Trends and factors of assets and capital in enterprises of primary agricultural production

Abstract

A smooth entrepreneurial activity requires adequate cash flows. This need is quantified due to the special position of primary agricultural production. The required volume, structure, quality and availability of financial resources creates economic framework for decision making and managing entrepreneurial activities. The results show the lack of total capital in connection to the needs of investment processes and ensuring operational activities in the selected enterprises. Both legal entities (agricultural cooperatives and business enterprises) decreased the total volume of assets and total liabilities in 2004. The economic result was improved in both types of legal entities, in the case of cooperatives by 3 525 SKK/ha a.l. and in business companies by 1 840 SKK/ha a.l. Receivables and payables also decreased, cash flows from business activities have increased. There is a decrease in the balances of the existing loans and new loans were provided by commercial banks for enterprises in primary agricultural production.