DICTIONARY

Compiled by Samsonova M.L. Assistant at the Department of Economics and Law

ADVICE ADVICE– a notice from a bank or enterprise in which the recipient is notified of changes in the status of mutual settlements, the transfer of money, the sending of goods, a bill of exchange, the opening of an account or a letter of credit.

COPYRIGHT– part of national civil law and a section of private international law that regulate relations arising in connection with the creation and use of works of science, literature and art.

HOLDINGS– assets (cash, checks, bills, transfers, letters of credit) with which payments are made and the obligations of their owner are repaid, as well as bank funds in foreign currency, securities and gold, which are stored in foreign correspondent banks.

LETTER OF CREDIT– a settlement or monetary document, which represents an order from one credit institution to another to pay for shipping documents at the expense of specially reserved funds or to pay the bearer a sum of money.

LETTER OF CREDIT FORM OF SETTLEMENTS– a form of non-cash payments for goods and services through letters of credit

ASSETS –

1. The left side of the balance sheet, which reflects the economic grouping of the enterprise’s funds according to their composition, placement and use at the beginning and end of the reporting period;

2. Any property owned by an individual or legal entity in the form of fixed assets, inventories, cash, financial investments, the value of various property rights, monetary claims against other individuals and legal entities.

ACTIVE CAPITAL– capital free from obligations and debts.

LABOR SHARES– shares that are distributed only among employees of the relevant enterprise.

SHAREHOLDER– a person who owns shares of a joint stock company, which gives him the right to receive a certain income, and, in the case of ordinary shares, to participate in the management of its affairs.

JOINT-STOCK COMPANY- an organization, an enterprise created by agreement between legal entities and individuals by combining their contributions through the issue and sale of shares for the purpose of carrying out economic activities.

CLOSED JOINT STOCK COMPANY– a joint-stock company whose shares are distributed only among the founders and are not put on public sale.

OPEN JOINT STOCK COMPANY– a joint-stock company whose shares are listed on the stock exchange and can be sold to any buyer who has expressed a desire to become a member of the company.

JOINT STOCK BANK– a bank organized in the form of a joint stock company.

SHAREHOLDERS CERTIFICATE– a certificate that indicates ownership of shares.

CORPORATION– transformation of state and municipal enterprises into joint-stock companies.

PROMOTION– a security that certifies the participation of its owner in the formation of funds of joint-stock companies, commercial banks, cooperatives and other enterprises and organizations and gives him the right to receive part of the profit of the issuing enterprise in the form of a dividend.

DEPRECIATION LIFE– the period of full repayment of the cost of means of production due to depreciation charges.

SINKING FUND– funds intended for simple and expanded reproduction of fixed assets.

DEPRECIATION– gradual transfer of the value of fixed assets to the product or service produced with their help, as well as funds used to replace worn-out fixed assets.

CANCELLATION– cancellation, invalidation, dissolution, termination of any act, agreement, rights or powers.

ARBITRATOR– an official who considers non-judicial property disputes between enterprises, organizations and institutions.

ARBITRATION –

1. A method of resolving controversial issues in which the parties do not turn to judicial authorities, but to individuals - arbitrators or arbitrators appointed by consent of the parties or elected by these parties, the process of resolving such issues, as well as the body that deals with resolving such issues questions;

2. A transaction with the aim of making a profit in the form of the difference between the rates of the same security on different fictitious capital markets.

ARBITRATION DEAL- a transaction that aims to generate income from the resale of goods (contracts, etc.) at more favorable prices.

ARBITRATION COURT– a permanent arbitration court at the Chamber of Commerce and Industry (CCI), resolving disputes arising from contractual and other civil relations in the implementation of foreign trade and other international economic, scientific and technical relations.

RENT– temporary use of land, an enterprise, fixed production assets, and other property based on an agreement on the terms of repayment and for a certain remuneration.

TENANT– an individual or legal entity that rents something.

RENT– payment for the use of leased property.

LESSOR- an individual or legal entity who is the owner of the property being leased.

ARTEL– a voluntary association of persons to form and run a collective economy on the basis of socialized means of production.

VENDOR CODE– type of product, product, as well as its digital or letter designation.

APPROPRIATION– the allocation of funds for any expenses, purposes, as well as the allocated amount of money itself.

RANGE– the composition of homogeneous products by type, type, grade, size, brand, as well as the selection of various types and grades of goods in a trade or products in a manufacturing enterprise.

AUDITOR – a person who checks the state of the financial and economic activities of organizations and enterprises and has a special permit (license) to conduct audits.

AUDIT SERVICE – firms that, having the appropriate powers from government bodies, check the state of the financial and economic activities of organizations and enterprises (i.e., conduct an audit) on the basis of a contract.

BASE PRICE– the price of the product taken as a sample when determining the price of this product.

BALANCE– the ratio of mutually related indicators of any activity; comparative total of income and expenses; a summary statement of the state of the enterprise's income and expenses as of a certain date.

BALANCE OF INCOME AND EXPENSES – a financial and economic document of an association, enterprise, institution, which expresses in monetary form the results of economic and financial activities.

BALANCE PROFIT – o the total amount of profit for all types of production and non-production activities, reflected in the balance sheet of the enterprise.

BANK– a financial institution that concentrates temporarily available funds (deposits), carries out cash settlements, accounts for bills, issues money and securities, provides loans, loans, and organizes a centralized circulation of cash in the country.

BANK GUARANTEE– a form of agreement according to which, if the terms of the contract are violated, the bank pays a certain penalty.

BANKING LIQUIDITY –With the bank’s ability to repay obligations in a timely manner, determined by the degree of correspondence of the bank’s assets and liabilities in terms of volumes and terms.

BANKING SYSTEM– a set of different types of banks and banking institutions existing in the country in their interrelation.

BANK LOAN– a loan that is provided by banks, special financial institutions to entrepreneurs and other borrowers in the form of cash loans.

BANKRUPT– a business entity (legal entity or individual) who is unable to pay debts within a three-month period.

BANKRUPTCY –at the insolvency of a debtor-enterprise, firm, bank, etc., established by the court, which manifests itself in its inability to make payments on its debt obligations.

BARTER– direct non-monetary exchange of goods and services.

CASHLESS PAYMENTS– settlement, which is carried out by transferring amounts from the payer’s accounts to the recipient’s account or by offsetting mutual claims, without using cash.

DUTY FREE IMPORT– import of goods free from customs duties.

INTEREST-FREE LOAN- a loan in which the lender does not receive payment from the borrower for the use of the loaned funds.

PERPETUAL LOAN– a loan that is provided for an unspecified period of time.

BUSINESS- entrepreneurial activity that is carried out with the aim of making a profit through the sale of a manufactured product or the provision of services, as well as an activity that generates income or profit.

BUSINESS PLAN– a short-term program of an enterprise’s activities for a certain period (month, quarter, year), which includes the calculation of possible income and expenses.

BUSINESS CENTER –at an institution that provides business people with premises and all the necessary services so that they can negotiate, hold meetings and presentations, etc. with the greatest efficiency.

BIG PRIVATIZATION– transfer or sale to private ownership of large state-owned enterprises.

BONUS DISCOUNT– a price discount that is provided to large wholesale buyers, as a rule, regular customers, not for each individual transaction, but for a stipulated volume of turnover per year.

GROSS FOR NET– a symbol for setting prices and making calculations based on gross weight, if the exact net weight is not so important or its verification is not practical.

BALANCE SHEET– grouping and generalized reflection in monetary form of an enterprise’s funds by type and source of education as of a specific date.

BUDGET- calculation (calculation) of monetary income and expenses of the state, made for a certain period and approved by law, as well as an estimate of cash receipts and expenses of an enterprise, institution, or individual for a certain period.

BUDGET YEAR– a period of 12 months during which the state budget is executed

BUDGET DEFICIT– the excess of state budget expenditures over its revenues.

GROSS PROFIT– enterprise profit before taxes, mandatory payments, contributions and deductions.

GROSS INCOME– income, defined as the difference between the financial receipts of the enterprise and the material costs of production and sales of products.

VOUCHER– written guarantee, receipt.

IMPORT DUTY- a customs duty levied by the state on imported goods and received as income to the state budget.

BILL HOLDER- the person who owns the bill.

BILL- a document of a strictly established form, which contains an unconditional obligation to pay a certain amount of money within a specified period.

GROSS WEIGHT– weight of the goods including packaging and containers.

NET WEIGHT– the weight of the product itself without packaging and containers.

CONTRIBUTION- a sum of money or securities entrusted to savings banks for safekeeping or use.

EXTERNAL ADMINISTRATION OF THE DEBTOR'S PROPERTY– a reorganization procedure, which consists of transferring the functions of managing the debtor enterprise to an arbitration manager.

EXTERNAL AGREEMENT– an agreement that defines the relationship between the participants in a foreign trade transaction.

EXTERNAL LOAN– a loan received by the state from foreign lenders or provided to foreign borrowers.

REVENUE– money that is received from the sale of something or as profit or income.

GUARANTEE– an individual or legal entity that gives a guarantee for something.

LETTER OF GUARANTEE– a document that contains the obligations of the guarantor.

GUARANTEE PERIOD– the period during which the seller’s guarantee for the compliance of the goods supplied by him with the requirements of the contract is valid, subject to the buyer’s compliance with the rules of its operation, use and storage.

GENERAL POWER OF ATTORNEY– power of attorney for property management, conclusion of contracts, etc.

GENERAL LICENSE– permission to import and export goods for a period, usually up to one year.

GENERAL AGENT– an agent who has the right to enter into any transactions in the area of ​​activity of the principal.

HYPERINFLATION– inflation, which is characterized by very high (up to several hundred percent per year) growth rates of commodity prices and money supply in circulation.

GOVERNMENT DUTY– a monetary fee collected by specially authorized institutions (court, police, registry offices, state arbitration, etc.) for performing actions in the interests of legal entities and individuals.

STATE PROPERTY –

1. Form of ownership in which property objects belong to the state;

2. Property, the ownership of which is with state authorities.

STATE ENTERPRISE– an enterprise whose property is state-owned or the state’s share in the property of which is more than 50%.

STATE INSURANCE– insurance in which the state acts as the insurer.

GOVERNMENT LOAN- a loan in which the state acts as a lender or borrower, as well as securities issued by the state as a result of such an operation.

GOVERNMENT LOAN– a set of credit relations in which the creditor is the state and local authorities in relation to civil and legal entities.

MOVABLE PROPERTY– property that is not directly connected to the land, is not attached to it and can be moved (valuables, various things, furniture, etc.).

DOUBLE TAXATION– levying different types of taxes on one source of income (capital) or applying two national taxation systems simultaneously.

DOUBLE INSURANCE- insurance in which the same interest is insured against the same perils by several insurers.

DOUBLE TARIFF– a tariff with maximum and minimum rates for each product item, applied at customs depending on trade and political relations with a given country.

BILATERAL AGREEMENT- an agreement that contains the mutually agreed rights and obligations of each of the two parties: seller and buyer, supplier and customer, principal and agent, licensor and licensee, etc.

DEBIT– a record of the increase or decrease of the accounted amounts, depending on the nature of the account, as well as the left side of the accounting account where such an entry is made.

DEBIT NOTE- a notice sent by one of the parties to the other party, who is in a settlement relationship with it, about recording the last certain amount in the debit of the account upon the occurrence of circumstances that create the right to claim this amount.

DEBTOR– a legal or natural person who has borrowed from another legal or natural person.

ACCOUNTS RECEIVABLE- the amount of debts as of a certain date that are due to an association, enterprise, organization or institution from legal entities or individuals as a result of economic relations with them.

DECLARATION– a document that contains an official statement of an individual or legal entity, as well as the form of such a document.

DECLARATION OF GOODS– designation of quantity, weight and other qualities, properties of goods for payment of customs duties.

DEMARKETING– a type of marketing whose task is to reduce excessive demand for a product or service.

DUMPING– selling goods on the foreign market at prices lower than on the domestic market in order to eliminate competitors.

MONEY SUPPLY– money that is in circulation moves, serving the circulation of goods, as well as non-commodity payments and settlements in the economy.

MONETARY SYSTEM- a form of organization of monetary circulation in the country, which has developed historically and is enshrined in national legislation.

CASH IN TRAVEL- cash sent from the cash registers of trade, entertainment, transport and other enterprises and organizations to a credit institution for crediting to the account of these enterprises (organizations), but which did not arrive in the account for some time due to the terms of communication and delivery.

CASH LETTER OF CREDIT– a letter of credit that contains an order from the bank to one or more correspondent banks to pay the holder of the letter of credit the amount specified in it in full or in parts within a certain period.

DENOMINATION– a change in the nominal value of banknotes, in which old banknotes are exchanged for new, larger ones, according to a certain ratio, and prices, tariffs, wages, etc. are recalculated in the same ratio.

DEPOSIT– money or securities that are deposited in financial, credit, customs, and administrative institutions and are subject to return to the person who deposited them upon the occurrence of certain conditions; deposits in the bank, as well as entries in bank books about clients’ claims to the bank.

DEFICIT –

1. Lack, lack of something;

2. Excess of expenses over income.

DEFLATION- an increase in the purchasing power of money, achieved as a result of limiting the money supply in circulation by increasing taxes, manipulating the reserve assets of commercial and other state banks, increasing the discount rate, as well as other measures to regulate the economy.

DISTRIBUTOR- an individual or legal entity that sells goods (mainly foreign-made) on the basis of wholesale purchases from large industrial firms producing finished products.

ADDITIONAL PROFIT– the excess of the profits of enterprises and monopolies over the average profit.

CONTRACT OF SALE- an agreement containing the conditions under which one party (seller) transfers to the other party (buyer) any goods in tangible form, or knowledge, experience, results of creative activity, as well as provides services for the construction of objects, performs others work for a certain fee.

DONATION– a state financial benefit that is paid to legal entities and individuals in the form of allocations to cover losses, balance the budget, etc.

INCOME– monetary or material resources that come to the state, enterprises, institutions and individuals as a result of some activity.

REVENUE OF THE FUTURE PERIODS– income (funds) received by the enterprise in the reporting period, but relating to future reporting periods.

EUROMARKET– an international market for loan capital, in which transactions are carried out in Eurocurrencies (dollars, marks, yen).

PRODUCT MARKET CAPACITY- the volume of goods determined in physical quantities or in value terms that are sold on the market during a certain time (usually a year).

PRODUCT LIFE CYCLE– the process of developing the sale of a product and making a profit, consisting of four stages: the market launch stage, the growth stage, the maturity stage, and the decline stage.

OFF-BALANCE ACCOUNT– a bank account reflecting monetary rights or obligations that can be realized under certain conditions.

DEPOSIT- a sum of money that is given by one of the parties to the contract to the other party in payment of payments due and is a guarantor of the execution of the concluded contract.

DEBT- amounts of money that the state, individual or legal entity takes on credit for a period and under certain conditions, as well as amounts of money not paid for certain services, use of something, etc.

LOAN- a financial transaction, which consists in the fact that one party (borrower) receives a loan from the other party (lender) money or property under certain conditions of return, as well as such money or property itself.

CLOSED CORPORATION– a joint stock company with a limited number of shareholders who do not have the right to sell their shares without the consent of other shareholders.

CLOSED AUCTION– an auction in which bidders’ proposals are submitted in advance in sealed form.

PURCHASE– purchasing goods for money in large quantities, in bulk, as well as the purchased goods themselves.

PLEDGE –

1. A method of securing obligations, in which the creditor-pledgee acquires a priority right over other creditors in the event of failure by the debtor to fulfill the obligation to receive satisfaction at the expense of the pledged property;

2. Money or a thing given as security for obligations, for a loan.

EXPENSES

FREE ENTERPRISE ZONE– part of a national-state territory in which particularly preferential economic conditions apply for domestic and foreign entrepreneurs.

COSTS– a set of costs expressed in monetary form by legal entities or individuals (for the production of products and their sale, provision of services, performance of work, etc.).

DISCLOSURE COSTS– the costs of living and materialized labor expressed in monetary form associated with commodity circulation.

PRODUCTION COSTS– expressed in monetary form, the costs of living and materialized labor associated with the production of a product.

PROPERTY– material assets that are in someone’s possession as property.

INVESTMENTS– investing in fixed capital and inventories for the development of production or any field of activity, investing in financial assets for the purpose of making a profit, as well as the invested funds themselves.

INVESTMENT COMPANY– a credit and financial company that accumulates funds from private investors by issuing its own securities and placing them in shares and bonds of enterprises in its country and abroad.

INVESTMENT BANK- a bank that plays an active role in the issue and placement of shares of industrial and other companies, and also ensures the placement of securities among investors.

INVESTMENT LOAN– a loan that is provided for the construction of a specific enterprise.

INVESTMENT FUND– a credit and financial organization that accumulates funds from private investors by issuing its own securities.

INVESTOR– a legal or natural person who invests in any enterprise, business, or various sectors of the economy with the aim of making a profit.

INDEXING- a method of maintaining the real value of monetary claims and personal income in conditions of inflation, which involves an automatic increase or decrease in the level of wages, pensions, prices, interest rates, etc., depending on changes in the cost of living index.

PRICE INDEX– an indicator of the dynamics of commodity prices.

ENGINEERING– a complex of engineering and consulting services of a commercial nature, isolated into an independent sphere of activity, on the feasibility study of the creation of new enterprises, on servicing the construction and operation of production and other facilities, on ensuring the production process, etc.

INTELLECTUAL PROPERTY –

1. Form of ownership in which the objects of ownership are products of intellectual labor.

2. Products of intellectual labor, the right of ownership to which belongs to the individuals who created them.

INFLATION– an excessive (in relation to the state gold reserve) increase in paper money circulating in the country, leading to their depreciation and rising prices.

MORTGAGE –

1. Pledge of real estate (mainly land and buildings) for the purpose of obtaining a loan.

2. Long-term loan, which is issued against real estate (land, industrial and residential buildings).

3. A document that a lender receives when receiving a loan secured by real estate.

ISK– an appeal by an individual or legal entity to a court, arbitration or arbitration tribunal, drawn up in the form of a statement of claim, for the protection of a violated right or interest protected by law, for the resolution of a civil dispute with another person.

ORIGINAL PRICE– the price initially offered at auctions.

CADASTRE– a list of systematized information about the valuation and average profitability of real estate (land, buildings, etc.), as well as work on compiling such a list.

COST– calculation of the cost of production (according to the established nomenclature of costs), as well as a document that is used in the accounting system for such calculation in a uniform form for a given industry.

CAPITAL– self-increasing cost.

CAPITALIZATION– use of profits to expand production, purchase new securities, etc.

CAPITALIZED PROFIT– profit aimed at developing production, updating fixed assets, expansion and reconstruction.

CAPITAL INVESTMENT– long-term investments of capital in various sectors of the economy both within the country and abroad with the aim of making a profit.

CARTEL- an association of large enterprises in any industry that maintain commercial and production independence, created with the aim of regulating the production and sale of goods, hiring labor, and the policy of using the achievements of scientific and technological progress.

CARTEL AGREEMENT- an agreement between producers or consumers of products of the same name in order to smooth out competition and obtain higher profits based on the agreed aspirations for a monopoly position in the production and sales markets of these products.

COLLECTIVE PROPERTY –

1. Form of ownership in which several entities are the owners of the property at the same time;

2. Property, the right of ownership to which belongs simultaneously to several objects.

COLLECTIVE ENTERPRISE- an enterprise whose property is collectively owned by its employees.

LIMITED COMPANY– a joint-stock company in which the partners are at least one complementor (a partner who is liable for the company’s obligations with all his fortune) and limited partners (companions whose liability is limited to the size of their shares).

KOMMERSANT– a person who is engaged in trade, including private trade.

COMMERCE– activities of turnover, purchase and sale of goods, as well as the sector of the economy that is engaged in such activities.

COMMERCIAL SALES– the implementation stage of the product life cycle, which includes the implementation of the entire marketing plan and full-scale production.

COMMERCIAL ENTERPRISE- an enterprise that operates in self-financing conditions and aims to obtain maximum profit.

COMPANY– trade, industrial, transport, etc. a corporate entity, usually having share capital.

COMPENSATION– compensation or reward for something, as well as the amount that is paid as compensation or reward.

COMPETITIVENESS– the ability of products to meet the prevailing requirements of a given market for the period under review.

COMPETITION– economic competition between isolated commodity producers for market share and profit, obtaining a specific order, achieving another goal or benefit.

CONSULTING– consulting for a fee to manufacturers, sellers and buyers on economic, business and legal issues.

CONSULTING FIRM– a company that provides consulting, i.e., for a fee, provides advice on a wide range of economic, business and legal issues, provides services for research and forecasting of the market, prices, etc.

CONSIGNANT– a person who is the owner of goods sold abroad through a commission agent (consignee).

CONTRACT– a bilateral or multilateral agreement, contract, with mutual obligations for the contracting parties, as well as a document containing such an agreement, such a contract.

CONTRACTANT– an individual or legal entity that assumes certain obligations under a contract.

CONTRACT PRICE– the price that is fixed in the contract.

CONTRACT WITH PAYMENT IN CASH– a contract that provides for settlements in a certain currency agreed upon by the parties using the method of payment and form of payment specified in the contract.

CONTROLLING STAKE– a share of shares that belongs to one individual or legal entity and gives him the opportunity to exercise control over the activities of the joint-stock company.

CONCERN- the unification of a number of industrial, financial, trading and other enterprises that nominally retain independence, but are actually subordinate to a single economic management.

COOPERATIVE- an enterprise that is based on the principle of a voluntary association of persons for joint activities in production, sales, procurement, consumption, etc.

CORPORATION– an organizational form of association of legal entities and individuals based on common interests and objectives, as well as production, trade, etc. an association of legal entities and individuals, the capital of which is formed by issuing and placing shares, bonds, deposits, and loans.

CORRUPTION– direct use by an official of the rights associated with his position for the purpose of personal enrichment.

CREDIT –

1. a loan for a specific purpose in cash or commodity form, which is provided on the terms of repayment, urgency and with the payment of interest.

2. the right side of accounting, which reflects the increase or decrease in the amounts recorded, depending on the nature of the account.

CREDIT POLICY– a set of activities that are carried out by the state, banks, firms and other organizations in the field of credit relations.

CREDIT SYSTEM– a set of forms and methods of credit within one country, as well as a set of credit institutions in the country (banks, insurance companies, pawnshops, etc.).

ACCOUNTS PAYABLE– a debt as of a certain date that an enterprise, organization or institution must pay in favor of other legal entities or individuals.

CREDITABILITY– the ability of an individual or legal entity to fulfill its financial obligations on time and in full.

A CRISIS –

1. Disorder of economic life caused by contradictions in the development of society;

2. Acute shortage, underproduction of something.

LEASING– provision of medium- and long-term lease of various technical equipment, buildings and structures while retaining ownership of them by the lessor.

LIQUIDITY– the ability to quickly transform the assets of enterprises and banks into cash in order to timely repay their obligations, debts, as well as cash itself and quickly salable assets.

LIQUID FUNDS– cash and other assets that can be used to pay off debt obligations.

PERSONAL ACCOUNT– an analytical accounting account designed to reflect settlements of enterprises with individual suppliers, buyers, accountable persons, credit institutions with clients, financial authorities with payers.

LICENSE –

1. A permit issued by a government agency for the right to import or export goods, as well as a document certifying this right;

2. Allowing individuals or organizations to use inventions protected by patents, technical knowledge, experience, trade secrets, trademark;

3. Permission to engage in any type of activity.

MACROECONOMICS– a branch of economic science that studies the economy as a whole, as well as its most important components.

SMALL PRIVATIZATION– transfer or sale to private ownership of state-owned trade, public catering, and service enterprises.

SMALL BUSINESS- an enterprise whose number of employees is limited.

SMALL BUSINESS– entrepreneurial activity of small commercial enterprises and organizations, mainly in the field of providing services to the population.

MARKETING– a system for organizing production and sales of products, based on a set of measures to study and forecast the market and actively generate consumer demand through advertising, benefits, bonuses, consumer credit, service benefits and guarantees, etc.

MANAGER– specialist in the field of production organization and enterprise management.

MANAGEMENT– a form of enterprise management in a market economy, implying the art of managing intellectual, financial, raw materials, material resources in order to increase production efficiency and profit.

MICROECONOMICS– a branch of economic science that studies the economy at the level of separate economic units (industry, firm, household, etc.), as well as specific markets, prices, goods, services.

CASH- money that is available to an individual or legal entity.

TAX– a mandatory payment that the state collects from individuals and legal entities into the state or local budget.

TAXATION– a system of taxes and tax rates that are established by law and levied by the state from legal entities and individuals with income, capital, etc., as well as the process of collecting various types of taxes.

NEUTRAL PRICING STRATEGY- setting prices based on the price-value ratio that corresponds to the majority of similar goods sold on the market.

NON-PROFIT ENTERPRISE– an enterprise whose activities are aimed at performing socially significant functions and do not have the goal of making a profit.

ILLQUID FUNDS– inventory items that are not used at a given enterprise, as well as finished products that are difficult to sell.

INTANGIBLE ASSETS– assets that have a valuation, but are not physical objects (for example, securities, lease rights, technology, patents and other intellectual property).

INSOLVENT– the inability of a legal entity or individual to timely and fully fulfill its payment obligations arising from trade, credit or other transactions of a monetary nature.

NON-PRICE COMPETITION– offering products of higher quality, with greater reliability and service life, with higher productivity than competitors.

INELASTIC DEMAND– demand that varies slightly depending on changes in the factors that determine it, such as price.

NOMENCLATURE– classified list of assortment groups of goods and commodity units.

TAXABLE INCOME– part of the gross income of legal entities and individuals that is subject to tax.

BOND- a fixed income security in which its issuer undertakes to pay its holder a fixed amount or interest at a certain date in the future (income on the bond can also be paid in the form of winnings drawn in special draws or by paying coupons).

EXCHANGE –

1. The transfer by one party of an object to the other party with the receipt of something in return;

2. Mutual alienation of labor products and other objects of property on the basis of free agreement.

CASH OUT– conversion of non-cash funds or funds embodied in the cost of goods into cash.

TURNOVER- commercial, industrial, financial transactions for the purpose of reproduction, making a profit, as well as a complete, repeating cycle in any process - circulation.

WORKING CAPITAL- funds of the enterprise, which are used to create production reserves of raw materials, materials, fuel, electricity, finished products, etc., i.e., they go to the formation of working capital and circulation funds.

WORKING CAPITAL- capital, the cost of which is fully included in the cost of the manufactured product.

SALARY– the amount of monetary remuneration of the employee in accordance with his position, as well as the monetary remuneration itself.

PAYBACK- an indicator of the effectiveness of any activity, reflecting the ability to recoup expenses incurred, as well as the economic principle in which income from the sale of manufactured products, services provided or an economic transaction must fully cover expenses.

OLIGARCH– an entrepreneur who is one of the most influential representatives of big capital striving to play a decisive role in the economic and political life of the country.

OLIGOPOLY– the dominance of a small number of largest firms in production and in the market.

MAIN CAPITAL- the cost of fixed assets of production, which is transferred in parts during the production process to the product.

[DIRTY] MONEY LAUNDERING– legalization of illegally obtained income by investing it in industry, deductions for charitable purposes, etc.

DEFERRED PAYMENT– payment extended in relation to the originally established deadline.

DEPUTATIONS- deduction, subtraction, allocation from any amount, as well as a sum of money isolated from any whole, intended for a specific use.

OFFSHORE COMPANY– a company opened and registered in one of the offshore zones.

PARITY- the relationship between the monetary units of different countries, either in the amount of gold or in their purchasing power, as well as equivalence, equal position.

PURCHASING POWER PARITY- the relationship between two or more currencies according to their purchasing power for a certain set of goods and services.

PASSIVE –

1. The right side of the balance sheet, which contains information about the sources of financing and the intended purpose of the enterprise’s economic assets, reflected on the left side of the balance sheet, called the asset;

2. The totality of debts and obligations of the enterprise.

FINE– a type of penalty, an amount of money that must be paid by an individual or legal entity for failure to fulfill or delay in financial obligations assumed under the contract.

VARIABLE COSTS- costs that vary depending on production volume.

VARIABLE CAPITAL– capital spent on the purchase of labor power.

SOLVENCY– the ability of a state, legal entity or individual to timely and fully fulfill its payment obligations that arise from trade, credit or other transactions of a monetary nature.

PAYMENT BALANCE– the ratio between the payments that a given country has paid to foreign countries and the payments that it has received from abroad, over a certain period of time or on a certain date.

PAYMENT TURNOVER- the money circulation of a country in which money functions as a means of payment.

FIXED PRICE POLICY- sale of goods according to a collection of prices (price list) approved by the company’s management.

PRICE POLICY- a system of established rules for determining prices for standard transactions when selling a company’s goods.

FIXED COSTS– costs not associated with changes in production volume.

CONSUMER– an individual or legal entity who consumes the products of someone else’s production.

CONSUMER COST- usefulness, the ability of a thing or service to satisfy any need of a person or society.

CONSUMER BASKET– a group of goods and services familiar to the average buyer, which most fully determines the level and structure of consumption of the population of a given area (territory, country).

PRICE LIST– a list of prices for all goods (including shares, securities) and services offered by any organization, firm, enterprise, etc.

OFFER –

1. Receipt of goods on the market;

2. Statement by the seller about the desire to sell goods and services under certain conditions.

ENTREPRENEUR- a person who finds funds to organize an enterprise and thereby takes on entrepreneurial risk.

ENTREPRENEURSHIP– the activity of a subject (individual or group of persons) aimed at making a profit in a market economy.

COMPANY– an independent business entity created to produce products, perform work and provide services in order to meet public needs and make a profit.

PREFERENCES- advantages, benefits provided by one state to another, most often in the form of discounts on customs duties on all or some imported goods in order to expand trade between countries.

SURPLUS VALUE- part of the value of manufactured goods, which is created by the unpaid labor of hired workers in excess of the cost of their labor power and is appropriated free of charge by the employer.

PROFIT– the most important indicator of the activities of enterprises and banks, the part of income that remains after reimbursement of current costs and interest on short-term bank loans (P = D - I, where P is profit, D is income, I is production costs, including interest on short-term loans) .

PRIVATIZATION– transfer or sale of state-owned enterprises, means of transport, residential buildings, etc. into private ownership.

LIVING WAGE– a valuation of the total consumption of a person or family, determined on the basis of the minimum consumer basket.

DIRECT INVESTMENT– investment by foreign entrepreneurs in the production of any product and thereby ensuring participation in the management of this production.

DIRECT INVESTMENTS- a trade or industrial association, the profit of all participants of which goes to a common fund and is distributed among them in a predetermined proportion, as well as a temporary association of several independent companies to solve a special problem.

EXPENSES- money that is spent on something.

EXPENSES- money that is spent on something.

FUTURE EXPENSES– expenses that are incurred (by an association, enterprise, organization) in the reporting period, but are subject to inclusion in the cost of products (works, services) in subsequent months or years.

ESTIMATED PROFIT– the amount of profit after contributions to the budget and higher authorities, which is the basis for the formation of material incentive funds.

RESERVE FUND– funds (of a joint stock company and some other enterprises) that are used to repay losses, replenish fixed capital, and pay dividends (if current profits are not enough for this).

PROFITABILITY– an indicator of economic efficiency of production, which characterizes the level of return and the degree of use of funds in the process of production and sale of products (performance of work, provision of services).

RENTING– short-term rental of machinery and equipment without the right to subsequently purchase them by the lessee.

RECIPIENT– an individual or legal entity who receives any payment or income.

RETAIL– trade that sells goods and services directly to end consumers for their personal use.

RETAIL PRICE– the price of a product that is sold individually or in small quantities, usually for personal consumption.

MARKET –

1. A system of economic relations that develop in the process of production, circulation and distribution of goods, cash flow and are characterized by the freedom of subjects to choose buyers and sellers, determine prices, form and use resources;

2. The sphere of commodity circulation, a set of acts of purchase and sale;

3. A place of retail trade in goods, as well as an enterprise that organizes retail trade at this place.

MARKET PRICE– the price of a product, which is determined by the existing supply and demand ratio in the market.

BALANCE –

1. The difference between income and expense (debit and credit) of an account in accounting;

2. The difference between the amount of exports and imports or the amount of claims and obligations in foreign trade relations.

SELF-FINANCING– financing of enterprises and organizations from their own funds.

SAVING– part of the income of an individual or legal entity or state that is not used for current consumption.

SALES- selling something to a consumer.

FREE OFFER– an offer made without any obligation on the part of the seller.

DEAL– an action that is aimed at establishing, changing or terminating legal relations between legal entities and individuals, as well as a commercial exchange between two parties, presuming at least the presence of two objects of value and agreed upon conditions, time and place of the exchange.

COST PRICE– monetary expression of the enterprise’s costs for the production and sale of products (works, services).

DISCOUNT– the amount by which the price of the product is reduced.

ESTIMATED– a plan for upcoming expenses and receipts of material and monetary resources of enterprises and institutions.

COST ESTIMATE– a complete set of costs of an enterprise for a certain period (year, quarter) for the entire volume of production and sales of products (works, services).

OWNER– a person or legal entity that has ownership of something.

OWN –

1. Belonging of something to an individual or legal entity with the right to own, use and dispose of their property;

2. Material assets that are in someone’s possession as property.

JOINT OWNERSHIP –

1. Collective property, in which several entities are the owners of property at the same time without determining the shares of each of them;

2. Property, ownership right, which belongs simultaneously to several entities without determining the shares of each of them.

JOINT VENTURE– production and economic activities of partners of two or more countries, characterized by cooperation in the areas of production, scientific, technical, investment and service areas.

AGREEMENT– an agreement that establishes any conditions, relationships, rights and obligations of the parties.

DEMAND- a demand for any product by the buyer or for labor by the employer.

STABILIZATION CURRENCY FUND– a state fund in gold, foreign and national currencies, designed to regulate exchange rates and balances of payments through foreign exchange interventions.

STAGNATION– a state of prolonged depression, stagnation in the economy.

STAGFLATION- a state of the economy in which stagnation or decline in production is combined with unemployment and inflation.

CHECK –

1. A document, a written settlement indicating the amount of money due for something, as well as a sales document issued by the seller in the name of the buyer and certifying the delivery of goods or the provision of services and their cost;

2. A position in accounting designed to constantly account for the movement of each homogeneous group of funds and sources belonging to a given legal entity from the formation, state of settlements with other persons;

3. The documented right of a legal entity or individual to carry out various monetary transactions through a bank, as well as a document giving such a right.

PRICING TACTICS- a set of specific practical measures to manage prices for a company’s goods, used to solve assigned problems.

CUSTOMS SYSTEM OF THE COUNTRY– a set of administrative and economic measures aimed at establishing a certain regime for the registration and passage of goods across the state border, together with a system of government institutions that implement these measures.

CUSTOMS BENEFITS– benefits provided to individuals or legal entities during the import, export or transit of goods, valuables, personal belongings, and other items.

BONUS– additional remuneration paid to directors and senior employees of joint-stock companies, insurance companies, banks, etc. as a percentage of net profit.

RATE- an officially established list of tax rates, payment for something, fees for something, as well as a list of wage rates.

TARIFF BENEFITS– benefits provided by the state in the form of wage coefficients and bonuses, listed and systematized in a special tariff.

FIRM PRICE– the price that is set at the conclusion of the contract and does not change during the entire period of its validity.

FIRM OFFER- an offer to sell a consignment of goods, which obliges the seller, until receiving a response from the other party or before the expiration of the specified period for response, not to make similar offers to other buyers and not to sell the goods.

CURRENT DEBT– debt represented by short-term liabilities.

CURRENT ACCOUNT- an account in a bank from which the depositor can receive money as needed without prior notice of withdrawal of the required amount and to which he can credit a certain amount at any time.

TENDER– a competitive form of placing orders for the purchase of goods, equipment, attracting contractors for the construction of facilities, performing other work, and providing services.

PRODUCT –

1. Product of labor produced for sale, as an economic category;

2. Item of trade.

LIMITED LIABILITY PARTNERSHIP– the organizational and legal form of an enterprise created by agreement of legal entities and individuals by combining their contributions for the purpose of carrying out economic activities and making a profit.

TRADE TURNOVER– the process of circulation of goods, as well as the volume of products sold, goods for a certain period of time.

GOODS OF SPECIAL DEMAND– goods with unique characteristics and/or individual branded goods, for the sake of consumption of which a significant part of buyers are willing to expend additional effort.

TRUST FUND- a fund managed by a trustee for the benefit of third parties.

LOSSES– losses expressed in monetary form by an individual or legal entity, a decrease in its material and monetary resources as a result of expenses exceeding income, as well as due to force majeure or unlawful actions of other persons.

CONDITIONAL DEAL- a type of transaction when one of its participants has the right to refuse to fulfill its obligations by paying the other a certain premium.

SERVICES- the result of non-productive activity of an enterprise or individual, which serves to satisfy certain human needs and acts as a product.

AUTHORIZED/AUTHORIZED CAPITAL– a set of tangible, intangible and monetary resources that the founders and participants of an enterprise provide at its permanent disposal.

ACCOUNTING- establishing the presence or quantity of something through calculations.

FACTORING– financial and commercial transactions in which banks or other financial organizations acquire debts from enterprises for a certain commission.

INDIVIDUAL– a person has both civil rights and responsibilities.

FIXED PAYMENTS– payments in the form of deductions withdrawn from the state, which are part of the profits of enterprises, organizations, etc., received for reasons beyond their control.

FICTIONAL CAPITAL– capital represented in the form of securities, the value of which exceeds the amount of the actual capital of the company or joint stock company.

FINANCING– provision of financial resources for the costs of carrying out any activity, for the development of something.

FISCAL YEAR– the period during which the approved budget is valid.

FINANCIAL CAPITAL– merged banking and industrial capital as a whole.

FINANCIAL LOAN– a loan that is used for direct capital investment, construction of investment facilities, purchase of securities, repayment of external debt, foreign exchange investment.

FIRM- an economic, industrial or commercial enterprise that enjoys the rights of a legal entity.

COMPANY LOGO- a symbol, design, distinctive color or designation that identifies a product with its manufacturer and seller.

FUND –

1. Resources, reserves, savings;

2. Cash or material assets of the state, etc., intended for any purpose.

CAPITAL INTENSITY– volume of production fixed assets per unit of manufactured products (volume of work, services)

CAPITAL RETURN– volume of production (work, services) per unit of production assets.

FRANCHISE –

1. The right to use brand names, a popular trademark, which their owner represents to another business entity under certain conditions and for a fee.

2. A condition of the insurance contract, according to which the insurer is exempt from compensation for losses not exceeding a certain amount, as well as the amount of loss itself that is not covered by the insurer.

3. Deviation of the quantity of goods supplied from that specified in the contract.

TRADING PRODUCT- a product that sells out well and quickly.

HOLDING– entrepreneurship, the essence of which is the acquisition of controlling stakes in various companies in order to establish control over their activities and generate income in the form of dividends.

PRICE– monetary expression of the value of a product.

PREMIUM PRICE- the price of a product that exceeds the average market price by the amount of the premium for its reputation.

BASIC PRICE- the price of a product of standard quality, on the basis of which the price of a product of higher or lower quality is set.

BREAK-EVEN PRICE- the price of a product at which a manufacturing company can only recoup its costs.

GROSS PRICE- price including the costs of transporting the goods, its insurance and other costs.

RESTORED PRICE- the price that has reached the previous level after its decrease or increase.

STATE PRICE- price set by government agencies.

PRICE IS VALID- the price at which the transaction is actually completed.

DUMPING PRICE- an export price that is lower than in the domestic market or lower than the world price.

ONLY PRICE- a fixed purchase or sale price assigned by the client to the broker.

PRICE IS FINAL- the price of rates, quotations registered on the stock exchange before its closure.

INTERVENTION PRICE- an increased price for certain types of goods, directly established by a state or a group of states on the basis of intergovernmental agreements to support the production of these goods.

Those who seek only certain profits are unlikely to become very rich;

and who invests all their property in risky enterprises, and often

goes bankrupt and falls into poverty; Therefore, it is necessary to combine risk with

known security in case of loss.

Francis Bacon (1561–1626),

English philosopher

In Roman law, “entrepreneurship” was considered as an occupation, business,

activities, especially commercial ones. Quite a simple and very capacious definition

entrepreneurship is given by V.I. Dal: “to undertake” means “to start, to decide

to carry out some new task, to begin to accomplish something significant”:

hence “entrepreneur” means “undertaking” something.

According to modern Russian legislation, under entrepreneurial

activity is understood as “independent activity carried out at one’s own risk,

aimed at systematically obtaining profit from the use of property –

sale of goods, performance of work or provision of services by persons registered in

in this capacity in the manner prescribed by law"

Entrepreneurship is usually defined as:

---------------- as an activity aimed at maximizing profits;

　initiative activity of entrepreneurs, which consists in production

goods and services, the result of which is profit;

---------------- process of organizational innovation;

---------------- direct function of the sale of property;

---------------- actions aimed at increasing capital and developing production;

---------------- a specific type of activity aimed at the tireless search for changes in

existing forms of life of enterprises and society, the constant implementation of these

changes;

---------------- as a management style;

rav the process of organizing and carrying out activities in market conditions;

---------------- interaction between market subjects, etc.

Considering entrepreneurship as a product of a market economy in

historical aspect, it is clear that the development of a market economy is a catalyst

changes in entrepreneurship, namely: organizational forms,

entrepreneurial functions, scale and scope of application. Respectively,

terminological essence and content included in the concept

“entrepreneurship” changed and were streamlined in the process of economic development

entrepreneurship was A. Smith. However, ten years before, these problems

R. Cantillon studied very intensively. It was he who formulated the thesis, according to

which discrepancies between supply and demand in the market provide an opportunity

individual subjects of market relations to buy goods cheaper and sell them

It was he who called these market subjects entrepreneurs (“entrepreneur” - in

translated from French as “intermediary”), and new phenomena of economic activity -

entrepreneurship.

The specificity of entrepreneurship is expressed in a continuously ongoing chain

exchange transactions, but exchange itself becomes a source of entrepreneurship

only when it turns into an integral part of a single economic turnover, and

production for exchange becomes the defining function of economic entities.

It is in exchange that entrepreneurship identifies itself as a special type

economic behavior, and the stage of exchange becomes decisive. External

manifestations of the essential features of entrepreneurship - initiative, risk, combination

factors of production and innovation - reflect various functional aspects

activities for carrying out entrepreneurship and are considered as its

signs.

Entrepreneurial initiative is of an economic nature and is associated with

the presence of market uncertainty and economic freedom. In this sense she

should be considered not as a property of human nature, but as a desire for

realizing the opportunities provided by the process of market exchange itself

benefit. Since such an exchange is carried out for mutual benefit

participants in this process, then entrepreneurial initiative should be associated with

benefiting by satisfying social needs. That's why

redistribution of existing goods in one's favor, and the creation of additional ones.

Thanks to entrepreneurial initiative, market disruption occurs

equilibrium both in the sphere of circulation and in the sphere of production.

Another sign of entrepreneurship is commercial risk, different from

simple risk in that its acceptance is associated with a focus on market circulation

instability and uncertainty arising not only due to variability

market conditions (changes in market conditions, prices, offers), but also as a reaction to

initiatives of entrepreneurs) in their favor, in the form of a certain reward, and

not with the entrepreneurs' appetite for risk.

Although entrepreneurial activity is associated with the satisfaction of social

needs, the entrepreneur assumes property risk not from

charitable motives. Entrepreneurial incentive

activity is material interest - profit that can be received in

as a result of market exchange and is the result of better use of resources in

process of economic turnover.

Innovation, which became a symbol of entrepreneurship in the twentieth century, as an element

is always present in it, since activity in conditions of instability and

uncertainty requires the entrepreneur to be constantly inventive and

creative approach. In this regard, it is especially important to emphasize that economically

point of view, innovation is not a discovery or an invention, but

practical implementation of an entrepreneurial idea, more precisely, commercialization

new technical, technological, organizational and other achievements.

An inventor is not yet an innovator. He becomes such only when he realizes

yourself as an entrepreneur, that is, a person fighting for high results

management. First, the best way to overcome market uncertainty is

this is a change in the market situation itself in a direction favorable to oneself, which is possible

only through innovation. Secondly, acquiring sustainable

market advantages are also only possible through innovation. That's why

The real reason that motivates entrepreneurs to innovate is

competition between them. Innovation is one of the main features

entrepreneurship, giving him the opportunity to interact with the environment

environment. Not intuition and the ability to predict the market reaction, but creative

activities to change the market conditions themselves become decisive

factor of entrepreneurship.

As a form of manifestation of the creative potential of an individual, innovation, of course,

associated with the human factor. But as a phenomenon of economic life it is, first of all,

everything depends on the character

Thus, the economic content of the innovative function

entrepreneurship is to expand market demand. Entrepreneurship as a special type of economic behavior realizes its properties (initiative, risk, combination and innovation in conditions of competitive interaction of economic entities). Therefore, the substantive moment of entrepreneurial activity will be

manifest themselves not only in gaining advantages, but also in creating the best for themselves

business conditions (the main specific feature of entrepreneurship as a type

economic behavior). The result will be entrepreneurial benefit as

reflection of realized competitive advantages.

In this regard, entrepreneurship is most correctly defined as a process

influencing material culture. By virtue of its innovation and through

using new technologies, new products are created and new ones are stimulated

needs.

In some works, entrepreneurship is contrasted with economic

activities that are devoid of common sense. For it is absolutely clear that all economic

activity cannot be innovation, since innovation is a form

manifestation of accumulated results in the process of economic activity, which in

subsequently generates an idea.

In our country, the terms “entrepreneurship” and “business” are used as

synonyms; Entrepreneurship is the Russian name for business.

The terminological difference is that a business uses

disruption of market equilibrium caused by entrepreneurship. In this case

the businessman will receive additional income as a result of the implemented initiative. WITH

over time, when more and more businessmen introduce the latest

technology, uses the technology of the entrepreneur, the market will level the conditions for

production and circulation, and in accordance with the law of utility additional income

will be reduced. Declining income forces businessmen to spend

diversification, helping to restore market equilibrium.

Thus, entrepreneurship differs from business in only one way

essential property - innovation, leading to disruption of market

balance.

Entrepreneurship in the broad sense, as opposed to business, occurs

much less often; "an entrepreneur who has remained so" for decades,

is as rare as a businessman who has never been in ordinary life

at least a little bit of an entrepreneur,” that is, we are dealing with business. Businessman can

do business all your life and not be an entrepreneur, but the entire market

economy without entrepreneurship as a socio-economic phenomenon

cannot exist.

In everyday life, the equivalence of these terms is allowed, because the term

"entrepreneurship" corresponds to the term "business" in the broad sense of the word. In a specific case, when we are talking about the fundamental difference between these concepts, it is necessary to clarify this.

So, entrepreneurship is a special type of economic activity, the essence

which is to stimulate and satisfy society’s demand for

the specific needs of its members through market exchange and aimed at

gaining competitive advantages through disruption of market equilibrium.

Changes in the interpretation of the concept of “entrepreneurship” must be considered

only in the process of historical development of the market economy, which imposed

certain accents in the content of the term “entrepreneurship”.

In accordance with the accepted structure of the reproduction process (production,

exchange, distribution, consumption) there are four main spheres of entrepreneurship: production, commercial, financial and consumption.

Other types of business activities (for example, innovative,

marketing) are included in the four main areas of entrepreneurship.

Non-state public organizations are emerging to support entrepreneurship.

professional organizations that can indirectly influence management

economies of regions and sometimes countries. Public professional organizations

act as unifying bodies for disparate independently operating

business organizations in one or related areas of the economy.

For example, in St. Petersburg, more than

30 public professional organizations (unions of architects, restorers,

glaziers, producers of dry mixes, etc., associations, design organizations,

housebuilders, etc.). Particular influence on the activities of investment-

construction complex (CC) are provided by public non-profit

professional organizations: Union of Construction Associations and Organizations, Union

construction companies, Soyuzpetrostroy.

The main task of the ISC is aimed at establishing fruitful contacts between

its participants, representing the interests of organizations working in the region’s ICC, in

government bodies, submitting projects to public hearings and

solving emerging problems and creating a positive image of the St. Petersburg ISK.

In all industrialized countries it enjoys government support

small business. Where there is no government support,

Mainly so-called street entrepreneurship is developing.

2. Goals of entrepreneurial activity.

The concept of “goal” at first glance seems understandable without additional

explanations. Although it seems to have a self-evident meaning, it actually

belongs to the complex categories of sociology, philosophy, economics, and management.

The goal is an ideal mental anticipation of the result of an entrepreneurial

activities. This is an object of aspiration, a pre-planned final plan,

expected result of an entrepreneur's action. Founder of strategic

planning and management I. Ansoff defines the goal as a criterion of success or failure

entrepreneur.

Goals guide and regulate entrepreneurial activity because it

entirely aimed at achieving them.

The processes of setting and achieving goals for entrepreneurs are constantly changing

each other.

A new goal for an entrepreneur is a stimulating factor. However, more

Some entrepreneurs need recognition for achieving their success; they are capable

take full blame for failures.

The main issue that an entrepreneur must resolve is

determining the goals of your business activity.

If goals are not defined, then their establishment is one of the most important and difficult

tasks of business management. In this case, the formation

goals of business activity represents the primary goal of managing this

activities, which is most clearly manifested in economic planning

activities of the organization, investment and financial processes, management

costs.

The main goal of entrepreneurial activity, which is determined by the

the essence of entrepreneurship is to stimulate and satisfy

society's demand for the specific needs of its members (region, country). However this is not

the only goal of entrepreneurship, and besides it there is a whole system

various purposes (including private ones, but no less important).

The main goal of an entrepreneur is to maximize his ability to satisfy

complex of socio-economic needs of an entrepreneur in the conditions

uncertainty, which is specified under the influence of the external environment, based on

possibilities of the internal environment and from his past, as well as from the performed

entrepreneurial unit of functions.

units, an entrepreneur must set certain goals for himself in the same way,

as he did before its creation. These goals may vary. The most typical

are:

􀀀 development goals of business units are to change

quantitative parameters and quality of functioning of business units

to transfer to the desired, more favorable state, characterized by better

values ​​of target indicators. Development goals may consist of defining

level of quality and efficient production financed by it, reaching

a certain level of production and consumption, meeting needs

consumers;

􀀀 purposes of maintaining business units in the state she has achieved

arise in conditions when it is necessary to consolidate this state, because it satisfies

entrepreneur or caused by the danger of deterioration of this condition, which must

prevent;

􀀀 the goal of getting out of an undesirable state or goals of further decline, ensuring

exit from the crisis are typical for a situation where the parameters, indicators

the functioning of business units is significantly below the normative level

level, do not satisfy the entrepreneur’s goals and requests

consumers, significantly worse than the condition of similar objects. Purpose

the entrepreneur in this situation is to overcome the recession, avoiding indicators

maximum permissible level, stabilization of the socio-economic situation and

creating the preconditions for recovery.

Along with these fairly general global goals, it is also possible

real narrower, local goals, covering individual areas, types of not only entrepreneurial, but also social activities related to the solution

private problems, implementation of projects, programs.

For example, goals could be:

---------------- accumulation of funds to conquer new markets and development

production;

----------------improving the social conditions of employees of business units;

---------------- optimization of customer demand for the products of business units;

　providing assistance in improving the ethical and moral standards of society, improving

consumer culture, etc.

As a rule, such local limited goals are subordinated and included in

the listed general goals of the entrepreneur corresponding to public goals.

But the goals of business units do not always coincide with the goals of the founders,

managers and team. Moreover, there may be inconsistency in target

aspirations within business units, which is most typical in

entrepreneurship. The discrepancy and contradictory interests of people who are

members of business units, can and does lead to destructive consequences for business units.

The most dangerous in this regard are the divergences between the goals of the entrepreneur and the members

collectives of business units, covered by demagogic assurances

entrepreneurs that they act in the interests of the team. True goals

entrepreneurs turn out to be veiled, hidden,

the entrepreneurial unit loses its goal orientation and, instead of

organize and orient it towards achieving common goals, introduce disorganization,

lead to low operating efficiency, and even to destruction and bankruptcy

business units.

The decisive condition for the development of business units is unity of goals

entrepreneur and team members. Naturally, achieving complete compliance with goals is not possible. But there must be a harmony of interests, a certain level of coincidence of goals for all participants

entrepreneurial activity, the transition beyond which is unacceptable.

The goals of entrepreneurs depend on the external environment, and vice versa, the choice of external

The entrepreneur's environment depends on his goals.

The goals of any business unit (since social and

economic processes) are significantly related to the needs of people and their

satisfaction. Any economic entity, starting from the individual

entrepreneur, small enterprise and ending with the country's economy, functioning,

acts in the name of human consumption. As you know, a need is a need,

the need for consumption, use of a certain amount of goods and services,

ensuring livelihoods and bringing people satisfaction of their desires. IN

ultimately – it is the satisfaction of quantitatively and qualitatively changing

people's needs and constitutes the main goal of the economy, and therefore

entrepreneurial activity.

Purposes of a business unit (excluding corporate structures)

have a limited time horizon. For example, for an entrepreneur,

implementing the idea of ​​producing innovative products, the goal of which is to raise

business organization to the level necessary for its profitable sale

(to bring another entrepreneurial idea to life), time horizon

limited to the moment of sale or merger, since after this new resources appear

and new perspectives.

Goals can be short-term or long-term.

Long-term goals are achieved over a long period of time. That's why

they, aimed at maintaining and increasing profitability, must be supported

decisions to provide resources for long-term needs such as

research and development (R&D), creation of new production facilities and

acquisition of equipment, personnel training.

If the behavior of an entrepreneur were determined solely by immediate

goals, such costs would be unjustified. Therefore it is important that

long-term goals aimed at maintaining and increasing profitability,

were installed at the end of a short-term development period.

Short-term and long-term goals assess product and market opportunities in

industry and economy. But in life there are also unforeseen circumstances,

the probability of which may be relatively low and the impact on profitability

entrepreneurial unit is huge. This influence can be either negative,

leading to catastrophic consequences (the war in Iraq brought significant

losses for companies that have invested in this country) and positive,

opening up broad prospects for the business unit, for example

the default in 1998 “played into the hands” of, for example, producers of dry construction mixtures.

Insurance can reduce risk and innovation can create breakthroughs. For

To achieve this, it is necessary to set another goal - the flexibility of the business unit.

Flexibility can be external, which is achieved by using diversification

impact-minimizing commodity-market investment models and flexibility

internal, expressed in the liquidity of the resources of the entrepreneurial unit.

Any goal as a criterion of success (or failure) consists of three elements: a certain

an attribute designed to verify the fulfillment of a criterion, measurement device or

scale for estimating the magnitude of the attribute and tasks certain value, scale

which the business unit seeks to achieve.

If we take as the main goal of an entrepreneurial unit its attribute -

stimulating and satisfying society's demand for its specific needs

members, then the means of measurement will be the rate of profit over the entire time horizon, and

The task is to optimize this norm.

Profit is an assessment of success and a psychological incentive for an entrepreneur,

indicator of the efficiency of resource use and assessment of investment

opportunities, and, accordingly, a source of entrepreneurship development. Exactly

therefore, an entrepreneur needs to focus his efforts on those factors

that produce profit (and not on profit itself).

To achieve goals, specific tasks are identified and solved

entrepreneurial activity within the framework of current or future policies

entrepreneurial units, which determines the directions and methods of implementation

entrepreneurial activity, its style. All this ensures effective

behavior of business units in existing or changing conditions

environment.

The main goal of intra-company entrepreneurship is to stimulate and

meeting the demand of society for the specific needs of society within the framework

existing commercial organization, and the main goal of the intrapreneur is

maximizing business opportunities in the current

commercial organization.

The goals of intra-company entrepreneurship are formed in the conditions of internal

environment of a commercial organization under the influence of the external environment. It could be:

---------------- need to obtain funds for sustainable development

commercial organization;

---------------- need to create a resource base for future development

commercial organization;

---------------- desire to receive additional profit to the existing one (Fig. 1.10).

The purpose of intra-company entrepreneurship is also to ensure

interests of the organization and the intrapreneur who put forward and implemented

entrepreneurial idea.

To develop intra-company entrepreneurship in an existing organization

traditional type, it is necessary to ensure the entrepreneurial spirit and mechanism

implementation of its capabilities, activities that create conditions for

entrepreneurial activity.

An intrapreneur's responsibilities may include:

​implementation of opportunities to improve products (works, services) that shift

demand curves;

---------------- search for new methods of organizing production and new technologies (affecting

on cost curves);

---------------- development of completely new types of products (works, services), creating

new markets characterized by completely new supply and demand curves.

The main objectives of the development of intra-company entrepreneurship are

creating situations that maximize creative activity, and implementing

innovative abilities.

Problems of entrepreneurial activity and their solutions that contribute to

achieving your goals can be divided into three areas.

creation of economic organizations (firms) using their own or borrowed money for the purpose of producing goods or providing services and generating income on this basis.

Excellent definition

Incomplete definition ↓

ENTREPRENEURSHIP

a form of manifestation of social relations arising as a result of the initiative activities of individual or collective economic entities in the spheres of production, distribution, exchange and consumption of material and spiritual goods, aimed, as a rule, at obtaining profit (income) and carried out on their own behalf, at their own risk and under your own property responsibility.

Recognized researchers of the phenomenon P. - J.S. Mill, A. Marshall, J. Schumpeter, J.B. Say and others believed that the specificity of this phenomenon, in contrast to economic activity as such, lies in the implementation of new combinations of factors of production and circulation. The logically completed version of this approach is reflected by the position of von Hayek, who considered business as the activity of a unique type of business executive - an entrepreneur, for whom the main thing is the analysis and use of various opportunities for the production of new goods, the discovery of alternative sources of raw materials, sales markets, new ways of organizing production, etc. .d. Thus, entrepreneurial behavior appears to be, to one degree or another, the innovative behavior of social actors in the production of a wide range of goods and their subsequent operation.

Depending on the level of the entity through whose activity entrepreneurial activity is carried out, a distinction is made between state and private ownership. The former is a form of government influence on the development of private initiative and also includes the entrepreneurial activities of state-owned economic entities. The second is the amateur activity of individual and collective economic entities of non-state ownership. Both types of production perform special functions in society, and the method of their interaction largely determines the production structure of the macroeconomic system.

Back in the 1920s, A. Pigou came to the conclusion that direct government intervention in the activities of enterprises, targeting them to produce goods that are urgently needed by society, is advisable only in extreme conditions (for example, in a state of war), when the economic costs of gross government intervention are not are taken into account. When society emerges from a crisis situation, the task of maintaining an optimal production structure comes to the fore, which is achieved by limiting state entrepreneurship and strengthening private business activity. The noted pattern of preference for private initiative to maintain an optimal production structure with the general regulatory role of the state remained true by the beginning of the 21st century.

World Bank studies in 76 countries have shown that with the minimum size of state government (if state enterprises produce less than 7% of GDP), the rate of economic growth reaches maximum values, and, on the contrary, with an increase in the scale of state government, the rate of economic growth falls. The essence of this pattern lies in the lower efficiency of state-owned enterprises compared to private ones, which was revealed in a number of international and domestic socio-economic studies.

In the Republic of Belarus, since the second half of the 1980s, pricing has gone through three main stages in its development: 1) cooperative pricing (1988-1991), in which the main source of business income was the use of the difference between state and free prices; 2) P. in conditions of free pricing (1992-1995), when there was a rapid growth in entrepreneurial activity, and entrepreneurs themselves began to recognize themselves as a social stratum with their own economic interests; 3) P. under conditions of centralized state regulation (from 1996 to the present). At this stage, large-scale entrepreneurial activity in Belarus is possible only with the direct paternalistic support of government authorities. However, in the initially market entrepreneurial sphere, the possibilities of using administrative-command management methods are limited, therefore, it is advisable to lay pre-adapted economic management methods as the basis for regulating entrepreneurial behavior. At the same time, the effectiveness of state policy in the field of private equity is determined by the organic coordination of the economic interests of entrepreneurs with national interests.

Excellent definition

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Entrepreneurial activity

Entrepreneur's actions and profits

Section 1. The concept of entrepreneur.

Section 2. Statements about entrepreneurship.

Entrepreneur- this is a person engaged in his own business, having his own business in order to make a profit or other benefit.

Concept of entrepreneur and entrepreneurship

Definition of an entrepreneur as proposed by Howard H. Stevenson, a professor at Harvard University. In 1983, in the article “A Perspective on Entrepreneurship,” he wrote: “Entrepreneurship is the science of management, the essence of which we can formulate as follows: the pursuit of opportunity without regard to the resources that are currently under our control.”

In the modern sense, an entrepreneur is a person who carries out entrepreneurial activities.

Each entrepreneur can have his own business or can help other entrepreneurs create businesses.

The right to entrepreneurial activity is one of the fundamental human rights and is protected by Art. 34 of the Russian Constitution. This constitutional right is in fact inseparable from the right to freely dispose of one’s property and carry out economic activities.

Therefore, citizens who engage in business sporadically without having any documents giving them the right to engage in this activity, for example, persons who resell goods, also call themselves entrepreneurs.

Entrepreneurial activity carried out by a person who is not registered as an entrepreneur or who does not have the right by law to engage in his chosen type of activity is illegal entrepreneurship and is subject to criminal prosecution.

Russian pre-revolutionary trade legislation called an entrepreneur a merchant. A merchant, from the point of view of trade law, was recognized as someone who was engaged in trade transactions in the form of a trade on his own behalf.

The legislation of other states knows the figure of a merchant. The status of a merchant is recognized for a person who carries out transactions and other business operations in the form of entrepreneurship on his own behalf.

In the former USSR, the figure of the entrepreneur first acquired legal recognition after the USSR Law “On Individual Labor Activity” came into force on November 19, 1986.

This Law allowed individual labor activity in the field of handicrafts, consumer services, as well as other types of activities based exclusively on the personal labor of citizens and members of their families. Documents certifying the right of citizens to engage in individual labor activities were registration certificates or patents issued for a certain period.

The Russian Law “On Enterprises and Entrepreneurial Activities” of 1991 established the right of citizens to conduct business activities both individually, without using hired labor, and by creating enterprises with the involvement of hired workers. Such citizens were registered as individuals engaged in entrepreneurial activities without forming a legal entity.

Entrepreneurship is an independent economic activity carried out at one’s own risk, aimed at systematically obtaining profit from the use of property and/or 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. Entrepreneurship and business are the most important attribute of a market economy, permeating all its institutions.

Can be carried out by a legal entity or directly by an individual. In many countries, in order to conduct business, an individual is required to register as a sole proprietor.

Entrepreneurship can be done in different fields. In addition to general entrepreneurship, there are social and technological entrepreneurship.

The efficiency of business activity can be assessed not only by the amount of profit received, but also by changes in the value of the business (the market value of the enterprise).

Forms of entrepreneurship

Individual

Collective:

General partnership

Partnership of Faith

Limited Liability Company

Additional liability company

Closed joint stock company

public corporation

State

Illegal entrepreneurship is especially highlighted.

According to the nature of the activity, they distinguish between production, trade and commercial, credit and financial, service (provision of services), etc.

To protect its interests, the business community, according to the law “On Non-Profit Organizations”, can form various associations.

Sources of start-up capital for starting a business can be:

Own funds.

For an individual entrepreneur - his personal funds and savings, his own property (premises, equipment, car).

For a legal entity - its authorized capital formed by the founders. Most often this is equity financing. Active participants in new projects are venture funds and business angels.

Loans from a bank or from individuals (debt financing).

Free assistance (grants or subsidies).

In addition, to help budding entrepreneurs there are government and public organizations, technology parks and business incubators.

Ludwig von Mises, Friedrich August von Hayek and other representatives of the Austrian school of economists did a lot to understand the nature of entrepreneurship. They considered entrepreneurship as one of the main resources (factors) of the economy along with land, labor, capital, information and time. Entrepreneurship typically aims to save time by reducing transaction costs.

American economist Joseph Schumpeter defined it as an entrepreneur: a person who tries to turn a new idea or invention into a successful innovation. In particular, entrepreneurship is a force of creative destruction that operates in markets and production while creating new products and business models. Creative destruction ensures dynamic and long-term economic growth.

Frank Knight and Peter Drucker, considering risk as an integral attribute of entrepreneurship, identified the following types:

statistical risk.

Knight's uncertainty or true uncertainty, which not only cannot be calculated, but also cannot be foreseen.

For example, before the advent of the Internet, it was impossible to estimate the market for existing successful projects such as Google or YouTube.

William Baumol studied the position of an entrepreneur who creates disharmony and causes rejection in the traditional market.

Business law is a complex integrated branch of law, a set of legal norms that regulate, on the basis of a combination of private and public interests, relations in the sphere of organization, implementation of business activities and management of it.

Proponents of the concept argue that the independence of this industry is due to at least three factors.

Firstly, entrepreneurial activity as a subject of regulation has a number of specific features that distinguish it from other spheres of human activity.

Secondly, in addition to the private sphere, there will be entrepreneurial activity in the public sector of the economy. Public entrepreneurship requires special legal regulation that goes beyond the traditional framework of private law.

Thirdly, in modern conditions, a specific form of relationship between the state and the market has formed, in which the regulation of business activity requires special methods, often alien to private law due to the fact that they are based on public law, authority principles.

The modern concept of business law as a branch of law, a branch of legislation, science and an academic discipline is based on the fact that the market in the classical sense and the state-regulated and socially oriented market in modern conditions (and this is precisely the task of forming a market economy) are not same.

Proponents of the concept argue that in addition to private business, there is and will continue to be business activity in the public sector of the economy. However, the point is not only the presence of a special form of entrepreneurial activity - state entrepreneurship, which requires special legal regulation that goes beyond the traditional framework of private law. In modern conditions, a specific form of relationship between the state and the market has formed, in which the regulation of business activities by methods of private law (traditionally, therefore, within the framework of civil law) is simply impossible.

The idea that this kind of relationship can be regulated within the framework of traditional private (civil) law will inevitably lead in legislative practice to one of two consequences: to the inclusion in the civil code of elements of a state, public legal nature that are alien to it, or to the idea of ​​regulating state entrepreneurship on non-market basis.

From this we can conclude that since civil law, as well as commercial law as a private law, organically does not accept the institution of a market-state economy, a state-regulated and socially oriented market, then, consequently, the need for the emergence of Business Law objectively arises.

The variety of points of view on entrepreneurship also determines its many definitions. In the encyclopedic dictionary of the entrepreneur, entrepreneurship is defined as a special type of activity aimed at increasing personal and social wealth. The integral essential features of entrepreneurship are:

freedom in choosing directions and methods of activity;

independence in decision making;

responsibility;

focus on obtaining commercial effect and probable profit.

American scientist, Professor Robert Hisrich defines entrepreneurship as the process of creating something new that has value, and an entrepreneur as a person who spends all the necessary time and effort on this, takes on all the financial, psychological and social risk, receiving a reward money and satisfaction.

English professor Alan Hosking states: “An individual entrepreneur is a person who runs a business at his own expense, is personally involved in the management of the business and is personally responsible for providing the necessary funds, makes decisions independently. His reward is the profit received as a result of entrepreneurial activity and the feeling of satisfaction that he experience from engaging in free enterprise, but at the same time he must assume all the risk of loss in the event of bankruptcy of his enterprise.

In a professional sense, entrepreneurship is considered as the ability to organize one’s own business and successfully carry out the functions associated with running one’s own business.

Currently, the process of forming the theory of entrepreneurship continues, which has already gone through three stages. The first stage, which arose in the 18th century, was associated with a focus on the entrepreneur's bearing of risk. The French economist of Scottish origin R. Cantillon in the 18th century first put forward the position of risk as the main functional characteristic of entrepreneurship.

The second stage in the scientific understanding of entrepreneurship is associated with the identification of innovation as its main distinguishing feature. The founder of this direction is one of the largest representatives of world economic thought, Joseph Schumpeter (1883-1950).

In his innovative works, I. Schumpeter considered the entrepreneur as a central element of the mechanism of economic development. In his opinion, the basis of economic development is the special function of the entrepreneur, manifested in the desire to use a “new combination” of factors of production, which results in innovation. I. Schumpeter identifies three target motives in the activities of an entrepreneur:

need for dominance, power, influence;

the will to win, the desire for success achieved in the fight against rivals and with oneself (“the need for achievement” - this is how the American psychologist D. McClelland later described it);

the joy of creativity that comes from doing things yourself.

The third stage is distinguished by focusing on the special personal qualities of the entrepreneur (the ability to respond to changes in the economic and social situation, independence in choice and decision-making, the presence of management abilities) and on the role of entrepreneurship as a regulating principle in a balancing economic system.

The ideas of L. Mises and F. Hayek were developed by the American economist I. Kirzner, who sees the main role of the entrepreneur in achieving such regulation of the system, in adjusting it in such a way that would ensure the movement of markets to a state of equilibrium, i.e. the entrepreneur is "balancing" force.

The current stage of development of the theory of entrepreneurial function can be attributed to the “fourth wave,” the emergence of which is associated with a shift in emphasis to the managerial aspects of the analysis of entrepreneurial actions, and, consequently, with the transition to an interdisciplinary level of analysis of entrepreneurship problems.

Currently, theoretical research pays attention not only to entrepreneurship as a way of doing business on an independent, independent basis, but also to intra-company entrepreneurship

Entrepreneurship is a special type of economic activity (by which we mean expedient activity aimed at making a profit), which is based on independent initiative, responsibility and an innovative entrepreneurial idea. Economic activity is a form of individual participation in social production and a way of obtaining financial resources to ensure the livelihoods of himself and his family members. This form of individual participation in social production is one social functional duty or a combination of them, when he acts as the owner of any objects, real estate, etc., that bring him a constant and guaranteed income.

Entrepreneurship acts as a special type of economic activity, because its initial stage is associated, as a rule, only with an idea - the result of mental activity, which subsequently takes on a materialized form.

Entrepreneurship is characterized by the obligatory presence of an innovative moment - be it the production of a new product, a change in activity profile or the founding of a new enterprise, a new production quality management system, the introduction of new methods of organizing production or new technologies.

Entrepreneurship as a special form of economic activity can be carried out both in the public and private sectors of the economy. In accordance with this, they distinguish:

public entrepreneurship;

private entrepreneurship.

State entrepreneurship is a form of carrying out economic activity on behalf of an enterprise established:

state management bodies that are authorized (in accordance with current legislation) to manage state property (state enterprise);

local government bodies (municipal enterprise). The property of such enterprises is a form of segregation of part of state or municipal property, part of budgetary funds, and other sources.

An important characteristic of such enterprises is the fact that they are liable for their obligations only with property in their ownership (neither the state is liable for their obligations, nor are they themselves liable for the obligations of the state).

Private entrepreneurship is a form of carrying out economic activity on behalf of an enterprise (if it is registered as such) or an entrepreneur (if such activity is carried out without hiring labor, in the form of individual labor activity).

Of course, each of these types - public and private entrepreneurship - has its own distinctive features, but the basic principles of their implementation largely coincide. In both cases, the implementation of such activities requires initiative, responsibility, an innovative approach, and the desire to maximize profits. The typology of both types of entrepreneurship is also similar.

Entrepreneurship as a form of initiative activity aimed at generating profit (entrepreneurial income) involves:

carrying out intermediary functions, i.e. providing services related to the promotion of a product to the market and its transfer in an appropriate (socially acceptable) form from the direct manufacturer of such a product to its consumer.

Sayings about entrepreneurship

The concept of “entrepreneur” was first introduced by the French economist Jean-Baptiste Say around 1800. J.-B. Say defined it this way: “The entrepreneur transfers economic resources from the sphere of low productivity to the sphere of high productivity and reaps the benefits.”

According to Vladimir Dahl, “an entrepreneur is an enterprising trader, capable of enterprises, large-scale turnover, a brave, decisive person, daring to do business of this kind.” The entrepreneurial function is the business of a private business person.

In the Economic Dictionary of F. A. Brockhaus and I. A. Efron, an enterprise is understood as “an enterprise the management of which is designed to generate income through the sale of products, in the form of sale or exchange. This feature distinguishes the enterprise from natural forms of farming, in which production is designed directly to satisfy the needs of members of the household. Pure natural forms of farming are becoming less and less common, as farms are gradually being drawn more and more into the exchange system.”

In the “Popular Dictionary” (1991), edited by G. Ya. Kiperman: “entrepreneurship is one of the effective means that help maintain incentives for highly productive work, business motivation. The real owner is always an entrepreneur, whether we are talking about an individual citizen or a work collective. Entrepreneurship includes any types of economic activity, unless they are prohibited by legislative acts of the Russian Federation and the republics.”

The textbook “Psychology of Entrepreneurship and Business” defines an entrepreneur as “a person of a certain personal make-up who, in his desire to make a profit, independently chooses the method of economic activity, bears property responsibility for its results, and at the first stage of his activity combines the functions of an owner of capital and a hired manager and the employee."

The Large Economic Dictionary (edited by A. N. Azriliyan) indicates that “an entrepreneur is a person who is engaged in entrepreneurial activities, seeks funds for organizing an enterprise and thereby takes on entrepreneurial risk. Entrepreneurial initiative is a form of production and sales management, including the development of new competitive ideas as a permanent process, the prompt implementation of the most fruitful ideas and the organization of a system of measures for the fastest and most effective sale of new products obtained using new technology.”

S.I. Ozhegov wrote in the “Dictionary of the Russian Language”: “an entrepreneur is a capitalist, the owner of an enterprise, a major figure, an enterprising and practical person.”

In “The Book of a Business Person,” edited by T. A. Krayukhin and E. S. Minaev, “scientific entrepreneurship is a form of activity in the field of creating scientific and technical products and providing services in order to obtain the greatest possible profit.”

Howard H. Stevenson, a professor at Harvard University, wrote in his article “Entrepreneurship Perspectives”: “Entrepreneurship is the science of management, the essence of which we can formulate as follows: the pursuit of opportunity without regard for the resources that are currently under our control. "

The current Civil Code of the Russian Federation calls such citizens individual entrepreneurs.

Sources

Wikipedia – The Free Encyclopedia, WikiPedia

scheme.rf – Schemes

bestreferat.ru – Abstracts

Terms and definitions of entrepreneurship.

LECTURE NOTES

Energy

The chemical industry is one of the most energy-intensive industries.

The chemical industry uses various types of energy: electrical, thermal, nuclear, chemical and light energy.

Electric is used to drive electric motors. It is produced by hydroelectric power plants, thermal and nuclear power plants.

Thermal energy is used to carry out diverse physical processes that are not accompanied by chemical reactions (melting, drying, evaporation). A variety of fuels serve as a source of thermal energy; when burned, fuel gases are formed.

Nuclear energy is used to produce electrical energy in nuclear power plants.

Chemical energy is used in the production of large-scale chemical products. Chemical energy is usually released in the form of heat during various exothermic reactions.

Light energy is used to carry out a variety of photochemical reactions.

Let's consider the comparative characteristics of various energy sources in kWh/kg:

Hard coal – 8.0

Peat – 4.0

Natural gas – 10.6

Uranium – 22.5∙10 6

Thermal energy, the source of which is a variety of fuels, occupies a large place in the energy balance of chemical processes.

At the same time, fuel or fuel components in most cases serve as raw materials for the chemical industry.

Topic 1. CONTENT OF BUSINESS ACTIVITY

Entrepreneurship, as one of the specific forms of manifestation of social relations, not only helps to increase the material and spiritual potential of society, not only creates favorable conditions for the practical implementation of the abilities and talents of each individual, but also leads to the unity of the nation, the preservation of its national spirit and national pride.

Behind the word “entrepreneurship” there is a “business”, an enterprise, the production of a product (useful thing) or service (intangible product). Entrepreneurial activity is often called business.

The word “business” is spread all over the world. Modern economic theory distinguishes two concepts: “business” and “entrepreneurial activity”. "Business" in English means business. Dictionaries clarify what kind of business we are talking about: this means economic activity, an activity that produces profit. “Businessman”, accordingly, is a businessman, a person seeking profit. It is easy to see that the words “business” and “businessman” are very close in meaning to the concepts of “entrepreneurship” and “entrepreneur”. In Russian practice, they can be considered synonyms, especially since the words “business” and “businessman” are absent in the Civil Code of the Russian Federation.

The business formula is simple: D - D 1 - a businessman invests money D in the business and upon completion of the business receives D 1, money with an increase, ᴛ.ᴇ. with profit.

The general scheme of entrepreneurship is shown in Figure 1.1.

Figure 1.1 – Business scheme

F – factors-resources of entrepreneurship;

D F – payment for the use of factors;

T – the final result of entrepreneurial activity;

D T – revenue from the sale of the result.

However, a number of economists make the following distinctions between these concepts. The difference lies in the motives for doing business and the motives for doing business.

In the first place among the motives for doing business, personal enrichment is given, and in the first place among the motives for doing business is human self-realization. The second place among the motives for doing business is the desire to take risks and play in the market; the second place among the motives for doing business is personal enrichment.

Based on the above, business is an economic activity that produces profit, and this profit goes only for personal enrichment. Entrepreneurial activity also ultimately gives profit to a person, but he divides this profit into two parts: the first goes to personal enrichment, and the second (often large) goes to the development of the business. That is, entrepreneurial activity is an activity related to the search for new markets, new technologies, new areas of capital investment.

Innovative ideas are at the heart of entrepreneurial activity. An innovative type of thinking distinguishes an entrepreneur from a businessman. An equally important difference between an entrepreneur and a businessman is the focus on the consumer, on meeting the needs of the market, and not on one’s own enrichment. By satisfying the growing needs of the population for this or that product, for this or that service, constantly improving and modifying the product, the entrepreneur realizes self-realization and, as a result, makes a profit for himself.

Since ultimately an entrepreneur expects to receive profit or income, any type of activity that generates income can be called entrepreneurial.

Today there is no generally accepted definition of entrepreneurship in the world. There will be great difficulties in defining the concept of “entrepreneurship”, since this will require studying its content from a historical perspective, from a sociocultural aspect, from the point of view of motivation and influence on social development.

Today there is quite a significant number of scientific works and special literature devoted to the problems of entrepreneurship. It is studied in economics and law, sociology and psychology, history and philosophy, ethics and cultural studies, as well as a number of other scientific disciplines.

Interest in the study of entrepreneurship in our country has grown significantly today. And this is largely due to the development of market relations, the construction of civil society and corresponding changes in the system of social relations. And no matter how large the amount of published literature is, there are just as many different interpretations of this phenomenon. The palette of definitions of the concept of “entrepreneurship” is quite wide: from an everyday designation, where anyone working in the non-state sector of the economy can be considered an entrepreneur, to a more complex one, where entrepreneurship is defined as “a type of activity that successfully combines science, art, poetry, the rise of creative thought, a degree of moderate risk, sports and the lifestyle of a business person.”

To identify the essence of the concept of “entrepreneurship,” we present a number of its definitions (Table 1.1).

Table 1.1 – Diversity of opinions in the definition of the term “entrepreneurship”

The variety of definitions of entrepreneurship is due to the peculiarities of this phenomenon, which consists in the high dynamics of variability of its content and forms. All these definitions in one way or another demonstrate the distinctive features of the phenomenon of entrepreneurship itself, entrepreneurial behavior, and are characteristics of the social portrait of an entrepreneur and the motivations for his activities.

Some authors point to the lack of a clear definition of this term, interpretation of its content, point to the vagueness of its definition, which makes it possible to identify an entrepreneur with a manager, businessman, etc.

Other researchers consider it important to note that entrepreneurship is a developing phenomenon, and in it there is also a division of labor and the formation of corresponding specific groups.

The role of the entrepreneur in the world in the historical aspect is undoubtedly changing, as well as the idea of ​​him and the content of this concept is changing. In particular, in each country it can have its own content, reflecting the specific socio-cultural characteristics of the development of a given society. The literature indicates the origin of the term “entrepreneur” from the famous English economist Richard Cantillon, who developed one of the first concepts of entrepreneurship. In his understanding, an entrepreneur is, first of all, “a person operating under conditions of risk,” since all categories of workers that he classifies as entrepreneurs: traders, farmers, artisans, act under conditions of risk - they buy at a known price. price, but are sold at an unknown price.

The end of the nineteenth and beginning of the twentieth centuries can be characterized by the fact that the concept of “entrepreneur” was identical to the concept of “manager”. At this time, the greatest emphasis is placed on the economic aspect of entrepreneurial activity: an entrepreneur is considered to be one who organizes and manages an enterprise for personal gain, and at the same time bears responsibility for any losses, including those that occur through no fault of his own. And only by the middle of the twentieth century there was a distinction between these concepts. An entrepreneur works in an unstructured environment characterized by rapid change, while a manager operates within an established management hierarchy. A manager is characterized by goal-orientation in actions, dictated by the strict logic of development and preservation of existing organizational and economic structures, and an entrepreneur has the possibility of unique goal-setting and designing activity goals.

If the entrepreneur is focused on finding new opportunities for the development of the enterprise, then the manager is focused on the implementation of the plan and the efficient use of available resources. The success of entrepreneurial activity is determined by his ability to quickly navigate and act, and the activity of a manager is determined by his commitment to the established order. An entrepreneur strives for flexible use of funds, looking for opportunities to temporarily attract them, while a manager is interested in accumulating and inflating funds. The organizational structure of a managerial enterprise is, as a rule, characterized by a hierarchy with strict observance of subordination, while in an entrepreneurial organization, on the contrary, horizontal connections, including predominantly informal ones, are more developed.

It can be said that since the mid-twentieth century, the concept of an entrepreneur generally corresponds to its main today's interpretation. This is an innovator. Innovation, the ability to invent, is characteristic of any person, which distinguishes him from the animal world, and yet this trait is considered as an integral characteristic of entrepreneurial activity.

In Western literature, entrepreneurship is often associated with the capitalist mode of production and the desire to maximize profits; it is generally of an economic nature. Entrepreneurship can be interpreted as everything new that is not prohibited by law and brings profit. In this understanding, it can be considered synonymous with the concept of “business” - making money from money through useful productive activities.

The specifics of the Russian state can be determined by the fact that by the beginning of the revolution, capitalist relations could not be called developed in comparison with the West. At present, they have only just begun to develop after a long period of denial of their positive impact on social development. Russia has been weaned off entrepreneurship for 70 years. In this regard, the concept of entrepreneurship may already have a significant difference from its foreign understanding.

Until the recent past, ordinary people could describe an entrepreneur as a “mafia”, “a businessman who came out of the underground”, “an element associated with the criminal world” who is “cruel to strangers, but generous to his own”, he is “integrated into the structures of power”, “poorly educated and prone to liking women and alcohol.” To date, the concept of “entrepreneurship” has been legalized and used in legislative acts (the Law of the Russian Federation “On Enterprises and Entrepreneurial Activities”, the Civil Code of the Russian Federation, etc.).

“Entrepreneurship” is a key category in the development of modern society, state and economy. The term “entrepreneurship” was first used in economic publications in the 18th century in the works of the French economist R. Cantillon. Fundamental provisions on entrepreneurship were formulated in the works of classical economists of the 18th-19th centuries and reflect a wide range of theoretical approaches to the definition of entrepreneurship, an entrepreneur as an economic entity, carrying out quite risky activities that connect various factors of production and types of activities and involve a variety of methods to achieve assigned tasks.

In modern economic literature, there are various interpretations of this complex category, however, it should be taken into account that most of the interpretations proposed in the literature are of a subjective-semantic nature and are almost the same in terms of content. In this regard, we can propose the following (fairly general) interpretation of this category: entrepreneurship is an initiative independent activity of citizens aimed at generating profit or personal income, carried out under personal property responsibility or on behalf and under the legal responsibility of a legal entity. As a rule, the term “entrepreneurship” is interpreted as a specific form of combining various factors of production by a business entity.

The concept of “entrepreneurial activity” is defined in regulatory documents and is contradictory from both an economic and legal point of view. Their interpretation does not reveal what kind of activity can be considered entrepreneurial. In particular, the legal aspects of relations between entrepreneurs (mutual benefit) in the process of doing business are not fixed. The emphasis is on making a profit without an economic justification for the origin of costs, which causes discrepancies in the legal acts that define and regulate business activities.

Based on the definition of entrepreneurship contained in the Civil Code and the semantic content of this discipline ensuing from this definition, as well as taking into account the specific economic conditions in our country during the transition to a market economy, we can form the following ordered idea of ​​entrepreneurship as an object of study. Analysis of the definitions of entrepreneurship, which are given in works on this topic, allows us to identify its most general features (Figure 1.2).

Figure 1.2 – Main features of entrepreneurial activity

These include:

– presence of personal initiative;

– creating your own business for the purpose of making a profit;

– responsibility, primarily financial, for the results of activities.

Not every small business is entrepreneurial. To be entrepreneurial, an enterprise must have special properties in addition to being small and new. An entrepreneur is characterized by the fact that he tries to create something new and different from what already exists, changes and transforms value systems.

Another characteristic feature of entrepreneurship lies in its belonging to relatively short-term, tactical methods of action. Entrepreneurship in the narrow sense of the word does not directly refer to an economic strategy designed for a long-term period. At the same time, entrepreneurial ideas and individual pockets of entrepreneurship may be present in strategic projects. So, for example, if a long-term project has as its main goal making a profit, involves risk and responsibility, and is not based on trivial ideas, it can rightfully be considered entrepreneurial. Moreover, in most cases, entrepreneurial actions fit into relatively short-term transactions.

As an academic discipline, “entrepreneurship” can be considered as a synthesis of a number of subjects, each of which is an integral part of it and allows us to illuminate a very voluminous and complex problem from different angles. With this approach, the main sources feeding the academic discipline “Organization of Entrepreneurial Activities” naturally include economics, management and marketing.

Business activities are carried out and organized at a certain time (the time of business activity), called the duration of the business operation. The faster the operation occurs, the more the turnover of working capital accelerates, costs are reduced and, consequently, the profitability (profitability) of business activity is higher.

To become an entrepreneur, it is not enough to own a certain amount of money or a set of means of production; you need to properly manage them so that they can bring D, profit.

What should a new entrepreneur know and be able to do? He must know how entrepreneurial activity is carried out, in what order practical actions are carried out, what obstacles await a businessman on his way, what mistakes he can make and what chances of success he has. An entrepreneur must be able to prepare a business, organize production, and sell a product. He must be able to assess specific market situations, make the right choice, be able to make independent decisions, and must rely only on himself.

However, behind the words “entrepreneur” and “entrepreneurship” there is an enterprise, ᴛ.ᴇ. a complex and significant matter.

An enterprise in Russia is usually understood as an independent economic entity created in the manner prescribed by law to produce products, perform work and provide services in order to meet public needs and make a profit. The enterprise independently carries out its activities, manages its products, the profit received, the remainder after paying taxes and other obligatory payments. The main features of the enterprise are:

– a certain isolation;

– legal status;

– name of the enterprise and its organizational and legal form.

The enterprise, therefore, is an independent economic entity with the status of a legal entity and separate property.

The activities of an enterprise (any business) are regulated in Russia by the following set of documents: Civil Code, Law “On Limited Liability Companies”, Law “On Joint-Stock Companies”, Law “On the Protection of Consumer Rights”, Resolution “On Licensing of Certain Types of Activities” , Law “On Production Cooperatives”, Law “On Cooperation”, etc.

The concept of “entrepreneur”, “entrepreneurial activity”, legal relations between entrepreneurs can be studied in chapters 1-4 of the Civil Code.