EMPLOYEES PARTICIPATION IN CAPITAL AS A TOOL OF CORPORATE FINANCING

Abstract

The article examines the specific management methods created by the evolution of ideas of participation, which originate from utopian socialism and can be traced throughout the history of the formation and development of capitalism, namely: attracting their employees to participate in capital and profits influence on creation of their steady interest in effective activity of the enterprise. It is emphasized that the lack of cheap loans needed for development or for survival in difficult situations is one of the biggest problems of Ukrainian business since the beginning of Independence. The low equity base makes it difficult to obtain loans on affordable terms. If domestic funding opportunities are insufficient, companies must increasingly look for alternative sources of financing that will primarily improve their equity structure. The participation of employees in the activities of their enterprise, through the restructuring of property relations, represents a new concept, which acts as a form of resolving the contradictions between property, labor, production and management at the microeconomic level. Three forms of employee participation in capital are considered: participation in debts, equity participation and mixed forms, on the basis of which a SWOT-analysis was conducted and the results were summarized. Due to the combination of the status of employee and owner of the enterprise in one person, the contrast between capital and labor is smoothed, there is a certain convergence of interests of corporate relations, and the workforce is interested in the results of work and development of the company, which is on the path of sustainable, safe and competitive development. The experience of world practices in attracting companies to participate in the capital is taken into account, and the analysis of the foreign company Komunikazio Biziagoa S.A.L., which has the status of a joint stock company, where employees are shareholders. The importance of spreading specific management methods in domestic enterprises is summarized.