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Feasible forms of enterprises for industrial waste processing, and financial sources for their establishment and functioning

Journal: Quarterly Scientific Journal "Economic Herald of the Donbas" (Vol.57, No. 3)

Publication Date:

Authors : ;

Page : 63-69

Keywords : industrial waste; processing enterprises; business models; forms of organization; venture financing; crowd-investing.;

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Abstract

In accordance with information from the database of the World Bank, Ukraine is within the top ten countries with annual per capita waste production, and as National Statistical Department states there is not only yearly growth of such production but waste accumulation. Business models “actual standard” or of “separating type” would be the most acceptable ones for the sphere of waste utilization as well as the internet platform which main purpose is to join and competently use the potential of internet and real business. It would be expedient to form an electron exchange of secondary raw materials. The most reasonable forms of organization for waste recycling could be joint ventures of owners, processors and consumers of goods made of waste, or industrial clusters including geographically localized enterprises producing waste, plants for their processing or utilization, and transport companies specialized in waste conveyance. Besides, outsourcing companies could be feasible or even optimal solution for the waste transportation. Venture financing plays the important role in financing of waste processing enterprises' establishment and functioning as it is mostly adapted for investment support associated with the great risks variety. It is grounded that to establish enterprises for waste processing one would need the most risky form of investments thus incorporating both prestart and properly start financing. It is rather recently that venture industry commenced developing in Ukraine, and first of all to support international financial institutions. However pursuant to agreements between Ukrainian Government and foreign administrations the majority of foreign investments in venture form were designed for conversion of defense industry while funds provision from Ukrainian sources for venture investments is utterly limited. In this connection the one more financing source for establishing waste processing enterprises could be crowd-investing that is able to enter into competition with traditional forms of funds mobilization. The existing world experience testifies to the effect that the crowd-investing principle implementation could be not only the source but capable of quick and fundamental change of awareness among population just due to the opportunity of getting a certain financial profit from their investments. Establishment of enterprises for industrial waste processing, first of all for those of coal mining and metallurgical industry, would improve environmental situation if Donbas and other old industrial regions.

Last modified: 2020-01-30 02:06:38