SOME THOUGHTS ON THE BUSINESS EFFICIENCY AND THE METHODS FOR ITS ANALYSIS

Abstract

The issue of enterprises’ business is relevant at all phases and stages of their development. The survival of enterprises and the continuation of their business in the context of the complex and contradictory economic reality require them to be financially stable, properly oriented and positioned on the competitive market that is characterized with certain level of entropy. The achievement and maintaining of market and financial stability require the enterprises to implement measures for the continuous increase of their business efficiency. The importance and relevance of this issue are even higher today due to the effect of a system of internal and external factors, and as a result of the existing crises some of which are still experienced. For example, the enterprises’ business is subject to the influence of the Covid-19 pandemic consequences and the health crisis, supply chain disturbance, closing and restriction of many business and activities in the country, etc., it has caused. The business of the Bulgarian enterprises is also influenced by the wars led in the vicinity of the territory of Bulgaria, the occurred gas crisis, the unstable political situation, the high inflation rate, the increase of energy and other resource prices and a number of other factors.
The author’s interest to the issues of enterprises’ business efficiency and the methods for its analysis is a long-term interest. Observations show that the specialized literature in the country does not offer theoretically substantiated general methodology for efficiency analysis, which is feasible and useful for the business practice. Only individual methodologies for analysis of different aspects of the efficiency are offered, such as methodology for analysis of the efficient use of workforce (analysis of the labour efficiency indicator). Thus, the objectively existing dialectic relations between the resultative indicators that characterise the various aspects of efficiency and the factor indicators that affect the improvement or worsening of the business in general and its specific aspects, cannot be covered. This publication reviews the methodology for analysis of enterprises’ business efficiency. The concept of efficiency is consistently highlighted, the sources of the information necessary for its analysis are described, and the system of indicators for business efficiency analysis is justified. The author’s objective is to suggest an improved general methodology for analysis of business efficiency, which integrates the individual private methods for analysis of its different aspects in the course of the enterprises’ business.