The essence of entrepreneurship and its feature
Entrepreneur - a person (or group) who assumes the risk and responsibility for the organization and management of the firm.
Entrepreneurship is an activity that is related to an equity investment in order to profit from a combination of self-interest with the common good.
Entrepreneurship as a method of management - the activity of citizens initiative, aimed at making a profit or personal income, carried out on their behalf and on their own financial responsibility, or on behalf of and under the legal responsibility of the legal entity.
Entrepreneurship as a specific type of economic thinking - a collection of original views and approaches to decision-making, which are implemented in practice. They are characterized by qualities such as high organizational skills, initiative, creativity, initiative, penchant for innovation and skills.
Business entities can be as individual private citizens and their associations. Individuals as business entities serve in that capacity, as a rule, by organizing individual or family business. Associates can act in different legal forms.
The main features of the business are:
• autonomy and independence;
• economic interest in obtaining the greatest possible profits;
• Economic risk and responsibility.
For the formation of business requires certain economic, legal, social and other conditions.
Economic conditions. First, the supply of goods and the demand for them, the types of products that can acquire customers, amounts of money, etc.
Legal conditions. Any business of operating within the relevant laws that govern it, create the most favorable conditions for the development of (tax and customs legislation, the opening and registration of companies, etc.).
Social conditions. At different stages of buyers desire to purchase a particular product depends on the level of their culture, taste, fashion, and other factors that may result in changes of the demand for a particular product.
All variety of business activities can be classified according to various criteria: type of activity, type of ownership, number of owners, organizational and legal forms.
By activity - production, commercial, financial, advisory.
By ownership - private and public.
According to the number of owners - individual and collective.
The basic legal forms of business are: partnership, society, cooperatives.
A partnership is an association of individuals, created to conduct business. The following types of partnerships: general partnership, limited partnership and limited partnership.
Cooperative - created by a group for the joint venture activity. Mandatory co-op is a personal labor or any other part of its members, as well as the union of its member’s property shares.
Company created by agreement of natural or legal persons by combining their contributions through the issue or sale of shares for the purpose of economic activity.
However, there are a number of factors affecting the development of small business.
One of the biggest obstacles to the development of small business is the lack of sufficient financial resources for investment and working capital needs of small businesses. Banks due to lack of financial sustainability of small businesses and low liquidity of the collateral must bear the cost of risk for credit by increasing the interest rate on loans. At the same time, low technological level of small business is not conducive to the economic efficiency of the small business sector due to the low productivity of their labor and curbs lending to small businesses secured by assets.
Other factors that impact on the development of small business is the lack of a system to improve the current legislation regulating the activities of small businesses, which leads to increased administrative barriers.
In order to further the development of small business in Kazakhstan Head of State identified key areas to support small businesses in the nearby future.
State program of development and support of small business in the Republic of Kazakhstan provides for the creation of conditions for the further development of small business, based mainly on the production of consumer goods, building materials and products, the creation and development of high-tech and innovative industries, improving the quality of products.
The main directions of the Program are:
1. Improving the tax system for small businesses.
2. The development of the system of financial, credit and investment support for small businesses.
3. Infrastructure development of small business.
4. Human, informational, scientific and methodological support and promote small business.
5. Inventory and systematization of the legal framework governing business.