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Big business. Types and forms of entrepreneurial activity. Large, medium and small businesses How to enter a big business

The modern market economy is characterized by a complex combination of industries of various scales - large, with a tendency to monopolize the economy and medium and small enterprises that arise in industries that do not require significant capital, equipment and cooperation of many workers. The size of enterprises depends on the specifics of industries, their technological features, and on the effect of economies of scale. There are industries associated with high capital intensity and significant production volumes, a large share of fixed assets among the costs of an entrepreneur. Most of the large businesses are concentrated in these industries. These include the automotive, pharmaceutical, chemical, metallurgical industries, most enterprises in the extractive industries. The industries that determine scientific and technical progress are growing at the fastest pace, since they accumulate financial, production and human resources faster than others. According to the data, on the contrary, in industries for which there are not large capital costs, where the share of personnel costs in the costs of entrepreneurs is large, small enterprises are preferable.

There are two problems. Why should one distinguish between small medium and large businesses and what are the criteria for differences.

The need to distinguish between small, medium and large businesses is due to the fact that firms differing in size play a different role in ensuring the stability and competitiveness of a market economy, have different risks and benefits, and require different approaches to their state regulation and legal support. All this forces legislators to look for qualitative and quantitative signs of defining, first of all, small and large businesses and to formulate the main approaches to their regulation.

Big business.

The term "big business" does not lend itself to a simple definition. Usually the term "big business" is applied to such giants as IBM and General Motors.

According to the expert, the largest companies in the world in 1996 included such firms as General Electric (USA), Roal Dutch (Great Britain - Denmark), Coca-Cola (USA). Nippon Telegraph & Telephone (Japan),. Exxon (USA). This list included one Russian company" - "Gazprom", which took 421st place. Among the 500 companies in the world that received the largest balance sheet profit in 1996 according to Fortune were: General Motors (USA),. Ford Motor (USA), Mitsui (Japan), Mitsubishi (Japan), Itochu (Japan) 1

The main element of the capitalist economy, the bearer of the evolutionary process in the economy, is a large, growing corporation. Large firms ensure the stability of the market economy and its main components: prices, production structure. Today, they produce most of the mass driven products. It is thanks to large enterprises that business is developing, which is based on mechanisms for reducing production costs. Large firms are carriers of scientific and technical progress, they accumulate and then implement the methods of rational entrepreneurship.

There are four main, fundamental reasons that stimulate the growth of corporations. The first is the desire to obtain economies of scale in production (technological economies). It is formed with an increase in the volume of output of this product by reducing costs per unit. This reduction is achieved by changing the nature of the resources used, which is manifested in the increased specialization of the labor used, the introduction of automatic equipment, including automatic assembly lines, etc. This contributes to the development of the concentration of production at large enterprises, the formation of multi-factory and sectoral monopolies.

The second reason is the desire for economies of scale in the field of activity (another term is savings on the diversity of production products and sales markets). This type of economy, called by the English economist E. Penrose economy on growth, is formed due to the imbalance in the growth of the company, on which new production and financial resources that are not being used at a given moment of time constantly appear. Savings from the use of these resources becomes an incentive to expand the scope of the company. It depends on the specific set of production resources available to the firm, so most firms seek to penetrate into those areas in which technological and market factors are in common with the main production of the firm. Due to economies of scale in the field of activity, large multi-product, diversified and multinational companies have been formed. The tools for their formation were vertical integration (combination), diversification (including conglomeration) and internationalization with its highest form - globalization.

The third incentive for corporate growth is savings on transaction costs. These costs are associated with the implementation of market contractual relations and arise when a product or service passes from one technologically separate structure to another, that is, when a transaction takes place - a transaction, an operation, a contract, an agreement. Transaction costs are the costs of running a market system. The reduction of these losses is achieved by limiting the volume of market relations through vertical integration, diversification and internationalization. O. Williamson, relying on studies of changes in the organizational forms of corporations in the United States over the course of 150 years, which led to the formation of a modern firm, called these costs "the main factor in the organizational evolution of corporations." The modern corporation, in his opinion, is the product of a series of organizational innovations, the purpose and result of which is savings on transaction costs. In other words, the modern corporation is a means of reducing these costs.

In addition, most modern large firms are international companies operating in global markets, which allows them to take advantage of the relatively cheap resources of the world economy by locating different stages of production in different countries.

In modern conditions, large firms actively influence not only the internal business environment, creating effective business routines, but are also able to actively modify the external environment, providing them with the most favorable conditions for functioning. With the greatest clarity, these properties of big business manifested themselves in the activities of modern transnational corporations (TNCs). The latter, thanks to the huge concentration of resources and the centralization of financial and material flows within the corporation, are able to create for themselves an effective market and social infrastructure. Coming to less developed countries, TNCs themselves create communications, form a model of behavior of workers and consumers, and actively influence domestic and international legislation.

Along with competitive advantages, large business also has weaknesses. The growth of the company is often accompanied by a decrease in the effectiveness of its management. Very often, large firms have the ability to regulate the demand and prices of their products, which reduces the incentive to increase efficiency, and makes big business inflexible. These features of large firms create opportunities for sustainable business development in medium and small sizes.

Table 2.4.

Strengths of big business

Weaknesses of big business

The ability to actively change the external business environment

Reduced incentives to increase production efficiency

Opportunities to create and accumulate achievements of scientific and technical progress and procedures and rules of rational business

Opportunity to limit access of other firms to the achievements of scientific and technical progress and rational business

Economy on production costs (technological economy, economies of scale in production, economy on transaction costs, use of global markets)

Decline in management efficiency with the growth of the firm

Sustainability

Inflexibility, lack of timely response to changes in the market situation, loss of contact with the consumer

State regulation of big business as a special type of business aimed at reducing the risks associated with its operation. Since the greatest risks for society are created by the ability of large firms to monopolize production and industries, state regulation of large business is mainly limited to problems of monopolization, aimed at limiting the merger of large firms, manipulating prices, various forms of discrimination against small firms, and not using patents.

Russian big business.

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

According to Expert magazine, the two hundred largest Russian companies account for more than half of all industrial production in the country. The total volume of sales in 2000 of the two hundred largest enterprises reached 3.67 trillion. rub. or 130.4 billion dollars.

The main indicator that allows you to recognize the enterprise as small is the number of employees for a specific period of time. Criteria such as the size of its assets, the size of the authorized capital and the annual turnover also matter.

In Russia, a small business is a commercial organization, in the authorized capital of which the participation of constituent entities of the Russian Federation, charitable and other foundations, as well as religious and public organizations does not exceed 25 percent. In addition, a share that belongs to several legal entities or one legal entity. face, should also not be more than 25 percent.

The number of employees for a certain period should not be higher than the standard established in a particular area. If it is construction, industry or transport, the number of employees of a small enterprise cannot exceed 100 people. If it is a wholesale trade - no more than 50 people, if it is a consumer service or retail trade - no more than 30 people, if any other activity - no more than 50 people.

Medium enterprises

The definitions of medium and small business around the world are quite close. What generalizes them is economic entities that do not exceed a specific indicator in terms of the number of employees, the amount of gross assets and turnover. Medium enterprises are also eligible for simplified reporting. In order to understand the scope of the number of employees - after all, this criterion is most often the main one - it is worth considering a few examples.

If we take a consulting or research agency, it can be classified as a medium-sized enterprise when the number of its employees ranges from 15 to 50. If we talk about a travel company, then it can be classified as a medium-sized enterprise when the number of its employees is in the range from 25 to 75. Medium print media will be an editorial office with no more than 100 employees. As with small businesses, medium-sized businesses are considered in terms of turnover and market share they occupy.

Large enterprises

A large enterprise is a company that produces a significant share of the total commodity volume of any industry. It is also characterized by the number of people employed in the work, the size of assets and sales. To classify an enterprise as a large business, it is necessary to take into account the territorial, industry and state specifics. For example, for the field of mechanical engineering, the main factors are the volume of products, the number of workers and the cost of fixed assets. If we take the agro-industrial complex, we can focus only on the number of livestock or the area of ​​land.

Type of organization - organizational and legal form of a legal entity. It depends on the form on what rights the company has its property: the right of ownership (society), the right of economic management (unitary enterprise), the right of operational management (institution); what governing bodies are formed and their competence; full or limited legal capacity of a legal entity. Some companies are restricted by law. In order for a transaction with real estate of a unitary enterprise to be legal, the owner of the property draws up a written permit. You can determine the type of organization based on the following documents.

Instruction

Get the founding documents of the company. Copies of statutory documents can be requested from the party at the conclusion of the contract. In the first section of the charter, containing basic information, there is a full name and organizational legal entity.

Get an extract from the Unified State Register of Persons (EGRLE). The Federal Tax Service of Russia is responsible for maintaining the Unified State Register of Legal Entities. The information is open and public. Any person can receive an extract upon presentation and payment of a state duty in the amount of 400 rubles. In the extract in general information, the full name and legal form will be indicated.

Get information on the official website of the tax service. Website address www.nalog.ru. Go to the "Check yourself and the counterparty" section. In it, indicate the available data: company name, TIN, region in which it operates. For example, "Russian Forest", Moscow region. A list of organizations registered in the register with such a name will be issued, including the form (LLC, CJSC, OJSC). LLC is a limited liability company, CJSC is a closed joint stock company, ANO is an autonomous non-profit organization.

Determine the type of company depending on the abbreviation before the name of the company. As a rule, the name indicates - LLC, CJSC, OJSC. There is no difficulty with conventional abbreviations. However, there are less common ones, such as: KFH, ANO, PIF, etc. All types of organizations, depending on the organizational form, have been assigned a code - OKOPF. Appendix No. 1 to the All-Russian Classifier 028-99 lists in alphabetical order all types of organizational and legal forms of persons operating on the territory of the Russian Federation.

Sources:

  • "On the adoption and implementation of the All-Russian classifiers" ("OK 028-99. All-Russian classifier of organizational and legal forms"), approved. Decree of the State Standard of the Russian Federation of March 30, 1999 No. 97.

When organizing their own enterprise, future managers do not know what criteria can be used to determine a small enterprise that has a number of advantages compared to medium and large ones.

You will need

  • - data on the company's revenue for the calendar year;
  • - information about the number of employees.

Instruction

According to the law, small enterprises are commercial organizations in whose capital the share of participation of charitable organizations, public organizations and other bodies of the Russian Federation does not exceed twenty-five percent, the share that belongs to a person who is not a small business entity also does not exceed twenty-five percent.

To determine whether an enterprise is small, check out the data on the company's revenue from the sale of goods and services for the previous calendar year: for small enterprises, this figure should not exceed 400 million rubles.

Also find out the number of employees of the enterprise. The condition of the maximum number of workers when classifying an enterprise to one class or another depends on its field of activity.

So, if your field of activity is small, your company must satisfy the following conditions (the number of employees is considered as an average for a calendar year): - if the company belongs to the transport, industrial or construction industry, then its staff should not exceed one hundred people; - if the company belongs to the scientific, technical or agricultural field - no more than sixty people can work on it; - if the company belongs to the wholesale trade - the number of employees should not exceed fifty people; - if the scope of the company includes retail trade and consumer services of the population - no more than thirty people should work for it; - if the enterprise specializes in other industries and carries out other types of activities - the staff should not exceed fifty people.

Also, if possible, find out the share of the working capital of the enterprise relative to its main fund. For small enterprises, this ratio is much higher than for large ones: usually it is about 20:80 for small enterprises versus 80:20 for large ones.

Also find out if the business is inherited by relatives of the owner. If so, it is most likely a small business, as this happens very rarely in the case of medium and large businesses.

Related videos

note

Small enterprises are not an organizational and legal form, not a type, like joint ventures, rental companies, etc., but a size. The concept of a small enterprise can be attributed to any type of enterprise, for example, a small private or small state enterprise.

Helpful advice

If the enterprise is diversified, that is, it carries out several types of activities. Find out the area that brings the highest annual income, it determines the size of the enterprise.

Tip 4: How to determine the useful life for an OS in 2017

Fixed assets are tangible assets held by an enterprise for use in the supply of goods, production, provision of services, leasing, administrative, social and cultural functions, the period of use of which is more than one year.

You will need

  • - Knowledge of accounting and tax accounting.

Instruction

Determine the useful life for fixed assets, based on the legislation on tax and accounting. If before January 1, 2002 the calculation of depreciation charges was carried out on the basis of the Uniform Deduction Rates, then after that changes were made. Now you can find out the useful life of fixed assets from the period during which this or that object is used by the taxpayer to fulfill the goals.

It is possible to establish the period of use of OS that were in use, based on Art. 258 of the Tax Code of the Russian Federation. If, which acquired used fixed assets, in order to apply the straight-line depreciation method for them, it is possible to determine the depreciation rate for this property, taking into account the useful life reduced by the time of operation by its previous owners. If the useful life of the fixed asset is equal to the useful life, you can independently determine the useful life for this fixed asset, taking into account safety requirements and other factors.

Include acquired depreciable property items in the same depreciation group in which they belonged to the previous owner. Thus, you can use two methods to find out the useful life of fixed assets: based on the total life, or based on the remaining useful life.

When determining the period using the second method, it is necessary to have documentary evidence of the operation of fixed assets by the previous owner. It can be the following documents: act of acceptance and transfer of the building; registration certificate of the building; certificate of the technical condition of the building. If the previous owner did not provide such documents, you can contact the BTI to obtain a certificate of depreciation of the building. Together with the act, it gives every reason to accurately determine the useful life of the building.

The eastern horoscope consists of 12-year cycles. Each year of the cycle is given to a specific animal. According to an old legend, when dying, the Buddha called all the animals to him. However, only these 12 came to say goodbye to him. The Buddha gave each of them a year of reign, and the years were given in the order in which the animals visited the Buddha. Mythological animals symbolize 12 cosmic influences that affect the character and fate of a person at the time of his birth.

Instruction

The Eastern New Year does not coincide with the usual for Europeans - January 1. The date of the onset of the new year directly depends on the phases of the moon and falls on the time period from January 21 to 20. Thus, it turns out that at the beginning of each "European" year there is a time segment, which, according to Chinese, still refers to the year already past.

According to tradition, the beginning of the 12-year cycle of the eastern calendar falls on the year of the Rat. In the XX-XXI centuries, 1900, 1912, 1924, 1936, 1948, 1960, 1972, 1984, 1996 and 2008 passed under the sign of the Rat. The next year of the Rat will be in 2020. According to people, these years are distinguished by diligence and determination. They try to finish whatever they start. At the same time, the Rat never trusts anyone, is closed enough for communication and seeks to derive personal benefit from everything.

The first year of the Ox in the twentieth century fell on 1901. Further, the year of the Ox was celebrated in 1913, 1925, 1937, 1949, 1961, 1973, 1985, 1997, 2009. People born in these years are physically developed, hardy, patient and laconic. Despite their isolation, they know how to win over people and, as a rule, have many friends.

1902 was the Year of the Tiger. Given the 12-year cycle, it can be calculated that most of the "European" years 1914, 1926 ... 1986, 1998, 2010 were also "given away" to this animal. "Tigers" are persistent, courageous, suspicious and power-hungry. However, they are capable of deep feelings and strong feelings.

1903, 1915…1987, 1999, 2011 “belong” to Rabbit. "Rabbits" are pedantic, calm and unflappable. As a rule, public opinion is important to them and they strive to make a good impression. However, despite his modesty and meekness, "" loves to gossip about loved ones behind their backs.

904 ... 1988, 2000 and 2012 are considered the years of the Dragon. People born in these years, as a rule, are distinguished by excellent health. They are energetic, stubborn and courageous. "Dragon" is not capable of hypocrisy and his opinion is trustworthy.

1905, 1917 ... 1977, 1989, 2001 "given" to the Snake. People under the influence of this sign are usually wise and practical to the point of avarice. At the same time, "Snakes" are vain, dodgy and cunning. They have developed intuition and prefer to rely only on their own opinion.

1906 ... 1978, 1990, 2002 - the years of the Horse. "Horse" is not afraid of hard work and strives to do it conscientiously. As a rule, these people are smart, insightful, patient and independent. They have a sharp mind and a well-delivered speech.

1907 ... 1979, 1991, 2003 are considered the years of the Goat. People born at this time are sublime, artistic natures. They have a refined taste and, as a rule, have a pronounced ability to various types of art. "Goat" easily adapts to various life situations and has an accommodating character.

1908 ... 1980, 1992, 2004 "belong" to the Monkey. "Monkey" is dexterous, smart, resourceful and resourceful. They are distinguished by a good memory and an irrepressible thirst for knowledge.

1909 ... 1981, 1993, 2005 - the years of the Rooster. "Rooster" is dedicated to his work, courageous and hardworking. Relies solely on his own strength, somewhat eccentric and loves to be in the spotlight.

1910 ... 1982, 1994, 2006 passed under the sign of the Dog. People born in these years are endowed with excellent qualities. They are honest, loyal, selfless and devoted. They have a developed sense of duty and do not hesitate to rush into battle with any injustice.

1911 ... 1983, 1995, 2007 - the years of the Pig. "Pig" is straightforward, has inner strength and developed intelligence. As a rule, people born in the year of the Pig choose their path early enough and follow it straight, without retreating or turning off.

Sources:

  • Secrets of the eastern horoscope
  • find out the year of the horoscope

The desire for uniformity can only be justified if you constantly develop and improve along with it. However, more often than not, women who know how to be different become much more successful than those who avoid change.

Instruction

Don't be afraid to change. It is fear that often deprives people of many opportunities that could radically change their whole life. Even if your experiment fails, you should not treat it as a failure, it is better to regard what happened as an invaluable experience.

Forget about the opinions of others, let it cease to exist for you for a moment. It doesn't matter what they think about your behavior, new image or mood. You change first of all for yourself, and the thoughts of others should interest you as a last resort.

Start with appearance. Clothing can greatly affect not only your appearance, but also your inner state. Therefore, go shopping and buy clothes of a wide variety of styles: from sports to classic. In your wardrobe should be not only sophisticated stilettos, but also comfortable sports slippers.

Change your hairstyle. It is best to choose a haircut that can be styled in different ways depending on the mood and situation. So in a matter of minutes you can turn from a beautiful society lady with stunning curls into a zealous lover of hiking in nature with hair gathered in a comfortable ponytail. For the best effect, choose for yourself several makeup options.

Experiment as often as possible. Try to do something every day that you have never done before. Give up for a few days from any of your habits. For example, you can go to work on a road that you never use.

Pay attention to how you feel when you change your image, whether your inner state and mood change. If yes, then you are on the right track.

note

You should not step over yourself and through your principles in order to seem different. It should come from within, reflecting all facets of your personality.

A period is a physical quantity denoting a period of time during which one complete oscillation occurs in a mechanical, electromagnetic or other repetitive process. In a school physics course, the period is one of the quantities that are most often required in tasks. The period is calculated using known formulas, ratios of the parameters of bodies and their movements in the considered oscillatory system.

Instruction

In the simplest case of solving practical problems on periodic bodies, one should take into account the physical quantity itself. The period is measured in seconds and is equal to the time interval for one complete oscillation. In the system under consideration, at the time of execution of uniform

Link to previous topic :

In the previous topic there was a conversation about business in general. In the real economy, it is represented by enterprises of various shapes and sizes, engaged in different sectors of the economy. In this chapter, we will try to focus on specific types of business. and their role in the modern market economy.

The purpose of the study:

features of risk and competitive advantages of business engaged in different sectors of the economy.

Tasks :
  1. Show the features of highlighting the type and type of business
  2. Define small, medium and large businesses and explain their role in the modern networked economy
  3. Show country models of interaction between small and large businesses.
  4. Explain the features and criteria for distinguishing small enterprises
  5. Show the special role of small business in the economy and the need for its state support.
  6. Explain the contradictions and problems of the formation of small business in the Russian economy
Plan:

1. Types of business and criteria for their selection

Despite some common features, in practice, the actual activities of entrepreneurs vary greatly. This is due to the fact that in certain types of business there are various competitive advantages and risks, the implementation of the first and overcoming the second forces entrepreneurs to modify the mechanisms for the functioning of their business. There are also peculiarities in the mechanisms of legal regulation and legal support of entrepreneurial activity in different types of business. To study these features, we will divide the existing types of business into types.

Typically, there are types of businesses depending on industry, business size and form of ownership. The latter problem will be the object of our study in the next chapter. In this chapter, the subject of study will be the risks and competitive advantages of a business arising from industry and size differences in business. Much attention will be paid to institutional and legal mechanisms for increasing competitiveness and reducing the risk of entrepreneurship.

Any business, one way or another, is associated with such phases of the reproduction cycle - production of products or services, exchange and distribution, their consumption. Therefore, depending on which stage of the reproduction business mainly belongs to, the following are distinguished: types of entrepreneurial activity: industrial, commercial, financial and services.

Manufacturing entrepreneurship.

Small business

Small business: reasons for growth and selection criteria

In the most general way, under small business is understood as entrepreneurial activity carried out by subjects of a market economy under certain criteria (indicators) established by law, state bodies and other representative organizations, constituting the essence of this concept. See a note about a typical American small business

Small business features:

Economic functions of small business:
  • Gives the market system the necessary flexibility (activation of structural changes, denationalization and privatization processes).
  • Forms a competitive environment (regional and local markets, limits monopolies and pushes them to rationalize their production by creating subsidiaries).
  • Accelerates research and development (organization of small-scale and pilot production, search, development and implementation of new ideas). According to the Institute for Strategic Analysis and Enterprise Development, small US firms produce four times as many new products per worker as large firms, and their cost per worker is half that. For example, the General Electric concern is associated with more than 200 research companies that primarily work for it. The annual volume of capital investments of US venture funds is estimated at 3-4 billion dollars.
  • Mobidizes raw materials, human and financial resources.
  • Provides growth in tax revenues.
Social functions of small business:
  • Provides job growth.
  • Reduces social tension.
  • Stabilizes the income level of the population.

But all the listed advantages of small business are by no means automatic. The problem is that small businesses tend to be at much greater risk than large firms.

Small Business Advantages and Weaknesses


Table 6

Small business strengths Weaknesses of small business
Flexibility High risk nature
Higher profitability compared to large business Intuitive nature and non-specialized control
Use of idle resources in informal markets Limited access to high quality resources
Dependence on the support of large firms and the state. Lack of financial resources, difficult access to information and R&D achievements

Small business is unsustainable. Half of the enterprises perish in the first period of their existence, but there and then their place is taken by newly emerging firms. The level of bankruptcy of firms in the first three years is especially high.

Small business highly dependent on the context. The small sizes do not allow to create in firm modern structures and effective specialized management. For most small firms the unity of property and management is characteristic. Most relationships within the firm and business partners are based on informal connections. Small firms often turn to informal resource markets, finance a business with loans from individuals, use their own funds and funds from friends and relatives. It is not uncommon for small businesses to use the informal and even the shadow labor market (attracting illegal immigrants, minors, etc.). Competitive advantages and profitability of production are provided by implicit costs, which are often based on high (higher than in large enterprises) intensification of labor and the length of the working day, low wages compared to large businesses. All this determines the extremely unstable and high-risk nature of small business. In a word, the main difference between small business is that, regardless of country affiliation, in most cases it is typical intuitive business. Without the active support of big business and the state, small business is a source of economic and social risks. Therefore, the legislation of developed countries singles out small business in a special category and actively supports small businesses.

Small Business Types

Small business is heterogeneous. Depending on the competitive strategy, two main types of small enterprises can be distinguished: life-supporting and fast-growing.

Quantitative criteria for identifying small businesses

To determine a special status, the legislation of countries with developed market economies single out quantitative criteria for the allocation of small businesses and determine the main areas of support for small businesses. Small business defies easy definition.

In most economically developed countries, important quantitative criteria for identifying small businesses are the following indicators:

  • Employment So in the United States, small and medium-sized companies include firms with up to 500 employees in the manufacturing industry, up to 100 people in wholesale trade, up to 50 people in retail and other industries. In Japan, the number of employees in an enterprise is also the main indicator by which membership in this category is determined. It must be less than 1000 people in the mining industries, less than 300 people for all other types of industry, transport, communications and construction, less than 100 people in wholesale trade and less than 50 people in retail trade and the service sector. .
  • Size of own capital or total assets;
  • Market Position This criterion is less quantified than the previous two. It is used in cases where, as part of supporting small businesses, the state supports relatively large firms that play key roles in the country's economy. So in 1966, the American Small Business Administration classified "American Motoros" as a small business. This was done to enable the firm to bid for government contracts. At that time, American Motors was considered the 63rd largest manufacturer, had 32,000 employees and $991 million in sales revenue. its support could play a key role in ensuring the sustainability of the national automotive industry.

Each of these criteria is not universal. has its own merits and demerits. But since it is easiest to take into account the number of employees, this criterion is most often used in different countries to determine the status of a small business.

Medium business

In the modern market economy, in addition to large and small businesses, a significant layer of medium-sized businesses remains. Just like big business, medium business does not have a special legal status. It occupies an intermediate position between small and large businesses located at different poles of the economy and plays an extremely important role. He plays the role mediator and liaison between large and small businesses, between small businesses and the state.

The small size of firms, the instability and high riskiness of small businesses do not allow them to establish stable ties with large businesses directly. Medium business assumes this role, creating a complex network of relations with various forms, legal and organizational formalities, both with large and small businesses. These connections are called network economy.

Network economy

The network economy has a three-tiered structure. On the upper tier are large enterprises, on the lower - small firms, which make up about 90% of business structures. Medium business between these extreme categories forms the basis for the formation of networks.

Signs of a network economy:

  • The equal nature of partnerships between large and small businesses.
  • Relationships between large and small businesses on a long-term, reimbursable basis. The role of medium business as an intermediary.
  • A large number of legal and social institutions regulating partnerships. (Government programs to support small businesses, forms of self-support, etc.). In all modern industrialized countries, more than 90% of firms are small and medium firms.


Forms of interaction between small, medium and large businesses within the network economy

In a modern developed market economy, small business turns out to be subordinate to large business through a system of contracts and subcontracts. Forms of leasing, franchising, etc. are actively used. Leasing is beneficial in that it allows a small business to get modern equipment without large one-time costs. As a rule, it provides a large business with a loan repayment guarantee, and ensures stable long-term relationships with a contractor or subcontractor. Franchising is a fixed-term or open-ended commercial concession agreement that provides the licensee (franchise holder) with the right to use a set of exclusive rights in their business activities for a fee (franchise) owned by the licensor (franchising company). With the help of franchising, small businesses get the opportunity to stabilize the external environment and provide competitive advantages. A franchise allows small firms to enter the market under a well-known brand that has proven itself in the market, which reduces the cost of marketing and advertising activities. Large businesses expand their market control and sphere of influence. In modern conditions, both parties benefit from franchising cooperation.

Some small businesses are subsidiaries and associates. By cooperating with large businesses, small businesses get access to patents, licenses, modern technologies, finance, and large businesses get additional flexibility.

In order for the network economy to function normally, three conditions are necessary: ​​the presence of medium-sized businesses, the institutional infrastructure of business, and effective state support for business. Without this, a highly polarized two-tier economy develops in the economy, in which small business often has a shadow character and plays the role of an intermediary pumping resources in favor of big business and the state. a note on two-tier systems in developing countries and Russia

3. System and forms of state support for entrepreneurship

In order for business to develop, it is necessary that the state assists it. State regulation of big business as a special type of business is aimed at reducing the risks associated with its operation. Since the greatest risks for society are created by the ability of large firms to monopolize production and industries, state regulation of large business is mainly limited to problems of monopolization, aimed at limiting the merger of large firms, manipulating prices, various forms of discrimination against small firms, and not using patents.

State support for small business aimed at reducing the riskiness of small businesses. Resource insecurity forces the state to support small businesses in the following ways: main directions:

  • Financial support(formation of state programs providing concessional lending to small businesses, subsidies, tax and depreciation benefits, etc.)
  • Logistics support(various forms of providing technology and equipment for rent to small businesses, creating techno-practices, etc.)
  • Advisory and information support(providing access to technical libraries, databases, providing advisory and legal services, especially on issues of creation, management, taxation, etc.)
  • Creation of market infrastructure(local fairs, equipment and technology markets for small firms, sales markets, etc.)

Largely due to state support for small businesses in modern developed market countries, the most effective type of small business is actively developing - a fast-growing enterprise. Numerous small businesses are becoming additions to the traditional research and development facilities of industrial corporations, universities, non-profit research organizations, government laboratories, and trusts.

An important role in the implementation of state programs is played by small business self-support forms. Tangible assistance in improving management in small organizational forms is provided by chambers of commerce and industry. In order to strengthen the financial position of entrepreneurs, the governments of developed market countries encourage association of small and medium-sized enterprises into cooperatives - production, credit, marketing .

The creation of cooperatives pursues several goals at once: the prevention of competition, the coordination of strategies in the purchase of goods from wholesalers, mutual assistance in times of financial difficulties. In addition, by uniting, small and medium-sized firms get a good opportunity to enter foreign markets, occupying niches there that the giants do not claim.


Features of supporting small businesses in Russia

In order to develop small business and provide state support for small business, the Council of Ministers - the Government of the Russian Federation adopted a number of special resolutions and laws. They identified priority areas for the development of small businesses and provide assistance in the field of financing and lending, scientific and technical development, logistics and product sales, training, as well as the establishment of tax incentives for small businesses. The federal law "On State Support for Small Business" is aimed at coordinating the activities of the federal executive authorities and forming the infrastructure for small business. But unfortunately the support program is largely declarative.
No real funding for small businesses from the state budget. The proclamation of the need to support small businesses is often dictated not by economic, but by political considerations (pre-election campaign, the need to create an image of a democratic politician in the eyes of foreign partners, etc.). There are no influential structures in the Russian economy that would be interested in protecting the economic and political interests of small businesses

Features of legal support for small businesses.

Of course, the role of a lawyer is equally important for both large and small firms. The help of experienced lawyers is necessary to avoid breaking the law and to take advantage of opportunities permitted by law. Only a lawyer is able to solve many legal problems, starting with the registration of an enterprise and ending with consumer rights. In a large firm that uses the methods of rational entrepreneurship, the legal service is usually quite large and consists of a team of lawyers specializing in specific legal problems of business operation. Small businesses often do not have the opportunity to include even one lawyer in their staff. Therefore, all over the world, small businesses are actively seeking help from specialized legal advice.

The specifics of supporting small businesses in Russia is that:
  • As a rule, legal assistance is of a non-specialized nature, most often they try to turn to relatives or acquaintances for help, entrepreneurs seek to get a legal education themselves;
  • Entrepreneurs try to save their costs and turn to a lawyer only when they are already being sued through the courts.

Business is an entrepreneurial activity. It is conducted by the subjects of a market economy, government agencies with the help of borrowed funds under their own responsibility or their own funds. The main goal of the above activities is to make a profit for the further development of your enterprise.

Big business is today one of the foundations of the economy. Large firms are less dependent on market conditions for their resources. In other words, big business has a reserve (reserve) of resources that can be used in the event of adverse market conditions. In addition, many large firms, due to their high share, influence the market (for example, by changing prices). This, in turn, leads to attempts at monopolization, as it weakens competition. In this regard, it is held in relation to the largest companies.

Big business - the definition is quite voluminous. This concept characterizes the association of several enterprises around a certain technological chain, product group or a common group of top managers and owners. The main quantitative indicator of a large association is the volume of sales of services and goods (turnover), since the size of market capitalization and profit to a large extent depends on the accepted behavior of players in the stock market or accounting system.

It should be noted that large firms make a significant contribution to the development of many industries, in particular, science-intensive (complex) and capital-intensive (requiring large capital expenditures). Often, when evaluating the performance of certain goods, it is clear that it is big business that has been able to achieve the greatest progress. Large concerns are able to develop the development and mass production of ships, cars, power equipment, agricultural machinery, semi-finished products and materials (plastic, aluminum, steel). In addition, large enterprises can organize mass mining of ore, oil, gas and other raw materials. All this causes a kind of dual attitude of the state towards large enterprises. On the one hand, they are trying to limit them through antimonopoly policy. On the other hand, big business is supported as the basis of capital-intensive and knowledge-intensive areas.

In many developed countries, large-scale enterprises occupy a leading place in the economy. Typically, large businesses account for 50 to 60% of GDP (gross domestic product). Undoubtedly, large enterprises dominate in many engineering industries (instrument making, electrical industry, transport engineering), chemical industry, fuel and energy complex, non-ferrous and mining industries.

Big business promotes growth in a number of industries as well. In particular, this applies to higher education, software production, finance, healthcare, trade and other areas. For example, in America, large-scale enterprises account for about 47% of the workforce and 60% of GDP.

In Russia, large forms are considered more efficient than the bulk of small and medium-sized companies, both in terms of productivity and profitability. The special position of Russian big business made it possible during the period of reforms to concentrate the main financial flows. As a result, large firms were able to organize fairly strong teams of highly qualified and highly paid managers. At the same time, the size is noticeably smaller than in other developed countries.

Recall that micro, small and medium-sized enterprises include organizations whose revenue for the past year does not exceed the established limit values. New companies during the year in which they are registered can be classified as small businesses if their performance from the date of their state registration does not exceed the limit values. The criteria for belonging to micro, small and medium enterprises are approved, they entered into force on 07/25/2015. See the table for details.

New criteria for membership in micro, small and medium enterprises

Recognition of an organization as a small business entity provides a number of advantages aimed at the development of this business. So, micro and small enterprises can keep accounting according to simplified rules:

  • use an abbreviated working chart of accounts;
  • apply the cash method of recognition of income and expenses;
  • prepare condensed financial statements, consisting of a balance sheet and a statement of financial results;
  • accounting can be entrusted to the head;
  • interest on any borrowed obligations to be included in other expenses;
  • to reflect prospectively in the financial statements the consequences of changes in accounting policies;
  • any errors, including significant ones, correct as insignificant;
  • do not apply the requirements: , ;
  • not to create vacation reserves and revaluate any financial investments at market value.

Microenterprises have additional benefits. They have the legal right not to accept bank cards for payment, as well as to keep accounting without using double entry.

In tax accounting, there are no benefits for small businesses of the Tax Code of the Russian Federation, but local governments can approve reduced rates for property tax and land tax.

Small enterprises must comply with the procedure for conducting cash transactions, but they have the right not to set a limit on the balance of cash in the cash register and keep all the money in the cash register without handing it over to a bank institution.

In addition, favorable conditions are provided for small businesses to participate in public procurement.

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