Features of crisis management of business entities during martial law

Abstract

Purpose. To characterize the features of crisis management of micro, small, medium and large enterprises during martial law. Methodology. Methods of analysis and synthesis, observation, generalization, and comparative analysis were used to fulfill the tasks and achieve the goal of the research. The methods of absolute, relative values, correlation and regression analysis were used in the development of the logit-model for estimating the probability of bankruptcy. The research’s information base was backed by the works of Ukrainian and foreign scientists, statistical materials, and Internet sources. Findings. The economic consequences of the military invasion in Ukraine are indicated the main challenges of business operation in contemporary conditions are identified. The features of crisis management of micro, small, medium and large enterprises are determined and two types of it are proposed: urgent and traditional. The specifics of crisis diagnostics are considered, providing methodological recommendations for analyzing the performance of various business entities based on the scale of their activities. For micro and small business entities, activity assessment indicators are proposed, which are based on a minimum amount of data and simple calculations, for medium and large ones – a comprehensive assessment using ratio analysis and models for assessing the probability of bankruptcy, including the authors’ own logit model, tested at Ukrainian enterprises. Anti-crisis measures are substantiated to improve business functioning during martial law, both at the enterprise and state levels. Originality. The concept of “urgent crisis management” has been introduced to characterize the functioning of micro and small business entities. A concept of enterprise crisis management during wartime has been developed and a methodical approach to the diagnosis of subjects of micro, small, medium and large enterprises has been improved. In particular, the authors’ logit model for assessing the probability of bankruptcy has been proposed. Practical value. Methodological recommendations have been provided for the implementation of enterprise crisis management based on the scale of entrepreneurial activities, aiming to enhance their functioning in contemporary wartime conditions. The study introduces and validates a logit model on Ukrainian enterprises, demonstrating its effectiveness. The research findings discussed in this paper can be used by economists-researchers and practitioners to enhance business efficiency.