Entrepreneurship, its types and forms. Concept, essence and signs of entrepreneurship
All variety entrepreneurial activity can be classified according to different criteria: by type (purpose), forms of ownership, number of owners, organizational-legal and organizational-economic forms, degree of use of hired labor, etc.
By mind (purpose) entrepreneurial activity can be production, commercial, financial, advisory, etc. All these types can function separately or together (Fig. 4.1).
By forms owned enterprises can be private, state, municipal, and also owned public associations(organizations). At the same time, the state cannot establish any kind of restrictions or advantages depending on the form of ownership.
By number of owners entrepreneurial activity can be individual and collective. In a sole proprietorship, property belongs to one individual. Collective entrepreneurship corresponds to property that belongs simultaneously to several entities with the definition of the shares of each of them (shared ownership) or without the definition of shares (joint ownership). Possession, use and disposal of collectively owned property is carried out by agreement of all owners.
Among organizational and legal Forms of entrepreneurship include partnerships, societies, and cooperatives. The main organizational and economic forms include concerns, associations, consortia, syndicates, cartels, financial and industrial groups (FIGs), holdings.
Rice. 4.1. Types of business activities
Manufacturing Entrepreneurship and Factors of Production
Manufacturing entrepreneurship can be called the leading type of entrepreneurship. Here the production of products, goods, works is carried out, services are provided, and certain spiritual values are created. In the conditions of transition to the market, this area of activity was subject to the greatest negative impact, as a result of which the economic connections, logistics were disrupted, product sales fell, and the financial position enterprises. Therefore, the development of manufacturing entrepreneurship will receive the greatest attention in the coming years.
Production entrepreneurship (see Fig. 4.1) includes innovative, scientific and technical activities, direct 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 must first of all determine what specific goods he will produce and what types of services he will provide. The entrepreneur then proceeds to marketing activities. To fulfill the need for a product, he comes into contact with potential consumers, buyers of goods, with wholesale or wholesale-retail trade organizations. The formal conclusion of negotiations can be a contract concluded between the entrepreneur and future buyers of the goods. Such a contract allows you to minimize business risk. Otherwise, the entrepreneur begins production activities to produce goods, having only a verbal agreement.
In the conditions of established market relations in the West, an oral agreement, as a rule, serves as a reliable guarantee and, if necessary, can subsequently be formalized in the form of a contact or transaction. The situation in Russia is much more complicated. In conditions of just emerging market relations, the reliability of an oral agreement is very low, and the risk is significantly high.
The next stage of production entrepreneurship is the acquisition or rental (hiring) of factors of production.
TO factors of production relate production assets, work force and information. Production assets, in turn, are divided into fixed and circulating assets.
TO fixed production assets (tools of labor) include: buildings and structures; transfer devices; power machines and equipment; working machines and equipment; measuring and control instruments and devices; laboratory equipment; Computer Engineering; vehicles; tools and accessories; production equipment, other fixed assets. As part of fixed production assets, buildings include buildings production workshops, plant management, laboratories, etc.
Working production assets (objects of labor) are: raw materials; basic and auxiliary materials; fuel and energy resources; containers and packaging materials; low-value and wear-out tools and production equipment; spare parts for repairs. This also includes purchased components and semi-finished products, work in progress and self-made semi-finished products, and deferred expenses.
Labor force the entrepreneur hires through advertisements, through labor exchanges, employment agencies, and finds potential employees with the help of friends and acquaintances. When selecting personnel, one should take into account the candidate’s education for a particular job, the level of his professional skills, previous work experience, and personal qualities.
Carrying out a business transaction involves monetary costs. The total need for money (D p) for conducting production and entrepreneurial activities can be calculated using the formula
where D r - funds necessary to pay employees;
D m - cash payment for the cost of purchased raw materials, materials, semi-finished products, components, fuel, energy;
D s - cash expenses associated with the acquisition and use of means of labor (fixed production assets) - buildings, structures, transmission devices, machines, equipment, computer technology, tools, Vehicle and etc.;
D and - monetary payment for the information purchased by the entrepreneur;
D v - payment for services of third-party organizations and persons (construction work, transport services and etc.).
To start production activities, an entrepreneur must have the necessary start-up capital. If there is no such capital, then he turns to a commercial bank or another owner of free funds to obtain a loan. You can choose another path - to obtain factors of production (premises, equipment, raw materials, materials, information, etc.) on credit. However, in any case, the entrepreneur will have to return to the lender the amount of money received on credit or equal to the cost of the factors of production taken on credit plus interest for using the loan.
Cash subsidies to an entrepreneur, especially a start-up, as a rule, can and should be provided on preferential terms by government agencies. However, in practice, small businesses are not allocated even the funds allocated in the country’s budget for these purposes.
Indirect participants in industrial entrepreneurial activity are federal and municipal financial authorities and the tax inspectorate. They perform a purely fiscal function, withdrawing taxes, obligatory payments, deductions, fines, duties, etc. from the entrepreneur to the federal and local budgets.
The result of the entrepreneur’s production activity is the sale of products (works, services) to the consumer and the proceeds of a certain amount of money. The difference between cash revenue and production costs is the enterprise's profit.
There are gross (balance sheet) and residual (net) profit of the entrepreneur. Gross profit represents the amount of money that remains with the entrepreneur after he has paid all the costs of production and sales of products, but before paying taxes. Residual (net) profit determined by subtracting taxes, deductions, various payments, fines, duties, etc. from gross profit. and represents the final result of the activity of the entrepreneur-manufacturer.
The overall financial assessment of the activities of such an entrepreneur is determined by the indicator profitability , calculated as the ratio of residual profit to total production costs. So, if the total amount of total production costs was 4.0 million, and net profit- 0.6 million rubles, then the profitability will be equal to 15% (0.6: 4.0 = 100). For Western entrepreneurs, such profitability would be considered high, for domestic ones - minimal. Obviously, in this case the scale of production also matters.
A business plan will give the most complete idea of the effectiveness of a specific production entrepreneurial project.
Entrepreneurial activity means the process of independent financial and economic activity aimed at making a profit from the production and/or sale of goods or the provision of any services.
Currently, there are 7 main characteristics of entrepreneurial activity:
1. Systematicity. Implementation period professional activity, as correctly limited to a certain time frame and characterized by the following criteria:
7. Professionalism. Any entrepreneurial activity presupposes that the company’s employees have certain skills necessary for the quality organization and implementation of the work process. Today, unfortunately, such a requirement applies to only some enterprises and firms. As a rule, only those private organizations whose activities require obtaining special permits are interested in the presence of education and other important signs of professionalism. However, it is possible that in the near future, a similar requirement will be put forward to other enterprises and corporations.
Despite great amount forms of entrepreneurial activity that currently exist, most experts prefer to distinguish two main types of entrepreneurship: industrial and commercial.
Entrepreneurship in different economic areas differs in form and especially in the content of operations and methods of their implementation. But the nature of the business leaves a significant imprint on the type of goods and services that the entrepreneur produces or provides. An entrepreneur can produce goods and services himself by purchasing only factors of production. He can also purchase finished goods and resell it to the consumer. Finally, an entrepreneur can only connect producers and consumers, sellers and buyers. Selected species businesses also differ in the forms of ownership of the business factors used.
Depending on the content and direction of entrepreneurial activity, the object of investment of capital and the receipt of specific results, the connection of entrepreneurial activity with the main stages of recovery production process, distinguish the following types entrepreneurship:
- production,
- commercial-trading,
- financial and credit,
- intermediary,
- insurance
1. Manufacturing entrepreneurship
Entrepreneurship is called production if the entrepreneur himself, directly, using tools and objects of labor as factors, produces products, goods, services, work, information, spiritual values for subsequent sale (sale) to consumers, buyers, trade organizations.
Manufacturing entrepreneurship includes the production of industrial and agricultural products for industrial and technical purposes, consumer goods, construction work, transportation of goods and passengers, communication services, utilities and household services, production of information, knowledge, publication of books, magazines, newspapers. In the broad sense of the word, production entrepreneurship is the creation of any useful product needed by consumers, which has the ability to be sold or exchanged for other goods.
In Russia, manufacturing entrepreneurship is the most risky occupation, since the structural restructuring of the economy did not provide necessary conditions for the development of manufacturing entrepreneurship. The existing risk of non-sale of manufactured products, chronic non-payments, numerous taxes, fees and duties are a brake on the development of manufacturing entrepreneurship. Also development manufacturing business in Russia is constrained by the inaccessibility of some resources, the lack of internal incentives and the weak level of qualifications of novice businessmen, fear of difficulties, and the presence of more accessible and easy sources of income.
Meanwhile, it is industrial entrepreneurship that we all need: ultimately, it can ensure stable success for a beginning businessman. So, those who gravitate toward a promising, sustainable business should turn their attention to manufacturing entrepreneurship.
2. Commercial (trade) entrepreneurship.
The manufacturing business is closely related to the circulation business. After all, produced goods must be sold or exchanged for other goods. Commercial and trade entrepreneurship is developing at a high pace as the main second type of Russian entrepreneurship.
The principle of organizing a trade business is somewhat different from a manufacturing business, since the entrepreneur acts directly as a merchant, a trader, selling finished goods purchased from other persons to the consumer (buyer). A feature of trade entrepreneurship is direct economic ties with wholesale and retail consumers of goods, works, services.
Commercial entrepreneurship covers all activities that directly relate to the exchange of goods for money, money for goods or goods for goods. Although the basis of commercial entrepreneurship is commodity-money transactions of purchase and sale, it involves almost the same factors and resources as in industrial entrepreneurship, but on a smaller scale.
Commercial entrepreneurship is attracted by the visible opportunity to sell a product at a price much higher than it was purchased, and thereby put a significant profit in your pocket. This possibility really exists, but in practice it is much more difficult to implement than it seems. Given the difference in domestic and world prices, as well as prices in different regions In Russia, given the sluggishness of the dying state trade, successful businessmen, “shuttle traders” manage to “buy low and sell high.” This apparent ease does not hide the visible work of businessmen and entrepreneurs spent to achieve success.
The sphere of official commercial entrepreneurship includes shops, markets, exchanges, exhibitions and sales, auctions, trading houses, trading bases, and other trading establishments. In connection with the privatization of state trading enterprises, the material base of personal and commercial entrepreneurship has increased significantly. Extensive opportunities have arisen to start your own commercial business by buying or building a store, or organizing your own retail outlet.
To successfully engage in commercial entrepreneurship, it is necessary to thoroughly know the unsatisfied demand of consumers and respond quickly by offering appropriate goods or their analogues. Trade entrepreneurship is more mobile and changeable, since it is directly related to specific consumers. It is believed that for the development of trade entrepreneurship there must be at least two main conditions: a relatively stable demand for the goods sold (therefore, good knowledge of the market is necessary) and a lower purchase price of goods from manufacturers, which allows traders to recoup trade costs and make the necessary profit. Trade entrepreneurship is associated with relatively high level risk, especially when organizing trade industrial goods durable.
3. Financial and credit entrepreneurship.
Financial entrepreneurship is a special form of commercial entrepreneurship, in which currency values, national money ( Russian ruble) and securities (shares, bonds, etc.) sold by an entrepreneur to a buyer or provided to him on credit. This means not only and not so much the sale and purchase of foreign currency for rubles, although this is also a financial transaction, but an unforeseen range of operations, covering the whole variety of sales and exchange of money, other types of money, securities for other money, foreign currency, securities.
The essence of a financial entrepreneurial transaction is that an entrepreneur acquires the main factor of entrepreneurship in the form of various funds (money, foreign currency, securities) for a certain amount of money from the owner of the funds. The purchased funds are then sold to buyers for a fee that exceeds the amount of money originally spent to purchase the funds, resulting in business profit.
In the case of credit entrepreneurship, the entrepreneur attracts cash deposits by paying deposit holders a reward in the form of deposit interest along with the subsequent return of the deposit. The raised money is then lent to loan buyers at a loan interest rate, along with the subsequent return of the deposit. The raised money is then lent out to loan buyers at a regular interest rate that exceeds the deposit interest rate. The difference between deposit and loan interest serves as a source of profit for creditor entrepreneurs.
Financial and credit entrepreneurship is one of the most complex; it has deep historical roots in usury, known since Ancient Greece.
To organize financial and credit entrepreneurship, a specialized system of organizations is formed: commercial banks, financial and credit companies (firms0, currency exchanges and other specialized organizations. The entrepreneurial activities of banks and other financial and credit organizations are regulated by both general legislative acts and special laws and regulations The Central Bank of Russia and the Ministry of Finance of the Russian Federation. In accordance with legislative acts, entrepreneurial activity in the securities market must be carried out professional participants. The state, represented by the Ministry of Finance of the Russian Federation, also acts as an entrepreneur in the securities market; the constituent entities of the Russian Federation and municipalities, issuing relevant securities into circulation.
4. Intermediary business
Intermediation is called entrepreneurship in which the entrepreneur himself does not produce or sell goods, but acts as an intermediary, connecting nests in the process of commodity exchange, in commodity-money transactions.
An intermediary is a person (legal or natural) who represents the interests of the manufacturer or consumer, but is not such themselves. Intermediaries can conduct business independently or act on the market on behalf (on behalf of) producers or consumers. As intermediaries business organizations The market includes wholesale supply and sales organizations, brokers, dealers, distributors, exchanges, and to some extent commercial banks and other credit organizations. Intermediary business activity is largely risky, therefore the intermediary entrepreneur sets the price level in the contract, taking into account the degree of risk when carrying out intermediary operations. The main task and subject of the intermediary’s entrepreneurial activity is to connect the two parties interested in a mutual transaction. So there is reason to argue that mediation consists of providing services to each of these parties. For the provision of such services, the entrepreneur receives income and profit.
5. Insurance business.
Insurance business is that the entrepreneur, in accordance with the law and the contract, guarantees the insured compensation for damage as a result of an unforeseen disaster, loss of property, valuables, health, life and other types of losses for a certain fee when concluding an insurance contract. Insurance is that the entrepreneur receives insurance premium, paying insurance only under certain circumstances. Since the likelihood of such circumstances occurring is low, the remaining portion of the contributions forms business income.
Insurance business is one of the most risky species activities. At the same time, the organization of insurance business activity gives a certain guarantee to policyholders (organizations, enterprises, individuals) to receive a certain compensation when a risk occurs in their activities, which is one of the conditions for the development of civilized entrepreneurship in the country.
The entire variety of entrepreneurial activities can be classified according to various signs: type of activity, forms of ownership, number of owners, organizational-legal and organizational-economic forms, degree of use of hired labor, etc. Let's consider some of them.
Since any business is, to one degree or another, connected with the main phases of the reproduction cycle - the production of products and services, the exchange and distribution of goods, and their consumption, the following types of entrepreneurial activity can be distinguished: production, commercial, financial entrepreneurship. All these types can function separately or together.
In addition, in recent decades, in all economically developed countries of the world, including Russia, such independent species entrepreneurship, as advisory (consulting).
At the same time, each of these types of entrepreneurship is divided into a number of subtypes. They are presented in Fig. 1.1.
Rice. 1.1.
What type of entrepreneurial activity by type of activity has received the highest rating in Russia? greater development and why?
The basis of industrial entrepreneurship is production - material and intellectual. This is one of the most complex types of activities aimed at creating things, values, benefits, any useful product that consumers need and can be sold at a certain price or exchanged for another product.
Manufacturing entrepreneurship is the production of goods, construction work, transportation of goods and passengers, communication services, utilities and household services, production of information, training, production of printed materials, etc. Choosing the type of business involves studying the business environment from the point of view of how much the products produced ( product, service) are necessary for a potential consumer, i.e. marketing is designed to adapt production to market requirements.
Thus, the main area of activity of this type of entrepreneurship is the production of tangible and intangible goods, carried out at the expense of one’s own or borrowed funds under one’s own property responsibility and at one’s own risk. At the end of the twentieth century. in Russia during the transition to market economy It is this area of activity that has undergone the greatest negative changes: economic ties have disintegrated, material and technical support has been disrupted, product sales have fallen sharply, and the financial situation of enterprises has worsened.
The scheme of production entrepreneurship is as follows: after studying and analyzing the market, the entrepreneur acquires or rents fixed assets - premises and equipment; purchases working capital - materials and components; attracts labor, organizes management. As a result, the manufactured product is sold by the entrepreneur either directly to the consumer or to a reseller. The entrepreneur’s task is to ensure that production pays off and income exceeds expenses, including taxes.
Thus, the entrepreneur is interested in ensuring that all the products he produces are sold. Both products (goods, services) that have been shipped (distributed) and actually paid for, as well as products for which payment for which has not yet been received in the bank account of the enterprise or for which bills of exchange have been received can be considered sold. In order to reduce the risk of bankruptcy, an entrepreneur must enter into transactions for the supply of a manufactured product before the start of its production on a contractual basis. In the context of the appearance of newer goods on the market, it is important that they do not lie idle, and that financial resources are invested again in the business, that is, the entrepreneur must strive to accelerate the turnover of money.
What, in your opinion, is holding back the development of manufacturing entrepreneurship in Russia?
Why can shipped (released) products, payment for which has not yet been received in the company’s bank account, be considered sold?
The field of activity of commercial entrepreneurship is commodity exchanges and trading enterprises. This type of entrepreneurship includes operations and transactions for the purchase and sale of goods and services. General scheme commercial entrepreneurship is similar to the scheme of production and entrepreneurial activity, but unlike it, here, instead of acquiring material resources for production, finished goods are purchased, which are subsequently sold to consumers.
A commodity exchange is a type of wholesale commodity market without preliminary inspection by the buyer of samples and pre-established minimum quantities of goods. On a commodity exchange, commercial intermediaries and their employees voluntarily unite to conduct trading operations according to jointly developed and observed rules.
During the transition to a market economy, commercial entrepreneurship was mainly carried out by individual entrepreneurs. Since you can quickly get a return from commercial entrepreneurship, this area of activity first began to develop rapidly after the fall of the socialist system. Many energetic and enterprising people directed their efforts there. Often among them were those who were previously classified as representatives of the so-called shadow economy. Currently, along with small and medium-sized businesses, large trading enterprises are developing. There are many wholesale and retail retail chains, whose enterprises are located in different cities of Russia.
What retail chains do you know? List the names.
Commercial activity provides the entrepreneur with a fairly high profit (according to Forbes magazine, the owners of the Eldorado, Kopeika, Magnit and some others retail chains were among the ten richest people in Russia in 2006). If production activity provides, as a rule, 10-12% of the profitability of an enterprise or firm, then commercial - 20-30%, and often higher.
The scope of activity of financial (or financial-credit) entrepreneurship is circulation, exchange of values. Financial activities penetrates both industrial and commercial, but it can also be independent: banking, insurance, etc. A financial transaction does not imply such a high rate of return as previous types of business activity: this value can be 5-10%.
Participants in the money, currency and securities markets are commercial banks, stock exchanges, financial institutions, enterprises, organizations and individuals - entrepreneurs. Financial market- this is the market for short-, medium- and long-term loans, investments, deposits, securities, it includes the capital market (medium and long-term loans, securities) and the money market (short-term loans, securities, etc.).
Financial entrepreneurship can also be considered a type of commercial entrepreneurship, the object of purchase and sale of which is money, currency, and securities (stocks, bonds, bills, vouchers). There is a sale of some money for others in direct or indirect form. The technology of a financial entrepreneurial transaction is similar to the technology of a commercial transaction, with the only difference being that the goods are financial assets. An entrepreneur in this type of business begins with an analysis of monetary and financial markets and marketing activities.
The following forms of financial entrepreneurship are distinguished:
- issue of securities (the entrepreneur sells his own shares, bonds, credit notes, commercial securities under certain conditions and obligations as a “financial product”);
- the purchase of securities by the entrepreneur himself for a certain amount, and then selling them to another buyer for a larger amount;
- active transaction - placement of one’s assets (fixed and unlimited; transfer of securities to one or another company for storage, money to a current account);
- “commodity versus futures” transaction - a futures contract is transferred by the buyer to the seller simultaneously with the transfer of title to the actual product from the seller to the buyer;
- arbitrage transaction - simultaneous purchase and sale of the same or similar securities to make a profit due to the difference in rates in exchange centers with a relatively low degree of risk;
- banknote transaction - sale of cash for non-cash transactions for a certain commission fee;
- other types of transactions: exchange, exchange closing, exchange cash, exchange contact, exchange with credit.
Financial entrepreneurship presupposes the availability of reliable information and the provision of computer and organizational equipment. When conducting financial and credit transactions, the entrepreneur lends his money, currency, and securities to the consumer, and after a certain time receives a larger amount by a certain percentage.
In recent years, such a promising form as advisory (consulting) entrepreneurship has been increasingly developed in Russia. It has many directions (see Fig. 1.1). Comparing the level of its development in our country and in other developed countries, we can conclude that consulting will develop rapidly in the coming years.
According to the definition of the European Federation of Associations of Economic and Management Consultants, consulting consists of providing independent councils and management assistance, including identifying and assessing problems and/or opportunities, recommending appropriate actions and assisting in their implementation.
Small and medium-sized enterprises, due to their disabilities rarely seek the services of consultants. Basically, they need advice from auditors, marketers and advice in the field of tax savings. Issues of enterprise development strategy, optimization of its organizational management structure Large industrial and commercial enterprises are more interested.
What, in your opinion, is holding back the development of consulting entrepreneurship in Russia?
Types of business by number of owners
Depending on the number of owners, entrepreneurial activity can be individual or collective. In a sole proprietorship, property belongs to one individual. Collective property belongs simultaneously to several subjects with the definition of the shares of each of them (common ownership) or without the definition of shares (joint ownership). Possession, use and disposal of collectively owned property is carried out by agreement of all owners.
What are the advantages and disadvantages of individual and collective ownership?
Organizational-legal and organizational-economic forms of entrepreneurship
Forms of entrepreneurship, in turn, can be divided into organizational-legal and organizational-economic. Among the organizational and legal forms are partnerships, societies, cooperatives, the features of which were discussed above.
What organizational and legal forms of entrepreneurial activity are most widespread in Russia and why?
The main organizational and economic forms of entrepreneurship include: concerns, associations, consortia, syndicates, cartels, financial and industrial groups.
The concern is a diversified Joint-Stock Company, which controls enterprises through a participation system. The concern acquires a controlling stake in various companies, often located in other countries. Such companies are subsidiaries of the concern.
Association is a form of voluntary association of economically independent enterprises and organizations that can simultaneously be part of other entities. The association, as a rule, includes enterprises and organizations of the same specialization, located in a certain territory. The main goal of creating associations is to jointly solve scientific, technical, industrial, economic, social and other problems.
A consortium is an association of entrepreneurs for the purpose of jointly carrying out a financial transaction (for example, making significant investments in a large industrial project). Such an association has the opportunity to invest in a large-scale project, while the risk arising from large investments is significantly reduced, since responsibility is distributed among many participants. In the context of the scientific and technological revolution, consortia emerge in new industries or at the intersection various industries and provide for joint scientific research.
Syndicate is the association of sales of products by entrepreneurs of the same industry in order to eliminate unnecessary competition between them.
A cartel is an agreement between enterprises of the same industry on prices for products, services, division of sales markets, shares in total production, etc.
Financial-industrial groups (FIGs) serve as a new organizational and economic form of entrepreneurship. They represent a combination of industrial, banking, insurance and trading capital, as well as the intellectual potential of enterprises and organizations.
What organizational and economic forms of entrepreneurial activity are most widespread in Russia and why?
Do entrepreneurs form a consortium voluntarily or forcefully? Why?
For what purpose are associations formed?
Why is the formation and activity of consortia, syndicates and cartels strictly regulated by antimonopoly legislation?
Depending on the content and direction of entrepreneurial activity, the object of investment of capital and the receipt of specific results, the following types of entrepreneurship are distinguished (Table 16).
Table 16
Types of business activities
Let's consider several main types of entrepreneurial activity: production, commercial, financial and credit, intermediary, insurance.
Manufacturing Entrepreneurship . Entrepreneurship is called production, if the entrepreneur himself directly, using tools and objects of labor as labor factors, produces products, goods, services, work, information, spiritual values for subsequent sale (sale) to consumers, buyers, and trade organizations. Manufacturing entrepreneurship includes the production of industrial and agricultural products for industrial and technical purposes, consumer goods, construction work, transportation of goods and passengers, communication services, utilities and household services, production of information, knowledge, publication of books, magazines, newspapers.
Since production entrepreneurship is carried out in the sphere material production, it is classified depending on the industry economic activity into industrial, construction, agricultural, etc. Accordingly, entrepreneurship is divided into sub-sectors, for example, in industry, entrepreneurial activities are organized in mechanical engineering, machine tool building, etc.
Manufacturing entrepreneurship is not absolutely independent (independent of other types of entrepreneurial activity), but economic growth and the level of economic activity depend on its development. social development society.
The internal production process (without sales) is shown schematically in Fig. 21.
Rice. 21. Schematic diagram of the production process
(inner loop)
For the normal functioning of the production process itself it is necessary:
First - fixed production assets (tools of labor) (O.P.F) in the form of work premises, machines, equipment, tools, instruments. The entrepreneur either owns the OPF himself or rents it from others.
Second– labor resources(work force) (T.R). The entrepreneur himself can act as a TP, or they can be hired workers, whose labor is subject to payment, depending on the number of workers hired, the amount wages and the working hours during which the goods were produced.
Third– revolving funds(objects of labor) (OF), that is, what the product is made from (raw materials, basic and auxiliary materials, fuel and energy resources, spare parts for repairs).
Fourth- production technology (TP)- ability, skills, experience in the release (production) of goods.
The meaning of industrial entrepreneurship is the creation of any useful product (goods) necessary for consumers, while the produced goods must be in demand by the consumer, that is, be sold or exchanged for other goods (Fig. 22.).
Rice. 22. Schematic diagram of the production
entrepreneurship
Manufacturing entrepreneurship ends with the release of goods ( T), which is sold by an entrepreneur to a consumer. As a result, the entrepreneur receives his business income (revenue) from the sale of goods, depending on the volume of production and sales, the price of the goods at which it is sold.
In the process of production entrepreneurship, other expenses arise, in particular, for the acquisition of information, storage and transportation of materials and finished products, for repairs of equipment and premises, for communication services, etc.
It should be noted that from a national economic point of view, production entrepreneurship is the most important, since economic growth and the level of social development depend on the development of production entrepreneurship Russian society and this is due to the production orientation of the Russian economy.
Manufacturing entrepreneurship is one of the most risky types of business, as it requires large financial investments, specialized knowledge, availability of fixed assets. One of the aspects of risk is the risk of not selling manufactured products. The development of manufacturing business in Russia is hampered by the inaccessibility of some resources, the lack of internal incentives and the weak level of qualifications of novice businessmen, fear of difficulties, and the presence of more accessible and easy sources of income. In recent years, one of the main problems in the formation and development of manufacturing entrepreneurship has become the shortage qualified personnel and primarily blue-collar workers and mid-level technical specialists.
Commercial (trade) entrepreneurship. The production business is closely related to the business in the sphere of circulation (trade). After all, the goods produced must be sold.
In the sphere of circulation it operates commercial and trade entrepreneurship - the main second type of Russian entrepreneurship, which is developing at a very high pace. The principle of organizing a trade business differs from a manufacturing business in that the entrepreneur does not produce goods, but only sells finished goods to the consumer (buyer), purchased from the manufacturer.
Commercial activity is mobile, quickly adapts to needs, as it is directly related to specific consumers. It is believed that for the development of this type of entrepreneurship, at least two main conditions are necessary: a relatively stable demand for the goods sold (therefore, good knowledge of the market is required) and a lower purchase price of goods from manufacturers, which allows traders to recoup trading costs and make the necessary profit. Trade entrepreneurship is associated with a relatively high level of risk, especially when organizing trade in durable industrial goods.
In commercial trading activities, the product and its sale are the determining factor of the business for the entrepreneur. The economic interest of such a business lies in the fact that the entrepreneur purchases goods at lower prices and sells them at higher prices. The difference in price, along with sales volumes and low costs (expenses), determine the amount of net business income. A diagram of the internal commercial process, without the sale itself, is presented in Fig. 23.
Rice. 23. Schematic diagram of the trading process
(inner loop)
When making sales, an entrepreneur must take into account:
· labor costs for participants in the operation, external or hired employees;
· business costs associated with transportation and storage of goods;
· expenses for rent and maintenance of retail premises and equipment. If they belong to an entrepreneur, then the costs include depreciation;
· taxes and other payments.
If in production entrepreneurship the purpose of entrepreneurial activity is the production of goods and its subsequent sale, then in commercial entrepreneurship the purpose of activity is the acquisition of goods, its safety and subsequent sale.
To carry out commercial entrepreneurship you must:
First– fixed production assets (O.P.F)(warehouses, retail premises, commercial equipment, transport for transporting goods).
Second - labor resources (T.R.).
Third - goods purchased from a manufacturer or intermediary.
Fourth - delivery and storage technology.
The whole cycle commercial activities consists of several stages:
Stage 1. Search and purchase of goods.
2-stage. Storage. Ensuring the safety of goods.
3-stage. Transportation, delivery of goods to retail outlets.
4-stage. Sale (realization) of goods, documenting trade transactions.
5-stage. Sales and after-sales service of goods (home delivery, installation and elimination of defects).
The objects of commercial entrepreneurship are; shops, markets, exchanges, exhibitions and sales, auctions, trading houses, trading bases.
A schematic diagram of commercial entrepreneurship is shown in Fig. 24.
Rice. 24. Conceptual diagram of commercial entrepreneurship
To successfully engage in this type of business, it is necessary to know consumer demand and quickly respond to his needs by offering appropriate products or their analogues. Trade entrepreneurship is more mobile and changeable, since it is directly related to specific consumers.
For effective trading entrepreneurship there must be several basic conditions:
· relatively stable demand for the goods sold (therefore, good knowledge of the market is necessary),
· competitive price of the product,
· a sales network accessible to consumers.
Intermediary business activity. The composition of commercial and trade entrepreneurship, depending on the content of its activities, includes intermediary entrepreneurial activity.
Intermediation is a business in which the entrepreneur himself does not produce or sell goods, but acts as an intermediary, a link in the process of commodity exchange.
An intermediary is a person (legal or natural) who represents the interests of a manufacturer or consumer, but who is not one themselves. Intermediaries can conduct business independently or act on the market on behalf (on behalf of) producers or consumers. Wholesale supply and sales organizations, brokers, dealers, distributors, exchanges, and to some extent commercial banks and other credit organizations act as intermediary business organizations in the market. Intermediary business activity is, to a large extent, very risky, therefore the intermediary entrepreneur establishes the price level in the contract, taking into account the degree of risk when carrying out intermediary operations. The main task and subject of the intermediary’s entrepreneurial activity is to connect the two parties interested in a mutual transaction. So there is reason to argue that mediation consists of providing services to each of these parties. For the provision of such services, the entrepreneur receives income and profit.
Entrepreneurial activity in the field of intermediation makes it possible to combine the economic interests of the producer and consumer in the shortest possible time. Mediation, from the point of view of the manufacturer, increases the efficiency of the latter, since it makes it possible to concentrate its activity only on the production itself, transferring to the intermediary the functions of promoting the product to the consumer. In addition, the inclusion of an intermediary in the relationship between producer and consumer significantly reduces the capital turnover period, and therefore increases the profitability of production.
Financial and credit entrepreneurship. The next type of entrepreneurship is financial and credit.
Financial entrepreneurship is a special form of commercial entrepreneurship, in which the subject of purchase and sale are currency values, national money (Russian ruble) and securities (stocks, bonds, etc.), sold by the entrepreneur to the buyer or provided to him on credit.
This refers to an unforeseen range of operations, covering the entire variety of sales and exchanges of money, other types of funds, securities for other money, foreign currency, and securities. The essence of a financial entrepreneurial transaction is that an entrepreneur acquires the main factor of entrepreneurship in the form of various funds (money, foreign currency, securities) for a sum of money from the owner of the funds. The acquired funds are then sold to buyers for a fee that exceeds the resulting business profit.
In the case of credit entrepreneurship, the entrepreneur attracts cash deposits, paying deposit holders a reward in the form of deposit interest along with the subsequent return of the deposit. The raised money is then lent to loan buyers at a credit interest rate, along with the subsequent return of the deposit. The raised money is then lent out to loan buyers at a regular interest rate that exceeds the deposit interest rate. The difference between deposit and loan interest serves as a source of profit for creditor entrepreneurs.
Financial and credit entrepreneurship is one of the most complex; it has deep historical roots in usury, known since the times of Ancient Greece. In Russia, non-state financial and credit entrepreneurship is in its infancy; during the Soviet period it was practically prohibited and severely punished.
To organize financial and credit entrepreneurship, a specialized system of organizations is formed: commercial banks, financial and credit companies (firms), currency exchanges and other specialized organizations. The business activities of banks and other financial and credit organizations are regulated both by general legislative acts and by special laws and regulations of the Central Bank of Russia and the Ministry of Finance of the Russian Federation. In accordance with legislative acts, entrepreneurial activities in the securities market must be carried out by professional participants. The state, represented by the Ministry of Finance of the Russian Federation, also acts as an entrepreneur in the securities market; the constituent entities of the Russian Federation and municipalities act in this capacity, issuing relevant securities into circulation.
In Federal Law of June 23, 1999 N 117-FZ
"On the protection of competition in the financial services market"
(as amended on December 30, 2001) formulates such concepts as financial services, financial services market, financial institution. Under financial service refers to activities related to the attraction and use of funds from legal and individuals, including the implementation of banking operations and transactions, the provision of insurance services and services in the securities market, the conclusion of financial lease agreements (leasing) and agreements on trust management in cash or securities, as well as other financial services.
Insurance activities. The type of financial and credit entrepreneurship is specialized insurance activity.
Insurance business is that the entrepreneur, in accordance with the law and the contract, guarantees the insured compensation for damage as a result of an unforeseen disaster of loss of property, valuables, health, life and other types of losses for a certain fee when concluding an insurance contract.
The insurance process itself is that the entrepreneur receives an insurance premium by paying insurance only under certain circumstances. Since the likelihood of such circumstances occurring is low, the remaining portion of the contributions forms business income.
Insurance business is one of the most risky activities. At the same time, the organization of insurance business activity gives a certain guarantee to policyholders (organizations, enterprises, individuals) to receive a certain compensation when a risk occurs in their activities, which is one of the conditions for the development of civilized entrepreneurship in the country.
Insurance activities are carried out on the basis of property or personal insurance contracts concluded by a citizen or legal entity(policyholder) with the insurance organization (insurer).
Under a property insurance contract, the insurer undertakes, for a fee stipulated by the contract (insurance premium), upon the occurrence of an event (insured event) stipulated in the contract, to compensate the insured or another person in whose favor the contract was concluded (the beneficiary) for losses caused as a result of this event in the insured property or losses in connection with other property interests of the policyholder (pay insurance compensation) within the limits of the amount specified in the contract (sum insured).