Entrepreneur's profit
Entrepreneurship is an essential attribute of a market economy. Although the history of entrepreneurship goes back centuries, its modern understanding was formed during the formation and development of capitalism, in which free enterprise serves as the basis and source of prosperity. But only at the turn of the XIX and XX centuries. economists have recognized the crucial importance of this factor of production for economic progress. Alfred Marshall added to the three classical factors of production - labor, capital and land - the fourth - organization , and Joseph Schumpeter in his book "The Theory of Economic Development" gave this factor its modern name - entrepreneurship.
Schumpeter called an entrepreneur an organizer of production who paves new ways, implements new combinations: "To be an entrepreneur means to do not what others do ... and not in the way others do."
J. Schumpeter attributed to the functions of an entrepreneur:
1) the creation of a new, yet unfamiliar to the consumer material good or a former good, but with new qualities;
2) the introduction of a new method of production that has not yet been used in this industry;
3) the conquest of a new market or the wider use of the former;
4) the use of a new type of raw material or semi-finished products;
5) introduction new organization affairs, for example, monopoly or, conversely, overcoming it.
Struggling with the routine, carrying out the implementation of innovations and thereby ensuring economic growth, the entrepreneur becomes, according to Schumpeter, "a creative destroyer."
The object of entrepreneurship is the implementation of the most efficient combination of factors of production in order to maximize income. The creation of all kinds of new ways of combining economic resources, according to J. Schumpeter, is the main task of the entrepreneur and distinguishes him from the ordinary business executive.
AT contemporary literature It is customary to single out three functions of an entrepreneur.
The first function is resource. For any economic activity objective factors (means of production) and subjective, personal factors (workers with sufficient knowledge and skills) are needed.
The second function is organizational. Its essence is to ensure such a combination and combination of factors of production that best contributes to the achievement of the goal.
The third function is creative, associated with organizational and economic innovation. The importance of this function for business has increased dramatically in the context of modern scientific and technological progress and the development of non-price competition.
To successfully perform these functions, a person must have certain abilities, among which there must be initiative, the ability to think independently and make decisions, perseverance in achieving goals, the ability to organize and lead a team.
The remuneration for the services of an entrepreneur is profit . AT economic theory There are several approaches to determining the sources of profit generation.
According to the first of them - accounting, profit is interpreted as the difference between the income received by the enterprise from the sale of goods and the expenses incurred by it in the course of production and marketing activities. Thus, in contrast to wages, interest and rent, profit is not a kind of equilibrium price fixed in a contractual manner, but acts as a residual income. This view was not established in science immediately. Profit for a long time was not distinguished from wages and interest on capital.
Modern economists interpret profit as a reward for performing the functions of an entrepreneur, i.e. as income from the entrepreneurial factor. Thus, under the net (economic) profit in economic theory it is customary to understand the excess over the interest rate, over rent payments, over the wage rate, over normal entrepreneurial profit. This is a kind of "entrepreneur's salary".
Profit is often viewed as a kind of payment for the risk that entrepreneurial activity involves.
Finally, profit is treated as monopoly income. A large firm can get it by setting higher prices in the market, and, consequently, by conquering this market and turning perfect competition into the imperfect.
A specific estimate of profit can be made as the difference between the total income of the enterprise and its total costs. In other words, profit can be defined as net income or income excluding costs and taxes. Therefore, when statisticians calculate profits, they usually add up the total cost of sales of the enterprise (revenue) and subtract all costs from it ( wages, cost of materials and energy, rent, interest on loans, etc.), as well as taxes.
Thus, entrepreneurial income (economic profit) consists of two parts:
1) the normal profit of the entrepreneur, which is part of the internal (opportunity) costs, which is the minimum income necessary to continue the operation of the company in the chosen field of activity;
2) the net income of the entrepreneur - the part of the profit remaining at the disposal of the entrepreneur after the payment of interest on the loan.
An important indicator characterizing the economic performance of the firm is rate of return – the share of profit in sales proceeds or the share of profit in the price of the product.
In any case, the hope of making a profit is a stimulus for technical progress, the redistribution of capital among the branches of production. The expectation of profit stimulates the most efficient distribution and use of resources, the reduction of production costs, the development of new technologies, the growth of investment in the economy, the increase in production and employment, and ultimately economic growth and better satisfaction of people's needs. As J. Schumpeter said, "without development there is no profit, without profit there is no development."
Already now in Western countries are defined promising directions entrepreneurship for the 21st century. Thus, in Japan, the emphasis is on information business, in Germany, Great Britain and France - on industrial technologies(it is believed that one who is strong in industrial production will be successful in all areas of science and technology). In the United States, the focus is on increasing the intellectual level of workers, their education and qualifications, because the technological potential of the business depends on this.
Similar information.
Entrepreneurship as a factor of production. Peculiarities entrepreneurial activity
Entrepreneurship (business) - this is an independent economic activity carried out at one's own risk, aimed at systematically obtaining profit from the use of property and intangible assets, 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.
Many economists argue that entrepreneurship is organically linked to economic freedom . So, for example, M. Felho, the author of the book "Entrepreneurship is freedom", believes that economic freedom includes the right to private property, to economic initiative, to the freedom to engage in entrepreneurial activities that meet one's own choice.
Entrepreneurial ability is usually considered as a factor of production. - 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 lies in the ability and desire to introduce new types of manufactured products, technologies, forms of business organization and the ability to incur losses in the production process on a commercial basis.
This resource includes :
- entrepreneurs, which include owners of companies, managers who are not their owners, as well as business organizers, combining owners and managers in one person;
- the entire business infrastructure of the country, namely: the existing institutions of a market economy (banks, stock exchanges, Insurance companies, consulting firms, etc.);
- entrepreneurial ethic and culture; and the entrepreneurial spirit of society.
Risk - the main distinguishing feature of an entrepreneur, and the purpose of entrepreneurial activity is to maximize income by identifying the most efficient combination of production factors. No one guarantees the entrepreneur that the end result of his activity will be income or he will incur a loss.
Profit is the reward for entrepreneurial risk. The specificity of profit lies in the fact that entrepreneurship, unlike capital and land, is not tangible, and profit cannot be interpreted as a kind of equilibrium price, by analogy with labor market, capital and land. Profit is usually calculated as the difference between revenue and total costs.
economic profit is the residual after deducting all opportunity costs (explicit and implicit) from the firm's gross revenue. The sources of economic profit are related to the functions of the entrepreneur in economic system and features of entrepreneurial abilities as a special resource. The following functions of an entrepreneur are distinguished :
- combining resources to produce a good or service;
- adoption of major management decisions;
- introduction of innovations;
- taking responsibility for risk.
Because the risk in economic activity means the possibility of losses (losses or lost income) compared to the expected results due to uncertainty, then in relation to the company, it is possible to single out the economic uncertainty of the internal and external environment.
Uncertainty of the internal environment associated with entrepreneurial initiative: with technical and technological innovations, the development of new markets, product renewal, organizational changes. Environmental factors include changes in consumer preferences and tastes, economic policy states, cyclical and structural changes at the macro level.
Being exposed to risk, the entrepreneur expects in the event of a favorable outcome to receive maximum profit. The desire to maximize profits is the main goal of the company in the conditions of the market mechanism. . It also has a positive influence on the distribution of resources, on scientific and technological progress, and on the efficiency of social production.
However, one should not forget about negative impact the desire of firms to make a profit, especially in the conditions of the dominance of markets imperfect competition, on the fair distribution of income in society, on the state environment, the unemployment rate, etc. Therefore, the natural desire of firms to maximize profits must be accompanied by a government socially oriented economic policy.
Entrepreneurial ability as a factor of production is one of the economic resources, which consists of entrepreneurs and the country's entrepreneurial infrastructure (institutions, laws, regulations, etc.). It is the organizing factor of production that makes it possible to rationally combine the other three 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 realizing the goal (far-reaching consequences). The entrepreneur bears for them liability. He is 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, an artisan, a merchant, and even a robber, a beggar, etc. He buys goods at one price and sells them at another. At the same time, he risks, because the sale price that he assumed may not be such. Entrepreneur performs important function: By saturating the market with goods, it brings supply and demand into line.
In modern economic literature, entrepreneurship is considered in three aspects (from three points of view): as an economic category, as a method of managing and as a type of economic thinking.
- Entrepreneurship as an economic category is a system of relations between entrepreneurs in their economic activities that take place in a competitive environment and are aimed at finding new ways to combine factors of production in order to generate income and increase property. Everyone wants to win and keep competitive advantages.
- Entrepreneurship as a method of managing the economy is characterized by such features as autonomy and economic independence, commercial risk, responsibility for decisions made, including risk, orientation towards success, creativity (innovation), initiative.
Functions of entrepreneurship: 1) transformations in the economy aimed at increasing its efficiency, at establishing market equilibrium; 2) adaptation to the economic environment, i.e., the desire to ensure maximum output with minimal cost and increase of assets; 3) contributing to the growth of the welfare of the population, the democratization of management, etc.
Entrepreneurship is motivated by material interest expressed in the form of income. The peculiarity of the nature of this income is that it is the result of a better use of resources, a better combination of factors of production. Therefore, income from property, as well as rent, rent, interest on capital, wages, cannot be considered as income from entrepreneurship. This income is business profit.
- Entrepreneurship as a special type of economic thinking is a set of original views and approaches to decision-making that are implemented in economic life. The main role, in this case, is played by the personality of the entrepreneur. Entrepreneurship is not only an occupation, but also a mindset, a property of nature. To be an entrepreneur, you need to have a special imagination, a gift of foresight, a talent that no more than 5-10% of the working population is endowed with.
- search for opportunities and initiative (changes the intended course of action in order to achieve the goal);
- willingness to take risks (prefers a situation of moderation of risk, takes actions to reduce the risk or control the results);
- focus on efficiency and quality (find ways to improve quality and reduce costs);
- involvement in work contacts (takes full responsibility and makes personal sacrifices for the performance of work, takes up the matter together with employees or instead of them);
- purposefulness (clearly expresses goals, has a long-term vision);
- the desire to be informed (personally collects information about customers, suppliers, competitors);
- systematic planning and observation (plans, monitors economic indicators and uses them to make decisions);
- ability to persuade and establish business and personal connections;
- independence and self-confidence (strives for independence from the rules and control of other people, believes in his ability to perform difficult tasks).
Entrepreneurship as a factor of production
The basis of any market economy system is a set of economically active subjects of the economy - entrepreneurs who realize their needs in business organization, ᴛ.ᴇ. the combination of all factors of production to make a profit and at the same time meet certain needs of society, workers. The results of entrepreneurial activity, the amount of profit, income depend on entrepreneurial skills .
Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, in its activities, an entrepreneur usually performs three main functions:
1) factorial , consisting in the mobilization of monetary savings, means of production, workers and other factors necessary for entrepreneurial activity;
2) organizational, consisting in the connection and combination of factors of production in order to ensure the achievement of the goal;
3) creative associated with innovation, initiative, enterprise and risk.
Entrepreneurial ability - this is a specific type of human resource, expressed in the presence of natural inclinations, acquired knowledge, skills to organize and manage production or provide services to make a profit and meet the needs of society in certain goods and services.
The main role of the entrepreneur is the activity of combining natural, human resources and capital for the production of goods and services.
According to the Civil Code of the Russian Federation ʼʼ entrepreneurial activity- ϶ᴛᴏ independent, carried out at one's own risk activity aimed at systematically obtaining profit from the use of property, the sale of goods, the performance of work or the provision of services by persons registered in in due courseʼʼ.
Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, entrepreneurship- this is:
1) the process of creating something new that has value;
2) the process of taking over the financial, moral and social responsibility;
3) a process that results in monetary income and personal satisfaction with what has been achieved.
The entrepreneurial process itself consists of four stages:
1) search for a new idea and its evaluation;
2) drawing up a business plan;
3) search necessary resources;
4) management of the established enterprise.
General goals of entrepreneurship – obtaining economic benefit or profit; production of goods and provision of services; solution of social problems; business development, etc.
The main goal of entrepreneurship – obtaining economic benefits in the form of entrepreneurial profit , income
By its very nature, entrepreneurship is inextricably linked to market economy and is its product. Economic nature Entrepreneurship is characterized by such functional features as: initiative, commercial risk, responsibility, combination of factors of production, innovation, etc.
Entrepreneur - a citizen or an association of citizens engaged in initiative, independent activities (in production, trade, finance, management, services, etc.) carried out on behalf of a citizen under his property responsibility or on his behalf and under the legal responsibility of the association of citizens (legal entity), the purpose of which is to make a profit or personal (collective) income.
Entrepreneurs are citizens and organizations that have the status of individuals and legal entities participating in management in those organizational and legal forms that are established by the legislation of a particular country.
Given the dependence on forms of ownership, an entrepreneur can carry out his activities in the public sector, the private sector, as well as on the basis of mixed forms of management.
Entrepreneur in a certain field of activity should be public organizations having the status of a legal entity.
The entrepreneur is not necessarily the owner. He is an independent agent of the market, acting at his own peril and risk and bearing property liability, taking on the organization of a business and carrying out any type of economic activity not prohibited by law. Concerning entrepreneur must have a certain set hell and personal qualities , which are the content entrepreneurial abilities.
In particular, he must have the following personality traits:
1) knowledge of production technology;
2) focus on getting more profit;
3) thrift and prudence;
4) propensity to risk;
5) the ability to correctly assess the structure of market needs;
6) the ability to form goals, organize people to achieve them, creating incentives;
7) the ability to manage people, business, production, finance, etc.;
8) knowledge of the psychology of people and the desire to develop the ability to get along with people;
9) flexibility, correctness in communication;
10) law-abiding, ᴛ.ᴇ. organization of their business within the framework of existing laws, regulations;
11) the need for scientific and technological achievements;
12) faith in the ability to influence the course of events;
13) have personal values that meet the interests of society, the managed team;
14) propensity to make scientifically based decisions, etc.
In Russia in the 1990s legally took shape two subjects of individual entrepreneurship:
1) an individual entrepreneur;
2) peasant (farmer).
- a citizen engaged in initiative, independent activity (within the framework not prohibited by law), carried out on his own behalf, under his own property responsibility, the purpose of which is to make a profit or personal income. He carries out economic activities at his own expense, bears full property responsibility for its results, manages his own enterprise, is completely independent in the organization and development of his business, and solely decides on the distribution of income received after taxes. All this leads to the possibility of flexible adaptation, but also increases the degree of risk.
Individual entrepreneur entitled , like a legal entity to use hired labor, unlike a legal entity, has the right to bequeath its property.
Entrepreneur in accordance with applicable law also has the right :
Create any types of enterprises (not prohibited by law);
Hiring and firing employees;
Determine the forms, systems, wages;
Develop and implement a business program;
Set prices, tariffs;
Select suppliers, buyers;
Choose a bank to open an account;
Carry out all types of settlement credit operations;
Freely dispose of profits after paying taxes and other obligatory payments;
Receive unlimited personal income;
enjoy state system social security and insurance;
Complain in due course government agencies infringing on his rights and interests;
Carry out currency transactions permitted by law;
Enter into foreign economic relations in the manner prescribed by law, etc.
Main entrepreneurial functions:
1) connection of factors of production;
2) decision making;
3) ensuring tendencies towards equilibrium;
4) redistribution of resources;
5) introduction of innovations;
6) risk bearing.
In general, distinguish two groups of entrepreneurial functions . One of which reflects the current adaptation tasks to external environment entrepreneurship, another – entrepreneurial abilities adapt to internal environment entrepreneurial activity.
By functional featured entrepreneurship functions subdivided on the control: finance; production; personnel; material flows; marketing (sales) etc.
In Russia organizational and legal forms of entrepreneurship, which are defined by the Civil Code of the Russian Federation , are :
· Individual entrepreneurs - persons carrying out commercial activity on the basis of their property, directly managing it and bearing full responsibility for her results.
· Partnership (partnership) – a closed-type association with a limited number of participants joint activities on the basis of shared ownership and directly involved in management.
· Corporation – an equity-based association, legal rights which are separated from the rights and obligations of its participants.
In Russia, the organizational structure-legal forms are defined by the Civil Code of the Russian Federation, which subdivides all participants in entrepreneurial activity by legal status into individuals and legal entities, and by purpose of activity - into commercial and non-profit organizations.
Given the dependence on the content of entrepreneurial activity and its connection with the main stages of the reproduction process, the following are distinguished types of entrepreneurship:
production;
· commercial;
· financial;
insurance;
intermediary.
In accordance with the Civil Code of the Russian Federation, in Russia there is 15 legal forms economic activity :
1) Individual entrepreneur.
2) General partnership.
3) Limited partnership (limited partnership).
4) Society with limited liability.
5) Company with additional liability.
6) Open joint stock company.
7) Closed Joint Stock Company.
8) Subsidiary business companies.
9) Dependent economic company.
10) Production cooperatives.
11) State and municipal unitary enterprises.
12) Consumer cooperatives.
13) Public and religious organizations (associations).
15) Associations and unions.
In Russia, lately, the state has been showing special care small and medium enterprises . In particular, a manifestation of this concern is signed by the President of the Russian Federation on July 24, 2007 ᴦ. Federal Law of the Russian Federation ʼʼOn the development of small and medium-sized businesses in Russian Federationʼʼ, which will come into force on January 1, 2008 (with the exception of some of its articles and parts). (See: Rossiyskaya gazeta.-2007 - July 31.)
Factor income from entrepreneurial ability, as noted earlier, is profit.
Profit - is the difference between the gross proceeds from the sale of a product of economic activity and the sum of the costs of this activity.
There are many types of profit : normal, economic, accounting, basic, balance sheet, deferred, monopoly, non-distributed, founder's, net, etc.
So, let us recall that normal profit- ϶ᴛᴏ the minimum income, or payment required to keep the entrepreneur in some particular area of production. Or in other words, normal profit– business income costs that are not included in costs are not marked as business costs imputedly included in accounting profit. The minimum required profit to compensate for the entrepreneur's unaccounted for costs (personal labor costs, use of his own property).
Accounting profit - profit from entrepreneurship, which is confirmed by an accounting report that does not record entrepreneurial costs and lost profits, in connection with this, only explicit external costs are included in such profit.
Economic profit - it is also the difference between total income (gross proceeds from the sale of goods) and economic costs which, however, along with external, explicit costs include opportunity cost or alternative, (imputed) costs for a specific period. economic profit calculated as the difference between accounting and normal profit.
Net profit- ϶ᴛᴏ part of the balance sheet profit remaining at the disposal of the entrepreneur, enterprise, firm after paying taxes, deductions, mandatory payments. To calculate this profit, the amounts going to the side are subtracted from the gross profit: rent, interest on a bank loan, taxes, contributions to insurance and other funds.
Entrepreneurship as a factor of production - concept and types. Classification and features of the category "Entrepreneurship as a factor of production" 2017, 2018.
Job data
Theoretical part - option No. 21 (Entrepreneurship as a factor of production in modern conditions)
Introduction…………………………………………………………………..........4
1 Entrepreneurship as a factor of production in modern
conditions.…………………………………………………………………………
1.1 The concept of entrepreneurship…………………………………………..6
1.2 The history of the emergence of entrepreneurship. Its origins……………..7
1.3 Functions of entrepreneurship…………………………………………….9
1.4 The purpose of entrepreneurship……………………………………………...9
1.5 Forms and types of entrepreneurship…………………………………..11
1.6 Entrepreneurship today……………………………………..13
Conclusion……………………………………………………………………..15
List of used sources………………………………………...16
Introduction
Currently, Russia is at a turning point in its development.
The fate of the ongoing reforms is called into question, the answers to which largely depend on the state and trends in the development of entrepreneurship.
Entrepreneurship today is becoming a significant factor in further socio-economic development.
Entrepreneurship is an integral element of the modern market economic system, without which the economy and society as a whole cannot exist and develop normally.
Independent entrepreneurs represent the most numerous layer of private owners and, due to their mass nature, play a significant role not only in the socio-economic, but also in the political life of the country.
Entrepreneurship provides strength market relations based on democracy and private property. In terms of their economic situation and living conditions, private entrepreneurs are close to the majority of the population and form the basis of the middle class, which is the guarantor of the social and political stability of society.
The Constitution of Russia determines that every citizen has the right to freely use his abilities and property for entrepreneurial and other economic activities not prohibited by law. The rights and freedoms of man and citizen, and hence the right of free entrepreneurial activity, are exercised throughout the territory of Russia and apply to every citizen of the country. All public authorities are obliged to ensure and protect in their activities the rights of entrepreneurs and freedom of entrepreneurship, and their opposition should be considered as a violation of the Constitution of Russia. The state recognizes and protects equally private, state, municipal and other forms of ownership.
The work should cover the following topics:
1. Entrepreneurship
2. The concept of entrepreneurship
3. The history of the emergence of entrepreneurship. Its origins
4. Functions of entrepreneurship
5. Purpose of entrepreneurship
6. Forms and types of entrepreneurship
7. Entrepreneurship today
Based on the foregoing, draw a conclusion about what constitutes entrepreneurship as a factor of production in modern conditions.
1. Entrepreneurship as a factor of production in modern
conditions.
1.1 The concept of entrepreneurship
The concept of "entrepreneurship" should not be identified with the concept of "business", which is more capacious and provides for any type of activity that generates income or personal benefit.
It is noted that entrepreneurship is an independent, proactive, at one's own risk activity regarding the production of products, the performance of work, the provision of services and trade for profit.
The main principles behind which entrepreneurship is carried out are:
1) free choice of activities on a voluntary basis;
2) involvement in entrepreneurial activity of property and funds of legal entities and citizens;
3) independent formation of a program of activities, selection of suppliers and consumers of manufactured products, setting prices in accordance with production costs in compliance with applicable law;
4) free employment of workers;
5) attraction and use of material, technical, financial, labor, natural and other resources, the use of which is not prohibited or limited by law;
6) free distribution of profit that remains after making payments established by law;
7) independent implementation by an entrepreneur (legal entity) of foreign economic activity;
8) the use by any entrepreneur of the share of foreign exchange earnings due to him at his own discretion.
And here is how the concept of "entrepreneurship" is interpreted in the Encyclopedic Dictionary of an Entrepreneur:
“Entrepreneurship is an initiative independent activity of citizens aimed at making a profit or personal income, carried out on their own behalf, under their own property responsibility or on behalf and under the legal responsibility of a legal entity. An entrepreneur may carry out any type of economic activity not prohibited by law, including commercial mediation, trade-purchasing, consulting and other activities, as well as operations with securities.
Entrepreneurship is one of the important factors of social and economic progress. Therefore, society is interested in civilized entrepreneurship, which should have legal support in the following basic forms:
1) granting freedom of entrepreneurial activity;
2) granting the entrepreneur the status of a merchant;
3) creation of conditions for opening and registering an enterprise.
When choosing a form of entrepreneurship, they take into account the scale of activity, the form of responsibility of the entrepreneur, the possibility of obtaining loans, equal taxation, the possible volume of sales of products, etc. The main business entities are individuals, groups of individuals (in joint-stock companies, cooperatives) and the state (relevant authorities) .
1. 2 The history of the emergence of entrepreneurship. Its origins
The history of entrepreneurship begins in the Middle Ages. Already at that time, merchants, merchants, artisans, missionaries were beginning entrepreneurs. With the advent of capitalism, the desire for wealth leads to the desire for unlimited profits. The actions of entrepreneurs take on a specialized character, acquiring a civilized framework. Often an entrepreneur, being an owner, also works in his own factory, in his own plant.
From the middle of the XVI century. appears share capital joint-stock companies are organized. The first joint-stock companies arose in the field international trade. The very first founded English trade company(1554). Later, in 1600, the East India Trading Company was formed, in 1602 the Dutch Company, and 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 XVII 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 the organization of banking is widely developed in many countries. During this period, the property of previously existing large family firms breaks up into hundreds, thousands of shares of depositors-owners of shares. The gap between the small and big business. In such conditions, it becomes more and more difficult for small firms to survive, they are unable to innovate, but medium and large enterprises are widely developed. large firms. The motive for maximizing profit sounds louder and louder. During this period, a new profession appears - manager-leader and organizer of large-scale production. Entrepreneurial functions, previously concentrated in one person, are divided into specialized areas. There are financiers, economists, accountants, lawyers, designers, technologists. Above all of them, as it were, rises the manager, freed from many functions and focused on the management and organization of production.
Entrepreneurship has existed in Russia since ancient times. It originated in Kievan Rus in trade form and in the form of industries. Small merchants and merchants can be considered the first entrepreneurs in Russia. The greatest development of entrepreneurship refers to the years of the reign of Peter I (1689-1725). Manufactories are being created all over Russia, and such branches of industry as mining, weapons, cloth, and linen are widely developed. A prominent representative of the dynasty of industrial entrepreneurs at that time was the Demidov family, whose ancestor was a Tula blacksmith.
The further development of entrepreneurship was held back by the existence of serfdom. The reform of 1861 became a serious stimulus for the development of entrepreneurship. Construction begins railways, heavy industry is being reorganized, joint-stock activities are being 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 formed as an owner, although the influence of foreign capital and the state remains significant.
1.3 Functions of entrepreneurship
In modern conditions, entrepreneurship performs three main functions:
1) resource (mobilization of material factors, human resources and monetary savings);
2) organizational (ensuring a rational combination of factors of production, determining a strategy for profit growth and property multiplication);
3) creative, innovative (constant search and development of new markets, new technologies and goods, which is of particular importance in the conditions of modern scientific and technological revolution and the development of non-price competition).
1.4 Purpose of entrepreneurship
An important goal of any enterprise in a market environment is to provide
stable financial stability in his work. Businesses can
achieve this goal only if in their work they will
adhere to certain principles and perform the necessary functions.
The German economist G. Schmalen identified the following "cornerstones"
enterprise management - profitability, financial stability and profit.
The principle of economy requires that:
1) a certain result at the lowest cost - the principle of minimization;
2) for a given amount of costs, the greatest result is the principle of maximization.
At its core, the principle of economy imposes a common requirement inherent in all enterprises - not to waste factors of production(resources), i.e. work economically.
The principle of financial stability means such activity of the enterprise in which it could at any time pay off its debts, either with its own, or by deferral, or by obtaining a loan.
The highest goal of entrepreneurial activity is the excess of results over costs, i.e. achieving the greatest possible profit or the greatest possible profitability. The ideal position is one where maximizing profits also results in higher profitability.
To achieve this goal, enterprises must:
1) rational use of production resources, taking into account their
interchangeability;
2) produce high-quality products, systematically update them,
provide services in accordance with demand and available production capabilities;
3) ensure the competitiveness of the enterprise and products,
maintain a high image of the enterprise;
4) systematically introduce everything new and advanced into production, into the organization
labor and management;
5) develop a strategy and tactics for the behavior of the enterprise and adjust
them according to changing circumstances;
6) take care of their employees, the growth of their qualifications and greater
favorable socio-psychological climate in the workforce;
7) Conduct flexible pricing policy and perform other functions.
At the same time, it is very important that all functions of the enterprise be directed to
implementation of the developed strategy and achievement of the set goal.
The development of a successful strategy begins with the definition of the mission of the company and the overall goal of the functioning of the team. At the same time, the goals of the enterprise may change, it all depends on the specific circumstances.
For example, the main goal of the enterprise at a certain stage may be
not obtaining the maximum profit, but the conquest of the market. In this case
maximizing profits is relegated to the background, but in the future, in
If the market is conquered, the enterprise can more than compensate for lost profits.
1.5 Forms and types of entrepreneurship
The whole variety of entrepreneurial activity can be classified according to various criteria: type of activity, forms of ownership, number of owners, organizational-legal and organizational-economic forms, the degree of use of hired labor, etc. Let's consider some of them.
By type or purpose, entrepreneurial activity can be divided into production, commercial, financial, advisory, etc. All these types can function separately or together.
According to the forms of 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 the location of property in private, state, municipal property or property of public associations (organizations).
According to the number of owners, entrepreneurial activity can be individual and collective. In a sole proprietorship, property is owned by one to an individual. Collective property is property owned simultaneously by several entities with the determination of the shares of each of them (shared ownership) or without determining the shares (joint ownership). Possession, use and disposal of property in collective ownership shall be carried out by agreement of all owners.
Forms of entrepreneurship, in turn, can be divided into organizational-legal and organizational-economic. Among the organizational and legal forms are partnerships, societies, cooperatives.
A partnership 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 an enterprise. An important advantage of the partnership is the possibility of attracting 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. The disadvantages of this organizational and legal form of entrepreneurial activity: each of the participants bears equal financial 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.
Partnership participants 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 liability, while others may have limited liability.
Companies are created by agreement of at least two citizens or legal entities by pooling 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 liable only to the extent of the value of their contributions. In contrast to them, participants in a company with additional liability are liable with all their property.
1.6 Entrepreneurship today
Statistics show that entrepreneurship has become a prominent phenomenon in the Russian economy. The number of small enterprises in Russia at the beginning of 2007 exceeded one million, having increased by five and a half percent over the year. The Kommersant newspaper writes about this with reference to the report of the National Institute for the Systematic Study of Entrepreneurship Problems (NISIPP). Researchers note an uneven growth in the number of small businesses across regions. So, if in the Northwestern Federal District 1183 small enterprises were registered per one hundred thousand people, then in the Southern Federal District - only 490. The average increase in the number of small enterprises in Russia as a whole in 2006 amounted to about 37 new organizations per one hundred thousand inhabitants. The most noticeable growth was registered in the Far Eastern Federal District - 97, and in the North-Western District, the leader in the number of small enterprises per capita, a decrease was noted. According to the Ministry of Economic Development, the contribution of small businesses to the Russian economy is 15-17 percent of GDP. As the former head of the Ministry of Economic Development and Trade German Gref reported, from 2001 to 2004 the share of small businesses in the country's gross domestic product doubled. However, compared with Western countries, this figure in Russia is lower by 3-3.5 percent.
The elected President of the Russian Federation, Dmitry Anatolyevich Medvedev, emphasizes: “The policy of the state should be aimed at sustainable growth in the proportion of citizens who can be attributed to the middle class. We can achieve this only through the activation of entrepreneurship, the creation of appropriate conditions for it.”
Conclusion
So, entrepreneurship is the core of any socio-economic system based on the principles of private property and competition. The entrepreneur is the central figure in civil and commercial circulation, he is the main actor market, the guarantor of the stability of civil society. The entrepreneur not only organizes the production of goods, but also takes a direct part in this process; further, it organizes the entire movement of masses of commodities and brings them through the market to the final consumer, thus linking the economic life of society into a single whole. Along with the production of goods, it provides a wide variety of services to citizens, sets in motion financial and stock markets, mobilizes the intellectual potential of society for the development of science and the creation of new technologies, thereby creating prerequisites for accelerating scientific and technological progress. In addition, by paying the bulk of taxes to the state, he essentially supports the state and finances its main expenses. This means that it is entrepreneurial activity that allows the state to provide its citizens with a guaranteed material and educational level corresponding to medical service, payment of pensions and benefits. Obviously, the more actively this activity takes place, the less bound and limited by various artificial measures the energy and enterprise of the entrepreneur, than more possibilities for the manifestation of free initiative, they provide him with legal regulations, legislation, the higher the standard of living and social security of citizens. Thus, entrepreneurship, without a doubt, occupies a central place in modern society. After all, it is the entrepreneur who is the support and guarantor of stability and sustainable development of both the state and civil society; both economic and political life of its citizens.
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