DEVELOPMENT OF THE FINANCIAL MECHANISM OFENTERPRISES IN THE CONTEXT OF MODERN ECONOMICTRANSFORMATION

Abstract

The development of an effective financial mechanism is one of the key conditions for improving the sustainability, competitiveness, and investment capacity of enterprises. The financial mechanism of an enterprise includes a set of financial instruments, methods, principles, and organizational approaches used to mobilize, allocate, and control financial resources. This study examines the major directions for improving the financial mechanism of enterprises, with particular attention to capital structure, working capital management, access to external financing, financial planning, risk management, and digitalization of financial processes. The research applies a comparative analysis of academic literature, international empirical studies, and recent data concerning enterprises in Uzbekistan. The results indicate that effective financial management requires an integrated approach combining optimal working capital levels, diversified sources of financing, improved financial planning, and digital financial technologies. Evidence from recent studies suggests that the relationship between working capital and profitability is nonlinear, meaning that both insufficient and excessive working capital may negatively affect enterprise performance. The study also identifies limited access to affordable external finance as an important constraint for enterprises in Uzbekistan