Entrepreneurial ability as a factor of production is one of the economic resources that consists of entrepreneurs and the country's entrepreneurial infrastructure (institutions, laws, regulations, etc.). It is an organizing factor of production that allows you to rationally combine three other factors of production to create goods and services. It differs from such a factor of production as labor (L) in that the decisions made by the entrepreneur are of great importance in the implementation of the set goal (far-reaching consequences). The entrepreneur is financially responsible for them. He's not just a performer.
The term "entrepreneurship" is found in the General Dictionary of Commerce, published in Paris in 1723. It was used in the 18th century. English economist Cantillon. He noted that an entrepreneur is a person with uncertain, non-fixed income, for example, a peasant, artisan, merchant, and even a robber, beggar, etc. He buys goods at one price and sells at another. At the same time, he risks, since the sale price, which he assumed, may not be the same. The entrepreneur performs an important function: by saturating the market with goods, he matches supply and demand.
In modern economic literature, entrepreneurship is considered in three aspects (from three points of view): as an economic category, as a method of management and as a type of economic thinking.
Content
Introduction
In many early theories, the term "entrepreneur" was used as a synonym for the concept of "capitalist", "owner of an enterprise", and profit was identified with interest - income on capital. With the development of joint-stock enterprises, it became obvious that it was necessary to distinguish between capitalists (shareholders who provide the company with capital and claim income in the form of interest, i.e. dividends) and the actual managers of the company (entrepreneurs) claiming profit. Accordingly, there is an understanding of the need to distinguish between interest on capital and profit. Moreover, a distinction is made between management fees and profits themselves. However, the question of the essence of entrepreneurship has not become clearer.
The factor "entrepreneurial ability" - managerial and organizational skills necessary to organize the production of goods and services. The entrepreneur brings together the three above-mentioned factors of production (capital, labor, land). If successful, the entrepreneur makes a profit as payment for putting his entrepreneurial abilities into the business, otherwise he incurs losses. The reward of an entrepreneur for risk, new ideas and efforts that he puts into the business is normal (average) profit. From all of the above, the relevance of this research topic follows.
The purpose of this course work is to study entrepreneurial ability as a factor of production.
Based on the set goal, it is necessary to solve the following tasks:
study the stages of the formation of entrepreneurial ability;
study the concept and signs of entrepreneurial ability;
entrepreneurship belarus profit
study the features of the formation of entrepreneurship in Belarus.
The subject of this course work is the relationship that arises in the process of entrepreneurial activity.
The object of this course work is directly entrepreneurial ability.
In the process of writing this term paper, various textbooks and teaching aids were used to ensure that the topic was fully disclosed.
This course work consists of four chapters. The first chapter is devoted to the stages of development of entrepreneurial ability. The second chapter examines the concept and features of entrepreneurial activity. The third chapter deals with profit in a market economy. And the fourth chapter is devoted to the development of entrepreneurship in our country.
1. Entrepreneurial ability: concept and functions
1.1 Stages of the formation of entrepreneurial ability as a factor of production
Entrepreneurship is a complex concept with multiple interpretations. It turned out to be the subject of direct interest in a wide variety of disciplines: economic theory and psychology, history and sociology. The "economic man" in political economy first appears as an entrepreneur, and by him is meant by no means an "average" man, but an entrepreneur. An entrepreneur is a person who runs a business, starting a new business, implementing some innovation, investing his own funds in a new enterprise and taking personal risk. Entrepreneurial ability is a personal resource that influences the nature and pace of economic development.
For an economist, entrepreneurship exists almost as a universal type of activity. Meanwhile, according to the testimony of historians, the medieval entrepreneur was quite different from the modern one, and not only in the nature of his enterprises, but also in the type of economic activities. Medieval entrepreneurship is represented by a whole gallery of very colorful figures. These are militant merchants like the Varangian merchants who did not part with the sword. These are knights who fed "from the stirrup" and aristocrats who hunted sea robbery, pirated discoverers such as Sir Walter Reilly or Francis Drake, missionaries and seekers of untold riches. The largest "peaceful" enterprises at that time included contracts for the construction of state and religious institutions. A medieval architect, as a rule, was engaged not only in the project, but also in the organization of all work, bearing full responsibility for the finished object to the customer.
Another kind of large entrepreneurial contract was associated with the purchase of tax collections. Among the smaller figures we find all sorts of dubious people - semi-vagrant traders and artisans, inventors and adventurers, the first stock speculators, carried away from the 17th century. waves of Gründer fevers.
The founder of the theory of entrepreneurship, R. Cantillon, for example, generally included tramps and robbers among the entrepreneurs. From a modern point of view, all these figures can hardly be attributed to the "pure" entrepreneurial type.
During the Middle Ages, entrepreneurship remained on the sidelines of the mainstream economy. The basic needs of the majority of the population were met without the help of the market. Some large merchants specialized in the supply of luxury goods to the upper social classes. And having made a fortune, many of them left the economic field. Projection, gambling and speculative passion, the thirst for getting rich quick have not yet been directly addressed to the practice of economic activity. And if anyone has shown a stable entrepreneurial inclination, it is the largest resource manager - the state.
The silhouette of the modern entrepreneur began to emerge in modern times with the emergence of economic agents, in which the ancient thirst for wealth is combined with the enterprise, taking the form of an irresistible desire for return on investment as a universal economic strategy. In contrast to the traditional pre-bourgeois subjects, they have not only personal independence, but also legally supported opportunities for capitalizing property.
Along with the achievement of institutional stability and legal protection, entrepreneurship is increasingly specialized and at the same time acquires a civilized appearance. The spirit of risk and adventurism, which was previously required even for ordinary trading, is crowded with the spirit of sustainable development and rational use of market opportunities. A medieval merchant is an eternal wanderer, a traveler immersed in the world of the random. New time brings him a developed system of communications, allowing him to move to a settled life, to do business "from home" or from an office. And along with settledness, there is also concern for the reputation. The wandering merchant is in perpetual motion, he is here today and there tomorrow; he is not constrained by local regulations and often avoids retribution for unfulfilled obligations.
With the conquest of economic and social space, serious shifts are taking place in the social base of entrepreneurship. In the rank of non-bourgeois societies, most of the founders of new enterprises were not only the owners of these enterprises, but often worked for them themselves. It was a kind of "golden age" for the "old middle class", when in very extensive entrepreneurial strata different status positions were more or less harmoniously combined: ownership and income level, professional qualifications and social prestige, organizational and economic powers and political influence.
It should be noted that initially the problem of entrepreneurship was posed by political economy as a problem of explaining the sources of economic growth and the nature of profit. Since then, several fundamentally different approaches to the entrepreneurial function have emerged. The first interpretation dominates in the works of the classics of political economy (F. Quesnay, A. Smith), who see the owner of capital in the entrepreneur. At the same time, with J. Turgot, and later with German historians (W. Roscher, B. Hildebrand), he not only manages his capital, but also combines proprietary functions with personal productive labor.
Thus, it is obvious that over time, the entrepreneur is less and less identified with the capitalist. And in the second interpretation, he is viewed as an organizer of production, not necessarily burdened with property rights. Zh.B. Say and J.S. Mill. The functional distinction between the owner and the entrepreneur is carried out by K. Marx. The definition of an entrepreneur as a manager is firmly established in the works of neoclassicists (A. Marshall, L. Walras, K. Menger, F. Wieser). And since then, neutrality in relation to the ownership of property has become a common element of most theories of entrepreneurship - classical (I. Schumpeter) and modern (A. Cole, P. Drucker).
1.2 The concept of entrepreneurial ability
Entrepreneurial ability is usually understood as a special type of human resource, which consists in the ability to most effectively use all other factors of production. The specificity of this type of human resource is the ability and desire in the production process on a commercial basis to introduce new types of manufactured products, technologies, forms of business organization and the possibility of incurring losses. Risk is the main distinguishing feature of an entrepreneur, and the purpose of doing business is to maximize income by identifying the most effective combination of factors of production. Nobody guarantees the entrepreneur that the end result of his activity will be a loss or he will receive income.
It is customary to include in this resource:
firstly, entrepreneurs, which include the owners of companies, managers who are not their owners, as well as business organizers who combine owners and managers in one person;
secondly, the entire entrepreneurial infrastructure of the country, namely: the existing institutions of the market economy, i.e. banks, stock exchanges, insurance companies, consulting firms;
thirdly, the entrepreneurial ethics and culture, as well as the entrepreneurial spirit of the community.
Entrepreneurial ability is the most difficult to understand and, as a consequence, the least analyzed part of the resources (Appendix A). At the same time, in market conditions, it is often the most important for the successful operation of an enterprise, subject to other necessary conditions.
Classical economic theory identifies three factors of production: land, labor, capital, which corresponds to land, labor and material resources. But it should be noted that for the effective use of existing factors of production, one more factor is needed with the help of which it would be possible to organize efficient production, be able to navigate in the market situation and fearlessly take risks. It is believed that this is facilitated by the entrepreneurial activities of managers and management personnel. Based on this, entrepreneurial ability as a fourth component must be taken into account when assessing production potential.
Thus, reducing production costs and the psychological struggle for the buyer come to the fore. And it is here, when other resources are fully involved, that entrepreneurial activity comes into play.
Entrepreneurial ability has a number of functions. They include:
taking the initiative to combine other resources for the production of any product or service;
making the main extraordinary decisions on the management of the organization;
introduction of innovations by improving production or radically changing the production process for a new type of product;
responsibility for the economic risk associated with all of the above factors.
An important point in studying this component of production potential is that entrepreneurial ability is still difficult to quantify. And it should be noted that entrepreneurial abilities, along with land, labor and capital, are the main element of production potential, constitute its basis, and the assessment of the level and efficiency of their use characterizes the production potential as a whole.
In general, the entrepreneurial resource can be characterized as a special mechanism for realizing the entrepreneurial abilities of people, based on the current model of a market economy. All of the above provides a basis for defining entrepreneurship as a factor of production.
1.3 Understanding the entrepreneurial function
As for the content of the entrepreneurial function, for neoclassicists it consists in adjusting production to changing market conditions, restoring an imbalanced balance, more efficient use of available resources and meeting emerging demand. Organization is declared the "fourth factor of production", and entrepreneurship is essentially a kind of built-in element of the self-regulating price mechanism.
Another interpretation of the entrepreneurial function associates it with bearing the burden of risk and uncertainty in the process of economic development (R. Cantillon, J. Thunen, D. de Tracy, G. Mangolt, etc.). This element becomes central to F. Knight's concept of entrepreneurship. From his point of view, people who take on the burden of calculable risk and uncalculated uncertainty, as well as guaranteeing the majority of their wages, get the right to manage the activities of this majority and appropriate a portion of the income.
The fourth interpretation of the entrepreneurial function is received within the framework of institutional economic theory (R. Coase, O. Williamson), in which the entrepreneur becomes a subject making a choice between the contractual relations of the free market and the organization of the firm in order to save transaction costs. Entrepreneurship turns out to be a special regulatory mechanism, different from the price mechanism and the mechanism of state regulation, and in some ways an alternative to both of them.
There are many variables that represent the diverse types of differences in entrepreneurial activity. Thus, entrepreneurship may or may not be associated with ownership of capital, accompanied or not accompanied by labor (managerial or executive) activity. Entrepreneurial actions can be carried out from above through existing administrative channels or initiated from below by informal leaders. And as entrepreneurs, both specially trained professionals (graduates of elite business schools) and "amateurs" who do not have any professional training can act.
Entrepreneurial actions can be based on meticulous calculations and pure intuition. Some of them are aimed at effective adaptation, imitation of existing organizational models in new conditions; others - on the knowledge of economic opportunities hidden from the majority of people; still others - on the active formation of these new conditions, including the invention of completely new organizational forms.
In some cases, entrepreneurial actions are associated with a clear risk (loss of income and property, status and time); in others, this risk is calculated, but there is room for uncertainty; thirdly, the risk may not exist at all (except, perhaps, inevitable in any outcome, loss of time). Factors affecting the level of risk:
a) the nature of the task to be solved by the entrepreneur; b) situational influences influencing decision making; c) personal characteristics of participants in economic activity; d) the nature of intragroup interaction of management subjects.
The nature of organizational and economic actions depends on the size of the resources involved and the spheres (branches) of their development. These actions can go beyond the production itself, for example, in the field of politics, science, art, if they are focused on making a profit. Finally, entrepreneurship can be individual or group in execution, successful or unsuccessful in outcome.
Thus, it is obvious that in all these cases the understanding of entrepreneurship as a function that arises and disappears as needed, can be infinitely fragmented and integrated, remains. This function is inherent in any economic system, at least from the moment it entered the stage of industrialization. It may well be realized in both the state and non-state sectors, exist under a variety of political regimes.
2. Essence, forms and sources of profit
2.1 Signs of business
The concept of entrepreneurial activity reads:
entrepreneurial activity is an independent activity carried out at its own risk, aimed at systematic profit from the use of property, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law.
This definition identifies four differences between entrepreneurship and other types of activities of citizens and legal entities. These characteristic differences are signs of entrepreneurship and serve as the basis for classifying this or that activity as entrepreneurial. But an activity can be recognized as entrepreneurship only if it contains all 4 features without exception.
1. The independence of the entrepreneurial activity.
First of all, this means that the entrepreneur carries out his activities directly on his own behalf, of his own free will and
in their own interests.
He independently (but taking into account legal norms) determines the course and options for the development of his activities, makes legally and economically significant decisions, uses material, human and other resources to achieve the set goal, and also exercises the right to defend his interests in court.
Unlawful restriction of independence or other unlawful interference in the activities of an individual entrepreneur or legal entity is not allowed.
2. The entrepreneur acts at his own risk.
An entrepreneur who decides to act independently in order to make a profit consciously takes risks to one degree or another, because it is impossible to predict success or foresee failure with a 100% guarantee.
Risks come in the form of monetary losses, innovation and investment, currency and credit risks, and technical and moral risks. Various reasons can lead to monetary losses:
a) violation by partners of their obligations,
b) changes in the conditions of entrepreneurial activity due to objective circumstances,
c) non-receipt of expected income,
d) other events with signs of probability and chance.
3. Entrepreneurial activity always has the goal of systematically making a profit from the use of property, the sale of goods, the performance of work or the provision of services.
The consistency of the implementation of activities is the most important property that unites all actions into a single whole. The systematic nature of operations must be interpreted as their unity, continuity, and embracing a single goal.
The profit of individual entrepreneurs can be considered their income, reduced by the amount of tax deductions.
4. Entrepreneurs may be persons registered in accordance with the procedure established by law.
Firstly, it means that you need to go through state registration as an entrepreneur. From the moment of state registration, an entrepreneur acquires the rights and obligations necessary to participate in entrepreneurial activity, and acts as an independent participant in civil circulation, in administrative, tax, labor and other legal relations.
Secondly, in some cases, the mere fact of state registration of a person as an entrepreneur may not be enough to start an entrepreneurial activity. Certain activities require a license (special permit).
It is necessary to distinguish illegal entrepreneurship, recognized as an offense, from entrepreneurial activity, which has a combination of the above characteristics.
The state provides for the protection of the interests of entrepreneurs. Obstruction of legitimate business activities is considered an economic crime and is punishable by law. Obstruction of entrepreneurship can be expressed in the following actions:
a) unlawful refusal to register an individual entrepreneur,
b) evading registration,
c) unlawful refusal to issue a special permit (license) to carry out certain activities or evasion of its issuance,
d) limitation of the rights and legitimate interests of an individual entrepreneur, depending on the organizational and legal form,
e) illegal restriction of independence,
f) other illegal interference in the activities of an individual entrepreneur or legal entity, if these acts were committed by an official using his official position.
Thus, we can conclude that there are a number of signs, in the presence of which the activity carried out will be considered entrepreneurial.
2.2 The concept of entrepreneurial income. Profit forms
Entrepreneurial ability is an economic resource that affects the development of the economy. Entrepreneurial ability includes:
entrepreneurs,
the entire business structure (banks, stock exchanges, etc.).
Entrepreneurial ability has its own specific pay - entrepreneurial income.
Entrepreneurial income is income derived from entrepreneurial activities. According to the theory of Karl Marx, entrepreneurial income is a part of the profit that remains in the ownership of a functioning capitalist after paying interest on the borrowed capital. This capital is spent on the purchase of means of production and labor, which creates additional value (profit) in the production process. The capitalist gives part of the profit to the banker for the use of credit. This is how capital is divided into capital-property and capital-function. At first, this division concerns only loan capital, but with the development of lending and joint-stock ownership, the division of profit into interest and business income becomes general.
Currently, the main forms of entrepreneurial income are dividends, founding income, payment for participation in the work of the governing bodies of large joint-stock companies. Before an entrepreneur appropriates entrepreneurial income, he must pay taxes to the budget and the pension fund, return loans and interest on them, deduct part of the profit to pay dividends to shareholders, etc. Payments that the entrepreneur or company must make are reflected in the liabilities of the balance sheet. These include current (liabilities payable during the financial year) and long-term liabilities (liabilities that need to be repaid in two or more billing periods). Among liabilities, we distinguish between real liabilities (debts on bonds), possible liabilities (corporate income tax and surety) and potential or contingent liabilities (in the event of a court decision on the need to pay certain amounts of taxes, resolution of court cases not in favor of the company, etc.). In the United States, an average of 3-5% of the net profit of non-financial corporations is spent on interest payments. The share of interest and dividends in the 70-80s of the XX century. accounted for 60 to 90% of the total profits of such corporations. The average rate of return in the United States in the 70s was 10%, in the 80s - 8.8%, in the 90s - more than 10%.
Thus, we can conclude that entrepreneurial ability has its own specific pay - entrepreneurial income (income from entrepreneurial activity).
Profit refers to the difference between the income received by the enterprise from the sale of goods and the costs incurred by it in the course of production and marketing activities. Thus, unlike wages, interest and rent, profit is not a kind of equilibrium price established by agreement, but acts as a residual income. Modern economists interpret profit as a reward for performing the function of an entrepreneur, i.e. as income from the factor of entrepreneurship. Profit as the difference between sales and costs has two forms:
1. Accounting;
2. Economic.
Accounting profit is calculated by deducting from the received income the so-called external, or accounting, costs (cash costs of the company for raw materials, materials, salaries, equipment, etc.). The firm pays this money to external suppliers by purchasing the necessary resources from the market.
However, in addition to accounting, explicit costs, there are also implicit, hidden costs that must also be taken into account by the firm when assessing the economic results of its activities - these are payments for the resources that the firm owns and uses. They are called opportunity costs, i.e. costs of missed opportunities: the company can use its premises and equipment, its money capital, its land plot in the production process. Although she does not pay for these costs, in fact they exist, since, if used alternatively, these resources could bring her some income. Therefore, these hidden costs must also be deducted from total income when determining the firm's profit. In this case, we will receive an economic (net) profit.
3. The role of profit in a market economy
Disclosure of the essence of profit shows its special place among the various forms of remuneration existing in a market economy and a special role in the economy. If the value of wages, interest and rent is limited to the sphere of application of the corresponding factors of production, then the role of profit is all-encompassing, extending its influence over the entire economy, determining the state of all its spheres. Let's note the most important points of the role played by profit in a market economy.
1. First of all, it should be noted its distributive and regulatory role. We have already seen that it is precisely because of differences in profits that there is an intersectoral and territorial movement of resources. They go where they are most needed, since high profits in the industry are due to insufficient production of goods and due to the excess of demand over supply by high prices. We also know that the inter-sectoral movement of resources leads to the establishment of a relative equilibrium in the markets for factors of production and goods produced with their help.
The regulating role of profit is laid down in the mechanism of motivating the behavior of entrepreneurs. Each of them seeks to find the most profitable area for the application of their forces and capital. Profit acts as the goal and driving motive of commercial calculation, which is the basis of such a search. But for society, such a prudent behavior of entrepreneurs means directing resources to the production of necessary goods for which there is an increased demand. The high profit received from the production of such goods appears in the form of an assessment by society of entrepreneurial efforts, the accuracy of calculation in choosing a field of activity.
The receipt of a normal (average) profit by an enterprise means that its funds are invested where they are needed. Higher margins indicate a greater need for resources in the industry. And vice versa, low profit or its absence serves as a signal of a mistake made in choosing a field of entrepreneurial activity and the need to transfer resources to other areas.
2. The stimulating role of profit is obvious. It encourages entrepreneurs to make the most efficient production and marketing of products. Striving for maximum profit forces enterprises to reduce costs (which means saving resources for society), to increase labor productivity. All this is ensured by the use of more productive technology, resource-saving technology, skilled labor, and improved organization and management of production. A special incentive creates the possibility of obtaining super-profits, or economic profits. It encourages to reduce the cost of production, to improve the quality of manufactured goods, to apply the achievements of scientific and technological progress in production. It also forces one to take risks, produce completely new goods, apply the latest technologies, which often ensures the country's priority in some area of production.
It is important to emphasize that in many respects the stimulating role of profit is provided by the residual principle of its formation. As we noted earlier, the company's net profit is formed as the remainder of the proceeds after reimbursement of costs, payments due on obligations to repay debts and payment of taxes.
3. Profit also plays an accounting role, acting as an indicator of the state of production at the enterprise, primarily an indicator of its efficiency - profitability.
If profit is expressed in absolute amount, then profitability is a relative indicator of the intensity of production, since it reflects the level of profitability relative to a certain base. An organization is profitable if the amount of proceeds from the sale of products is sufficient not only to cover the costs of production and sale, but also to generate profits.
The profitability of production is calculated according to the formula (3.1):
where P is the level of production profitability,%;
P is the amount of gross profit, rubles;
OF - the average annual cost of fixed assets, rubles;
HOC is the average annual cost of standardized working capital (material working capital), rubles.
For example, the gross profit of the enterprise is 652 million rubles. The average annual cost of fixed assets is 1,250 million rubles, and the standardized working capital is 380 million rubles. In this case, the production profitability will be:
40% = (652/ (1 250 + 380)) 100%).
In addition to the profitability of production in the process of analyzing the entrepreneurial activity of enterprises, the indicator is widely used profitability products, calculated as the ratio of profit from the sale of products to the total cost of these products. The use of this profitability indicator is most rational for on-farm analytical calculations, for monitoring the profitability (unprofitableness) of certain types of products, introducing new types of products into production and removing ineffective products from production.
Considering that profit is associated with both the cost of the product and the price at which it is sold, the profitability of a product can be calculated as the ratio of profit to the cost of products sold at free or regulated prices.
These indicators of product profitability are interrelated and characterize the change in current costs of production and sale of both all products and their individual types. In this regard, when planning the assortment of products, it is taken into account how the profitability of individual types will affect the profitability of all products. Therefore, it is very important to form the structure of manufactured products depending on changes in the specific weights of products with greater or lesser profitability in order to generally increase production efficiency and obtain additional opportunities to increase profits.
The growth of any indicator of profitability depends on common economic phenomena and processes. This is primarily the improvement of the production management system in a market economy based on overcoming the crisis in the financial, credit and monetary systems. This is an increase in the efficiency of the use of resources by enterprises based on the stabilization of mutual offsets and the system of settlement and payment relations. This is the indexation of working capital and a clear definition of the sources of their formation.
An important factor in the growth of profitability in the current conditions is the work of enterprises to save resources, which leads to a decrease in production costs, and, consequently, to an increase in profits. The fact is that the development of production by saving resources at this stage is much cheaper than the development of new deposits and the involvement of new resources in production.
Reducing the cost should become the main condition for the growth of profitability and profitability of production.
4. Formation and development of entrepreneurship in the Republic of Belarus
Small business is an important and essential component of a modern market economy. All over the world, small and medium-sized businesses are seen as an integral element of the competitive mechanism, which gives the economy the necessary flexibility, mobilizes the financial and production resources of the population, carries a powerful antimonopoly potential, and largely solves the problem of employment, the formation of the middle class and other social problems. Therefore, the development of small business is a strategic task for countries with economies in transition.
Small businesses in the Republic of Belarus include small enterprises of all forms of ownership, peasant (farmer) households and individual entrepreneurs.
The threshold value indicating that the country has undergone a critical mass of market transformations, created favorable conditions for business, effective use of investments, according to the World Bank experts, is the state of the economy, when the share of small business reaches about 40% of the total employed.
In economically developed countries, the share of small business, both in terms of the number of employees and in the total volume of GDP, as a rule, is 40-60%.
For comparison, the share of small business in the Republic of Belarus in the total GDP as of the beginning of 2009 was 9.3%, the share of the number of employees employed in this area was 13.6%, and the share of proceeds was 20.7%. At the same time, the profitability of sold products was about 17% - higher than in the whole country.
Today, the state pays great attention to the development of small business, especially in rural areas, as well as in small and medium-sized urban settlements, as evidenced by a number of regulations adopted to support entrepreneurship.
Now the country has about 300,000 registered small businesses (small businesses and individual entrepreneurs). The share of small businesses in the revenue side of the budget of Belarus, according to the Ministry of Taxes and Duties, in 2009 amounted to 16% (or almost 6 trillion rubles).
Currently, one of the main tasks in the republic is to maintain the level of employment and create new jobs. As the analysis shows, today most of the new jobs are created by small businesses. Hence, it follows that there is a need for further support to small businesses. In particular, we are talking about financial, property and information support for small businesses, which should be provided both by government bodies (including local ones) and by the infrastructure for supporting entrepreneurship (banks, entrepreneurship support centers, business incubators).
Business entities registered in small and medium-sized urban settlements and agricultural towns.
Recently, the government has paid much attention to the development of entrepreneurship in small and medium-sized urban settlements and agro-towns.
During the period of transformation of the economic system of society, the issue of the attitude of the population to entrepreneurship is very important. Over the past decade, many have tried themselves in this area and have determined not only their approach to such a phenomenon as entrepreneurial activity in general, but also their personal attitude to doing business. According to the research carried out, the development of entrepreneurship was supported in 2002 by 62.1% of the population of Belarus. Most of these persons are men - 67%, women are slightly less - 58%. In their opinion, the development of entrepreneurship in the country is the factor that can positively influence the development of the socio-economic and political situation in the republic.
The development of the institution of private ownership, the formation and strengthening of the social stratum of entrepreneurs have a significant impact on the state of the labor market, providing employment for part of the population in the form of self-employment, entrepreneurial activity and creating jobs in small, medium and large businesses for employees.
A significant number of respondents are of the opinion that it is necessary to create equal opportunities for the development of all forms of ownership in the republic. This view is based on constitutional provisions: "the state grants everyone equal rights to carry out economic and other activities, except for those prohibited by law, and guarantees equal protection and equal conditions for the development of all forms of ownership" (Part 2, Article 13 of the Constitution of the Republic of Belarus). More than half of the respondents - 56.4% (55.3% in 2002) note that achieving equality of conditions for the functioning of both private and state enterprises will lead to a significant improvement in the current situation in the economic and social spheres. The idea of ensuring equal conditions for the development of all forms of ownership is largely supported by the male population of the country.
It is necessary to highlight the following conditions that hinder the development of entrepreneurship in the Republic of Belarus:
the existing system of taxation of entrepreneurs;
frequently changing and imperfect legislation regulating business activity is one of the most serious obstacles to business development in Belarus;
lack of effective government support;
excessive control by the state over the implementation of entrepreneurial activities;
the complexity of registration and licensing of entrepreneurial activities.
There are a number of factors that contribute to successful entrepreneurship:
availability of start-up capital,
presence of acquaintances and connections,
the presence of certain abilities and character traits,
guarantees and support from government agencies,
a friendly attitude towards entrepreneurship on the part of the public,
concessional lending from banks.
Thus, it is obvious that entrepreneurship has a significant impact on the state of the labor market, providing employment for part of the population in the form of self-employment.
Conclusion
Entrepreneurial ability - the ability to combine and effectively use the rest of the factors of production. It is assumed that the entrepreneur borrows (leases) the rest of the factors of production from their owners, guaranteeing them the market size of the factor income and assumes all economic and financial risks. The difference between the proceeds from the sale of goods and the payment of factor income forms entrepreneurial income. It is believed that it is income from entrepreneurial ability, however, its size depends not only on the entrepreneur's abilities, but also on the scale of the activity, the amount of capital he attracts and other factors of production.
Entrepreneurship is a function that appears and disappears as needed, can be infinitely fragmented and integrated. This function is inherent in any economic system, at least from the moment it entered the stage of industrialization. It may well be realized in both the state and non-state sectors, exist under a variety of political regimes.
An entrepreneur is always an innovator, introducing new technologies, new forms of business organization on a commercial basis; the initiator of the combination of factors of production into a single process of production of goods and services in order to make a profit; a production organizer who sets up and sets the tone for the firm's activities, determines the strategy and tactics of the firm's behavior and assumes the burden of responsibility for the success of their behavior; a person who is not afraid of risk and consciously goes to it in order to achieve the set goal.
A modern entrepreneur should be well versed in the essence of economic processes, navigate in a changing environment, predict, calculate the likelihood of certain losses, i.e. take risks deliberately. By combining the factors of production, the entrepreneur must choose the most optimal option in order to get the maximum possible profit at the lowest cost.
All these properties of an entrepreneur constitute the essence of an entrepreneurial business, aimed, ultimately, at increasing the public domain, the prosperity of a market economy.
The important role of small business is that it provides a significant number of new jobs, saturates the market with new goods and services, satisfies the numerous needs of large enterprises, and produces special goods and services. Of course, the development of small business should play a greater role than the one that is currently playing.
List of sources used
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11. Radev V. Small business and problems of business ethics: hopes and reality // Economic Issues 2001, no. 7, p.72 - 82.
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Applications
Appendix A
Many authors consider entrepreneurial ability either through the qualities of an entrepreneur or through his functions, which include: dedication, initiative, communication skills, self-confidence, high qualifications and ability to learn, energy, ability to manage, ability to analyze and assess the situation.
An entrepreneur is a business person engaged in entrepreneurial activity, raising funds for organizing entrepreneurship and taking on entrepreneurial risk.
To achieve effective performance, an entrepreneur must have a number of professional qualities:
innovation - the ability of an entrepreneur to find new solutions, new ideas and options for the effective implementation of scientific ideas, inventions, intellectual findings, discoveries. Entrepreneurial innovation is the ability to create new ideas based on in-depth analysis of modern discoveries, the original practical implementation of which leads to the achievement of profitable activities;
entrepreneurial acumen is a special form of action aimed at intercepting initiatives, new ideas, technologies, certain actions, business projects;
willpower - the ability to overcome external and internal difficulties in order to achieve entrepreneurial goals. Before implementing any idea, an entrepreneur must carefully analyze all its advantages and disadvantages, carry out the necessary calculations;
entrepreneurial mentality - a special mindset, various psychological properties and qualities of an entrepreneur. The entrepreneurial mentality is expressed in a special type of his thinking, which allows him to notice everything new, to find, analyze and outline specific forms of using new ideas, to improve the previously created ones. The entrepreneurial mentality is transformed into a system of special entrepreneurial thinking, which is embodied in the system of business entrepreneurial design of the optimal combination of resources in order to obtain maximum profit;
mobility - the ability of an entrepreneur to catch the main trends and anticipate their changes. Mobility allows an entrepreneur in a short period of time to bring the existing potential opportunities into a state of existing material and human capital;
sociability - the ability, tendency of a person to communicate, establish business contacts and connections.
Entrepreneurship as an economic category, its essence and characteristics, goals and objectives. The main types and forms, external and internal environment of entrepreneurial activity. Small and medium-sized businesses in Belarus. Profit functions in the economy.
term paper, added 05/01/2016
The essence and directions of research of entrepreneurship as a factor of production in a market economy. Assessment of abilities for a given field of activity. Essence, forms and sources of profit. Formation and development of entrepreneurship in Belarus.
term paper, added 02/13/2016
Entrepreneurship, its essence and evolution. The role of entrepreneurship at the present stage. Business spheres and business solutions. Problems of entrepreneurship development in the transformational economy of the Republic of Belarus.
term paper added on 08/28/2010
Concept, signs and features of entrepreneurial activity, sources and forms of income. State regulation and support of entrepreneurship in the Republic of Belarus. Advantages and disadvantages of organizational and legal forms of small businesses.
term paper, added 01/28/2014
Essence, economic nature and main features of entrepreneurship. Separation of entrepreneurship from property. Entrepreneurial ability and entrepreneurial income. Organizational forms of entrepreneurial activity in Russia.
presentation added on 11/25/2011
Entrepreneurship as a factor of production. Profit and its maximization. Functions, role and importance of entrepreneurship at the present stage of economic development. Features, trends and prospects for the development of entrepreneurship in the Republic of Belarus.
term paper added 01/18/2015
Analysis of entrepreneurship as a factor providing economic growth. The content of entrepreneurial activity, its goals, objectives and functions. The main forms and types of entrepreneurial activity. Typology of enterprises, commercial organizations.
term paper, added 02/08/2013
The modern system of market institutions. The factor "entrepreneurship" as a special factor of production. Environment of entrepreneurial activity. Factors of innovative development, government regulation and support of entrepreneurial activity.
abstract added on 12/31/2016
The essence of entrepreneurship, its role in a market economy, types and forms. Necessary conditions for its development. History, current state, problems and prospects of entrepreneurial activity in the Republic of Belarus. Features of its state regulation.
term paper added on 11/13/2014
Characteristics of small businesses. Types, subjects and forms of entrepreneurship, factors of its development and functioning efficiency. Problems and prospects for the development of small business in the Republic of Belarus, increasing the efficiency of its development.
FEDERAL HEALTH AND SOCIAL DEVELOPMENT AGENCY
NORTHERN STATE MEDICAL UNIVERSITY
INSTITUTE OF MANAGEMENT
Department of Economics
COURSE WORK
In the discipline "Economic theory"
On the subject: "Entrepreneurship as a factor of production"
students Burkina Olga Valerievna
FOS code 060404
Specialty 080105
"Finance and Credit"
Full-time form of education
Head: Valkova O.Yu
Arkhangelsk 2007
Introduction ………………………………………………………………………………………………………… .3
1 Entrepreneurship …………………………………………………………………………… 4-14
1.1 History of the formation of entrepreneurship ………………………………… 4-8
1.2 Functions of entrepreneurship …………………………………… ...................... 8-10
1.3 Characteristic features of entrepreneurship and its signs ... ... ... .10-13
1.4 The entrepreneur and his role in the economy ……………………… ........... 13-15
2 Forms and types of entrepreneurship ………………………………………………… 15-22
3 Entrepreneur's income …………………………………………………………………… ..22-24
4 Entrepreneurship in Russia …………………………………………… ......................... 25-30
Calculated part ………………………………………………………………………………………… ... 31
5 Conclusion ………………………………………………………………………………………………… 32
6 List of used literature ………………………………………………………… ... 33
"To undertake - to undertake,
dare to do something
new business, start doing something significant "
V. Dahl
INTRODUCTION
Entrepreneurship is one of the most important subjects of research in economic science, since it is the entrepreneur who is the main actor in the market economy. Without this type of activity, there can be no efficient economy, there can be no market. Having embarked on the path of market development, we must inevitably create conditions for the revival and development of entrepreneurship. At the same time, the modern development of entrepreneurship is associated with many negative phenomena; it is in the sphere of close criminal attention. Further development of market relations is associated with the creation of favorable conditions for the development of entrepreneurship in our country.
In my work, I want to touch upon such issues as:
1) The history of the formation of entrepreneurship. And different approaches to the definition of business and entrepreneur;
2) Functions of entrepreneurship;
3) Characteristic features of entrepreneurship and its signs;
4) The entrepreneur and his role in the economy;
5) Forms and types of entrepreneurship;
6) The entrepreneur's income;
7) Entrepreneurship in Russia;
1 BUSINESS
1.1 The history of the formation of entrepreneurship. Different approaches to the definition of entrepreneurial activity and entrepreneur
The history of entrepreneurship dates back to the Middle Ages. Already at that time, merchants, traders, artisans, missionaries were beginning entrepreneurs. With the rise of capitalism, the pursuit of wealth leads to the desire for unlimited profits. Entrepreneurs' actions take on a professional and civilized character. Often an entrepreneur, being the owner of the means of production, also works in his own factory, in his own factory.
From the middle of the XVI century. share capital appears, joint-stock companies are organized. The first joint-stock companies arose in the field of international trade. The very first was founded by an English trading company for trade with Russia (1554). Later, in 1600, the English East India Trading Company was created, in 1602 - the Dutch East India Company, in 1670 - the Hudson's Bay Company. In the future, the joint-stock form of management penetrates into other sectors of the economy.
At the end of the 17th century. the first joint-stock banks appear. So, in 1694 the Bank of England was founded on a joint stock basis, in 1695 - the Bank of Scotland. At the end of the 18th and beginning of the 19th centuries. the joint-stock form of organization of banking is widely developed in many countries. During this period, the property of the previously existing large family firms split into hundreds, thousands of shareholders. The gap between small and large businesses is widening. In such conditions, it becomes increasingly difficult for small firms to survive, they find themselves beyond the power of innovation, but medium and large firms are gaining widespread development. The motive for maximizing profits is growing louder. During this period, a new profession appeared - manager-manager and organizer of large-scale production. Entrepreneurial functions, previously concentrated in one person, are divided into specialized areas. Financiers, economists, accountants, lawyers, designers, technologists appear. Above all of them, as it were, the manager rises, freed from many functions and focused on the management and organization of production.
Entrepreneurship has existed in Russia for a long time. It originated in Kievan Rus in a commercial form and in the form of crafts. Small traders and merchants can be considered the first entrepreneurs in Russia. The greatest development of entrepreneurship belongs to the years of the reign of Peter I (1689-1725). All over Russia, manufactories are being created, such industries as mining, weapons, cloth, linen are rapidly developing. The most famous representative of the dynasty of industrial entrepreneurs at that time was the Demidov family, whose ancestor was a Tula blacksmith.
Further development of entrepreneurship was restrained by the existence of serfdom. The reform of 1861 became a serious stimulus for the development of entrepreneurship. The construction of railways began, heavy industry was reorganized, and joint-stock activity was revived. Foreign capital contributes to the development and reorganization of industry. In the 90s of the XIX century. in Russia, the industrial base of entrepreneurship is finally taking shape. At the beginning of the XX century. entrepreneurship is becoming a mass phenomenon in Russia, the entrepreneur is being formed as an owner, although the influence of foreign capital and the state remains significant.
During this period, the labor market was formed, the joint-stock form of entrepreneurship was developing, private joint-stock banks were opened: commercial, land, etc. By the beginning of the XX century. in the Russian economy, 2/3 of all industrial products were produced in joint-stock, share and other collective forms of entrepreneurial activity, and only 1/3 fell on individual forms. Investments in cotton production, trade and credit were especially profitable. The process of monopolization of firms began. Among the large firms are Prodamet, Prodvagon, Produgol, partnerships of the Russian-American Manufactory, the Nobel brothers, and others.
Unfortunately, in Russia after the end of the First World War and the end of two revolutions - the February and October revolutions - a course was taken to eliminate market economic ties. All large enterprises were nationalized, the means of production and property of all private entrepreneurs were expropriated.
Some revival in entrepreneurial activity was brought about by the new economic policy - NEP (1921-1926). However, since the late 1920s. entrepreneurship is curtailed again and only in the 1990s. his resuscitation began in Russia. In October 1990, the Law "On Property in the RSFSR" was adopted, in December 1990 - the Law "On Enterprises and Entrepreneurial Activity". From the moment when private property and entrepreneurial activity were restored in their rights, the development of joint-stock companies, partnerships, and other forms of enterprise activity began.
What is meant by the concepts of "entrepreneur" and "entrepreneurship"?
These concepts in the modern sense were first used by the English economist of the late 17th - early 18th centuries. Richard Cantillon. He expressed the opinion that an entrepreneur is a person acting in conditions of risk. R. Cantillon considered the source of wealth to be land and labor, which determine the real value of economic goods.
In 1797, Bodo regarded the entrepreneur as the person responsible for the undertaken business; one who plans, controls, organizes and owns an enterprise.
Later, the famous French economist of the late 18th - early 19th centuries. J. B. Say (1767-1832) in his book "Treatise of Political Economy" (1803) formulated the definition of entrepreneurial activity as a combination, a combination of three classical factors of production - land, capital, labor of entrepreneurs, was one of the factors of success. Say's main thesis is to recognize the active role of entrepreneurs in product creation. An entrepreneur, he pointed out, is a person who takes on his own account and risk and in his favor to produce some kind of product.
The English economists A. Smith (1723-1790) and D. Ricardo (1772-1823) presented the economy as a self-regulating mechanism. There was no place for creative entrepreneurship in such a mechanism. At the same time, in his main work "Investigation of the Nature and Causes of the Wealth of Nations" (1776), A. Smith paid attention to the characteristics of the entrepreneur. An entrepreneur, according to A. Smith, being the owner of capital, for the sake of implementing a certain commercial idea and making a profit, takes risks, since capital investments in this or that business always contain an element of risk.
D. Ricardo saw in capitalism an absolute, eternal, natural mode of production, and considered entrepreneurial activity as an indispensable element of effective management. And only at the turn of the XIX-XX centuries. awareness of the importance and role of the institution of entrepreneurship begins.
And here is how the concept of "entrepreneurship" is interpreted in the Encyclopedic Dictionary of the Entrepreneur:
“Entrepreneurship is a proactive independent activity of citizens aimed at making a profit or personal income, carried out on their own behalf, under their property responsibility or on behalf and under the legal responsibility of a legal entity. An entrepreneur can carry out any types of economic activity not prohibited by law, including commercial intermediation, trade-purchasing, consulting and other activities, as well as operations with securities. "
1.2 Entrepreneurship functions
In a developed market economy, entrepreneurship as an integrated set of entrepreneurial organizations (companies, firms), individual entrepreneurs, as well as complex associations of entrepreneurial organizations performs the following functions: general economic, creative-search (innovative), resource, social, organizational.
Determining, in my opinion, in a developed market economy is general economic function , which is objectively determined by the role of entrepreneurial organizations and individual entrepreneurs as subjects of markets. Entrepreneurial activity is aimed at the production of goods (performance of work, provision of services) and their delivery to specific consumers: households, other entrepreneurs, the state, which, first of all, predetermines the general economic function. Moreover, entrepreneurial activity is carried out by its subjects under the influence of the entire system of economic laws of a market economy (supply and demand, competition, value, etc.), which is the objective basis for the manifestation of a general economic function. The progressive development of entrepreneurship is one of the defining conditions for economic growth, an increase in gross domestic product and national income, and this factor also acts as a manifestation of the general economic function in the system of economic relations.
The most important function of entrepreneurship is resource .
The development of entrepreneurship presupposes the effective use of both reproducible and limited resources, than resources should be understood as all material and non-material conditions and factors of production. Of course, first of all, labor resources (in the broad sense of the word), land and natural resources, all means of production and scientific achievements, as well as entrepreneurial talent. An entrepreneur can achieve the highest success if he is able to generate scientific and technical ideas, innovations in the field of activity in which he creates his own business, will use a highly qualified workforce, and efficiently consume all types of resources. But the pursuit of the maximum income (profit) of entrepreneurs often leads to the predatory use of resources. Such entrepreneurs by their activities harm the environment and the population. In this regard, the regulatory role of the state acquires great importance, establishing the forms of responsibility of entrepreneurs for improper use of the resource function, which is contradictory and has a double nature. The entrepreneur, as the owner of resources, is interested in their rational use and at the same time can be ruthless in relation to public resources.
Entrepreneurship is characterized by creative search(innovative) function associated not only with the use of the business process of new ideas, but also with the development of new means and factors to achieve the goals. The creative function of entrepreneurship is closely related to all other functions and is determined by the level of economic freedom of business entities, the conditions for making managerial decisions.
In the process of the formation of a market economy, entrepreneurship acquires social a function that manifests itself in the ability of every capable individual to be the owner of the business, with the greatest return to show their individual talents and capabilities. This function is increasingly manifested in the formation of a new stratum of people - entrepreneurial people gravitating towards independent economic and economic activities, capable of creating their own business, overcoming the resistance of the environment and achieving the set goal. At the same time, the number of employees is increasing, who, in turn, are economically and socially dependent on how sustainable the activities of entrepreneurial firms are.
The more efficiently entrepreneurial organizations function, the more significant the receipt of their funds in the budgets of various levels and in state off-budget social funds. At the same time, the development of entrepreneurship ensures an increase in the number of jobs, a reduction in the unemployment rate, and an increase in the level of the social status of employees.
The most important function of entrepreneurship is also organizational , which manifests itself in the adoption by entrepreneurs of an independent decision to organize their own business, its diversification, in the introduction of intra-firm entrepreneurship, in the formation of entrepreneurial management, in the creation of complex entrepreneurial structures, in changing the strategy of an entrepreneurial firm, etc. The organizational function is especially clearly manifested in the rapid development of small and medium-sized businesses, as well as in "collective (network) entrepreneurship", in the creation of people's enterprises.
Consequently, the essence of entrepreneurship is most comprehensively manifested in the combination of all its inherent functions, which are objectively characteristic of civilized entrepreneurship, but largely depend on the subjects of entrepreneurial activity themselves, on the system of state support and regulation of entrepreneurship.
1.3 Characteristics of entrepreneurship and its signs
The modern understanding of entrepreneurship makes it possible to distinguish four main features of it:
1 The subject has a certain set of rights and freedoms:
By choosing the type of economic activity and its planning;
By the choice of funding sources and by access to resources;
On the organization and management of production;
Sales of products and services;
2 Availability of ownership of the means of production. Manufactured products and income, that is, the presence of private property.
3 Presence of a certain economic environment and an appropriate economic climate, which would actually provide, and not only declare: self-government; freedom of economic choice; the possibility of investing income.
4 Availability of a competitive economic regime. The basic rule of entrepreneurial activity is to obtain an increase in the initial spent capital, an increase in the volume of profits. The result of entrepreneurial activity is an increase in the efficiency of the use of economic resources. Since it is the constant search for new ways to efficiently use resources in order to maximize profits that distinguishes an entrepreneur from an ordinary business executive.
Entrepreneurship- economic activity using novelty, risk, inventions in order to generate income.
In the broad sense of the word, entrepreneurship is economic innovation.
In a narrow sense, entrepreneurship is understood as a process; creating a new business in a competitive environment.
Entrepreneurship is characterized by the following features:
1) not only freedom in the choice of economic activity and its methods, not only independence, but most importantly - innovation.
Entrepreneurship is impossible without innovation. In this regard, two models of entrepreneurial behavior can be distinguished:
Classic consists in the fact that a businessman strives to organize his activities with the expectation of maximum return on the resources at his disposal;
Innovation is focused not only on available resources. And on the ability to attract and use external resources.
2) responsibility for the decisions made and their consequences, the associated risk. Non-liability activities are not entrepreneurship, but simple management on behalf of.
RISKS OF THE ENTREPRENEUR - the possibility of failures, losses in entrepreneurial activity, which, with an imprudent, illiterate approach to business, can lead to undesirable consequences, damage.
Distinguish commercial risks:
a) the risk associated with the quality and sale of goods on the market (technical, construction and installation risks);
b) the risk associated with the carriage of goods (transport risk c) the risk associated with the acceptance of the goods by the buyer;
d) the risk associated with inflation (inflationary risk);
e) the risk associated with the buyer's solvency and his attitude to the fulfillment of payment obligations;
f) the risk associated with fluctuations in the exchange rate (currency risks); g) risk associated with unforeseen circumstances (natural disasters, etc.).
Political risks:
a) the risk associated with the introduction of a ban on imports in the buyer's country; i) the risk associated with the convertibility of currencies or the imposition of a ban on money transfers;
b) the risk associated with strikes, political instability, wars, etc.
The risk can be measured in different methods:
· statistical, in which they study the statistics of losses in the past and give a forecast for the future;
· expert, in which the opinion of specialists and experienced businessmen is studied;
· calculation and analytical, based on mathematical techniques;
3) focus on achieving economic and, perhaps, moral success.
2.4 The entrepreneur and his role in the economy
ENTREPRENEUR is a person who assumes the risk associated with the organization of a new enterprise or with the development of a new idea, new product or new type of service offered to society. The term "entrepreneur" was coined by the French economist Richard Cantillon, who lived in the early 18th century.
An entrepreneur is focused on finding new opportunities with a rapid change in technology, changing demand, social preferences, etc.
The entrepreneur acts quickly, takes risks, does not hold on to an idea that has failed to prove its viability in a short time;
The entrepreneur introduces new resources, as a rule, in stages, for the next stage of work;
The entrepreneur, showing flexibility and taking risks, makes extensive use of rent and other forms of temporary attraction of resources as needed;
The entrepreneur usually prefers a horizontal organizational structure that is based on informal connections;
Successful entrepreneurs are a special breed of people. Summarizing the opinions of foreign experts allows us to highlight the following main characteristics of the personality of a successful entrepreneur:
Themselves poor employees, they were usually fired from at least one place of work;
Conducted "paper" work;
They perform best in individual sports;
They don't like watching football, baseball, etc .;
Those with advanced degrees or inventors are usually not successful in business;
Secretive;
Older children in the family;
Men who are supported by their wives;
Independent people who find it difficult to obey the orders of others;
Business people;
Realistic, risk-averse players;
They quickly switch to something else if they are in danger of failure;
Do not recruit employees from among friends;
Invest the savings of relatives in the business;
Putting business before family and personal pleasures;
Show flexible morals, are not bound by ethical norms.
In addition to these traits, entrepreneurs are confident in their capabilities, assertive, not emotional and self-control in relationships with other people, objective, sometimes impulsive and interested in calculating risk.
These opinions indicate that not everyone is capable or prepared to become independent business people and entrepreneurs. Therefore, before starting your own business, it is advisable to solve one problem - to evaluate yourself as a potential entrepreneur.
2 FORMS AND TYPES OF ENTREPRENEURSHIP
All the variety of entrepreneurial activities can be classified according to various criteria: type of activity, forms of ownership, number of owners, organizational and legal and organizational and economic forms, the degree of use of hired labor, etc.
By type or purpose
Entrepreneurial activity is very diverse. Since any business to one degree or another is associated with the main phases of the reproduction cycle - the production of goods and services, the exchange and distribution of goods, their consumption - the following types of entrepreneurial activity can be distinguished: industrial entrepreneurship, commercial, financial.
In addition, in recent decades, in all economically developed countries of the world, such an independent type of entrepreneurship as advisory has been singled out and isolated.
Manufacturing entrepreneurship can be called the leading type of entrepreneurship. Here, the production of products, goods, works is carried out, services are rendered, certain spiritual values are created.
The essence of manufacturing entrepreneurship... Being relatively independent, the types of entrepreneurial activities are mutually intertwined, complement each other. At the same time, priority should be given to industrial entrepreneurship, which determines all types of entrepreneurial activity and is the most complex.
Industrial entrepreneurship includes innovative, scientific and technical activities, directly the production of goods and services, their industrial consumption, as well as information activities in these areas. Any entrepreneur who intends to engage in production activities, first of all, must determine what specific goods he will produce, what types of services he intends to provide. Next, this entrepreneur starts marketing activities. To identify the need for a product, the demand for it, he enters into contacts with potential consumers, buyers of goods, with wholesale or wholesale and retail trade organizations. The formal conclusion of the negotiations can be a contract concluded between the entrepreneur and the future buyers of the goods. Such a contract allows you to minimize the entrepreneurial risk. Otherwise, the entrepreneur begins production activities for the release of goods, having only a verbal agreement.
Commercial entrepreneurship consists in operations and transactions for the resale of goods and services and is not associated with the production of products. An entrepreneur's profit is formed by selling a product at a price that exceeds the purchase price. If these transactions are carried out within the framework of the law, then they are not considered speculative.
Commercial entrepreneurship is subdivided into trade, trade-purchasing, trade-intermediary and commodity exchanges.
The field of activity of commercial entrepreneurship is commodity exchanges and commodity organizations. Commodity exchange- This is a kind of wholesale commodity market without a preliminary examination by the buyer of samples and predetermined minimum consignments of goods. On a commodity exchange, commercial intermediaries and their employees voluntarily unite to conduct trading operations according to jointly developed and enforced rules. The purpose of commodity exchanges is to create a mechanism for managing free competition and with its help, taking into account changes in supply and demand, to identify real market prices.
Commodity exchanges perform the following main functions:
§ provision of intermediary services for the conclusion of commercial transactions;
§ streamlining of commodity trade, regulation of trade operations and settlement of trade disputes;
§ collection and publication of information about prices, production conditions and other factors affecting prices;
Financial entrepreneurship - a kind of commercial. The object of purchase and sale here is money, currency, securities.
In turn, financial entrepreneurship is divided into: banking, insurance, auditing, leasing, stock exchanges.
Insurance business is that the entrepreneur receives an insurance premium, which is refunded only upon the occurrence of the insured event.
Financial activity penetrates both industrial and commercial, but it can also be independent: banking, insurance and others. A commercial bank is a joint-stock financial and credit institution that lends on a paid basis mainly to commercial organizations that accept cash deposits and other settlement operations on behalf of customers. The source of income of a commercial bank is the difference between the interest rates of deposits and loans.
Advisory entrepreneurship
The word "consultant" comes from the Latin - advising. This word is understood as a specialist in a certain field, giving advice on issues of his specialty. In foreign practice, commercial, paid management consulting was called consulting.
By ownership the property of an enterprise can be private, state, municipal, and also be owned by public associations (organizations). At the same time, the state cannot establish, in any form, restrictions or advantages in the exercise of property rights, depending on whether the property is in private, state, municipal property or the property of public associations (organizations).
By the number of owners entrepreneurial activity can be individual and collective. In individual entrepreneurship, the property belongs to one individual. Collective entrepreneurship corresponds to property belonging simultaneously to several subjects with the determination of the shares of each of them (shared property) or without determining the shares (joint property). Possession, use and disposal of property in collective ownership is carried out by agreement of all owners.
Forms of entrepreneurship
1 Organizational and legal:
ü partnerships is an association of persons created to carry out entrepreneurial activities. Partnerships are created when two or more partners decide to participate in the organization of the enterprise. An important advantage of the partnership is the ability to attract additional capital. In addition, the presence of several owners allows for specialization within the enterprise based on the knowledge and skills of each of the partners. Disadvantages of this organizational and legal form of entrepreneurial activity: each of the participants bears equal material responsibility, regardless of the size of his contribution. In addition, the actions of one of the partners are binding on all the others, even if they do not agree with these actions.
The participants in the partnership are divided into two groups: general partners (partnership with unlimited liability) and limited partners (partnership with limited liability). In limited partnerships, some of the partners may have unlimited, and some - limited liability.
ü society is created by agreement of at least two citizens or legal entities by combining their contributions (both in cash and in kind) in order to carry out economic activities. Members of a limited liability company are not liable for its obligations. They are only liable to the extent of the value of their contributions. In contrast, members of a company with additional liability are liable with all their property.
The most common are joint stock companies. Their difference lies in the fact that they are given the right to raise the necessary funds by issuing securities - shares. At the same time, the participants of the joint-stock company are responsible for the results of its activities within the limits of the value of the shares they own.
An enterprise created by a group of persons for joint production or other economic activity is called cooperative. Obligatory in a cooperative is the personal labor or other participation of its members in the activities of the cooperative, as well as the unification of property shares by its participants.
ü cooperative - an organization created by a voluntary group of people united for entrepreneurial activity on the basis of self-government and self-financing. He can use his own and borrowed funds, as well as his own and rented property. The cooperative's products are its property.
2 Organizational and economic:
ü concern is a diversified joint stock company that controls enterprises through a participatory system. The concern acquires a controlling stake in various companies that are subsidiaries of it. In turn, subsidiaries may also own controlling stakes in other joint stock companies, often located in other countries.
ü associations - a soft form of voluntary association of economically independent enterprises, organizations that can simultaneously be included in other entities. The association, as a rule, includes single-specialized enterprises and organizations located in a certain territory. The main goal of creating associations is to jointly solve scientific, technical, industrial, economic, social and other problems.
ü consortium is an association of entrepreneurs for the purpose of jointly conducting a major financial transaction (for example, making significant investments in a large industrial project). Such an association of entrepreneurs has the opportunity to invest in a large project, while the risk arising from large investments is significantly reduced, since the responsibility is spread over many participants. In the context of the scientific and technological revolution, consortia arise in new industries and at the intersection of various industries and provide for joint scientific research.
ü syndicate - unification of sales of products by entrepreneurs of the same industry in order to eliminate unnecessary competition between them.
ü cartel means an agreement between enterprises of the same industry on prices for products, services, on the division of sales markets, shares in the total volume of production, and more.
ü financial and industrial groups - a new organizational and economic form of entrepreneurship. They represent the amalgamation of industrial, banking, insurance and commercial capital, as well as the intellectual potential of enterprises and organizations.
3 INCOME OF THE ENTREPRENEUR
Entrepreneurial income is the main thing that distinguishes an entrepreneur from other subjects of a market economy.
Entrepreneurial activity (entrepreneurship) is an initiative independent activity of citizens and their associations aimed at making a profit. Therefore, making a profit is the immediate goal of the enterprise. But an enterprise can make a profit only if it produces products or services that are sold, that is, satisfy social needs. The subordination of these two goals - satisfying needs and making a profit - is as follows: you cannot make a profit without studying the needs and not starting to produce the product that satisfies the needs. Needs, in turn, are subdivided into: needs and solvent needs. It is necessary to produce a product that will satisfy the needs and, moreover, at such a price that would satisfy the solvent needs. And an acceptable price is possible only if the enterprise maintains a certain level of costs, when all the costs of consumed resources are less than the revenue received. In this sense, profit is the immediate goal of the functioning of the enterprise and, at the same time, is the result of its activities. If an enterprise does not fit into the framework of such behavior and does not receive profit from its production activities, then it is forced to leave the economic sphere, to declare itself bankrupt.
In general, the profit formula can be represented as follows:
П = В - (З + Н + Ш), where
P is the entrepreneur's profit, rubles / year
В - proceeds from the sale of created products, rubles / year;
З - costs of production and sale of created products, rubles / year;
H is the amount of taxes paid by the enterprise, rubles / year;
Ш - penalties, rubles / year;
Sales revenue is determined by the formula:
The number of products produced and sold to consumers in physical terms;
Selling price of the i-th product, rubles;
n is the number of items of products sold, pcs;
If the costs and fines depend to a significant extent on the enterprise, then the taxes paid by the enterprise are the external conditions of the business. The tax system currently operating in Russia is rather cumbersome and differentiated into federal, republican and local levels.
The enterprise must pay at the federal level: value added tax, excise taxes on certain types and groups of goods, deductions to cover the costs of exploration and geological prospecting for minerals; income tax from legal entities and individuals, vehicle tax, stamp tax, state duty; at the republican level - tax on the extraction of natural resources in the form of excise taxes, excise taxes on gasoline, motor fuel, gas, corporate property tax, payment for water taken by industrial enterprises from water management systems; at the local level - local taxes: tax on buildings, premises and structures, land tax, trade tax, tax for the registration of entrepreneurial activities of individuals, advertising tax, license fee for the right to conduct local auctions and lotteries, auction sales tax, etc.
So, an enterprise in market conditions in its striving to maximize profits has four degrees of freedom:
Setting prices;
Formation of costs;
Formation of product volumes;
Choice of nomenclature and product range.
But all other market participants have the same degrees of freedom, so each enterprise must take into account not only its own behavior in the market, but also the behavior of competitors. In a market environment, product manufacturers compete in order to best meet the needs of buyers and consumers - only in this case they can maintain or even strengthen their positions in the market.
4 ENTREPRENEURSHIP IN RUSSIA
The revival of entrepreneurial activity in Russia and in the former socialist countries is a unique social, political and economic phenomenon in the history of mankind. The uniqueness lies in the fact that entrepreneurial activity arose and develops not in an evolutionary way, as in countries with a traditionally market economy, but as a result of the economic revolution, the breakdown of the centralized planned system. That is why entrepreneurial activity in Russia is associated with a number of difficulties and contradictions:
1) slowly and often haphazardly, the legal framework of entrepreneurship is being formed, designed to ensure and consolidate the right of ownership of the means of production and the final product of activity;
2) the principle of private autonomy is limited, since the freedom of economic activity, contracts and associations is opposed by the traditional for the command economy monopoly organization of the economy, which cannot be canceled only by a volitional decision;
3) commodity-money exchange in Russia is greatly hampered by the imperfection of financial and credit relations (the problem of cashing money, the crisis of non-payments, etc.), as well as by high inflation rates;
4) in Russia the necessary conditions for the development of entrepreneurial activity are only partially available, which leaves an imprint on the form and style of business.
Modern forms of entrepreneurial activity in Russia
In Russia, in accordance with the Civil Code, the following organizational and legal forms of entrepreneurial activity are created: business partnerships and societies, production cooperatives, state and municipal unitary enterprises.
1 Business partnerships can be created in the form of a full partnership and limited partnership. A full partnership is a partnership, the participants of which (general partners) have concluded an agreement among themselves on the creation of an enterprise for the joint conduct of certain economic activities. The source of the formation of the property of a full partnership is the contributions of its participants.
A general partnership does not require a charter. It is created and operates on the basis of the constituent agreement, which is signed by all of its participants. The founding agreement shall indicate the name of the partnership, its location, the procedure for managing its activities, the size and composition of the partnership's contributed capital, and the procedure for changing the share of each of its participants. It also contains information about the liability of participants in a full partnership for violation of obligations to make contributions, etc.
The profits and losses of a full partnership are distributed among its participants in proportion to their shares in the contributed capital. To determine the amount of taxes, each participant adds his share of the profit to his income and pays taxes from this amount.
The participants in a full partnership are jointly and severally liable with their property for the obligations of the partnership.
A somewhat different situation in a mixed (limited) partnership (or limited partnership). Along with the participants who carry out entrepreneurial activities on behalf of the partnership and are responsible for the partnership's obligations with their property (general partners), there are one or more contributing participants (limited partners) who bear the risk of losses associated with the activities of the partnership, within the amount of their contributions. Limited partners do not take part in the implementation of entrepreneurial activities by the partnership.
A limited partnership, like a general partnership, has no charter. It is created and operates on the basis of the memorandum of association, which is signed by all general partners.
2 Business companies : limited liability company, additional liability company, joint stock company, subsidiaries and dependent companies.
At the initial stage of the transition of the Russian economy to market relations, limited liability partnerships (LLPs) became widespread. The Civil Code preserves the basic principles of LLP in the form of a limited liability company. Such a society is founded by one or more persons. Its authorized capital is divided into shares of the sizes determined by the constituent documents. Participants of a limited liability company are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the value of their contributions.
Unlike a limited liability company, participants in a company with additional liability are jointly and severally liable for its obligations with their property in the same multiple for all to the value of their contributions, determined by the constituent documents of the company. In the event of bankruptcy of one of the participants, his liability for the obligations of the company is distributed among the other participants in proportion to their contributions.
Joint-stock companies are a widespread form of entrepreneurship in modern conditions. Most of them were created through the privatization of state and municipal enterprises. The authorized capital of a joint stock company is divided into a certain number of shares. The participants of the joint-stock company (shareholders) are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the value of the shares they own.
Joint stock companies can be open and closed. Members of an open joint stock company may alienate their shares without the consent of other shareholders. Such a joint-stock company can conduct an open subscription to the shares issued by it and their free sale. At the same time, it is obliged to publish an annual report, balance sheet, profit and loss account for the general information on an annual basis.
Unlike an open joint-stock company in a closed joint-stock company, shares are distributed only among its founders or other predetermined circle of persons. Such a company is not entitled to conduct an open subscription to the shares issued by it.
The shareholders of a closed joint stock company have the preemptive right to purchase shares sold by other shareholders of this company.
The founding document of both an open and a closed joint stock company is the charter approved by the founders. In addition to general information, it should contain conditions on the categories of shares issued by the company, their par value and number; on the amount of the authorized capital of the company; on the rights of shareholders; on the composition and competence of the management bodies of the company and the procedure for making decisions by them, etc.
For the first time, the Civil Code defines subsidiaries and dependent companies. A subsidiary is a business company if another (main) business company or partnership, due to the prevailing participation in its authorized capital or otherwise, has the ability to determine the decisions made by such a company. A subsidiary company is not liable for the debts of the parent company (partnership). At the same time, the parent company (partnership) is liable jointly and severally with the subsidiary for transactions concluded by the latter in pursuance of its instructions.
A dependent economic society has a slightly different economic status. A business company is recognized as dependent if another, dominant or participating company, has more than 20% of the voting shares of a joint-stock company, or 20% of the authorized capital of a limited liability company.
3 Several peculiar organizational and legal forms of entrepreneurial enterprises are production cooperatives ... A production cooperative, or artel, is a voluntary association of citizens for joint production or other economic activities based on their personal labor and other participation.
In a production cooperative, the property shares of its members are combined. The sphere of activity of such a cooperative may be, in addition to production, processing, marketing of industrial, agricultural and other products, performance of work, trade, consumer services, and the provision of other services.
The founding document of a production cooperative is its charter, approved by the general meeting of its members. An important feature of a production cooperative is that it is not entitled to issue shares, as well as the fact that each
4 Among the organizational and legal forms of entrepreneurial enterprises are state and municipal unitary enterprises. A unitary enterprise is understood as a commercial organization not endowed with the ownership right to the property assigned to it by the owner.
The property of a unitary enterprise is indivisible and cannot be distributed by shares between the employees of the enterprise or other persons.
Only state and municipal enterprises can be created in the form of unitary enterprises. The property of a state or municipal unitary enterprise is, respectively, in state or municipal ownership. It belongs to such an enterprise on the basis of the right of economic management or operational management. A unitary enterprise based on the right of operational management is called a federal state enterprise.
CALCULATION PART
The task:
The consumer purchases goods X and Y. Product Y is sold at a price of 2 rubles per unit. Product X is sold at a price of 10 rubles per unit, if the purchase volume does not exceed 20 units for each next (over 20) unit, the buyer pays 5 rubles.
What are the budget constraints at different income levels?
Solution:
With income m 200, the consumer cannot buy more than 20 units of product X, and the restriction has the usual form: 10x + 2y m
If m 200, then the consumer is able to buy slightly more than 20 units of product X, paying for the entire volume 20 + 5 (x - 20) = 10 + 5x.
Thus, the budget constraint for m 200 is:
x 20, 10x + 2u m
or x 20, 5x + 2y + 100 m
5 CONCLUSION
Having considered the issues of this work, I came to the conclusion that entrepreneurship plays an important, decisive role in the development of a market economy.
Entrepreneurship - firstly: it is an economic activity with the use of risk, ingenuity, innovation;
Secondly: it is a proactive independent activity of citizens aimed at making a profit or personal income, carried out on their own behalf, under their property responsibility or on behalf of and under the legal responsibility of a legal entity. An entrepreneur can carry out any types of economic activities not prohibited by law, including commercial intermediation, trade-purchasing, consulting and other activities, as well as operations with securities.
Entrepreneurship is neither a science nor an art. This is a specific activity, practice. The market is the environment for the functioning of entrepreneurs.
The functioning of a modern market economy is impossible without entrepreneurial activity.
6 LIST OF USED LITERATURE
1 Kulikov L.M. Economic theory: textbook. - M .: TK Welby, Prospect Publishing House, 2005 .-- 432 p.
2 Amosova V.V., Gukasyan G.M., Makhovikova G.A.
Economic theory. - SPb .: Peter, 2002 .-- 480 .: ill. - (Series "Textbooks for universities").
A textbook on the basics of economic theory (economics). - M .: "VLADOS", 1995. - 384p.
4 Economics: textbook. / A.I. Arkhipov [and others]; ed. A.I. Arkhipova, A.K. Bolshakov. - 3rd edition, revised. and add. - M .: TK Welby, Prospect Publishing House, 2006 .-- 840 p.
5 Romanov V.N., Romanova V.G.
Modern economics in questions and answers. Microeconomics. - SPb., "Parity", 2001. - 416 p.
6 Modern economics. Lecture course. Multilevel tutorial. - Rostov n / a: publishing house "Phoenix", 2002 - 544 p.
7 Zhuravleva G.P.
Economics: textbook / G.P. Zhuravlev. - M .: Economist, 2006 .-- 574 p.
8 Entrepreneurship: a textbook for universities / Ed. Prof. V. Ya Gorfinkel, prof. V.A. Shvandara. - M .: UNITI, 2000 .-- 475 p.
9 Entrepreneurship: Textbook / ed. M.G. Lapusta. - M .: INFRA - M, 2002 - 448s. - (Series "Higher Education").
Entrepreneurship is an integral component of the market economy. A distinctive feature of entrepreneurship as a factor of production is the presence of free competition. Today's understanding of this term has specific features associated with the economic realities of society.
The concept of entrepreneurship as a factor of production has emerged in the modern economy. In connection with the privatization, only a part of the enterprises remains in the hands of the state, all the rest have passed into private ownership. For example, medium and small businesses are represented in Russian entrepreneurship.
The main task of any entrepreneur is the full-fledged management of the enterprise, which includes the reasonable use of resources, the organization of work based on innovations, and responsibility for the final results of their own activities.
Entrepreneurship as a factor of production is associated with a social economy, determined by the conditions of activity. The environment for full-fledged work is a combination of personal interest and economic freedom. It is she who is considered the main feature of the entrepreneurial environment.
It is no coincidence that entrepreneurship is called the fourth factor of production, because it is it that ensures the development of the market and affects the economic state of the country. Self-interest is the driving motive for the development of entrepreneurship.
The process of transition to a market variant of management presupposes the emergence of an entrepreneurial economy.
Let us find out what is the specificity of entrepreneurship as a factor of production. To do this, consider the specifics of this term. Its essence lies in the ability of business entities to influence the alleged source of material benefits.
Entrepreneurship is proactive, with an economic risk, aimed at identifying the best ways to use resources by activities. It leads to additional profits, an increase in property.
Entrepreneurship as a factor of production is the link between the product and the market economy. It manifests itself in extracting the maximum benefit from the sale of the finished product. In order for a simple exchange to become a source of entrepreneurship, it must become an integral link in the systemic economic turnover, a function of economic entities.
Exactly exchange is an incentive to search for new opportunities, characterizes entrepreneurship as a factor of production. In modern economics, it helps to find a source of potential benefits, is considered as a motive for successful activity.
When exchanging products with others, an entrepreneur perceives work not only as a way to make a profit, but also as an opportunity to establish personal contacts.
Entrepreneurship - as a combination of factors of production - presupposes a social character, the interconnection of many factors.
What are the main features and factors of production? Labor, land, entrepreneurship, profit - all these terms are interconnected. There are certain signs that characterize the economic nature of modern entrepreneurship: commercial risk, initiative, responsibility, innovation, combination of production factors.
Such activity is impossible without initiative. Only a constant desire to look for something new can contribute to its development. For example, the development of innovative technologies, product markets, is a condition for the functioning of entrepreneurship.
Modern entrepreneurship as a factor of production presupposes the realization of those opportunities that are provided by the process of market exchange, which presupposes the receipt of mutual benefits for all participants in the process. Many analysts view entrepreneurship as a factor of production. The entrepreneur's profit should not be the result of deceiving consumers, but the result of honest and fruitful work.
Despite the fact that initiative is considered an integral quality of the human person, it is not manifested in all people. The very nature of the market form of management contributes to the development of this quality in those who are involved in commercial activities.
Modern entrepreneurship as a combination of production factors presupposes a certain economic freedom based on information.
It is necessary to have reliable information about prices, changes in market conditions, consumer preferences in order to timely respond to market fluctuations.
The reality surrounding the modern entrepreneur presents an uncertainty beyond his control, so there is a commercial risk.
Considering entrepreneurship as a factor of production, let us briefly dwell on the characteristics of commercial risk. Despite the fact that it is considered a component of management, it presupposes a sober calculation, analysis and consideration of all possible negative consequences from the actions and transactions performed.
To obtain real profit from risky transactions, an entrepreneur conducts serious analytical work, engages specialists who are able to assess possible risks.
It is quite possible to imagine entrepreneurship as a factor of production, an opportunity for the development of society. In order to reduce the risks accompanying such activities, you can use insurance. When it comes to creating an innovative product, the developer has significant problems with a reliable assessment of the possible risk. To solve this problem, you can join forces with others interested in maximizing profits. In this case, not only the income from the sale of the created product will be divided, but also the even division of possible production risks.
Entrepreneurship, as a factor in the production of new goods and services, is the driving force behind technological progress.
In order to avoid contradictions between the desire to minimize risk and a motivated desire for it, a system for managing such situations is created, reflecting entrepreneurship as a factor of production. The essence and features of such a system:
The risk also has a certain general economic significance. Its presence forces the owner of the company to carefully study all possible alternatives, choose the most promising paths that allow leading to progressive actions, an increase in output, which characterizes entrepreneurship as a factor of production. Briefly, commercial risk can be viewed as a way of progressively shifting productive forces, effectively changing and expanding the economy.
How can the factors of production be effectively changed? Labor, land, capital - entrepreneurship calls the main components of full-fledged activity. To solve this problem, resources are being transferred to markets where they can generate large income. Arbitration can be found in exchange activities and in trading. This process is characterized by the following parameters:
In addition, to improve the efficiency of the enterprise, they combine the factors of production, for example, modernize hard labor. Information is a factor of production. Social infrastructure, entrepreneurship - concepts that complement each other. Without their combination, there will be no economic growth, no positive development of society.
With the rational replacement of one production factor with another, the entrepreneur not only guarantees a transition to a more efficient use of the resource, but also to the use of new technologies that can significantly simplify hard work. Information is a factor of production.
Social infrastructure - a new type of entrepreneurship that allows you to get the desired profit - is accompanied by high-quality and affordable services for the population. The combination of the “principle of substitution” with the “spirit of rationalism” is a characteristic feature of modern entrepreneurship, its distinctive characteristic.
Since such activities are aimed at meeting the needs of society, it is expressed not only in obtaining material income by the entrepreneur himself, but also in receiving satisfaction from consumers.
Not every income can be considered the result of full-fledged entrepreneurship. It acts as such only in those situations where it assumes the best result of the application of factors of production. That is why interest on capital and profit from rent are not considered as income from entrepreneurial activity.
What is the main goal of the modern entrepreneur? The hypothesis that it is only about maximizing the profit from sales is refuted by analysts.
After there was a significant modernization of the structure of firms, functional features were dispersed among the participants in the entrepreneurial process. Therefore, the purpose of the activity is based on the influence of the interests of representatives of different parties who take an active part in the implementation of the entrepreneurial function. We have to constantly react to all external changes, adapt to the market situation, relying on differentiation, specification of attitudes towards medium-term, short-term, long-term forecasts.
The result of this work is the modification of the entrepreneur's actions, the development of new market segments by him, an increase in sales, and the economic growth of the company.
Of course, the new reality does not mean that profit is no longer the target of modern entrepreneurship. Despite the differences in the goals of different firms, any of them is permissible only provided that an acceptable minimum benefit is achieved. Such a limitation is far from accidental, because it is profit that is important for the development of production, the launch of new technologies, and the development of innovative products.
The business executive always strives to create ideal conditions for the development and full implementation of the entrepreneurial function. Its task is to balance the forces that enable the entrepreneurial function to be carried out effectively in the long run. As well as ensuring maximum profitability from the resources used.
It is not considered a frozen and formed phenomenon. There is a constant change in the form, content, scope of this term. Entrepreneurship is associated with the state of the market economy, as well as with numerous social aspects. The starting point for him has always been trade. Merchants assessed the demand for products and correlated it with their capabilities, made adjustments depending on the changes observed in the market.
The main source of income in those days was the difference in price received when selling the same product in different markets. This option implied serious rice, so when the demand for goods fell, the merchants went bankrupt, completely losing their production.
With the transition to industrial production, the branches of material production began to be considered as a priority sphere of entrepreneurship. Instead of attractive sales markets, attention began to be paid to the rational use of various factors of production. At this stage, the entrepreneurial function ceased to be a monopoly of the owner.
The post-industrial stage was characterized by the growth of non-material activity, socialization, which caused new priorities and guidelines in business. They began to pay special attention in entrepreneurial activity not to adapting to constantly changing market conditions, but to transforming the essence of management, predicting the prospects for the development of social production.
In addition to the rational use of resources, the forms of their use began to act as a key activity of the entrepreneur. We will single out science and finance as new areas that business executives began to cover. Setting strategic goals allows you to maximize the results obtained by mobilizing efforts to involve many participants in the business process.
In any historical era, entrepreneurship has been an indispensable element of the market economy. It is customary to consider it also as an economic category, a type of economic thinking.
To assess the relationship between entrepreneurship and the economy, it is necessary to note the presence of a relationship between objects and subjects. The latter types can be not only individuals, but also representatives of large-scale production, who work independently, or involve other persons in the activities. For example, cooperatives, rental collectives, joint-stock companies engaged in a certain type of economic activity are being created.
In a market economy, private, collective, as well as state entrepreneurship is possible.
The object is the most effective combination of production factors, which allows you to minimize costs and increase income.
Thanks to a variety of new combinations of economic resources, the improvement of technological processes, the search for new technologies, an entrepreneur is constantly changing his production, has advantages over an ordinary business executive.
The main condition for the fruitful work of small or medium-sized businesses is independence, complete independence of the subjects, the formation of an algorithm of work, the choice of funding sources, the method of selling finished products, and the rational management of the profit received.
In modern conditions, entrepreneurship is a driving factor for the economy. The entrepreneur is constantly dependent on the market, the dynamics of supply and demand, the level of prices, commodity-money relations. Due to the high risk associated with constant fluctuations in the economy, many entrepreneurs are forced to close their production or do not have the opportunity to develop their business, are forced to "mark time" in order to withstand the competition.
In countries with high entrepreneurial potential, small and medium-sized companies are of particular importance. For example, in the United States they are considered a "forge" of personnel, therefore they are supported by various government programs.
In our country, the entrepreneurial potential is characterized by an intermediate state of the economy. Russia has already shown its ability to create an entrepreneurial infrastructure, but there are still many tasks to be solved before the share of small and medium-sized businesses becomes significant and noticeable on a national scale.
There are no real programs that would have a positive effect on the development of domestic entrepreneurship. It is this that negatively affects the speed of the spread of entrepreneurship at the initial and middle level, is the reason for the "stagnation" in the economy.
With effective measures of state regulation of the economy, it is possible to stimulate the development of the market, increase the quality and standard of living of the country's population. Otherwise, it will be difficult to talk about positive changes in the social, political, scientific fields, about economic stability.
Regardless of the form of ownership used in the state, the main engine of the development of society has always been trade, represented in our time by entrepreneurship.
Entrepreneurship is an integral attribute of a market economy, the main distinguishing feature of which is free competition. This is a specific factor of production, firstly, because, unlike capital and land, it is intangible. Secondly, we cannot interpret profit as a kind of equilibrium price, by analogy with the market for labor, capital and land.
The modern understanding of entrepreneurship was formed during the formation and development of capitalism, which chose free enterprise as the basis and source of its prosperity.
The views of the classics were one of the starting points of the Marxist concept of entrepreneurship. K. Marx saw in an entrepreneur only a capitalist who invests his capital in his own enterprise, and in entrepreneurship - an exploitative essence. It was only much later, at the turn of the 19th and 20th centuries, that economists recognized its crucial importance for economic progress. A. Marshall added to the three classic factors of production - labor, land, capital- fourth - organization, and J. Schumpeter gave this factor its modern name - entrepreneurship and defined main functions of entrepreneurship:
To characterize entrepreneurship as an economic category, the central problem is the identification of its subjects and objects. Subjects entrepreneurship can be, first of all, individuals (organizers of individual, family, and also larger industries). The activities of such entrepreneurs are carried out on the basis of both their own labor and hired labor. Business activity can also be carried out by a group of persons connected by contractual relations and economic interest. The subjects of collective entrepreneurship are JSCs, rental collectives, cooperatives, etc. In some cases, the state, represented by its respective bodies, is also referred to as business entities. Thus, in a market economy there are three forms of entrepreneurial activity: state, collective, private, each of which finds its own niches in the economic system.
Entrepreneurship object- the most effective combination of factors of production to maximize income. "Entrepreneurs combine resources for the manufacture of a new, unknown to consumers benefit; discovery of new methods of production (technologies) and commercial use of an existing product; development of a new sales market and a new source of raw materials; reorganization in the industry in order to create their own monopoly or undermine someone else's" - J. Schumpeter.
For entrepreneurship as a method of doing business, the first and main condition is independence and independence of business entities, whether they have a certain set of freedoms and rights to choose the type of entrepreneurial activity, sources of financing, the formation of a production program, access to resources, sales of products, setting prices for them, disposing of profits, etc.
The second condition for entrepreneurship is responsibility for decisions, their consequences and the associated risk. Risk is always associated with uncertainty, unpredictability. Even the most careful calculation and forecast cannot eliminate the factor of unpredictability; it is a constant companion of entrepreneurial activity.
The third condition of the entrepreneur is focus on achieving commercial success, the desire to increase profits.
Under profit an entrepreneur is understood to be the difference between the income received by the enterprise from the sale of goods and the expenses that were incurred by him in the process of production and marketing activities. Thus, unlike wages, interest and rent, profit is not a kind of equilibrium price, which is of a contractual nature, but acts as a residual income. This view was not immediately established in science. For a long time, profit was not distinguished from wages and from interest on capital.
Modern economists interpret profit as a reward for the entrepreneurial function, i.e. as income from the factor of entrepreneurship.
Profit as the difference between total revenue and full costs has two forms: accounting and economic. Accounting profit is calculated by deducting from the received income the so-called external, or accounting, costs (these are the company's cash costs for raw materials, materials, wages, equipment, etc.). The firm pays this money to external suppliers by purchasing the resources it needs from the market.
However, in addition to accounting, explicit costs, there are also implicit ones. hidden costs which the firm must also take into account when assessing the economic results of its activities. These are payments for resources owned and used by the firm. They are called opportunity costs, i.e. the cost of missed opportunities. Although the firm does not pay these costs, in fact, they exist, since the alternative use of these resources could generate income. Therefore, these hidden costs must also be subtracted from total income to determine the firm's profit. In this case, we get economic (clean) profit.
In conditions of perfect competition, i.e. in a static economic system operating in a vicious circle, there is no room for economic profit. The entrepreneur does not receive profit and does not suffer losses, the opportunity cost of the entrepreneur's services, which will be included in the full costs, will be the payment for his work in organizing and running the business. Such income - management fees in economic theory is called normal profit... The size of this profit is determined by the income that the entrepreneur could receive by working for hire. This is the lower limit of the entrepreneur's income, since if the income is below this limit, the entrepreneur will be inclined to abandon his activities and accept the most favorable job offer for him.
But the reward of the entrepreneurial factor comes not only from the normal profit, which is included in economic costs, but also from the possible surplus of income exceeding the explicit and implicit costs, i.e. from economic profit. This surplus is formed as follows. Market structures are distinguished by a certain imperfection of competition: lack of information, concentration of production in the hands of a few firms, release of new, previously unknown products - in a word, the economy is in a state of continuous development, dynamic transformation, which gives it a certain uncertainty. Basically, this state of the economic system is due to the actions of entrepreneurs looking for their niches in the market and using them to their advantage. This leads to the disruption of the existing market equilibrium, and for a certain period some entrepreneurs find themselves in a more advantageous position than others, their competitors, and strive to realize this benefit for their own benefit. But this benefit is far from obvious in advance, not obvious. An entrepreneur always takes risks when he decides to start a new business, make some innovations, buy someone's securities, put his products on an unknown market, etc. This creates a state of uncertainty in which you have to look for the right solutions, etc.
But entrepreneurship is not always associated with making a profit; losses are also possible. The threat of losses and bankruptcy also serve as a powerful incentive for effective management, as well as making a profit.
Formation of demand for factors of production
The demand for resources is derived (dependent) on the demand for products manufactured using these resources. Resources do not meet needs directly, but through finished products. Consequently, the change in demand for resources is also a dependent value - first of all, on changes in demand for finished products.
Labor productivity also affects the movement of demand for resources: if it grows, more of them are required. Each additional unit of resources gives an increment of the product - the marginal product (in monetary terms - the marginal income). At the same time, additional resources cause an increase in the firm's costs - marginal costs. But firms are looking to reduce production costs. Therefore, they will increase resources until the marginal income from their growth equals the marginal cost of them. If the marginal income is greater than the marginal cost, the demand for resources increases, in the opposite situation, it decreases.
The change in demand for these resources depends on the dynamics of demand for other resources, i.e. from changes in the price of substitute resources (for example, labor is replaced by capital) and on additional (for example, resources for the production of film and software are additional in relation to those that go to the manufacture of a camera and a computer, respectively).
By introducing substitute resources into production, firms obtain two kinds of effect. The first - the substitution effect - is associated with the fact that the replacement of one resource with another changes the price and demand (for example, the replacement of labor by capital leads to a fall in the demand for labor and an increase in the demand for capital). The second - the effect of the volume of production - is expressed in an increase in capital costs, causing a drop in the volume of production in the opposite direction. Therefore, in practice, the demand for a replacement resource depends on the ratio of these two effects: if the substitution effect is greater than the output effect, the demand for a replacement resource increases, and vice versa. If an additional resource is introduced into production, its change in price affects the change in demand for the main resource in the opposite direction.
Thus, the derived demand for resources increases if the demand for a product increases, labor productivity in the output of finished goods rises, the price of replacement resources falls or rises, and the price of additional resources decreases.
Understanding the features of the demand for resources allows us to determine the specifics of its elasticity.
The characteristic of the elasticity of demand for resources is revealed through its derivative nature. Three factors determine the sensitivity of demand and its reaction to changes in the price of resources. The first is the elasticity of demand for finished products: the higher it is, the more elastic the demand for resources will be. When a rise in the price of a good causes a significant drop in demand for it, the demand for resources decreases. In the case when, on the contrary, the demand for products manufactured using these resources is inelastic, the demand for resources is also inelastic. The second factor is the substitutability of resources. The elasticity of demand for them is high if, with an increase in price, there is a possibility of replacing them with other resources (for example, gasoline - diesel fuel) or the introduction of more advanced technology (due to which, for example, the need for gasoline is reduced). The third factor that determines the elasticity of demand for resources is their share in total costs. The elasticity of demand depends on the share of these resources in the total production costs of the finished product. If such a share is large, and the price of resources rises, this leads to a drop in demand for these resources. The greater the share of resources in total production costs, the higher the elasticity of demand.
Although the resources are limited, at some given moment their total supply is quite definite (for example, in such and such a year the labor force was so many million people, the cultivated area was so many thousand hectares, so many million tons were harvested oil, etc.) Therefore, the amount of resources is not strictly fixed; moreover, the amount of resources can change and very often really changes under the influence of certain efforts of people. Thus, elements of physical capital can be produced (equipment, machines) and built (buildings); by changing the length of the working day and the amount of wages, it is possible to influence the supply of labor. Even the supply of land, which differs from other factors of production, fixed by nature, can also be increased through, for example, land reclamation work. However, insufficiently thought out agrotechnical measures can contribute to the destruction of the fertility of the land and thereby reduce its arable area.
Having revealed the features of the demand for resources and their supply, we will consider the features of the operation of the law of supply and demand in the resource markets.
The operation of the law of supply and demand for resources, as well as for other goods, depends primarily on market conditions. The supply of resources is based on marginal costs, and the demand for resources is based on the marginal monetary product.
In perfect competition, firms do not affect the prices of inputs and the prices of products; it is the job of the market. The demand for resources depends on how efficiently they are used, what kind of monetary income they bring, what is their marginal monetary product. Firms increase their use until the marginal money product they use equals the marginal cost of resources. If each subsequent unit of resources adds to the total income of firms more than to their total costs, then further attraction of additional resources is stimulated. In this case, firms appropriate the additional profit. When the marginal cost of resources exceeds the marginal monetary product, manufacturing firms incur losses and are forced to reduce the use of resources.
In conditions of imperfect competition, an increase in demand for resources occurs together with a decrease in the price for them, and an increase in supply - with its increase. Firms seek to limit the demand for resources and to ensure that the marginal money product exceeds the marginal money cost of the product. As a result, additional profit is obtained. By supplying less product to the market, the imperfect competitor also has less demand for resources.
The most important consequence of the law of supply and demand in the resource market is a high income for scarce resources, which are urgently needed for the production of consumer goods; and, conversely, a drop in income for resources in abundance, or for substitutes that appear.
The operation of the law of supply and demand in the resource market can be violated not only by market conditions, but also by the policy and practice of the state. The resource market is influenced by deliberately targeted regulators along with spontaneously market ones. Thus, in the labor market, labor (wages) pricing is regulated by trade unions and the government using various methods.
