new equipment and modernization of existing fixed assets. At the same time, a significant expansion of production can only be achieved through new investments of funds directed both to the creation of new production capacities and to the improvement and qualitative updating of equipment and technology. It is investments used for the development and expansion of production in order to generate income in the future that constitute the economic meaning of investment.

From the point of view of financial parameters (or from the position of a financier, accountant), investments can be presented as any type of assets invested in production and economic activities with the aim of subsequently obtaining income and benefits.

From an economic point of view (and therefore from the standpoint of assessing the economic feasibility of using resources in the form of fixed and working capital), investments are considered as expenses for the creation (acquisition), expansion, reconstruction and technical re-equipment of fixed capital, as well as for the resulting changes in the size and composition of working capital.

Thus, we can conclude that as an economic category, investment expresses:

investment of capital in business objects in order to increase the initially advanced value (in the form of profit);

monetary (financial) relations that arise between participants in investment activities in the process of implementing various projects (developers, contractors, banks, the state).

The economic nature of investments consists in the mediation of relations that arise between participants in the investment process regarding the formation and use of investment resources in order to expand and improve production. Therefore, investments as an economic category perform a number of important functions, without which economic development is impossible. They predetermine economic growth and increase its production potential.

At the macro level, investments are the basis for implementing a policy of expanded production, accelerating scientific and technological progress, improving the quality and ensuring the competitiveness of domestic products, structural restructuring of the economy and balanced development of all its sectors, creating the necessary raw material base for industry, developing the social sphere, solving problems of the country's defense capability and its safety, unemployment problems, environmental protection, etc.

At the micro level, they are necessary to ensure the normal functioning of the enterprise, stable financial condition and maximizing the profit of the business entity. Without investment, it is impossible to ensure the competitiveness of manufactured goods and services provided, to overcome the consequences of moral and physical wear and tear of fixed assets, to purchase securities and invest funds in the assets of other enterprises, to implement environmental protection measures, etc.

List of sources used

1.Civil Code of the Russian Federation (parts one, two, three and four) (as amended and supplemented on March 20, 2011) / Edited by A.P. Sergeeva. - St. Petersburg: Peter, 2011. - 1056 p.

2.Tax Code of the Russian Federation (parts one and two with amendments and additions) - St. Petersburg: Peter, 2012. - 115 p.

.Astrakhantseva I.A. Assortment policy in company value management: monograph. - GOUVPO "Ivanovo State Energy University named after V.I. Lenin." - Ivanovo, 2010. - 160 p.

.Astrakhantseva I.A. Methodology for nonlinear dynamic management of company value. - GOUVPO "Ivanovo State Energy University named after V.I. Lenin." - Ivanovo, 2011. - 172 p.

.Blank, I.A. Fundamentals of investment management, [Text] / I. A. Blank. M.: Omega L, 2008.660p.

.Blank, I.A. Fundamentals of financial management [Text]. / I. A. Form. 2nd ed., revised. and additional K.: Elga, Nika-Center, 2004.624 p.

.Vinokurov, V.A. Organization of strategic management at an enterprise [Text] / V. A. Vinokurov. - M.: Center for Economics and Marketing, 2001.328p.

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.Dmitrieva O.V., Petenkova, A.S. Assessing the investment attractiveness of an organization in an economic crisis: monograph - M.: MGUP named after Ivan Fedorov, 2012. - 202 p. (11.74 p.l. / 5.87 p.l.)

.Krivtsova Yu.V. The role of the information resource in investment analysis // Bulletin of the Samara State Transport University. - 2009. - No. 6 (18). - P.162-168.

.Krivtsova Yu.V. Concepts of investment analysis of the economic potential of an organization // Bulletin of the Samara State Transport University. - 2010. - No. 1 (19). - P. 63-69.

.Krylov, E.I. Analysis of the effectiveness of investment and innovation activities of an enterprise: Textbook [Text] / E.I. Krylov, V.M. Vlasova, I.V. Zhuravkova. - M.: Finance and Statistics, 2004. 408 p.

.Kapranov N.S. Managing cash flows to increase the value of the company // Audit and financial analysis - No. 3 - 2007. - pp. 11-14.

.Karamysheva A.R. Management of enterprise investment projects based on the cost approach // Innovations and investments. - 2008. - No. 3 - P. 14-17.

.Karamysheva A.R. Management of enterprise investments in order to increase its market value // Innovations and investments. - 2009. - No. 2 - P. 29-32.

.Lapin, A.N. Strategic management of a modern organization [Text] / A.N. Lapin. M.: LLC "Journal "Personnel Management", 2004. 288 p.

.Lakhmetkina, N.I. Investment strategy of an enterprise: Textbook [Text] / N.I. Lakhmetkina. - M.: KNORUS, 2006. - 184 p.

.Fabozzi, F. Investment management [Text] / F. Fabozzi / Trans. from English - M.: INFRA-M, 2004. 512 p.

.Chetyrkin, E.M. Financial analysis of industrial investments [Text] / E.M. Chetyrkin. - M.: Delo, 2007. 248 p.

.Sheremet A.D. Enterprise finance: management and analysis. - M.: Finance and Statistics, 2010. - 315 p.

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Introduction

1.3 Sources of investment activities

2.2 Own sources of financing

2.3 Investment lending

Chapter 3. Main directions for increasing the efficiency of investment activities

Conclusion

List of sources and literature used

Annex 1

Appendix 2

Introduction

The relevance of the topic is due to the fact that investment is the most important condition for the implementation of strategic and tactical tasks of development and effective operation of the enterprise.

The practical significance of the topic is due to the fact that the practical implementation of investments is ensured by the investment activities of the enterprise, which is one of the types of its economic activities and the most important form of realizing its economic interests.

The purpose of the work is to correctly reveal the topic of the course work “Investment activity of an enterprise.”

To achieve this goal, the author considered it necessary to consider the general concepts of investment, the efficiency of using investments in the activities of an enterprise, as well as the main directions for increasing the efficiency of investment activities.

The work consists of an introduction, three chapters, a conclusion, a list of sources and literature used, and applications.

The introduction substantiates the relevance of the topic, practical significance, goals of this work, its content, as well as what was the methodological basis for writing the course work and the chronological framework.

The first chapter discusses the general characteristics of investments. The main goal of investment policy is to transfer the economy to the investment path of development with a subsequent reduction in costs for investment growth of production potential and an increase in investments in the intensification of the fixed production assets involved.

The second chapter examines the analysis of the efficiency of using investments in the activities of the enterprise. From a financial and economic point of view, investing can be defined as a long-term investment of resources in order to create and generate profits in the future.

The third chapter discusses the main directions for increasing the efficiency of investment activities, that is, the strategic goals of the enterprise's investment activities.

In conclusion, brief conclusions are given on the investment activities of the enterprise. Investments that do not generate income or provide income below a certain level must be reduced to the minimum necessary for the life support of the enterprise.

The methodological basis for writing the course work was the work of domestic and foreign economists, which examined the study of the investment behavior of economic entities, a systematic study of the fundamentals of investment behavior and its modeling.

The chronological framework of the research is the 19th-21st centuries and this is due to the fact that the first attempts to study investment behavior were made in the 19th century by the English economist N.U. Senior, who put forward the theory of influence, which made it possible to formulate the foundations of a motivation system for making real investments.

Chapter 1. General characteristics of investments

1.1 Concept, essence of investments and their classification

The development of the national economy is inextricably linked with the intensification of investment activities of enterprises and organizations. The National Security Concept of the Russian Federation notes that in the economic sphere, one of the most significant threats is a decrease in investment, innovation activity and scientific and technical potential. The crisis of the Russian economy in the 1990s had a negative impact on both macroeconomic indicators and investment activity.

Investments represent cash, securities, other property, including property rights, other rights with a monetary value, invested in objects of business and (or) other activities in order to generate profit and (or) achieve another useful effect.

Thus, investments come in monetary (cash, securities), tangible (real estate, machinery, equipment, other property) and intangible forms (property and other rights).

Investment activity is carried out by making investments and carrying out practical actions in order to make a profit and (or) achieve another useful effect.

Enterprises and organizations, carrying out investment activities, are faced with the problem of determining the most profitable areas for investment. The development of current and future directions of investment is carried out in the process of developing the investment policy of the enterprise.

In turn, investments are divided into real (in non-financial assets) and financial; capital-forming and portfolio.

Investments in non-financial assets are investments in fixed capital, intangible assets, and in the increase in inventories of tangible working capital. Other non-financial assets.

Financial - long-term and short-term investments in various financial instruments in order to generate income.

Capital-forming investments (capital investments) are investments in fixed capital (fixed assets), including costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, purchase of machinery, equipment, tools, inventory, design and survey work and other costs .

Portfolio investments are called investments in long-term securities (stocks, bonds, bills and others).

1.2 Basic principles of investment policy

Investments are long-term investments of capital aimed at providing an enterprise with factors of production (real investments) or for the acquisition of securities (portfolio investments). For an enterprise, real investments are of primary importance, while portfolio investments are of a complementary, auxiliary nature. The main directions of the enterprise's investment policy are presented in Figure 1.

The lower level of rectangles in Figure 1, characterizing the directions of real investments, is located so that from left to right the risk of investments decreases, but at the same time their profitability decreases. The reason is that risk is associated with the possibility of not receiving a return on today's capital investments due to the markets' rejection of the investment results. The greatest risk of rejection of results occurs when introducing new products to the market; the risk is lower if the supply of an existing product simply increases; the risk is even less if the rationalization of production reduces the costs of producing the same volume of a product already accepted by the market; There is absolutely no risk in case of replacing worn-out equipment with similar ones.

At the same time, the higher the return on investment, the greater the novelty and the greater the range of new consumer properties the product has. And this occurs when investing in new means of production that create new products (services).

The same situation is typical for portfolio investments (Appendix 1).

The figure shows that the return on investment increases with risk, but the ability to return capital investments (liquidity), on the contrary, decreases. Different securities, and here there are 5 types (according to fairly typical legislation in force in developed countries), have different levels of guarantees of return on investment for investors.

For enterprises that do not play speculatively in the securities market, the standard purposes of investing in securities are the accumulation of funds before making real investments, the accumulation of funds (with the receipt of interest or dividends) for quarterly tax payments, and the like.

A business usually has several options for financing capital investments. They are not mutually exclusive, and in practice are often used simultaneously. The main sources of financing for capital investments are presented in Appendix 2.

The need for financing is determined by direct calculation of the costs of implementing a specific investment project. If we are talking about the construction of a new workshop (enterprise), then the costs of design and survey work, construction and installation work, the purchase of technological equipment, machines, mechanisms, tools, personnel training, and so on are calculated.

The costs incurred should bring in the future income in the form of revenue from the sale of products. By comparing the expected income with the investment, you can assess how appropriate it is. Not all investments are profitable. Expedient investments have different degrees of profitability, since the return per ruble of investment is not the same.

An enterprise's capital investment budget is always limited, so it is necessary to choose the most effective investments among those that are expedient. For these purposes, many methods have been developed, the main ones of which are presented in Figure 2.

Rice. 2. Methods for assessing the effectiveness of investments

On the left in Figure 2 there is a group of methods that take into account the time concept of the value of money, that is, taking into account that money works and generates income, loses value due to inflation, etc. This group is called methods based on discount valuations. They are the most accurate and have become widespread since the 70s of the last century. The names of the methods and their Russian abbreviations are given in the rectangles, and the international abbreviation is given in brackets. For example, NPV (NPV - net present value), IR (PI -profitability index), IRR (IRR - internal rate of return).

In the right rectangles are the names of methods based on accounting estimates: PPI (PP - payback period), EI (ARR - average rate of return), Efficiency (DCR - debt cover ratio). Historically, they appeared much earlier than the first group of methods; they are less accurate, but simpler, more economically transparent and closely related to indicators widely used in accounting reporting and economic planning. Therefore, methods based on accounting estimates are still widely used today.

We will not consider the details here; due to their importance for the practical activities of the enterprise, they will be studied in detail in the future in the course of special disciplines (economic assessment of investments, innovation management, project management and others).

In addition to investments that increase the capital of investors and therefore have economic efficiency, there are economic investments that are unprofitable for enterprises, but necessary, since enterprises are forced to satisfy some of the requirements of state or municipal authorities that protect public interests. These are usually requirements for new environmental regulations or safety standards.

For firms, the sources of investment activities can be:

the investor’s own financial resources and on-farm reserves, which include initial contributions from the founders at the time of organization of the company and part of the funds received as a result of economic activities, that is, from profits, depreciation charges, funds paid by insurance authorities in the form of compensation for losses from accidents , natural disasters and the like;

borrowed financial resources of the investor, which include a bank loan, investment tax credit, budget loan and other funds;

attracted financial resources of the investor, funds received from the sale of shares, shares and other contributions of legal entities and employees of the company;

funds received through redistribution from centralized investment funds, concerns, associations and other associations of enterprises;

investment allocations from the state budgets of the Russian Federation, republics and other subjects of the Federation within the Russian Federation, local budgets and relevant extra-budgetary funds. These funds are allocated mainly to finance federal, regional or sectoral target programs. Grant of funding from these sources actually turns them into a source of own funds;

funds of foreign investors provided in the form of financial or other participation in the authorized capital of joint ventures, as well as in the form of direct investments in cash from international organizations and financial institutions, states, enterprises of various forms of ownership, and individuals. Attracting foreign investment ensures the development of international economic relations and the introduction of advanced scientific and technical achievements.

Depending on what sources of financing a company attracts to finance its investment activities, there are three main forms of investment financing:

Self-financing is the financing of investment activities entirely from one’s own financial resources generated from internal sources. This form of financing is usually used when implementing short-term investment projects with a low rate of return.

Credit financing is used, as a rule, in the process of implementing short-term investment projects with a high rate of return on investment. The peculiarity of borrowed capital is that it must be returned under predetermined conditions, while the lender does not claim to participate in the income from the sale of investments.

Equity or mixed financing is a combination of several sources of financing. This is the most common form of financing investment activities; it can be used in the implementation of a variety of investment projects.

When choosing sources of financing for investment activities, the issue must be decided by the company taking into account many factors: the cost of attracted capital, the efficiency of return on it, the ratio of equity and debt capital, which determines the level of financial independence of the company, the risk arising when using a particular source of financing, as well as economic interests of investors.

External sources include: allocations from the state budget of various funds to support entrepreneurship on a non-repayable basis; foreign investment; various forms of borrowed funds on a repayable basis.

Internal sources of investment. Traditionally in Russia, financing of capital investments was carried out mainly from internal sources. It can be assumed that they will continue to play a decisive role in the future, despite the increased attraction of foreign capital. The main factor influencing the state of internal possibilities for financing capital investments is financial and economic instability. Inflation depreciates the savings of enterprises and the population, which significantly reduces their investment opportunities. However, the lack of domestic investment potential can be considered relative.

Chapter 2. Analysis of the efficiency of using investments in the activities of the enterprise

2.1 Investment support for production

Investment activity is an investment (investment) and a set of practical actions for the implementation of investments.

Subjects of investment activity are investors, customers, performers of work, users of objects of investment activity, as well as suppliers, legal entities (banking, insurance and intermediary organizations, investment funds) and other participants in the investment process. Subjects of investment activities can be individuals and legal entities, including foreign ones, as well as states and international organizations. Investors invest their own, borrowed and raised funds in the form of investments and ensure their intended use.

Customers can be investors, as well as any other individuals and legal entities authorized by the investor to implement the investment project, without interfering with the business or other activities of other participants in the investment process, unless otherwise provided by the agreement (contract) between them. If the customer is not an investor, he is granted the rights to own, use and dispose of investments for the period and within the powers established by the contract.

Users of objects of investment activity can be investors, as well as other individuals and legal entities, state and municipal bodies, foreign states and international organizations for which the object of investment activity is created. If the user of the object of investment activity is not an investor, the relationship between them and the investor is determined by the agreement (decision) on investment. Subjects of investment activities have the right to combine the functions of two or more participants.

The objects of investment activity in the Russian Federation are:

newly created and modernized fixed assets and working capital in all sectors of the national economy;

securities (stocks, bonds and others);

targeted cash deposits;

scientific and technical products and other property;

property rights and intellectual property rights.

Similar objects also include foreign investments, if they do not contradict the legislation of the Russian Federation. Foreign investors have the right to invest in Russia by:

equity participation in enterprises created jointly with legal entities and individuals of the Russian Federation;

creation of enterprises wholly owned by foreign investors, as well as branches of foreign legal entities;

acquisition of enterprises, buildings, structures, shares in enterprises, shares, shares, bonds and other securities, as well as other property that, according to Russian legislation, may belong to foreign investors;

acquisition of rights to use land and other natural resources;

provision of loans, credits, property and other property rights.

The law prohibits investing in objects, the creation and use of which do not meet the requirements of environmental, sanitary, hygienic and other standards established by legislation in force on the territory of the Russian Federation, or cause damage to the legally protected rights and interests of citizens, legal entities or the state.

Subjects of investment activity operate in the investment sphere, where the practical implementation of investments is carried out. The investment sphere includes:

the sphere of capital construction, where investments are made in fixed and circulating production assets of industries. This area unites the activities of customers-investors, contractors, designers, equipment suppliers, citizens in individual and cooperative housing construction and other subjects of investment activity;

innovation sphere, where scientific and technical products and intellectual potential are sold;

sphere of circulation of financial capital (monetary, loan and financial obligations in various forms).

All investors have equal rights to carry out investment activities. The investor independently determines the volumes, directions, size and efficiency of investments. He, at his discretion, attracts on a contractual, mainly competitive, basis (including through tenders for contracts) legal entities and individuals necessary for him to implement investments. An investor who is not a user of investment objects has the right to control their intended use. And exercise in relations with the user of such objects other rights provided for by the contract. The investor is granted the right to own, use and dispose of objects and investment results, including carrying out trading operations and reinvestment. An investor can transfer, under an agreement (contract), his rights to investments and their results to legal entities and individuals, state and municipal bodies.

Participants in investment activities performing relevant types of work must have a license or certificate for the right to carry out such activities. The list of works subject to licensing, the procedure for issuing licenses and certificates are established by the Government of the Russian Federation.

The main legal document regulating production, economic and other relationships between subjects of investment activity is an agreement (contract) between them. The conclusion of contracts, the selection of partners, the determination of obligations of any other conditions of economic relations are the exclusive competence of subjects of investment activity. The terms of agreements (contracts) concluded between subjects of investment activity remain in force for the entire period of their validity. In cases where, after their conclusion, the legislation in force on the territory of the Russian Federation establishes conditions that worsen the position of the partners, the agreements (contracts) can be changed.

Unfinished objects of investment activity are the shared ownership of the subjects of the investment process until the investor (customer) accepts and pays for the work and services performed. If the investor (customer) refuses to further invest in the project, he is obliged to compensate the costs to its other participants, unless otherwise provided by the agreement (contract).

The state guarantees the stability of the rights of subjects of investment activities. In cases of adoption of legislative acts, the provisions of which limit the rights of subjects of investment activity, the corresponding provisions of these acts cannot be put into effect earlier than one year from the date of their publication, and in cases of adoption by state bodies of acts that violate the legal rights and interests of investors and other participants in investment activity , losses, including lost profits, caused by subjects of investment activities as a result of the adoption of such acts, are compensated to them by these bodies by decision of a court or arbitration court. The legislation in force on the territory of the Russian Federation guarantees the protection of investments, including foreign ones, regardless of their form of ownership. Investments cannot be nationalized or requisitioned free of charge, and measures equal to those indicated in terms of consequences cannot be applied to them. The application of such measures is possible only with full compensation to the investor for all losses caused by the alienation of the invested property, including lost profits, and only on the basis of legislative acts of the Russian Federation and the constituent entities. Targeted bank deposits, shares or other securities made or acquired by investors, payments for acquired property, and also, rental rights in cases of their withdrawal are reimbursed by investors, with the exception of amounts used or lost as a result of the actions of the investors themselves. Investments on the territory of the Russian Federation are in some cases subject to compulsory insurance, which is a guarantee of their preservation.

The difficulty of investment activity in the Russian Federation is aggravated, in addition to inflation, by a significant increase in imbalances in the investment sphere (the practical collapse of the unified construction complex).

The avalanche-like growth of deformations in the investment sphere is largely caused by unsuccessful attempts to introduce individual elements of market relations without developing an integrated approach to solving investment problems.

The implementation of investments (making investment decisions) in modern conditions is determined by enterprises taking into account factors such as inflation and the expectation of rising prices for production resources. To level out (reduce) the pressure of the inflationary factor, investments are made mainly in movable and immovable property (inventory, imported equipment, purchase of buildings and structures), in financial assets and consumer goods, in the authorized capital of joint and joint-stock enterprises.

In conditions of high inflation rates, the choice of such investment objects is determined by their ability to maintain value and the ability to obtain the projected profit (income) mainly through fluctuations in the difference in prices or exchange rates of securities.

Thus, the disorganization of investors as a result of inflationary distortion of market prices for material and technical resources (which contributes to barter exchange) led to the depreciation of their own cash savings, to an increase in the rush demand for resources, supported by the credit expansion of commercial banks.

Profit is the main form of net income of an enterprise, expressing the value of the surplus product. Its value acts as a part of monetary proceeds, making up the difference between the selling price of products (works, services) and its full cost. Profit is a general indicator of the results of the commercial activities of an enterprise. After paying taxes and other payments from profits to the budget, the enterprise remains with net profit. Part of it can be used for capital investments of a production and social nature. This part of the profit can be used for investment as part of an accumulation fund or another fund of a similar purpose created by the enterprise.

The second major source of financing investments in enterprises is depreciation charges. The accumulation of cost depreciation at the enterprise occurs systematically (monthly), while fixed production assets do not require compensation in kind after each reproduction cycle. As a result, free funds are generated (by including depreciation charges in production costs), which can be used to expand the reproduction of fixed capital of enterprises. In addition, new facilities are put into operation annually, for which depreciation is charged according to established standards (% of book value). However, such objects do not require compensation until the end of their standard service life. The need to update fixed assets, caused by competition among commodity producers, forces enterprises to accelerate the write-off of equipment in order to create savings for subsequent investment in innovation.

Accelerated depreciation as an economic incentive for investment is carried out in two ways.

The first is that the standard service life is artificially reduced and depreciation rates increase accordingly. This accelerated depreciation method has been used in our country since January 1, 1991, when enterprises were allowed to increase the approved depreciation rates for specific inventory items, but not more than 2 times. Depreciation charges accrued using the accelerated method are used by enterprises independently to replace physically and morally obsolete equipment with new, more productive ones. Due to high depreciation charges, the amount of taxable profit and, consequently, the amount of tax are reduced. To encourage the renewal of equipment, small enterprises, along with the use of the accelerated depreciation method, are allowed to write off in the first year of its operation an additional depreciation charge of up to 50% of the initial cost of active fixed assets with a service life of more than 3 years.

The second method of accelerated depreciation is that, without reducing the standard service life of fixed capital established by the state, individual firms are allowed to make depreciation payments at increased rates for a number of years, but with a decrease in them in subsequent years.

2.3 Investment lending

Credit expresses the economic relationship between the borrower and the lender arising in connection with the movement of money on the terms of repayment and remuneration. An important element of credit regulation is loan interest. Currently, investors are attracting loans to those areas of business activity that provide quick results (in the form of profit or income). Practice shows that for enterprises that are able to repeatedly increase their production output (or enterprises for which the effective demand for products is sufficiently stable, which makes it possible to seriously regulate prices), attracting loans for their own development is much more profitable than attracting funds with the payment of a share of the profit.

The objects of bank lending for capital investments of legal entities and individuals may include costs for:

construction, expansion, reconstruction and technical,

re-equipment of production and non-production facilities;

acquisition of movable and immovable property (machinery, equipment, vehicles, buildings and structures);

formation of joint ventures;

creation of scientific and technical products, intellectual values ​​and other property;

implementation of environmental measures.

The basis of credit relations between legal entities and individuals with the bank is the loan agreement. This document, as a rule, stipulates the following conditions: the amount of loans issued, the terms and procedure for their use and repayment, interest rates and other payments for the loan, forms of security for obligations (pledge, guarantee agreement, surety agreement, insurance agreement), a list of documents, represented by 6anky. Specific terms and frequency of repayment of a long-term loan issued to legal entities are established by agreement between the bank and the borrower based on the cost recovery, solvency and financial condition of the borrower, credit risk, and the need to accelerate the turnover of credit resources.

The issuance of a long-term loan for production and non-production facilities is carried out upon presentation by the borrower of the following documents confirming his creditworthiness and the ability to finance the event:

charter (decision) on the creation of an enterprise;

the balance sheet of the enterprise as of the last reporting date, certified by the tax office;

feasibility study (calculation reflecting economic efficiency and return on construction costs);

other documents confirming the financial condition and creditworthiness of the enterprise.

The Bank monitors the progress of the activities being financed. If the borrower fails to fulfill its obligations, the bank has the right to apply economic sanctions provided for in the loan agreement.

Chapter 3. Main directions for increasing the efficiency of investment activities

The strategic goals of an enterprise's investment activity are the forecast parameters of the state of its investment activity described in a formalized form, allowing it to be managed in the long term and its results assessed.

1. Classification of strategic goals of an enterprise’s investment activities:

By type of expected effect:

economic goals - ensure the receipt of investment income or other economic results;

non-economic goals - ensure the solution of social problems, improving the image of the enterprise, environmental safety, etc.

2. In areas of investment activity:

the goals of real investment are determined by the sectoral and regional focus of real investment;

financial investment goals - prospects for acquiring controlling stakes in other enterprises, parameters for forming a financial investment portfolio;

goals for the formation of investment resources - the rate of formation of own investment resources, the structure of the generated resources and their cost.

3. For objects of strategic management:

enterprise goals - defining ones in the system of strategic goals;

the goals of individual strategic management zones - ensure the effective operation of strategic objects in the structure of the enterprise;

the goals of individual strategic economic centers provide investment support for the formation and development of “responsibility centers.”

4. According to the direction of investment activity:

internal goals - determine the directions for the development of internal investments of the enterprise (development of production activities, solving social problems of the team, etc.);

external goals - directions and expected results of external investments of the enterprise (domestic and foreign).

5. By priority value:

the main goal is to maximize the welfare of the owners of the enterprise;

main goals - ensure the implementation of the main goal;

auxiliary goals - all other goals.

6. By the nature of the influence on the result:

direct goals - directly related to the final results of investment activities (main goal, a number of main goals);

supporting goals - ensure the implementation of direct strategic goals (use of new technologies, improvement of the organizational management structure and others).

7. According to the direction of the reproductive process:

development goals - aimed at ensuring an increase in the assets or equity capital of the enterprise;

renovation goals - ensure timely replacement of depreciable fixed assets and intangible assets within the framework of their simple reproduction.

Basic requirements for the formation of strategic goals of an enterprise’s investment activities:

1. Subordination to the main goal of investment activity - maximizing the welfare of the owners of the enterprise;

2. Focus on high results of investment activities, ensuring the fullest use of investment potential;

3. Reality - limitation according to the criterion of real achievability, taking into account factors of the external environment and internal potential;

4. Measurability - expression in specific quantitative indicators;

5. Unambiguity of interpretation - uniformity and clarity of perception by all managers and performers;

6. Scientific validity - taking into account objective economic laws, using modern methodological apparatus, establishing a system of interrelations between individual goals;

7. Flexibility - the ability to adjust the system and individual strategic goals when changing environmental factors or parameters of internal potential.

Stages of formation of strategic goals of an enterprise’s investment activity:

1. Analysis of trends in the main indicators of investment activity in order to identify patterns and features of the development of investment activity parameters and determine the degree of influence of external and internal factors on them. In a stable state of the investment environment, the analysis is carried out over two to three years; in conditions of its instability, it must correspond to the strategic perspective.

2. Formulation of the main strategic goal of the enterprise’s investment activities. The main goal is specified in a certain indicator and determined quantitatively (for example, to ensure a 3-fold increase in equity capital over 3 years due to the reconstruction of production).

3. Determination of desirable and possible trends in investment activity indicators that ensure the achievement of the main goal. The main parameters of the enterprise's investment activity are identified, ensuring the implementation of the main goal. It is determined which of them can be obtained due to favorable conditions of the external and internal environment.

4. Identification of undesirable but possible trends in the results of investment activities that impede the achievement of the main goal. Identification of the adverse influence of certain external and internal factors on the implementation of the main goal of investment activity in order to develop measures to neutralize them.

5. Taking into account objective restrictions in achieving the desired parameters of the strategic investment position of the enterprise. Such restrictions include:

enterprise size;

possible volume of investment resources;

stage of the enterprise life cycle.

6. Formation of a system of main strategic goals of investment activity, ensuring the achievement of its main goal. Such goals include:

growth rate of investment in the development of the enterprise;

minimum acceptable return on investment;

maximum permissible level of investment risk;

structure of the enterprise's invested capital, etc.

7. Formation of a system of supporting goals included in the investment strategy of the enterprise. Such goals can be set:

level of industry diversification of investments;

level of regional diversification of investments;

ratio of volumes of external and internal investments;

maximum level of liquidity of investment objects;

maximum level of weighted average cost of investment resources and others.

8. Construction of a “tree of goals” for the enterprise’s investment strategy. This will allow us to link the main, main and supporting goals of the enterprise’s investment strategy, taking into account their priority and ranking significance.

Based on the system of goals of the enterprise's investment strategy, strategic directions of its investment activities are developed. In this case, the following tasks are solved: determining the relationship between various forms of investment, determining the sectoral and regional focus of investment activity.

Factors that determine the ratio of investment forms:

1. Functional orientation of the enterprise. Institutional investors carry out investment activities primarily in the securities market, so the main form of their long-term investment activity will be investing in stocks, bonds, savings certificates and the like, so-called financial investments. For manufacturing enterprises, the predominant form of investment will be investments in the form of capital investments, purchase of real estate, etc., the so-called real investments.

2. Stage of the enterprise life cycle. At the stages of “childhood”, “adolescence” and “early maturity”, real investments predominate; only at the stage of “final maturity” can an enterprise increase the share of financial investments.

3. Enterprise size. Investment activity of small and medium-sized manufacturing enterprises is carried out mainly in the form of real investments, since they do not have free resources for financial investment. Large enterprises have access to external sources of financing, which allows them to make financial investments in large volumes.

4. The nature of strategic changes in production activities. In modern literature, two characteristics of strategic changes in the production activities of an enterprise are distinguished - gradual and intermittent changes. Gradual strategic changes are associated with relatively minor changes in production activity over periods. In this case, the investment resources generated by the enterprise are consumed, as a rule, for real investment. Intermittent strategic changes are characterized by abrupt, significant deviations in the volume of production activity from the traditional trend. At the same time, enterprises accumulate a significant amount of temporarily unused investment resources, which can be used for financial investment.

5. The predicted interest rate on the financial market determines the ratio of the share of real and financial investment of the enterprise. In real investing, an increase in the interest rate increases the cost of investment resources and reduces their volume. In financial investing, as the interest rate increases, the rate of net profit on financial instruments increases, causing an increase in the volume of financial investments.

6. Projected inflation rate. The projected increase in inflation rates increases the share of real investment, since prices for real investment objects, as a rule, increase in proportion to inflation. The volume of financial investment in this case will decrease, since inflation depreciates not only the amount of expected investment profit, but also the cost of the financial instruments themselves.

Determining the industry focus of an enterprise's investment activity is the most difficult task in developing an investment strategy and is solved in several stages. At the first stage, the feasibility of industry concentration or diversification of investment activities is examined. The industry concentration strategy, associated with a high level of investment risk, can be used in the first stages of the enterprise's life cycle. As the needs for products (services, works) of consumers are satisfied, it is necessary to move to a strategy of industry diversification of investment activities.

At the second stage, the feasibility of various forms of sectoral diversification of investment activity within certain industries, for example, in construction and the building materials industry, in agriculture and the food industry, etc., is explored. This allows you to significantly reduce investment risks. The main disadvantage of this strategy is that related industries have the same industry life cycle, increasing investment risk during certain periods (downturns).

At the third stage, the feasibility of various forms of diversification of investment activities within unrelated industries is explored. By choosing industries with different stages of the life cycle, the level of investment risks is significantly reduced.

Determining the regional focus of an enterprise's investment activity is associated with two main conditions.

Enterprise size. Small and medium-sized enterprises operate within one region. For them, the possibilities of regional diversification of investment activities are limited by the insufficient volume of investment resources and the increasing complexity of managing investment and economic activities.

Duration of operation of the enterprise. At the first stages of the life cycle, economic and investment activities are carried out, as a rule, within one region. As the company develops, it can expand its activities to a number of regions.

Parameters for assessing the effectiveness of an enterprise's investment strategy:

Consistency of the investment strategy with the overall development strategy of the enterprise.

Coherence of the enterprise's investment strategy with factors of the external investment environment.

Consistency of the enterprise's investment strategy with its internal potential.

Internal balance of the investment strategy: consistency of goals and target strategic standards; compliance of goals and standards with the content of the investment policy; consistency of investment strategy activities across areas and periods.

Feasibility of the investment strategy: sufficiency of investment resources, technological effectiveness of investment projects, availability of the necessary financial instruments on the stock market, etc.

Economic efficiency of implementation of investment strategy.

Conclusion

Investments are understood as funds from the state, enterprises and individuals, allocated for the creation and renewal of fixed assets, for the reconstruction and technical re-equipment of enterprises, as well as for the acquisition of shares, bonds and other securities and assets.

"Investment" is a broader concept than capital investment. They cover so-called real investments (capital investments) and portfolio (financial) investments. Investments play a very important role in the economy of any state. They are the basis for:

expanded reproductive process;

acceleration of scientific and technical progress (technical re-equipment and reconstruction of existing enterprises, renewal of fixed production assets, introduction of new equipment and technology);

improving product quality and ensuring its competitiveness, updating the nomenclature and range of products;

reducing costs of production and sales of products, increasing the volume of products and profits from their sales.

Investing is the process of replenishing or adding capital funds. This is the influx of new capital in a given year. Capital funds “wear out” in production. Inventories of materials and semi-finished products are reduced and used up during the production process, and machines become physically or mentally obsolete and must be replaced.

Firms invest because new capital allows them to increase their profits. When investing, a firm must decide whether, over a specified period of time, the increase in profits generated by the investment will be greater than the cost of the investment. The opportunity cost of investing a certain number of dollars will be the market interest on capital taken on the amount of funds needed to acquire new capital.

Most of the investments made by firms are long-term. The typical increase in a firm's capital will continue for many years. Capital investments vary in their time horizon. The useful life of capital assets is the number of years during which they will generate income for the company or reduce costs.

The effectiveness of the development of the country's economy, its individual regions, industries and new forms of ownership largely depends on the nature of the investment policy, its focus on the most complete and rational use of all types of resources. The main goal of modern investment policy is to transfer the economy to an intensive path of development with a subsequent reduction in costs for the extensive growth of production potential and an increase in investments in intensifying the use of fixed production assets already involved.

Making a decision based on a thorough economic justification on the feasibility of investing in production development is an important, but not the final point in the effective use of capital investments, since capital construction lies ahead, that is, the implementation of the chosen project.

The design and direct construction of an object, that is, capital construction, most significantly influence the efficiency of use of capital investments.

Increasing the efficiency of capital investments in capital construction at an enterprise can be achieved by developing a good project and reducing design time; reducing construction time; wide application where possible and appropriate, good standard projects that have proven themselves in practice, etc.

The choice of certain directions and ways to increase the efficiency of capital investments (investments) depends on the specifics of the enterprise and specific conditions.

Investment planning should be preceded by a deep analysis of their economic justification, taking into account risk and inflationary processes.

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Annex 1

Dependence on risk and liquidity (guarantee of payments) for different securities: 1 - bonds secured by collateral; 2 - bonds not secured by collateral; 3 - preferred shares; 4 - ordinary shares; 5 – options

Appendix 2

Sources of investment financing

It should be noted that the concept of investment is quite broad; in various areas of economic science and practical activity, its content has its own characteristics. Investments are a set of recorded cash, property, securities, property rights and other valuables necessary for the initial creation, effective functioning and development of a business.

Such a concept as “investment” can be found in the vocabulary of literally every person, as well as in journalistic and scientific literature. Moreover, it often contains the most varied content, not only at the level of everyday thinking, but also in specialized literature.

First of all, let's turn to the origin of the word itself: from the Latin investice - to clothe. Then we can assume that these are some actions, thanks to which, or through which certain new or not brought to their logical conclusion ideas, as a result of certain transformations, are clothed in an ideal form. At the level of ordinary consciousness, investments usually mean any investments of funds, more often capital ones, such as the acquisition and construction of real estate, shares, production equipment, jewelry, etc.

In the scientific literature, there is a great variety in the definition of investment. This diversity, in our opinion, is explained by different angles of view on the problem, differences in emphasis on certain components of the above-mentioned question. However, at the same time, the main idea runs through all the definitions of different scientists as a red line - this is money necessary for the growth and development of the country’s economy, or in a narrower interpretation - for the development of an enterprise or any project.

The most common point of view is that equates investments with capital investments. In all educational and encyclopedic literature, these two concepts are almost identical, with the only difference being that the concept of investment is more capacious; some scientists consider capital investments to be a component of investment. They explain this by the fact that when interpreting and explaining the concept of “capital investments”, new methods of investing and, accordingly, raising funds, such as the sale of securities, their issue and all the necessary relevant procedures, were not taken into account. These new methods correspond to the concept of “investment”, which includes both old and new methods of financing.

Investments are investments in the assets of an enterprise in order to produce new products, improve their quality, increase the number of sales and profits. The enterprise's investments ensure simple and expanded reproduction of capital, the creation of new jobs, an increase in wages and purchasing power of the population, and an influx of taxes into the state and local budgets. Investments involve risk. If the profitability forecast is not confirmed, then this threatens the loss of funds invested in the business.

Investments are classified:

according to natural material embodiment. This type of investment is divided into tangible, intangible and financial;

by purpose - direct, aimed at acquiring fixed and working capital, and portfolio - for the purchase of securities;

by sources of financing - own (depreciation, profit and proceeds from the sale of property) and borrowed (loan, leasing, etc.);

by origin - national and foreign;

by purpose - to achieve profit, social or environmental results;

by timing of implementation - short-term, medium-term and long-term;

by object - production and non-production;

in the direction of production investments - to update fixed capital, to increase real estate and working capital, to create new products and improve the quality of products.

The approach to the essence of investments emerging in the economic literature is based on the recognition of the connection between investments and the increase in capital value in the form of net income as a motive for investment activity, consideration of investments in the unity of resources, investments and return on invested funds, as well as the inclusion of any investments that generate income in the investment objects (profit) or other beneficial effect. However, the very characteristics of income generated by an increase in capital value differ when viewed from macroeconomic and microeconomic positions. At the macroeconomic level, income is expressed in the growth of social capital, which is achieved by investing investment resources in objects of activity of the real economic sector. At the microeconomic level, income is the result of any investment of individual capital made with the aim of increasing it.

The productive nature is inherent in investments that ensure the reproduction and growth of not only individual but also social capital; The subjects of productive investment are enterprises in the real sector of the economy, which determines the decisive importance of their investment activities for the economic system of society. Unproductive investments act as investments from the position of an economic entity; they are associated with the receipt of net income as the investor's target setting, however, at the macroeconomic level, their implementation leads to a transfer redistribution of the total income of society, rather than an increase in real capital.

Economic essence of investments

In domestic economic literature until the 80s. the term investment was not used. The basic concept of investment activity was capital investments (costs for the reproduction of fixed assets, their increase and improvement).

Investments were interpreted as long-term investment of capital in industry, agriculture, transport and other sectors of the national economy. In subsequent years, the term became more widespread in scientific circulation and began to be used in regulatory documents.

In 1981 Investments are understood as investments not only in fixed assets, but also in the growth of working capital.

· General civil and economic legislation (Civil Code of the Russian Federation, Tax Code of the Russian Federation, Land Code of the Russian Federation)

· Special investment legislation regulating the procedure for attracting domestic and foreign investment (at the federal and regional level)

In the most general form, investments are understood as investments of capital with the aim of increasing it.

Investments (Article 1 of Federal Law No. 39)

Signs of investment:

1. Investments are the object of economic management, both at the macro and micro levels.

2. Investments are the object of market relations - Investment market

3. Investments by persons (investors) who have their own goals that do not always coincide with the overall economic benefit

4. The potential for investment to generate income

5. A certain period of investment; always individual.

6. Purposeful nature (economic/non-economic) of investing capital in investment objects and instruments.

7. Use of various investment resources (own, borrowed).

8. Investments as an object of ownership and disposal

9. Investments as an object of time preference

10. Investments as a carrier of a risk factor

11. Investments as a carrier of the liquidity factor

The role of investments and investment activities in ensuring the effective functioning of the enterprise.

Investments (Article 1 of Federal Law No. 39)– these are funds, securities, other property, including property rights, other rights that have a monetary value, invested in objects of entrepreneurial and (or) other activities with the aim of making a profit and (or) achieving another useful effect.

1. The main source of formation of production potential

2. The main mechanism for implementing the strategic goals of the economic development of the enterprise (the highest goal of activity now is not maximizing profits, but maximizing the market value of the company).

3. Investments are the most important condition for ensuring the growth of the market value of an enterprise

4. Investments are a tool for implementing investment policy.

5. Investments are the main mechanism for ensuring simple (in the amount of depreciation) and expanded (more) reproduction of fixed assets and intangible assets

6. The main mechanism for optimizing the asset structure.

7. The main factor in the formation of long-term capital structure

8. One of the mechanisms for solving problems of social development of personnel

Investment activity (Article 1 of the Federal Law) is an investment and implementation of practical actions in order to make a profit and (or) achieve another beneficial effect

Portfolio parameters: risk, profitability, liquidity.

Activities: main (operational), financial, investment.

Features of investment activity:

1. It is the main form of ensuring the growth of the enterprise’s operating activities and, in relation to its goals and objectives, is of a subordinate nature

2. The forms and methods of ID depend to a much lesser extent on the industry characteristics of the enterprise than operational activities, that is, industry segmentation in the investment market is practically absent

3. The volume of investment is characterized by significant unevenness over individual periods (it is necessary to first accumulate financial resources, internal prerequisites, external investment climate)

4. Investment profit, as well as other forms of investment effect in the process of investment activity, is usually formed with a lag. There are 3 options:

A. sequential processes of investing capital and making a profit

B. parallel flow

B. Interval flow

5. ID forms a special independent type of cash flows of an enterprise, which differ significantly in certain periods of time in their direction

I 0, I 3 – Investment costs from the operation of the project

CF 1, CF 2, CF 3, CF 4 – Investment profit from the operation of the project

6. ID enterprises are characterized by specific types of risk, which are combined under the concept of investment risk. Catastrophic risk is possible in the ID process

7. The most important measure of the volume of an individual entrepreneur is the indicator of its net investment.

Net Investment = Gross Investment – ​​Depreciation

If CHI > 0 - the enterprise is growing

CHI = 0 - stagnation

CHI< 0 -предприятие проедает свой капитал

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Introduction

1. The essence of investments and investment activities

1.1 Composition and structure of real investments

2. Economic assessment of investments

2.1 Methods for evaluating investment projects

2.2 Methodology for calculating investment needs

3. Sources of investment financing in market conditions

Conclusion

Applications

Introduction

Almost all types of economic activity of enterprises are associated with the need to invest in real assets. In most enterprises, this investment is the only direction of investment activity in modern conditions. This determines the high role of managing real investments and sources of their financing in the system of investment activity of an enterprise.

How correctly and accurately the management of a company can determine the sources of their investment activity depends on the effectiveness of the enterprise as a whole. After all, the point is not only to solve the question of “where to find money”, but also to skillfully structure sources of investment. The forms of sources inevitably affect the nature of enterprise management related to the liquidity and profitability of the enterprise. And the ratio of own and borrowed sources largely determines the relationship with the subjects of economic relations into which the enterprise enters in the course of its activities.

The problem of investment in our country is so urgent that conversations about it do not subside. This problem is relevant, first of all, because one can make a huge fortune by investing in Russia, but at the same time, the fear of losing invested funds stops investors. The Russian market is one of the most attractive for foreign investors, however, it is also one of the most unpredictable, and foreign investors rush from side to side, trying not to miss out on their piece of the Russian market and, at the same time, not to lose their money. At the same time, foreign investors focus, first of all, on the investment climate of Russia, which is determined by independent experts and serves to indicate the effectiveness of investments in a particular country.

The relevance of the course work is due to the fact that the analysis of real investments makes it possible to determine the availability of the necessary resources and possible directions for attracting them to improve the efficiency of the enterprise.

The purpose of the course work is to study this type of investment as capital-forming investments (real investments), their classification, composition, sources of financing and investment objects.

In accordance with the set goal, the following tasks will be solved in the work: firstly, the characteristics of real investments are given, secondly, the effectiveness of investments is considered, thirdly, the main sources of investment financing are analyzed.

investment activity project financing

1. The essence of investments and investment activities

Investment is one of the most frequently used categories in the economic system, both at the macro and micro levels. However, despite the exceptional attention of researchers to this key economic category, scientific thought to this day has not developed a universal definition of investment that would meet the needs of both theory and practice, and would also be adequate from the position of the specific subject of their implementation - the state, enterprise , household.

Although in modern literature the various definitions of investment do not interpret them clearly enough, or too narrowly, focusing only on some of its essential aspects, we will define the key concept that characterizes the economic essence of investment in the most generalized form.

Investments of an enterprise represent the investment of capital in all its forms in various objects (or instruments) of its economic activity with the aim of making a profit, as well as achieving other economic or non-economic effect, the implementation of which is based on market principles and is associated with factors of time, risk and liquidity.

And finally, in the Federal Law “On investment activities in the Russian Federation, carried out in the form of capital investments” dated February 25, 1999 No. 39-FZ, investments are given the following definition: “Investments - cash, securities, including property rights that have a monetary value, invested in objects of entrepreneurial and (or) other activity in order to make a profit and (or) achieve another useful effect."

The practical implementation of investments is ensured by the investment activities of the enterprise, which is one of the independent types of its economic activities and the most important form of realizing its economic interests.

The investment activity of an enterprise is understood as a targeted process of finding the necessary investment resources, selecting effective investment objects (instruments), forming an investment program (investment portfolio) balanced according to selected parameters and ensuring its implementation.

The investment activity of the enterprise is characterized by the following main features:

It is the main form of ensuring the growth of the enterprise’s operating activities and in relation to the goals and objectives is of a subordinate nature

Forms and methods of investment activities depend much less on the industry characteristics of the enterprise than operating activities

The volume of investment activity of the enterprise is characterized by significant unevenness across individual periods

The investment profit of an enterprise in the process of its investment activity is usually formed with a significant “lag lag” (i.e., the period of time between the investment of capital and the actual excess of the profit received over the invested capital and depreciation charges)

Investment activity forms a special independent type of cash flows of an enterprise, which differ significantly in certain periods in their focus (from the first investment costs to the receipt of income and incurring actual expenses from the liquidation of assets)

Investment activities are characterized by specific types of risks, united by the concept of “investment risks,” which usually exceed operational risks.

The most important measure of the volume of investment activity, characterizing the pace of economic development of an enterprise, is the indicator of its net investment (represents the amount of gross investment reduced by the amount of depreciation charges in a certain period), accordingly, its negative, zero or positive value is taken into account here, and in conjunction with past performance and depending on the period being compared.

Depending on the goals set, investments can be classified according to the following main criteria:

According to investment objects, real and financial investments are distinguished. Since in the economic literature there are different approaches to determining the essence and structure of these economic forms, their relationship with other classification groups of investments, it is necessary to clarify the content of real and financial investments and determine their objects.

Real investments act as a set of investments in real economic assets: material resources (elements of physical capital, other tangible assets) and intangible assets (scientific, technical, intellectual products, etc.).

The most important component of real investments are investments made in the form of capital investments, which in economic literature are also called real investments in the narrow sense of the word, or capital-forming investments.

Financial investments include investments in various financial assets - securities, shares and equity participations, bank deposits, etc.

1.1 Composition and structure of real investments

Real investments are investments in tangible and intangible assets that form the fixed and working capital of an enterprise. Real investments, in turn, are divided into tangible (real) and intangible (potential). Intangible assets are long-term investments of an enterprise through the acquisition of patents, licenses, trademarks, trademarks, other rights to use production information, rights to use land and natural resources, computer software products, intellectual property rights, staff development, research and development work. Material investments involve investments primarily in means of production, i.e. represent means embodied in buildings, machines, materials, components, and finished products. They, in turn, can be divided into:

· strategic investments;

· basic investments;

· current investments;

· innovative investments.

The purpose of these investments and their role in increasing productive capacity are different.

Strategic investments are investments aimed at creating new enterprises, new production facilities or acquiring entire property complexes in another field of activity, in other regions, etc.

Basic investments are investments aimed at expanding existing enterprises, creating new enterprises and production facilities in the same field of activity as previously, in the same region, etc.

Current investments are designed to support the reproduction process and are associated with investments to replace fixed assets, carry out various types of major repairs with replenishment of inventories of material and current assets.

Innovation investments can be divided into two groups: (a) investments in enterprise modernization, including technical re-equipment in accordance with market requirements, and (b) investments in ensuring safety in the broad sense of the word. We are talking about investments related to the inclusion in the enterprise of technological structures that guarantee uninterrupted and efficient supply of production with the necessary raw materials, components, maintenance of technological production (repair, adjustment, development of technical documentation, etc.).

The main direction of real investment is capital investment. In accordance with the Federal Law “On investment activities in the Russian Federation, carried out in the form of capital investments” (1999), capital investments mean investments in fixed capital (fixed assets), including costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, acquisition of machinery, equipment, tools, inventory, design and survey work and other costs:

1) new construction includes the construction of enterprises, buildings, structures carried out on new sites and according to a specially developed project;

2) the expansion of an existing enterprise is either the construction of subsequent stages of additional production complexes and production facilities for new projects, or the expansion or construction of existing workshops of the main, auxiliary and service industries. It is carried out, as a rule, on the territory of an existing enterprise or in adjacent areas;

3) reconstruction is the carrying out of construction and installation work on existing sites without stopping the main production with partial replacement of equipment. Thus, reconstruction is a partial re-equipment of the enterprise with the replacement of obsolete and physically worn-out equipment. Reconstruction is usually carried out in order to increase the production potential of the enterprise, significantly improve the quality of products, introduce resource-saving technologies, etc. Reconstruction can also be carried out in order to change the profile of the enterprise and organize new products on existing production areas;

4) technical re-equipment - these are measures aimed at replacing and modernizing equipment, while expanding production areas is not carried out. Most often, technical re-equipment is carried out through the introduction of new equipment and technology, mechanization and automation of production processes, modernization and replacement of obsolete and physically worn-out equipment with new ones. Technical re-equipment is carried out in order to ensure an increase in labor productivity and the volume of output, improve the quality of products, as well as improve the conditions and organization of work at the enterprise. Technical re-equipment is the most economical way to make capital investments in terms of the timing of its completion and specific capital investments per unit of increase in production volume.;

5) the acquisition of enterprises is carried out mainly by large business organizations, since it requires a large amount of invested funds. This form of investment leads to an increase in the total value of the assets of both enterprises and gives them certain advantages over competitors due to the complementarity of technologies and the range of products, the use of opportunities to reduce costs by saving on large wholesale purchases of raw materials and supplies and through the sharing of a sales network, etc. P. .

Understanding the essence of real investments involves their classification. Classification of real investments can be carried out according to different classification criteria:

1. Depending on the way other possible investments influence the income from a given project, dependent and independent investments are distinguished.

Independent investments are investments in which the income expected from the implementation of the first investment project will not change regardless of whether the second project is implemented. Economically independent investments assume that investment in one project is technically possible regardless of decisions to invest in another project and/or projects; The cash flows expected from a given investment do not influence decisions on other investments.

Dependent investments can be complementary or mutually exclusive.

Complementary economically dependent investments are associated with a synergistic effect, i.e. the implementation of a second investment project has a positive impact on the flow of cash income from jointly made investments. The total income from the implementation of two or more projects significantly exceeds the monetary income from each of the projects carried out independently of each other.

Mutually exclusive investment projects are associated with the technical impossibility of implementing both projects, or the implementation of one of them will reduce the possible monetary income from the other or completely reduce them to zero.

Two directions of economically independent investments can be statically dependent. Static dependence occurs when the monetary returns from two economically independent investments depend on some external event, . having a probabilistic nature. For example, business development in seemingly independent areas (furniture and clothing production) is determined by the level of income of the population or possible legislative changes in taxation.

2. Classification of investments by industry is necessary when developing an anti-crisis investment strategy of the state, since improving the structure of production requires investment primarily in industries that determine the development of technical progress, identifying “key”, high-tech technologies that have a revolutionary impact on the economic development of the country.

3. According to the degree of mandatory implementation, investments are divided into mandatory and optional,

Mandatory are those that, if not taken, can stop all production activities of enterprises in various sectors of the national economy.

Optional ones do not have a decisive influence on the industry’s recovery from the crisis and on increasing the efficiency of the economy.

In Russia, in this regard, investments are mandatory that will lead to the mitigation of social tensions and increased political and socio-economic stability.

4. Also, real investments can be divided by source of financing into internal and external.

Internal is the investment of an economic entity’s funds in factors of production at the expense of its own sources of financing.

External is the investment of funds from external investors in the factors of production of an economic entity in need of investment.

Investments in non-financial assets include the following elements:

investments in fixed capital;

capital repair costs;

investments in intangible assets (patents, licenses, etc.);

investments in increasing inventories of working capital;

investments in the acquisition of land plots and environmental management facilities.

Table 1 Structure of investments in non-financial assets in the Russian Federation (in actual prices).

	billion rubles
Investments in non-financial assets - total
investment in fixed capital
investments in intangible assets
investments in other non-financial assets
expenses for research, development and technological work

Analyzing this table, we can say about the increase in investments in general in non-financial assets for the period 2004-2009. But when examined year by year, a general downward trend for 2009 clearly emerges. This sharp decline occurred due to the global economic crisis.

In the process of functioning of an entrepreneurial company, the choice of a specific form of real investment is determined by many factors: firstly, the tasks of industry, product and regional diversification of the company’s activities; secondly, the possibilities of introducing new technologies in the company; thirdly, the presence of own investment resources and (or) the possibility of attracting borrowed or attracted resources.

2. Economic assessment of investments

2.1 Methods for evaluating investment projects

The economic assessment of investment projects occupies a central place in the process of justification and selection of possible options for investing funds in operations with real assets. Despite all the other favorable characteristics of the project, it will never be accepted for implementation if it does not provide:

· reimbursement of invested funds from income from the sale of goods or services;

· obtaining a profit that ensures a return on investment not lower than the level desired for the enterprise;

· return on investment within a period acceptable for the enterprise.

Determining the reality of achieving precisely these results of investment activity is the key task of assessing the financial and economic parameters of any project for investing in real assets.

Carrying out such an assessment is always quite a difficult task, which is explained by a number of factors:

firstly, investment expenses can be made either one-time or repeatedly over a fairly long period of time (sometimes up to several years);

secondly, the process of obtaining results from the implementation of investment projects is also long (in any case, it exceeds one year);

thirdly, the implementation of long-term operations leads to increased uncertainty in assessing all aspects of investments and to the risk of error.

It is the presence of these factors that has given rise to the need to create special methods for evaluating investment projects, allowing one to make fairly informed decisions with the lowest possible level of error (although, of course, there cannot be an absolutely reliable decision when evaluating investment projects).

Discounting method

One of the principles of project analysis is that it is necessary to compare costs and income (benefits) that arise at different times. It is known that the costs of creating and implementing a project extend over time, and income from the project, in addition to extending over time, usually arises after the costs have been incurred.

Suppose that instead of spending one ruble now, we lend it for another year, receiving a promissory note in return. As a result, we seem to be depriving ourselves of the opportunity to spend this ruble on ourselves now. However, we assume that in a year, we will be returned not a ruble, but more: after all, a ruble spent now is worth more than a ruble in a year.

Therefore, they talk about such a concept as the time value of money, meaning that a ruble received earlier is worth more than a ruble received later.

Economic and financial analysis uses a special technique to measure current and future value using a single monetary yardstick. This technique is called discounting.

Discounting is the reverse process of compound interest. Compound interest is the process of growing the principal amount of a deposit due to the accumulation of interest, and the amount received as a result of the accumulation of interest is called the future value of the deposit amount after the period for which the calculation is made. The original deposit amount is called the present value.

When calculating compound interest, the future value is found by multiplying the current value by (1 + interest rate) as many times as the number of years the calculation is being made:

where FV is future value; PV - current value; r - interest rate;

n is the number of years.

Let's assume that we need to determine what the initial contribution should be so that by the end of the third year it will be 1 ruble. 33 kopecks based on an interest rate of 10% per year. This contribution, unknown to us, is called the present value of the future value of 1 ruble. 33 kopecks The process of determining this present value, the inverse of compounding, is discounting.

When discounting, the current value is found by dividing the future value by (1 + interest rate) as many times as the number of years the calculation is made for:

Discounting, like compounding, is based on the use of an interest rate. To simplify calculations when calculating compound interest and when discounting, special tables are used in which the values ​​and are pre-calculated for each year and for each interest rate. These quantities are called, respectively, the “compound interest factor” (increase factor) and the discount factor” (discount factor).

How to determine the interest rate for discounting, the so-called discount rate? In economic analysis, it is defined as the level of return that can be obtained from different investment opportunities. In financial analysis, the discount rate is the typical interest rate at which a given company can borrow funds. If banks lend to a company at a rate of 30%, then this will be the discount rate.

In both economic and financial analysis, discounting is the adjustment of streams of income (benefits) and costs to each other year after year based on the discount rate in order to obtain the current (today) value of future income (benefits) and costs.

In project analysis, the effectiveness of a project is measured by its profitability. The main indicators of project profitability are net present value and internal rate of return.

Project profitability indicators

Net present value (net present value of income) is defined as the difference between the current present value of the stream of future income (benefits) and the current present value of the stream of future costs for the implementation and operation of the project during its entire life cycle:

where NPV is the net present value; Rt - income (benefit) from the project in year t; C t ; - project costs in year t; i - discount rate, n - number of years of the project life cycle.

The internal rate of return (payback) is the calculated interest rate at which the benefits (income) received from the project become equal to the costs of the project, i.e. The calculated interest rate at which the net present value is zero.

The internal rate of return is usually calculated on a computer using a special program.

Along with those considered, there are other indicators of project efficiency, such as indicators of lowest costs, profitability, and payback period.

The least cost indicator is the amount of project costs for the least expensive option.

Project profitability is defined as the ratio between all discounted project revenues and all discounted project costs.

The payback period of the project shows how long the project will pay off; it is calculated on the basis of undiscounted costs. This indicator is useful for quick assessment when choosing alternative projects, but it does not take into account the time factor. For example, a project with costs of 100 million rubles, which brings in annual income of 20 million rubles, has a 5-year payback period, as well as a project with costs of 100 million rubles, which will bring an income of 1 million. rub. in the first year and 99 million rubles. - in the fifth year.

The choice by a company of one or another direction of real investment depends on the goals it pursues when making investments. However, it is more often more effective to make capital investments in the reconstruction and technical re-equipment of existing production, which can significantly reduce the time it takes to commission production facilities (as a rule, there is no need to build auxiliary workshops, communications, power lines for water supply systems), with relatively lower capital investments than with construction of new or expansion of existing enterprises. Such costs pay off on average three times faster.

The need for capital investment is driven by long-term sales forecasts, which determine the capacity and shape of production processes, in some cases for many years. For example, the steel and chemical industries contain complex, capital-intensive production processes, so significant increases in their core production capacity can only be achieved by refurbishing existing plants or building new ones. Naturally, decisions on capital investments of this scale are not made often.

2.2 Methodology for calculating investment needs

As alternative methods for calculating the need for investment, primarily in non-current assets (fixed capital), within the framework of this course work we will consider two independent methods:

· Analysis of the provision of fixed assets;

· Analysis of the efficiency of use of fixed assets.

Analysis of the provision of fixed assets

An analysis of the provision of an organization and its structural divisions with fixed assets serves to study the organization's need for fixed assets for full production, identify the actual availability of fixed assets, determine the condition of fixed assets and evaluate their use.

As is known, fixed assets are divided into production and non-production, active (machinery and equipment, vehicles involved in the process of production and sales of products).

Fixed assets mean property that must simultaneously meet the following requirements:

Use in the production of products, when performing work or providing services, or for the management needs of the organization;

Use for a long time, that is, a useful life of more than 12 months or a normal operating cycle if it exceeds 12 months;

The organization does not intend to subsequently resell these assets;

The ability to bring economic benefits (income) to the organization in the future.

For analysis, we present some data on fixed assets of OJSC Irkut

Table 2 Analysis of the structure of fixed assets of OJSC Irkut for 2008.

Index	Availability at the beginning of the reporting year (t.r.)	Specific Gravity (%)	Availability at the end of the reporting period (t.r.)	Specific Gravity (%)	Change
cars and equipment
Vehicles
Industrial and household equipment Other types of fixed assets

As can be seen from the table, the structure of fixed assets of the analyzed enterprise is quite stable and is characterized by the largest share of machinery and equipment, the share of which ranges from 56.28% to 59.15%. However, the share of buildings and structures and transmission devices decreased by 4.06% due to an increase in vehicles and machinery and equipment by 4.12%, which in relative terms amounts to 1,516,841 tr. In general, all fixed assets underwent changes during the analyzed period; they increased by 1,797,979 tr.

For a qualitative analysis of the organization's provision with fixed assets, it is advisable to analyze the very structure of fixed production assets at the beginning and end of the reporting year, determining the absolute deviation and identifying, by specific gravity, specific reasons for changes in the composition of the above fixed assets. For this purpose, you can use synthetic, analytical and operational-technical accounting registers. In this case, all sources of receipt of fixed assets are subject to analysis: commissioning of new fixed assets; acquisition of used fixed assets; free receipt of fixed assets; rental of fixed assets; revaluation of fixed assets; fixed assets identified during inventory. The value of fixed assets decreases as a result of their disposal due to moral and physical wear and tear, sale, gratuitous transfer to other organizations, markdown, transfer to long-term lease, emergency situations.

Table 3 Analysis of the movement of fixed assets of OJSC Irkut for 2008 (thousand rubles)

Index	Availability at the beginning of the reporting year	Received		Availability at the end of the reporting period
Name
Facilities and transmission devices
cars and equipment
Vehicles
Industrial and business equipment Other types of fixed assets
Land plots and environmental management facilities

To characterize the movement, condition and degree of deterioration of fixed assets, the following indicators are used: renewal rate, retirement rate, growth rate, wear rate, serviceability rate:

	Cost of fixed assets at the end of the period
	Cost of received fixed assets
	Cost of fixed assets at the beginning of the period
	Amount of increase in fixed assets
	Their cost at the beginning of the period
	Amount of depreciation of fixed assets
	The original cost of fixed assets as of the relevant date
	Residual value of fixed assets
	Initial cost of fixed assets
	Cost of retired fixed assets
	Cost of received fixed assets

We present the calculation of the indicators under consideration for the analyzed enterprise in the form of a table:

Table 4 Data on the movement and technical condition of fixed assets

Coefficient	Indicator level	Changes
	For the beginning of the year	At the end of the year
Renewal factor
Attrition rate
Growth rate
Wear rate
Usability factor
Renewal period, years
Replacement rate

According to the calculations, it can be seen that there is an accelerated growth in the receipt of fixed assets compared to their disposal: the renewal coefficient is 0.17, and the retirement coefficient is 0.009.

The degree of wear and tear of fixed assets is characterized by two coefficients: wear and serviceability coefficient.

Considering the ratio of the serviceability coefficient at the beginning and end of the year, we can judge that the coefficient decreased by 0.01, which indicates a slight qualitative decrease in the composition of fixed assets. Considering the indicators of the renewal period and replacement rate, it can be noted that the renewal period is on average 4.86 years, therefore, if the indicators remain unchanged, a complete renewal of fixed assets will occur in 4.8 years. The high replacement rate is 21.64 at the end of the year, which indicates a high rate of replacement of retired fixed assets with new ones. For an industry such as aircraft manufacturing, these indicators are quite high; in addition, one must take into account the fact that the enterprise introduced a technical re-equipment program from 2005 to 2017. Those. During this period, the Irkut Corporation makes significant capital investments in non-current assets.

Analysis of the efficiency of use of fixed capital

The most important indicator is the capital productivity of fixed assets, defined as the ratio of the cost of production (gross, marketable or sold) to the average annual cost of fixed assets:

F o = TP/F avg,

where F o - capital productivity;

TP - volume of production and sales of products, rub.;

Capital productivity shows the overall return on the use of each ruble spent on fixed production assets, that is, the effectiveness of this investment.

The next general indicator is capital intensity. This value is the inverse of capital productivity. It is calculated as the ratio of the cost of fixed production assets to the volume of output:

Ф е = Ф ср/ТП,

where F е - capital intensity;

TP - volume of production and sales of products, rub.

The capital intensity indicator characterizes the level of funds invested in fixed assets for the production of products of a given size.

The efficiency of an enterprise is largely determined by the level of capital-labor ratio, determined by the cost of fixed production assets to the number of workers (industrial production personnel) of the enterprise:

F v = F av / H ppp,

where F in - capital-labor ratio;

F av - average annual cost of fixed production assets, rub.;

N ppp - number of industrial production personnel.

This value must continuously increase, since technical equipment and, consequently, labor productivity depend on it.

The capital return indicator characterizes the profitability of fixed assets and is determined by the formula:

F r = P/F avg,

where F r - capital return;

P - profit from the sale of products, works, services, rubles;

F av - average annual cost of the enterprise's fixed production assets, rub.

To determine the indicators of capital profitability, capital productivity and capital intensity, we determine the average annual cost of fixed assets in 2005 and 2006. The average annual cost of fixed assets is determined on the basis of the initial cost, taking into account their commissioning and liquidation (Tables 1.2; Appendix 1)

We will calculate the indicators of capital profitability, capital productivity, capital intensity and capital-labor ratio of OJSC Irkut on the basis of the Profit and Loss Report for 2008 (Appendix 2) and present the calculation in Table 5.

Table 5 Analysis of the efficiency of use of fixed assets of OAO Irkut for 2007 and 2008

According to the calculations, it can be seen that the capital return ratio decreased, that is, the return on fixed capital decreased by 0.32, which in percentage terms is 46.66%.

The return on capital in 2007 was 3.82, which means that in 2007, per one ruble of fixed assets, the number of products produced was 3.82 rubles. Consequently, in 2008, per one ruble of fixed assets, the amount of products produced was 2.86 rubles. A significant decrease in capital productivity is due to the fact that in 2008 there was a receipt of fixed assets, and the volume of production and sales of products amounted to 31,242,811 rubles.

Capital intensity is the inverse indicator of capital productivity and characterizes the cost of fixed production assets per one ruble of manufactured products in 2007 equal to 0.26 rubles, and in 2008 0.34.

The capital-labor ratio shows that for each employee of the enterprise there were fixed assets in the amount of 703.65 rubles per person in 2007. In 2008, the capital-labor ratio increased to 858.7 rubles/person, which is associated with an increase in the average annual cost of fixed assets. The capital-labor ratio indicator is used to characterize the degree of equipment of workers. The greater the capital-labor ratio, the greater the volume of production and the greater the cost of fixed assets.

From the results of the study of OJSC Scientific and Production Corporation Irkut, it can be concluded that the state of fixed assets and their use makes it possible to assess the effectiveness of the use of the active and passive parts of the means of labor and, on their basis, to calculate the reserves for increasing production output and capital productivity due to increasing capital investments in non-current assets.

3. Sources of investment financing in market conditions

Justification of a financing strategy for an investment project involves the selection of financing methods, identification of sources of investment financing and their structure.

The method of financing an investment project acts as a way to attract investment resources in order to ensure the financial feasibility of the project.

The following can be considered as methods of financing investment projects:

· self-financing, i.e. investing only from your own funds;

· corporatization, as well as other forms of equity financing;

· credit financing (investment loans from banks, issue of bonds);

· leasing;

· budget financing;

· mixed financing based on various combinations of the considered methods;

· project financing.

Table 6 Structure of investments in fixed capital by sources of financing (%)

Investments in fixed capital - total
including by sources of financing:
own funds
profit remaining at the disposal of the organization (accumulation fund)
depreciation
involved funds
bank loans
including loans from foreign banks
borrowed funds from other organizations
budget resources
including:
federal budget funds
funds from the budgets of the subjects of the Federation
extra-budgetary funds
other
including:
funds of higher organizations
funds received from equity participation in construction (organizations and the population)
including funds from the population
funds from the issue of corporate bonds
funds from the issue of shares

Internal financing (self-financing) is provided by the enterprise planning to implement the investment project. It involves the use of own funds - authorized (share) capital, as well as the flow of funds generated during the activities of the enterprise, primarily net profit and depreciation charges. At the same time, the formation of funds intended for the implementation of the investment project must be strictly targeted, which is achieved, in particular, by allocating an independent budget for the investment project.

Self-financing can only be used to implement small investment projects. Capital-intensive investment projects, as a rule, are financed from not only internal, but also external sources.

External financing involves the use of external sources: funds from financial institutions, non-financial companies, the population, the state, foreign investors, as well as additional contributions of monetary resources from the founders of the enterprise. It is carried out by mobilizing attracted (equity financing) and borrowed (credit financing) funds.

Each of the used sources of financing has certain advantages and disadvantages (Table 9.1). Therefore, the implementation of any investment project requires justification of the financing strategy, analysis of alternative methods and sources of financing, and careful development of the financing scheme.

The adopted financing scheme should provide:

· a sufficient amount of investment to implement the investment project as a whole and at each step of the billing period;

· optimization of the structure of investment financing sources;

· reduction of capital costs and risk of an investment project.

Table 7. Comparative characteristics of sources of financing investment projects

Sources of financing	Advantages	Flaws
Internal sources (equity)	Ease, accessibility and speed of mobilization. Reducing the risk of insolvency and bankruptcy. Higher profitability due to the absence of the need for payments from attracted and borrowed sources. Preservation of ownership and management of the founders	Limited amount of funds raised. Diversion of own funds from economic turnover. Limited independent control over the efficiency of use of investment resources
External sources (raised and borrowed capital)	Possibility of raising funds on a significant scale. Availability of independent control over the efficiency of use of investment resources	The complexity and duration of the fundraising procedure. The need to provide guarantees of financial stability. Increased risk of insolvency and bankruptcy. Decrease in profit due to the need to make payments from attracted and borrowed sources. Possibility of loss of ownership and management of the company

Corporatization (as well as shares and other contributions to the authorized capital) provides for equity financing of investment projects. Equity financing of investment projects can be carried out in the following main forms:

Carrying out an additional issue of shares of an operating enterprise, which is a joint-stock company in its organizational and legal form, for the purpose of financial support for the implementation of the investment project;

Attracting additional funds (investment contributions, deposits, shares) from the founders of an operating enterprise for the implementation of an investment project;

Creation of a new enterprise designed specifically for the implementation of an investment project.

Additional issue of shares is used for the implementation of large-scale investment projects, investment development programs, industry or regional diversification of investment activities. The use of this method mainly for financing large investment projects is explained by the fact that the costs associated with the issue are covered only by significant volumes of attracted resources.

The main advantages of corporatization as a method of financing investment projects include the following:

payments for the use of allocated resources are not unconditional, but are made depending on the financial result of the joint-stock company;

the use of attracted investment resources has a significant scale and is not limited in time;

the issue of shares makes it possible to ensure the formation of the required amount of financial resources at the beginning of the implementation of the investment project, as well as to defer the payment of dividends until the period when the investment project begins to generate income;

shareholders can exercise control over the targeted use of funds for the implementation of the investment project.

However, this method of financing investment projects has a number of significant limitations. Thus, a joint stock company receives investment resources upon completion of the placement of shares, and this requires time, additional expenses, evidence of the financial stability of the enterprise, information transparency, etc. The procedure for additional issue of shares is associated with registration, listing, and significant operating costs. When going through the issue procedure, issuing companies incur costs for paying for the services of professional securities market participants who perform the functions of an underwriter and investment consultant, as well as for registering the issue. In accordance with Russian legislation, the issuer is charged a fee for state registration of the issue of issue-grade securities placed by subscription - 0.2% of the nominal amount of the issue, but not more than 100,000 thousand rubles1

One of the forms of financing investment projects by creating a new enterprise designed specifically for the implementation of an investment project is venture financing. The concept of “venture capital” (from the English venture - risk) means risk capital, invested primarily in new areas of activity associated with high risk. Venture financing allows you to raise funds for the initial stages of implementing investment projects of an innovative nature (development and development of new types of products and technological processes), characterized by increased risks, but at the same time the possibility of a significant increase in the value of enterprises created to implement these projects. In this respect, venture investment differs from financing (by purchasing an additional issue of shares, shares, etc.) of existing enterprises, shares of which can be acquired for the purpose of further resale.

Venture investors (individuals and specialized investment companies) invest their funds with the expectation of receiving significant profits. First, with the help of experts, they analyze in detail both the investment project and the activities of the company offering it, financial condition, credit history, quality of management, and the specifics of intellectual property. Particular attention is paid to the degree of innovation of the project, which largely determines the potential for rapid growth of the company.

Venture investments are carried out in the form of acquiring part of the shares of venture enterprises that are not yet listed on stock exchanges, as well as providing loans or in other forms. There are venture financing mechanisms that combine different types of capital: equity, loan, entrepreneurial. However, venture capital generally takes the form of equity capital.

The main forms of credit financing are investment loans from banks and targeted bond loans.

Investment loans from banks act as one of the most effective forms of external financing of investment projects in cases where companies cannot ensure their implementation at the expense of their own funds and the issue of securities. The attractiveness of this form is explained primarily by:

the possibility of developing a flexible financing scheme;

absence of costs associated with registration and placement of securities;

using the effect of financial leverage, which allows increasing the return on equity depending on the ratio of equity and borrowed capital in the structure of invested funds and the cost of borrowed funds;

reducing taxable profit by attributing interest payments to costs included in the cost price2.

Investment loans are, as a rule, medium- and long-term. The period for attracting an investment loan is comparable to the period for implementing the investment project. In this case, an investment loan may provide for a grace period, i.e. period of deferment of repayment of the principal debt. This condition makes it easier to service the loan, but increases its cost, since interest payments are calculated on the outstanding amount of the debt.

Investment loans in Russian practice are issued, as a rule, in the form of a term loan with a repayment period ranging from three to five years on the basis of drawing up an appropriate loan agreement (agreement). In some cases, the bank opens a credit line to the borrower for this period.

In the case of long-term and close cooperation between the creditor bank and the borrower to finance an investment project, the bank may open an investment line of credit to the borrower. An investment line of credit is a legal formalization of the lender’s obligation to the borrower to provide loans (tranches) over a certain period as the borrower’s need arises to finance individual capital costs for the project within the agreed limit. Opening an investment line of credit has a number of advantages for both the borrower and the lender. The benefits for the borrower include a reduction in overhead costs and time loss associated with negotiating and concluding each individual loan agreement, as well as savings on interest servicing for loan amounts exceeding the current financing needs of the investment project. For the lending bank, in addition to reducing the costs associated with processing and servicing loan agreements, the tasks of refinancing (searching for sources) of loan funds are simplified and the risks of loan non-repayment are reduced, since the amounts of individual tranches are less than the loan amount if it is provided at a time. At the same time, the lending bank assumes the risks associated with changes in conditions on the loan capital market, since regardless of the nature of these changes, it is obliged to fulfill its obligations to the borrower and provide him with a loan in full accordance with the credit line agreement.

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