Contents of entrepreneurship business concepts. How business differs from entrepreneurship, how to generate business ideas correctly

MINES 2009

In the discipline Management

COURSE WORK

topic: Types of management

Developed (signature) A.P. Ivanov

group T-431

Head (signature) V.F. Vodorezova

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Business is a historically enduring phenomenon.

Within this concept, several areas can be distinguished:

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

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

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

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

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

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

Table 1.1. Business concepts

Business (business - “business”, “enterprise”) - activity aimed at making a profit; any type of activity that generates income or other personal benefits. In Russian, the words business and entrepreneurship are synonymous. They are the most important attribute of a market economy, permeating all its institutions.

Business, entrepreneurship is an 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 this capacity in the manner prescribed by law. 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).

Business is a clear system for making money. As soon as clarity disappears and a business becomes unsystematic and chaotic, it turns into a bazaar. Business should always be an established system that always works smoothly.

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

Business is people. These are relationships between people and between people. Business begins and ends with people. It exists for people. Your clients, your employees, your partners and you yourself are people. A person is a business unit. Minimum active unit. Because one person generates demand, while another satisfies it. Business is always a balance of supply and demand, always harmony in the market. Business is the reaction of some people to the needs of others.

Business is a special type of activity in which not everyone can succeed. It requires a strong character and proper endurance, a willingness to work hard and take risks.

ESSENCE OF BUSINESS

The essence of a business is what it was organized for. First of all, this is profit to meet your own needs, as well as to obtain start-up capital for the implementation of another, larger business idea.

The essence of business involves economic growth. Each business project separately is part of a single whole called the country’s economy. That is why business is supported at the state level. This is especially true for small and medium-sized businesses. This includes preferential taxation schemes, lending, etc.

From the point of view of each enterprise, the main goal of activity is to generate income, for which various effective schemes are used. From the state's point of view, the essence of business is to create a powerful and stable economy. These goals are interconnected, because without a stable economy, effective business is impossible, just as without business, an effective economy is impossible.

BUSINESS FUNCTIONS

The essence of a business can be reduced to its performance of several functions. In a developed market economy, it performs the following functions: pricing, creative search (innovation), resource, logistics, social, organizational.

One of the most important functions of a business is pricing. The essence of pricing comes down to setting the price of a product or service, the size of which depends on a number of factors: cost, competitors’ prices, the ratio of supply and demand. This business function also includes the formation of a system of discounts and price correction. The pricing policy and the establishment of discounts and surcharges are the responsibility of the marketing department.

Without an innovative function, an organization will inevitably lose its competitiveness and lag behind the average market pace of development. It is associated with the use of new ideas in the process of entrepreneurial activity, with the development of new means and factors to achieve set goals, as well as with all other functions, complementing them. Innovations can relate to various areas of an organization’s activities: the formation of a product range, technology for working with clients, organizational structures, etc. To always be in the ranks and at the top, an entrepreneur must constantly be aware of innovations.

The resource function of a business is the most important. The development of entrepreneurship involves the effective use of both reproducible and limited resources. Resources should be understood as all material and intangible conditions and factors of production, of course, first of all, labor resources, land and natural resources, all means of production and scientific achievements, as well as entrepreneurial talent.

The function of logistics for a business is to carry out actions aimed at acquiring raw materials, machinery, equipment and other assets used in production activities. The production function processes raw materials and other assets into a product for sale to consumers.

The social function of business lies in the opportunity for every capable individual to be the owner of a business and to better demonstrate their individual talents and capabilities. This function is increasingly expressed in the formation of a new layer of people - enterprising, inclined to independent economic activity, capable of overcoming environmental resistance and achieving their goals. Business development ensures the flow of funds into budgets of various levels, the growth of jobs, the reduction of unemployment, and the strengthening of the social position of employees.

The organizational function of business is manifested in entrepreneurs making independent decisions about organizing their own business, its diversification, in the formation of entrepreneurial management, the creation of complex entrepreneurial structures, changing the strategy of a business firm, etc.

BUSINESS CLASSIFICATION

Business classification is carried out according to various criteria: by form of ownership, by the nature of activity, by the origin of capital, by industry, by degree of subordination, by the volume of products produced.

By type of ownership:
a) an individual business based on the private property of an individual and on his labor;
b) family firms;
c) rental, based on lease agreements for property necessary for the tenant to carry out business activities;
d) private business, which is based on the property of individual citizens with the right to hire workers;
e) collective enterprises founded by combining the capital and property of various business entities, including foreign citizens;
f) state-owned enterprises and institutions based on national property.

By nature of activity:
a) commercial business, which is based on entrepreneurial activity;
b) non-profit business (exists at the expense of the state budget and is financed by the state).

By origin of capital: national, foreign (capital, respectively, only foreign), mixed.

By industry, business is divided into: industrial, agricultural, transport, trade, trade intermediary, innovation.

Based on the degree of subordination, a business can be divided into main and subsidiary companies and their branches:
a) the main companies control the activities of their subsidiaries;
b) subsidiaries are independent, but controlled (the controlling stake belongs to the parent company) to the main enterprises, independently and on their own behalf they carry out their activities;
c) the branch, unlike subsidiary companies, does not have legal independence and freedom of activity; almost the entire capital of the branch belongs to the parent company.

Based on the volume of products produced and the breadth of their sphere of influence, businesses can be divided into: small, medium and large.

Small business in the modern Western economy forms the largest sector of the economy, where more than half of all employees find work. The most typical form of small business has become the franchising system (from franchise - preferential).

Franchising is the acquisition of the right to use a ready-made business system. This is a type of business in which a well-known company provides clients with its technology and its brand. Such contracts turn out to be mutually beneficial: small firms receive patronage, loans, and a trading zone from large corporations, and the latter save money by not spending it on selling their own products, and in addition, they receive regular payments from their wards.

Small business is called upon to:
a) without significant capital investments, expand the production of consumer goods and services, primarily for the poorest segments of the population;
b) help equalize living conditions in various localities;
c) involve the material and financial resources of the population in production;
d) employ workers released from large enterprises.

The socio-political significance of small business is also great: it serves as the basis for the development of the “middle” class, which is the guarantor of stability in society.

International experience has convincingly shown that the development of small business is possible only if there is a targeted state policy towards small business, based on the need to develop this sector of the economy and understand the vulnerability of small enterprises compared to large ones, due to the very nature of their functioning. The state helps small businesses because it is necessary for both the state and the people.

Medium-sized businesses, despite the fact that they have to compete with both large and small businesses, play a significant role in the economy. In developed countries, the share of medium-sized businesses is at a comparable level. In Italy, medium-sized firms provide 21% of the total revenue of all firms in the country, and large ones - 45%. In Sweden, the share of revenue of medium-sized companies is 39%, and large companies - 44%. In Japanese industry, large firms account for 32% of production, and medium-sized firms account for 25%. In the USA, the ratio is completely skewed in favor of large businesses - 53% of GDP versus 13% for medium-sized businesses. In Russia, the revenue of medium-sized companies is related to the revenue of large companies as 45 to 55.

There are industries where medium-sized enterprises are the main producer. These are: food, light, furniture industries - medium-sized businesses occupy 80% of this set of industries here, construction - 77% of the entire industry, mechanical engineering - 61%, chemistry and production of non-metallic materials - 82%, science and education - 73% and agriculture - almost 100%. According to the structure of the average business itself, the six sectors of the economy mentioned above provide more than 40% of the revenue of the average business. Trade has an even larger percentage share.

Large business is an association of enterprises around a certain product group, technological chain or a common group of owners and senior managers. Its main feature is the ability to change the economic institutions of a certain sector of the economy, the national or even the world economy, and to influence the socio-economic environment. The main quantitative indicator of a large business is the volume of sales of goods and services (turnover), since the amount of profit and market capitalization largely depends on the adopted accounting system or the behavior of stock market players.

A large business is more durable than a medium or small one. Its monopoly position in the market gives it the opportunity to produce cheap and mass-produced products designed to meet the needs of the general consumer.

Large Russian businesses play the role of the locomotive of the national economy. It is still much more efficient than the majority of medium and small companies in terms of labor productivity, profitability, and, finally, growth rates. Due to its special position, over the years of reforms, large Russian businesses have concentrated the main cash flows in their hands. As a result, he was able to form fairly strong teams of highly paid, highly qualified managers.

The role of big business in the innovation sphere is especially noticeable: TNCs (transnational corporations) account for two-thirds of all spending on research and development of the US private sector. They also played a leading role in the formation of numerous innovation clusters, such as Silicon Valley in California, Route 128 near Boston and Research Triangle Park in North Carolina. TNCs are central to 79 global research clusters.

It should be noted that the role of large enterprises in the national economy is assessed ambiguously in economic theory. Some scientists believe that a large company is today the core of the economy of any state and it is it that determines the main directions and proportions of economic development. According to the opposite point of view, the disadvantages of large firms outweigh their advantages and thereby cause great harm to the economy as a whole.

As you know, 80% of money is in the hands of 20% of the world's population. These people started by opening, at a minimum, their own small business. According to Friedrich Nietzsche, a person who cannot devote 2/3 of a day to himself can safely be considered a slave. Almost the only way to free yourself from such slavery and earn money is to start your own business. You will never get much if you keep working for someone else. In order to open your own business, you first need luck and a very large stock of knowledge. Plus, it requires unusually high performance and perseverance. But first of all, you need a billionaire mindset. No matter how insignificant this quality may seem, without it, unfortunately, the likelihood of success of your business is very low. The mentality of a rich person (commonly known as “grip”) is a state of your consciousness in which you focus all your knowledge, skills, abilities, and connections on achieving your goal. In addition to luck, you need to choose the right niche in which you will be comfortable making money and which will be relevant, unique and competitive.

Business is a set of business relationships between enterprising people in order to satisfy consumer demand and make a profit.

Business can be carried out by individuals, businesses or organizations. In the course of business, natural goods are extracted, produced or purchased and sold in exchange for other goods, services or. In other words, business means any activity or business that generates income. A person doing business is a businessman.

The concept of “business” is closely related to the concept of “business”. They are often used as synonyms, but the content of these concepts has significant differences.

Entrepreneurship is characterized by finding new, more efficient ways to use resources, flexibility, and constant self-renewal. An entrepreneur is a person searching for and implementing new opportunities for the development and development of goods and services, finding the best ways to serve consumers, and new forms of investment of capital.

The definition of an entrepreneur given by the famous economist J. Schumpeter is characteristic: “To be an entrepreneur means to do not what others do... and not the way others do.” Consequently, entrepreneurship is unthinkable without innovation and creative search. This distinguishes it from ordinary business, which is understood as routine, monotonous activity with the aim of making a profit. For example, setting up another stall selling drinks or other goods is a business, but there is no entrepreneurship. Although quite often business is carried out on the basis of entrepreneurship and involves an entrepreneurial approach to organizing the business.

Thus, the concept of “business” is broader than the concept of “entrepreneurship” and not only in its content, but also in the composition of participants, because it covers the relations between all participants in a market economy and includes the actions of not only businessmen, but also consumers, employees, government agencies .

The world of entrepreneurship and business is structured according to its own special laws. It is full of surprises, failures and conflicts. Only those for whom entrepreneurship is life itself, a certain way of life, thinking, a way of interacting with people, organizations, finances, information, etc. can succeed in this world. Not a single university will teach you to passionately desire to start your own business, to become master of your destiny, maintain faith in yourself and your business in the event of mistakes, conflicts, competition in the event of disappointments, betrayals and bankruptcies.

A businessman must become a leader in order to attract people to himself, instill in them faith in success, and be able to support them in failures and lack of money. Today, it is possible to cope with a serious matter only by having a team of like-minded people, people united by a common idea, future [) o 3 M O J N O S T A M i.

It should be noted that anyone can engage in business - a small owner, a manager of a joint stock company, a tenant, a worker, etc. Either an individual or a group of people (collective entrepreneurship) can start their own business. However, what is common to all is initiative, the desire to gain benefits, the desire to take risks, and test oneself. By providing complete freedom to the worker, entrepreneurship gives him the opportunity to realize his energy, more fully reveal his creative potential and, on this basis, provide decent living conditions.

Summarizing the above, we can highlight the necessary (basic) and possible (secondary) properties of entrepreneurship. The necessary (basic) ones include organizational and economic innovation and economic freedom. Other characteristics (risk, decision making, resource ownership, leadership, etc.) are possible (secondary) properties of entrepreneurship.

Business goals are the key results that an enterprise strives for in its activities over a fairly long period of time. The goals of a business, depending on its nature, degree of development and condition, may be different. The most important of them are the following:

Receiving a profit;

Accumulation of necessary funds for business development;

Providing goods and services needed by society;

Achieving leading positions in the market and industry;

Optimal satisfaction of consumer demand;

Providing opportunities for your employees to realize themselves.

Based on business goals, tasks are set. They are closely

Interconnected. If a goal determines one or another specific area of activity, then the task is a quantitative, qualitative and temporal determination of this goal - For example, the goal of a business is to determine break-even work and make a profit, the task is to achieve a 10% level of profitability by the end of the first year of operation. Formulating goals and objectives allows you to better mobilize the forces and resources of the enterprise, to act more consistently and effectively.

Types of business determine the main areas of activity of the entrepreneur. As a rule, manufacturing, commercial and financial businesses are distinguished (their main characteristics are given in Table 1.1).

Being relatively independent, these types of activities can be components and complement each other.

The manufacturing business is the most difficult, especially in the conditions of modern Russian reality. Therefore, the overwhelming number of entrepreneurs rush primarily into commercial, trade and intermediary channels. However, as the political situation in society stabilizes and a market economy becomes established, the manufacturing business will take its rightful place, since it is it that is decisive for the development of the country’s economy.

In a manufacturing business, the function of producing goods, services, and works is the main, determining one, while others, for example, sales of products, play a secondary role and complement the main one. To carry out production, an entrepreneur must use its factors: labor, production assets, materials, information. The result of production and entrepreneurial activity is the sale to the buyer of a certain volume of produced goods (services) and receipt of cash proceeds for them.

Commercial business is characterized primarily by the fact that the decisive role in it is played by commodity-money, trade and exchange transactions, which express its main content. The basis consists of purchase and sale transactions, i.e., resale of goods and services.

Unlike a manufacturing business, there is no need to provide production resources associated with the production of products. The starting point in a commercial business is to determine what to buy, what to resell, and where. In resolving these issues, one should proceed from the fact that the selling price of the goods should be higher than the purchase price, and the demand for the offered goods should be sufficient to sell it in the planned volume of the transaction.

To be sure that these conditions are feasible, it is necessary to conduct thorough marketing research aimed at analyzing the market for goods and services of interest, as well as developing a forecast assessment of market conditions, determining which goods and services will be in greatest demand, what the purchase and sales prices will be.

One of the areas of commercial business is export-import operations, during which goods are purchased in one country and sold in another.

Financial business is a special type of commercial activity when the object of purchase and sale is a very specific product - money, currency, securities (stocks, bonds, bills, etc.), etc. Some money and securities are sold for others at prices that ensure profit. Financial business involves analyzing the foreign exchange market, the securities market, and conducting marketing research. The latter is associated with searching and attracting potential buyers and sources of funds.

Financial business is one of the most delicate and complex; it, like no other type, requires the availability of well-provided information and the provision of modern computing and organizational technology.

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

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

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

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

Communication with the state

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

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

Connecting business and society

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

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

Economists distinguish the essence of business in three directions:

source of income for owners and shareholders;

production of products needed by society;

providing employment to various segments of the population.

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

Business concepts

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

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

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

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