FINANCIAL EVALUATION OF IMPACT OF INTRODUCING INNOVATIONS IN ENTERPRISE-ORIENTED COMPANIES

Abstract

The rapid development of information and communication technology at the end of the twentieth century has made the entrepreneurship regaing intensity and become a fundamental economic activity. The great economic transition, the change of critical production resources to the non-material on one hand, and the simultaneous liberalization and privatization in post-communist countries on the other, opened wide door to a new entrepreneurial ascent. Entrepreneurial economy is the economy in which innovation is a normal, regular, stable and continuous phenomenon. In terms of major changes and a sharp competitive struggle, new ideas and the ability to create and use innovation, surprises and adapting quickly have become the factors that can make a huge success. Therefore, the entrepreneurial spirit and innovation behavior of entrepreneurial managers is reaffirmed. Innovation is the instrument of entrepreneurship. It should be borne in mind that innovation creates the resource. Therefore, it is necessary to analyze and create the modalities of the effects of introducing certain innovations in the company. The aim of this paper is to elaborate on the mathematical analysis of the possibilities of measuring the financial effects of the introduction of innovation in entrepreneurial oriented company. Also, the paper will try to analyze the foreign experience to local practice from the perspective of creating and applying certain entrepreneurial innovation-oriented enterprises. The paper used scientific methods of deduction, comparative analysis and analysis of best practices. Interpretation of the results should serve as a basis for technical and scientific discussion on financial evaluation of effects of introducing innovation in entrepreneurial-oriented company, and as a basis for improving existing analytical framework.