2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Entrepreneurship and business take the main place in the market system. One of the main functions of business is to regulate the economy of the state and maintain the level of jobs and taxation.
Definition
Many mistakenly imagine business as a system of buying and selling any goods or services. In fact, business means any entrepreneurship, that is, an activity aimed at making a profit. You can also perceive business as a set of business relations of various people, organizations and enterprises to meet any need of the population, while receiving income. Its main goal stimulates the businessman to look for new ways to make a profit, which, accordingly, leads not only to economic growth and the development of the company itself, but also to the active growth of scientific and technological progress.
Business Feature
In today's world, business has acquired a very wide range of distribution. Very often, it not only partially moves to the Internet, but also develops exclusively in it. Many blogs, videoschannels, groups in social networks are also a business. The characteristic features of a business include:
- The investment nature of any activity. Every business always makes a profit only after a while. As with investing, there is a risk of not making a profit in business.
- Possibility of buying and selling. In this case, a business can be perceived as a commodity, that is, you can buy or sell any business, regardless of the scope and scale. The main thing is to correctly assess and set an adequate price.
- The ability to influence price, supply and demand. This feature depends on the scale of the enterprise. Basically, only a global business can influence the economy.
- Control by the state. Based on the last point, it is very dangerous if business takes the entire economy into its own hands. In order to avoid such situations, the country has special laws and authorities that control entrepreneurial activity. For example, the antimonopoly service, which ensures that one enterprise does not occupy the entire area.
Business entities
Subjects perform active business functions, own basic rights and obligations in the course of entrepreneurial activity itself. There are many different classifications of business entities as well as the entities themselves, but among the main ones we can distinguish:
- Enterprise. The main entity that performs all the functions of the business. It is on it that entrepreneurial activity is built.
- Consumers. This is also one of the most important subjects, without which there would be no business. After all, as you know, demand creates supply.
- Owners and investors. The persons who own the enterprise perform the basic functions of managing the business, as well as decide the future.
- The state and state bodies. They control that the laws of the country are not violated.
Economic functions of business
As mentioned above, business has a very big impact on the economy. Any entrepreneurial activity performs the following functions:
- General economic. This is the basic concept of the business functions of an organization. It is thanks to her that the economy is growing and the number of enterprises remains at the proper level. Thanks to business, the level of the gross national product and the national income as a whole are growing. Special economic ties are being created within the state and between them.
- He althy competition and pricing is emerging. There is a restriction of the monopoly of enterprises, as well as pricing within the framework of this competition.
- Resource. Business allows you to transform all kinds of resources into a finished product. These include natural and labor resources, scientific achievements and entrepreneurial talent. It is also worth highlighting that the main goal of a business is to make a profit. Therefore, very often, in pursuit of it, businessmen steal resources that, due to their limitations, are public, which leads to harm to nature and the environment.
- Tax. All businesses are required to pay taxes, with the exception of certain areas. Tax revenues are one of the main sources of budget revenues.
- Reduces the unemployment rate. With the exception of self-employment enterprises, any business gives the state new jobs and reduces unemployment.
Social features
Despite public opinion, business is important not only as an element of the economy, but also as a constituent structure of the social sphere. In it, he also performs his functions:
- Creative and innovative activity. In the modern world, it is business and the desire to make a profit that drives scientific and technological progress. Some entrepreneurs seek to expand the scope of their business, others want to achieve more profit at lower costs, and still others cannot withstand competition and want to go into an area where it does not exist. Many enterprises create entire scientific departments or even research complexes.
- The social business function of an enterprise is manifested by the self-realization of individuals. With the help of this function, each person can prove himself in any field. Moreover, he can realize himself as he wants within the framework of the current legislation. There is also an interweaving of the economic function with the reduction of unemployment. Business development provides an increase in jobs. Thanks to this, the social stratum of unfavorable families and the criminal situation in the country are being reduced.
- Organization function. It allows you to developorganizational skills and analytical skills. Thus, the entrepreneur learns to make decisions in a constantly changing environment. Business allows people to connect and form new communities.
Business Principles
Every activity has its own principles, and business is no exception. You can highlight the basic principles of entrepreneurial activity:
- Principle of scarcity and exchange. The essence of this principle is that any business develops in conditions of constant restrictions, so businessmen must exchange among themselves in order to get the resources they lack.
- An adversarial principle that, in conditions of he althy competition, makes businesses compete with each other. He althy competition is only good for any activity, forcing it to develop.
- The principle of freedom and unlimitedness in their actions. This principle implies that a businessman is limited only by law and certain limits in the conditions of his activities.
- The principle of the uncertainty of the future, which means that no one gives a guarantee to a business for a successful outcome and development.
The main purpose of the business
Entrepreneurial activity has more than one goal, but among all it is possible to single out making a profit. This is the primary goal. It is because of the income that many organize a business. Profit is the basis for the fulfillment of the functions and goals of the business, in order to satisfy the individual and social needs of the entrepreneur, as well asensure the survival of the company. Other social business objectives can only be achieved by generating positive cash flows. However, not all economists hold such views. Some theorists believe that business should be socially responsible, and profit is a secondary task that will be the main one when done.
Other business objectives
In addition to making a profit, a business must achieve other goals:
- Providing a product or service that people need. This task is that the business must be needed, otherwise, it will soon collapse.
- Satisfying demand in the service market. The business must offer to compensate for the demand arising in the market, or be close to it.
- Social goal. It consists in providing employees with social privileges and the opportunity to achieve some goals within the enterprise. Thus, reduce staff turnover and increase the reputation in the labor market.
- Helping the community. As mentioned above, some put this task in the first place. Business should be not only necessary, but also useful to society.
Conclusion
Any organization has goals and performs certain functions. A business can be considered successful if it fulfills all its functions and achieves its goals. It is their fulfillment that leads to the prosperity of not only an individual business, but also sectors of the economy.
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