“FACTORS AFFECTING FINANCIAL STABILITY OF BUSINESS ENTITIES”

Jalolova Asila

“FACTORS AFFECTING FINANCIAL STABILITY OF BUSINESS ENTITIES”

Jalolova Asila

The primary objective of this study is to examine factors influencing financial stability of business enterprises. Business entities play a significant role in the economy of the country as they provide job vacancies to communities and have own contribution to the country’s Growth Domestic Product (GDP). The analysis of statistical data shows that European companies prefer raising debt than own capital. The average level of ratio "own capital to total assets" is equal to 32.89%. This fact points at: 1) instability of companies being analyzed and 2) possibility of their insolvency risk. For this reason, this paper aims to analyze and evaluate crucial factors that have impact on business entities’ financial sustainability with specific focus and reference on Somalia markets. An example that determines the financial stability of various foreign enterprises is also presented.

##semicolon## Financial stability, business entities, economic growth, employment creation in small and medium-sized businesses, financial development, SMEs

सार

The primary objective of this study is to examine factors influencing financial stability of business enterprises. Business entities play a significant role in the economy of the country as they provide job vacancies to communities and have own contribution to the country’s Growth Domestic Product (GDP). The analysis of statistical data shows that European companies prefer raising debt than own capital. The average level of ratio "own capital to total assets" is equal to 32.89%. This fact points at: 1) instability of companies being analyzed and 2) possibility of their insolvency risk. For this reason, this paper aims to analyze and evaluate crucial factors that have impact on business entities’ financial sustainability with specific focus and reference on Somalia markets. An example that determines the financial stability of various foreign enterprises is also presented.

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