The essence of the content of the concept of business entrepreneurship. Business and Entrepreneurship

Talks about the desire to work in order to receive compensation, reward for work. Business is an English concept that reflects the business activity and constant employment of a person. The essence of a business is to achieve the purpose for which it was organized.

Your own business is based on an idea supported by a material basis or a unique information product. By offering his activities to consumers, a person receives. But not only material reward is a desirable goal. This can include the need for self-realization, recognition of talents and abilities, the desire to be respected, the desire for independence and stability. An example of a business would be manufacturing goods or working on creative works. Different approaches, different types of activities, but the essence is the same - earnings.

Business is like a living model of the economic development of society. It corresponds to the level and needs of people formed according to a certain characteristic. Own business for city residents is significantly different from the commerce of islanders, but both are directed actions. Various types of activities, their constant transformation, change, and the emergence of new types indicate that it is impossible to stop the process. Even in prisons people are making an income. Young people strive for financial independence, the achievement of which consumes entire lives.

Business is not always profitable. This is the fruit of human thinking. And a person who desires to get rich can violate legal and moral laws.

Communication with the state

The degree of development of productive business depends on the economy of the state. An economically strong state provides maximum conditions for the development of your own business. By doing this, the country strengthens its position and provides confidence in the future for its enterprising citizens. Investors are attracted to the country by its stable economy.

The cooperation is completely mutually beneficial. The more profitable the business, the more income the country has. The richer a country is, the more it can give to its citizens.
Support is expressed in government programs to help entrepreneurs, preferential taxation, lending and insurance. is more closely connected with the economy of the country, because, as a rule, it is based on the benefits provided by this country. The medium and small segment is in greater need of government support, since the organization, promotion, and implementation of the business lies with the owner. His efforts to overcome difficulties may not be enough. This requires the help and loyalty of government services.
The more individual incomes the country supports, the more small streams of profit will flow into the powerful river of a healthy economy.

Connecting business and society

Business opens up opportunities, builds confidence, but also brings responsibility. Regardless of the number of employees, they need guaranteed income and social security. By the concept of social security, a person understands that in the event of illness, disability, or reaching retirement age, he has the right to financial assistance. Cooperation between entrepreneurs and government social protection services is important. An employee has the right to proper rest, periodic rehabilitation, and compensation for overtime and hazardous work. Social guarantees make it possible to retain a team of professionals who are able to devote time and energy to quality work.

Any production ensures employment of people and their material security. An individual business rarely involves one person. The collaboration of several people increases profits.

Economists distinguish the essence of business in three directions:

• source of income for owners and shareholders;

• production of products needed by society;

• providing employment to various segments of the population.

The versatility of your own business speaks of its undoubted importance for society.

Business concepts

Business is the multidirectional, organized work of people who produce a product needed by society and receive income for it.

A businessman is a person who devotes himself to organizing and implementing a business, producing goods, offering services, in the conditions of existing market relations.

A business can be started by one person or an organization. The difference is in scale and material support. Organizations very often act as the founders of a business, as they have their own base for development, legal support and established business connections. The commerce of an organization differs from the business of a private individual in many respects, but the goal remains the same for everyone - making a profit.

The term “entrepreneurship” began to be widely used in Russia in the late 80s and early 90s of the twentieth century, in connection with the ongoing transformations in the country. The administrative-command system of economic management gave way to a market one, and the first “entrepreneurs” appeared who wanted to get the maximum benefit from their undertaking.
Entrepreneurship is the initiative activity of people, involving the production of goods and the provision of services, aimed at making a profit and carried out under their full responsibility within the framework of current legislation and ethical standards of modern society. Main features of entrepreneurship:
1) independence from the state;
2) independence of management;
3) the goal is to make a profit;
4) personal responsibility for conducting the business.
From a philosophical point of view, entrepreneurship can be considered as a creative attitude towards the current reality, as a means of realizing the needs of the individual. On the other hand, entrepreneurship is the art of business activity, the ability to create new combinations of production factors.
Economic efficiency from business activities is achieved through:
1. Release of goods (provision of services) that are in demand;
2. Prompt response to changes in demand;
3. Release of cheaper and higher quality goods than those of competitors;
4. Minimizing overhead costs;
5. Personal interest in the results of work;
Entrepreneurship is directly related to the introduction of new technologies that allow the entrepreneur to reduce production costs and satisfy the demand of buyers of goods (services). An entrepreneur is a free, socially active individual, which means, in general, the development of entrepreneurship leads to the democratization of society. Entrepreneurship also helps to eliminate dependency, lack of initiative, and social apathy of society and provides a real basis for the fact that prosperity can be achieved by avoiding illegal actions.
Entrepreneurship is based on small and medium-sized businesses.
Business is an entrepreneurial activity, business or occupation that is a source of profit (profit).
It is necessary to separate the concepts of “entrepreneurship” and “business”. Business is a more standardized process, with established functioning and management mechanisms, while entrepreneurship is, first of all, constant intellectual activity, the search for new ideas and approaches to organizing business processes.
In general, entrepreneurial activity leads to the organization of a business after a certain period of time. This process is shown in Fig. 1.
The first stage of organizing a new business is making a decision on its organization, which includes choosing the scope of activity, the organizational and legal form of the enterprise, etc.
The next step is to carry out business activities, that is:
— search for innovative approaches to selecting sources of financing and resource base;
— development of conceptually new ideas for doing business or processing of existing formats in accordance with market requirements;
— introduction of new approaches to the organization of business structures.

Fig. 1 Transition of entrepreneurial activity into business.
The next stage is the implementation of theoretical developments in the practical activities of the company. This stage is especially important for tracking the company’s performance, the effectiveness of implemented approaches and ideas, both in terms of quantitative indicators, such as the size of the enterprise’s net profit, its profitability, etc., and from the point of view of a qualitative approach: for evaluation correct organization of the business structure management system. The stage of implementing ideas almost always requires adjustments to business activities, that is, it returns to the search for resources and ideas for modernizing the company’s activities.
An entrepreneurial structure is an independently functioning economic unit, the activities of which are subject to the laws of entrepreneurship and consist in the constant search for the optimal form of compliance with market requirements at a specific moment in market development.
Management plays a key role in the functioning of business structures. Managing business structures is a process of constant search for the “ideal solution”, defining the concept of the company’s activities, and its implementation in practice.

In the modern sense manager- a leader or manager who holds a permanent position and is vested with decision-making authority on specific types of activities of the company. It is assumed that the decisions made by the manager are always justified and developed on the basis of the use of the latest management methods.

The term “manager” is applicable: to the head of the organization as a whole or its divisions; to the organizer of specific types of work within individual divisions; to the leader in relation to subordinates; to an administrator at any management level.

Manager- a subject of management, a representative of a special profession, having special training, occupying a managerial position, in accordance with which he sets goals and develops measures and means of achieving them.

One of the problems of management is increasing the productivity of managers. The main solution is the division of labor of managers. Characteristics of the managed object according to which the division of labor occurs: organizational structure, scale, areas of activity, industry and territorial specifics.

Division of labor– vertical and horizontal. Vertical: three levels of management: highest (3-7% - administration, general strategic management of the organization and its divisions); medium (50-60% - managers responsible for the progress of the production process in departments); grassroots (30-40% - managers who have direct executors subordinate to them). Horizontal – a certain amount of work of the manager in terms of management functions.

Requirements for a manager at any level:

Availability of general knowledge in the field of enterprise management;

Competence in matters of production technology in the industry to which the company belongs;

Possession of not only administration skills, but also entrepreneurship;

Making informed and competent decisions based on agreement with subordinate managers;

Having practical experience and knowledge in the field of analyzing the economic situation in the main markets where he worked/is going to work;

Ability to analyze the activities and actions of competing companies;

The ability to foresee trends in the development of economic conditions.

The most important requirement is the ability to work with people. These include:

Perfect knowledge of your subordinates, their abilities and capabilities to perform the specific work assigned to them

Knowledge of the conditions connecting the enterprise and employees; protecting the interests of both on a fair basis;

Elimination of the incapable in order to maintain the unity and correct functioning of the company.

Every manager must understand that his company operates in market conditions and therefore is entirely dependent on the market. The services of American managers are offered to firms and organizations on a contract basis.

7. The essence and content of the concepts of “entrepreneurship”, “business” and “entrepreneurial structure”.

Entrepreneurship- a special type of economic activity carried out systematically by individuals and legal entities, called entrepreneurs, on their own behalf and at their own risk on an ongoing basis. This activity is aimed at achieving the intended result through the best use of capital and resources by economically separate entities of the market economy, bearing full property responsibility for the results of their activities.

Components of the concept of “entrepreneurship”:

- As a special type of professional activity. It assumes that subjects have a certain way of thinking, a special style and type of economic behavior.

- As an independent activity. Assumes freedom and independence of subjects.

- As a business activity. It involves the organization and management of the economic process, regardless of the type and scope of activity of the company or individual entrepreneurship.

- Implementation by individuals and legal entities. Entrepreneurial activity of individuals – individual (private) activity; legal entities – collective.

- P.d. carried out on an ongoing basis. This is an activity that has a target orientation in the form of an end result, with a focus on further development and expansion.

- P.d. aimed at achieving commercial success.

- P.d. aimed at the best use of capital.

- Entrepreneurship presupposes the presence of economically separate subjects of a market economy, which enter into legal, legal, financial and other relationships with each other. The corporate structure of the market is formed from economically isolated entities: industry, national, world.

- Entrepreneurship presupposes that the subject of entrepreneurial activity bears property responsibility for the results of economic activity.

Business- this is the business activity of economic market entities aimed at solving problems ultimately associated with the implementation of exchange transactions of goods and services on the market using the forms and methods of specific activities that have developed in market practice. Subjects in business are individuals and legal entities. It is important that the subject has capital at its disposal that goes into circulation. Business always involves the eventual completion of commercial transactions for the exchange of goods and services, the result of which may be profit or loss. Business is a broader concept than entrepreneurial activity, because it includes the completion of any single one-time commercial transactions in any field of activity aimed at making a profit. Business covers relations between all participants in a market economy and includes the actions of not only entrepreneurs, but also consumers, employees, and government agencies.

Entrepreneurial structure- the composition of economic entities of the market economy, which make up the corporate structure of industry, trade, transport, the structure of commodity markets - sectoral, national, world. Economic entities of a market economy include only those organizational and economic units whose purpose of activity is to obtain profit as the final result of their activity.

According to the classification of the purpose and direction of activity of subjects of market relations, 4 categories of economic subjects can be distinguished: firms, insurance companies, banks, investment structures.

Firm– any organizational and economic unit carrying out entrepreneurial activities in the field of industry, trade, construction, transport, pursuing commercial goals and enjoying the rights of a legal entity. Each company includes one or more enterprises specializing in specific types of activities and functional management units.

Company– a production and economic unit, which is a set of material and human resources, organized in a certain way to achieve specific goals.

MINES 2009

In the discipline Management

COURSE WORK

topic: Types of management

Developed (signature) A.P. Ivanov

group T-431

Head (signature) V.F. Vodorezova

The entire history of human society, as well as its current state, is in one way or another connected with business. With all the variety of types and directions of human activity - from penetrating the depths of space, into the secrets of plasma reactions and cell structure to creating masterpieces of fine art - the common property of this activity is business. In other words, no matter what business a person endowed with consciousness devotes himself to, voluntarily or unwittingly he is engaged in his own business. To understand why this happens, one must turn to various theoretical interpretations and definitions of business. Conventionally, they can all be combined into three main concepts: positive, critical, pragmatic.

A concept is a system of views on certain phenomena, a way of considering certain phenomena, an understanding of something.

Positive concept. Its essence is that business is understood as a socially useful activity of people, carried out as a personal initiative, the purpose of which is the production of goods and services for other people. This approach is very popular among teachers at American universities. Business is a system of doing business. Business is creating products that people need. Business is work. Business is the central highway in our socio-economic system. Business is a system that we created to satisfy our desires. Business is how we live. Business in this concept is interpreted as the main content of the economy. Therefore, it is a typical feature of people's lives in general. It is aimed at the common good, subordinated to general interests, people work for the benefit of society. Business is a consistent phenomenon. A positive concept emphasizes the positive aspects of business.

Based on this concept, non-scientific theories such as the “Welfare Society” and “Welfare State” arose at different times, which tried to explain economic processes from the position of their supposed conflict-free nature. World renowned economists such as J.M. Clark, J. Galbraith, M. Reder (USA), A. Cole, N. Kaldor (Great Britain), G. Myrdal (Sweden) and many others noted that “Capitalism” has transformed. One of the directions of this transformation was the change in the functions of the capitalist state, whose activities are aimed mainly at ensuring “welfare for all.” Welfare for all, according to these ideas, is achieved through a fair distribution of life's goods among members of society. Therefore, the main element in the content of the theory of the “Welfare State” is considered to be the activity of the state in distributing wealth and establishing equality through reforms in the areas of social insurance, taxation, labor legislation, employment, wages, and prices. The basis for the “transformation” of the attitude towards the people’s well-being is the “awareness” of the state’s responsibility to members of society.

Critical concept. This concept of business is based on the fact that business is the activity of people aimed at generating income or profit. For the sake of income, a businessman is ready to use any behavioral techniques. The pursuit of profit means imposing one's own interests on other people.

In the past, this approach was shared by many people in our country, and it formed the basis of moral standards accepted in society.

For example, it was taken for granted that an honest person should be concerned not with increasing personal income or making a personal career, but exclusively with spiritual enrichment combined with sacrificing himself for the well-being of others and building the future. On the contrary, the desire for personal wealth as a result of increasing business profitability was regarded as antisocial.

Worse, the critical concept of business was the basis for the system of legislative regulation of the economy. Thus, engaging in almost any type of private enterprise was considered a criminal offense.

In our country, business is usually understood as the activity of people in Western economic systems, i.e. in a society where “clean money” supposedly reigns, relations between people are shrouded in commodity-money fetishism, and money is a measure not only of the value of goods, but also of the intelligence, honor and conscience of citizens.

Previously, negative assessments of business and businessmen prevailed in the minds of compatriots. A very popular and often used to characterize the motives and behavior of capitalist businessmen was a quote from Karl Marx’s Capital: “Capital fears the absence of profit or too little profit, just as nature fears emptiness. But once there is sufficient profit available, capital becomes bold. Provide 10 percent, and capital agrees to any use, at 20 percent it becomes animated, at 50 percent it is positively ready to break its head, at 100 percent it violates all human laws, at 300 percent there is no crime that it would not risk, at least on pain of the gallows.”

The unsightliness of the picture reproduced by the founder of scientific communism, which depicts potential criminals capable of trampling all human laws even under pain of the gallows, probably became even more solid after turning to fiction, to some books by T. Dreiser, F. Norris, E. Sinclair, O Balzac, V. Shishkov, O. Henry (who was the first to include in everyday use the famous “business” phrase: “Bolivar can’t stand two”) and even I. Ilf and E. Petrov.

Admirers of The Golden Calf, as a rule, were united in their sympathies for the cheerful swindler Ostap Bender, who, unlike the “competent authorities,” managed to “split” the repulsively cold-blooded and calculating underground millionaire businessman, and were equally united in their antipathies for the imperialist shark Koreiko, whose image combines numerous vices inherent in business people.

As already noted, private enterprise activities aimed at generating income were officially prohibited in Russia. The country's criminal code provided for penalties - from two years' imprisonment to the death penalty - for currency transactions, speculation, commercial intermediation, private entrepreneurship in production, trade, construction and other work, and issuing loans. Only the so-called individual labor activity in personal subsidiary plots and handicrafts without the use of hired labor was allowed. And although products created by personal labor could be sold at the so-called collective farm markets, not a single seller could feel calm, because at any moment he could be accused of violating the criminal code.

In general, summarizing the above, we can highlight the following components of the second (critical) approach to the interpretation of business:

Business is aimed at imposing some people (businessmen) of their selfish interests on other people;

Business is an extremely contradictory phenomenon that can and does give rise to various conflicts in society;

Business is an undesirable component of people’s lives in general, a breeding ground for criminal processes;

Business is a historically transitory phenomenon, which in the future should give way to other, consistent and conflict-free forms of economic development.

The critical concept has absolutized and is absolutizing the contradictions inherent in economics. Their interpretation was and is carried out from the position of the supposed hopelessness of these contradictions. It was on this basis that the theory of scientific communism was formed in the last century, according to which the economy, based on the principles inherent in business, is historically doomed and must, with the development of society and as economic and political conflicts grow, give way to a new, communist system of relations, devoid of the contradictions inherent business. In this communist system there is no private ownership of the means of production, so there is no competition of interests. It is conflict-free or has little conflict; the economy develops on the basis not of the desire to generate income, but of movement towards mutual assistance and prosperity on a collective basis.

Communism as a theory appeared in ancient times. Its principles are the basis of Platonic philosophy. To some extent they were reflected in the life of the first Christian communities. These ideas were used in the 18th century by Morelli and Babeuf, and in the 19th century by Owen, Fourier, and Saint-Simon.

K. Marx and F. Engels briefly formulated its essence in the slogan: “From each according to his abilities, to each according to his needs.”

Communism as an economic and social system has never been realized anywhere. The so-called “socialism” in our country was essentially “state socialism” under the control of the Communist Party nomenklatura.

Diverging in the main thing - in the assessment of the current economic system, the positive and critical positions became similar to each other in constructing a certain ideal model of the economy. Only with the first concept was this model correlated with the current system; with the second, it extended to the subsequent system.

Pragmatic concept. The essence of the pragmatic concept is that business is seen as an inevitable phenomenon in the context of the development of society, necessary both for businessmen themselves, seeking to satisfy their selfish interests, and for other members of society who, thanks to business, are able to satisfy their needs for goods and services.

The pragmatism of this approach is due to the fact that understanding the inconsistency of business as an economic phenomenon is not coupled with putting forward demands for the legal, economic and moral eradication of these contradictions. On the contrary, contradictions arising in connection with the actions of businessmen are viewed as a positive phenomenon in the sense that they stimulate economic development.

In general, the following components of this approach can be distinguished.

Business is a necessary and inevitable component of people's lives in general; it unites, on the one hand, the desire of individual citizens to generate income, on the other, the desire of other people to satisfy their needs for goods, works, and services;

Business is a contradictory phenomenon, but these contradictions, although they can cause various conflicts, generally serve as a source of economic development and are not absolutely destructive;

Business is based on relationships between people, each of whom, entering into these relationships, pursues their own interests, which do not necessarily coincide with the interests of other people; on the one hand, natural competition of interests leads to the imposition of the interests of some people on others, to the infringement of interests and, in the end, indeed, can lead to unpredictable consequences; on the other hand, in the end, competition of interests does not lead to disastrous consequences for human society, but, on the contrary, contributes to the constant growth of the economy and people’s well-being;

Business is a historically enduring phenomenon.

Within this concept, several areas can be distinguished:

a. business is viewed as an attribute of a market economy, its existence in the previous period of history is rejected;

b. business is recognized as an attribute of any type of economy;

c. business is considered as a form of any activity of any person gifted with consciousness;

d. business is considered as a type of human activity, for example, as entrepreneurial activity, i.e. activity related to the creation of one’s own business, one’s own company, either as activity exclusively in the sphere of production and sale of material goods, or as purely speculative activity.

The pragmatic concept, unlike its predecessors, does not idealize either the present or the future. With the consistent extension of this concept to the current economy, it becomes clear that the most correct are those business theorists who, on the one hand, do not identify business with a market economy, but on the other hand, consider it as a form of any activity, of any person gifted with consciousness.

The existence of business in human society is determined, first of all, by the limited material wealth necessary for the reproduction of human life, as well as by the specific features inherent in man by nature. In a generalized form, all concepts are presented in table. 1.1.

Table 1.1. Business concepts

Today, many people start their own business and even successfully develop it, having no idea what business and entrepreneurship are. For example, we recently wrote about opening an LLC () - the procedure is quite simple, but does not in any way explain the essence and differences between these concepts. To understand the whole essence of business, to understand what entrepreneurship is, and also to master hundreds of definitions, it is necessary to study in detail more than a dozen thematic books. This article is aimed at helping businessmen and entrepreneurs who do not have time to study additional literature, but the desire to understand the essence of these concepts still remains unshakable.

In fact, every businessman, whether a beginner or a “shark of business,” understands the essence of the concepts under consideration, but is not able to give a laconic definition. This sometimes happens because a businessman is a busy person who does not have extra time to study definitions. But in reality everything turns out to be much simpler:

Business- absolutely any human activity aimed at obtaining maximum profit through the sale of goods and services that are in demand among consumers, as well as an element of a market economy, without which the state cannot develop effectively.

It should be noted that business and entrepreneurship go hand in hand, but by the latter we mean something slightly different:

Entrepreneurship– independent activity of any person or group of people directly related to risk. As a rule, such activities are carried out solely under one’s own responsibility and are aimed at making a profit from the sale of goods and services in accordance with current legislation.

After reading the definitions, you probably noticed that these concepts are quite difficult to distinguish. Most people believe that business and entrepreneurship are the same thing, but we hasten to dispel this myth by offering you a list of the most significant differences between business and entrepreneurship.

Business and entrepreneurial activity: main differences

Entrepreneurial activity, just like business, can be divided into three degrees in accordance with the “scale” of sales of goods and services. Therefore, a business can be small, medium or large. This division also applies to entrepreneurship. However, let us return to the features of each concept in order to establish a clear boundary of the differences between them.

1. While large business may be one of the foundations of the modern economy, mid-level entrepreneurial activity can serve as an important indicator of its development and condition.

2. Having familiarized yourself with the definition of the concept of “entrepreneurship”, it is not difficult to guess that such activity involves your own business, launched at the expense of its owner. Therefore, entrepreneurship can be called the basis of business.

3. Considering entrepreneurship in the economic aspect, it should be noted that for the most part such activities are innovative. A business can be 100% copied from another project (an ideal example is stores on every corner that sell the same goods at different prices).

4. Business also differs from entrepreneurship in that the latter is more dependent on government policy and the state of the state economy as a whole.

Thus, you can highlight several main conclusions about business and entrepreneurship in order to clearly see and understand their main differences. It is necessary to understand the main differences, at least in order to successfully develop your business, and also to understand what factors can, one way or another, influence its success and development.

Main features of entrepreneurship

Each project, each business has its own distinctive features. Entrepreneurship also has features that characterize a specific type of activity. Absolutely every entrepreneur should familiarize themselves with them, because they, in fact, reflect the entire essence of this type of activity.

Before moving on to the list of features characterizing entrepreneurship, it is necessary to understand that the activities of an entrepreneur at the state level are considered as economic activity. By the way, this is why some states are ready to allocate funds to “economic activists” in the form of start-up capital.
Let's return to the characteristics of entrepreneurship as a type of activity:

Belongs to two sides: economic and legal. As mentioned above, every entrepreneur plays an important role in the development of the state economy - this is the economic side. Legal – development of commodity-market relations;

It is an indispensable engine of scientific and technological progress and is aimed not only at making an entrepreneur profit from the sale of goods or services, but also at all kinds of development: the invention of new products, the development of new sources of energy and raw materials (which in our time is a fairly important aspect), the use of new developments, etc.;

Characterized by such features as self-sufficiency, responsibility, initiative, dynamism and independence;

We will not dwell on this in detail, but will go straight to the question that worries many people: “Who can become an entrepreneur?” In fact, absolutely anyone can become one. Of course, there are restrictions and they are different in each state. We should not forget that an entrepreneur is a person who is able to act. If you have such qualities as creativity, a desire to reach new heights, the ability to isolate yourself from unconstructive criticism, etc., then you can become a successful entrepreneur!

Let's sum it up

From this article, you probably already understood that in fact, businessmen and entrepreneurs do not cause any harm to the state and people, as they are used to saying, if they do everything in accordance with the law. For the state, the undertakings of entrepreneurs are the “next level”, so it is always ready to come to the aid of a “drowning” figure if the business was built honestly and really takes part in the development of the state economy.

If you feel the strength and desire to create, earning good money from it, then business is just for you! Perhaps you will become the author of new approaches to the widespread problem of increasing the efficiency of entrepreneurship, taking your business to a new level, as well as improving the “platform” for other creators. Of course, “entrepreneurship” and “risk” are practically synonymous words, but those who don’t take risks don’t drink champagne! Sometimes even the most crazy idea at first glance becomes the daily bread for a successful business, so trying and implementing your ideas is, of course, very important. By taking risks, you will overcome the fear that makes most people in our country sick, poor and sad.

It doesn’t matter how many attempts you make before becoming a successful businessman, because the process of achieving a goal is sometimes even more interesting and exciting than the result of hard work itself... And, of course, only a business that is aimed at some kind of global change will be successful, carrying a global idea. You can see this for yourself by looking around. You and your business should be driven not only by the desire to “heat up” by making the desired fortune. In business, the idea, the secret meaning and essence of all the activities of an entrepreneur are extremely important, which should be aimed at creation, not destruction.