Senior management of a corporation is responsible for long-term planning, policy development, and coordination and control of activities throughout the organization. This central group is surrounded by a number of firms, which tend to be either independent economic units or effectively independent firms. These firms are almost completely autonomous in relation to operational decisions. They are subordinate to the main company, mainly in matters of finance. They are expected to achieve profitability targets and keep costs within the limits set for the entire conglomerate by senior management. How to carry out these responsibilities is entirely at the discretion of the management of the relevant economic unit.
Any type of entrepreneurial activity is based on one or another form of activity, which, in turn, predetermines the corresponding forms of business. The following types of economic units have developed in the US economy:
It should be noted that not all quantities affecting production in an economic unit can be described quantitatively. So, for example, these important factors, such as the concentration and rationalization of production, labor organization, management structure, etc., cannot always be described quantitatively. In this case, they try to take into account their influence through their impact on resources, on the structure of the production function and its parameters.
An industry is usually described as a collection of enterprises, an enterprise as a collection of workshops or as a collection of various production technologies, etc. In each of these cases, economic units are described by their production functions or cost functions. Finally, a workshop or production can be represented as a collection of machines or other units on which people work. Each of these objects is usually described by its own cost function. So, for example, when modeling a production site, the production unit is a machine, which is described by the time spent on performing each of the possible operations.
Let us emphasize that the same economic system in some cases acts as an economic unit, in others - as a complex system composed of economic units of the lower level, each of which is described by its production function or cost function. Different ways of describing the same object are associated with differences in research goals. If we are interested in the internal properties of the object being studied, we
Note that here we have described the scheme of a single-level model of the economic system being studied; the system was considered as a set of economic units described by production functions of various types. In fact, more complex designs are possible; economic units, in turn, can consist of smaller economic units, etc.
Let us consider the question of what information can be used to construct the production functions of economic units. Production functions can be calculated based on technological characteristics for a machine, vehicle, workshop or enterprise. Usually in this case production functions are considered in the form (3.3), i.e. cost functions. In other cases, the basis is the processing of statistics of economic indicators. Say, when constructing a cost function for an industry material production It is often conventionally assumed that the industry uses a single technological process, and then from statistics they find the raw material costs attributable to this process per unit of output. Another approach to processing statistics in order to construct a production function is the well-known cybernetic black box method.
Each enterprise is a separate independent financial and economic unit involved in the business process. This process is aimed at building a system of economic priorities and indicators
Thus, the same economic system in some cases can be modeled as an elementary economic unit, in others it can be described as a complex system composed of more elementary economic units that describe the subsystems of the original system. As already said, various ways descriptions of the same object are associated with differences in the purposes of the study. If the researcher is interested in the internal properties of the economic system being studied, it is presented as a set of subsystems, otherwise it is considered as a single whole. Note that the description of the same object using different models is used not only in economics, for example, a spaceship, in the case when it is necessary to describe the movement of its center of mass in outer space, is considered as a material point, in the same cases when the researcher is interested in the impact of engine operation on the stability of movement around the center of mass - as a complex system consisting of engines, fuel tanks, etc. acting on each other.
Let us emphasize once again that in relations (2.2) and (2.3) the quantities y, x and a can be multicomponent or vector. In the case when the resource vector w is multicomponent, between the output functions and the cost functions there arises fundamental difference. In the output function (2.2), various combinations of quantities of production resources are possible, which leads to the fact that the same volume of output can be produced, generally speaking, with different combinations of quantities of resources. In the cost function (2.3), the output task completely determines the resource costs. Therefore, cost functions are used in the case when in the described elementary economic unit there is no possibility of replacing one resource with another. Release functions are used when such replacement is acceptable. Note that in the economic literature, the term production function (in the narrow sense) often means the output function (2.2).
The economic mechanism is designed to direct the activities of individuals and organizations to achieve national goals, thereby overcoming spontaneity caused by both accidents in the course of natural processes and the presence of their own interests among production and other economic units. Mathematical models discussed in the second part of the book are intended to describe the production and technological level economic systems and the choice of planning decisions and are not suitable for analyzing the phenomena that occur during the implementation of the constructed plans, since they do not describe the process of transferring planned tasks to production units and the actions of production units based on the received plans. In addition, production and technological models themselves cannot answer the question about the quality of the information used (about the values of parameters of production functions, etc.), since the parameters of the models depend not only on the technological features of production, but also on its organization , from the interest of production units in increasing production efficiency and in revealing their capabilities in the planning process. Thus, mathematical models designed to analyze the economic mechanism go beyond the models described earlier and should be given special attention.
Articles (2) and (3) in table. 13.2 distinguish between the activities of a manager as a professional leader and, accordingly, a segment as an economic unit.
Microeconomics is one of the two main branches of economic theory that studies the behavior of individual economic units (consumers and firms) and their interaction in markets, which results in the formation of prices for factors of production and produced goods and services.
One of the fundamental concepts of the SNA is the concept of economic transaction. An economic transaction is understood as an interaction between economic entities carried out by mutual agreement (for example, the purchase and sale of goods and services). Actions taken by one economic unit unilaterally that affect other units without their consent are not transactions and are classified as other flows in the SNA.
The need to consolidate capital is associated with the elimination of double accounting in consolidated statements and the correct reflection of the amount of equity capital in the balance sheet of a single economic unit. Consolidated financial statements are prepared from the point of view of the parent (holding, parent) company.
This work sets out in an accessible form the most important principles of quantitative analysis of the activities of various economic units on specific examples enterprises, firms, banks and other institutions.
The reorganization is carried out in accordance with Art. 11 of the bankruptcy law. As with liquidation, consideration of the case begins after the debtor or creditor submits a corresponding application. The main purpose of reorganization is to preserve the company as a viable economic entity. In most cases, the debtor continues to manage the company's affairs, although it is also possible that a trustee takes responsibility for its work. One of the main conditions for rehabilitation is the provision of a temporary loan to the company. In order to give the company an incentive to operate successfully, Art. 11 of the law establishes the priority of creditors who provided a loan to the company after filing an application over creditors who did so earlier. If this incentive turns out to be
After identifying elementary economic units and formulating a list of material goods and labor resources appearing in the model, it is necessary to describe the flows between elementary units and the patterns of resource transformation
Controllability is the degree of influence that a particular manager has on revenue or costs. Dividing articles into supervised and unsupervised articles complements the motivation and analysis. For example, as long as a distinction is made between the manager and the center of responsibility as an economic unit, a skilled performer will not take on a heavy burden of responsibility.
7.2. Economic unit (business process)
7. Elementary unit (“atom”) of the organization7.2.1. A way to move from organizational structures based on technological units to organizational structures based on business processes
Economic unit (business process). The activity of a company as an economic process. Splitting up economic activity into economic units, each of which has a specific consumer. Definition of a business process. Requirements for business processes. Business process boundaries. Coordination of business processes in the company. Examples of business processes.
A company is not only a technological reality and a technological process, but also, as already noted, an economic reality, an economic entity that professes the principle of correlating results and costs while striving to exceed the former over the latter.
If the company is considered precisely as an economic structure, then it seems obvious that all its activities can be divided not only into technological parts, units (see 7.1), but also into economic parts, units.
In this case, we need to find out: what is considered such an economic unit, on the basis of which it is possible, in a different way than stated above (see 7.1), to build the structure of the company as economic organization.
Let us remember that any economic relationship presupposes, according to at least, the presence of two subjects - the buyer and the seller (producer and consumer) without which economic relations do not become exactly economic, but the product of labor does not accept economic form goods.
Thus, a product or service must have its consumer. All this seems obvious when we consider the relations between independent, independent, sovereign economic entities. What if we transfer this approach to the internal environment of the organization (to the intra-company hierarchy)?
In this case, the company becomes an organization in which there are both producers and consumers of labor products and services. Moreover, this applies to the entire activity of the company, to the entire turnover of capital. In this regard, the question becomes unprincipled: whether or not such activity takes the economic form of a commodity. Speaking about the intra-company hierarchy, we leave aside another form of economic organization, which is the market.
If a firm “moves” a product of labor or a service abroad, then we have “normal” producers and consumers (sellers and buyers), who can act both within the framework of a market economic organization and within the framework of a contract system (they deal with goods as an economic form of labor product, service).
To sum up what has been said, we have the right to assert that it is possible to fragment the economic activities of a company into economic units, behind each of which there is a specific consumer both within the company and outside it.
It is this approach that makes it possible to define a new category for our analysis, which is a business process.
So, a business process is a set of operations that, taken together, form a result that has value for the consumer. By the way, the simplest example of a business process that M. Hammer and J. Champi give in their work is the development of a new product.
Here, as we see, there are no consumers of this activity external to the company. The consumer of the development of a new product is the production division of the company, which will create it, the marketing division of the company, which will bring this new product to the end consumer, the company management itself, which, when developing a strategy, cannot but take into account the creation of new products, etc. d.
Thus, all final consumers of this activity are parts of the intra-firm hierarchy (of the company). On this methodological basis, another (fundamentally different) structure of the company can be built.
In this case, the company will appear before us not in the form of a bureaucratic organization built on the foundations of technological units, both in the productive and functional areas of the company’s activity, but in the form a set of business processes, the relationship between which within a company does not obey the principles of a bureaucratic intra-company hierarchy.
Let us now clarify the definition of a business process. This is a set of different types of activities, within which “at the input” one type of resource or more is used, and at the “output” as a result of this activity a product is created that is valuable to the consumer. That is, the business process itself already presupposes the need to correlate results and costs, thereby becoming precisely the economic unit of the organization.
The identification of business processes within a company is based on certain requirements for such economic units of the organization: 1) they can be identified and appropriate boundaries can be drawn: what belongs to a business process and what does not, 2) this activity (set of operations) must have the end consumer either within the company or outside it, 3) the boundaries of the business process are not determined by technological or functional principles, they are based on the request of the consumer-client, 4) the most important figures in determining the boundaries of business processes are not engineers and technologists, but managers and economists.
The structure of a company, built on the principles of identifying business processes, is not a vertical hierarchy. This is most likely either a more horizontal structure or a network structure. Therefore, the process of linking various business processes into a single organization is a process of coordination, coordination of mutual interests, and not administrative subordination.
It should be noted that issues related to business processes (definition of boundaries, principles of allocation, requirements for business processes, their coordination, etc.) will be specifically and in detail considered in connection with business process reengineering (see 8.1, 8.1.3 , 8.1.4).
Here we will allow ourselves to give only examples of business processes.
Above, we have already presented the process of developing a new product as such. Let's add a possible list of business processes. They can be developing a strategy, and, for example, paying company bills, issuing a loan, market research, logistics, planning, customer support, fulfilling orders, and much more.
It is hardly worth asserting that there are “standard” types of business processes. All this, in fact, is individualized for each company. The identification of business processes in a particular company (firm) is also influenced by objective factors (production capacity, manufactured products, developed market segment, approved strategy and other factors of internal and external environment organizations), and subjective (managers’ preferences for risky or low-risk decisions, managers’ ideas about the company’s activities, its strategy, ideology, etc.).
The design (selection) of business processes is becoming a new and independent type of management activity, where the rules, if they apply, relate to the most general points and approaches. This activity takes managerial work beyond the narrow boundaries of a rational (essentially engineering) approach, creating the widest scope for creative initiative and the development of non-standard management decisions.
The next part of the work will be devoted to considering the method of transition from organizational structures based on technological units to structures based on business processes.
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Institutional units
The basis of accounting in the CNC is "institutional unit" (an economic agent who carries out business transactions). This economic agent (firm), owning goods and assets, has the ability to carry out operations and various types of transactions with other agents.
Residents - these are institutional units that constantly conduct their operations in the country; in this case, it does not matter whether the resident representing the company is or is not a citizen of the host country, as well as the ownership of its assets. Residents include:
- o persons permanently residing in a given country;
- o migrant workers living in the country for more than one year;
- o government bodies, including their foreign missions;
- o firms that permanently carry out business activities in a given country, despite the fact that they may be fully or partially owned by capital of foreign origin.
Non-residents - these are institutional units that are permanently located outside the borders of a given country; Branches or subsidiaries of residents are also considered as such if they are permanently located and conduct their operations in the territory of a foreign state.
CHC distinguishes two main types of institutional units - individuals (households) and legal entities ( enterprises ). Within the SNA, all institutional units are grouped into five groups that represent the main sectors economic activity:
- 1) non-financial corporations - institutional units engaged in the production of goods for the market and non-financial services (firms). The non-financial corporation is the main institutional unit of the real sector;
- 2) households (house-holds) - all individuals who operate in the national economy. These are families, the main consumers of goods and services;
- 3) non-profit institutions - legal entities that provide non-market services to households and are based on the voluntary participation of individuals. Non-profit institutions are an institutional unit of the real sector;
- 4) government agencies - also engaged in the production of non-market goods and services for individual or collective consumption and the redistribution of income. Government institutions - ministries, departments, including government funds (areas social security), play an important role as institutional units public sector economics;
- 5) financial corporations are institutional units (banks, financial companies) that provide financial intermediation or auxiliary Financial services. Financial Corporation- the main institutional unit of the monetary sector.
Statistical yearbooks (Year Books) published by governments tend to reflect the structure presented economic indicators, including macroeconomic indicators (GDP, ND, etc.).
Types of macroeconomic accounts
Cash accounts, unlike income tax and GDP, are inventory accounts. They usually reflect the following types:
- 1) flows, which characterize the results of the activities of an institutional unit (for a certain period of time). Flows are carried out through transactions, they can also be financial and non-financial;
- 2) stocks, which record the residual value of the corresponding indicator.
Macroeconomic accounts are compiled within the framework of the SNA. They, in turn, are divided into three groups:
- 1) current accounts reflect the value of production volumes of goods and services, the creation of income, its distribution, redistribution and use for consumption or savings;
- 2) savings accounts reflect the acquisition and sale of financial and non-financial assets and liabilities by institutional units;
- 3) balance sheet accounts show the value of assets and liabilities at the beginning and end of the reporting period.
Foreign economic transactions
Foreign economic transactions are in the most general form transactions of participants in transactions, economic agents (institutional units) that fix ownership (full, partial) of material or financial assets or involve the provision of certain services on the basis of mutual obligations. This kind of operation is called internal , if they are committed in a specific country; international - if they are committed by organizations (institutional units) of a number of countries.
Thus, the system of national accounts makes it possible to solve the following problems:
- 1) control the “economic pulse” of the country; SNA allows you to measure the volume of production at a specific point in time and reveal the reasons why production is at this level;
- 2) by comparing the levels of national income over a certain period of time, it is possible to trace a long-term trend that determines the nature of economic development: growth, stable reproduction, stagnation or decline;
- 3) the information contained in national accounts serves as the basis for the formation and implementation of public policy aimed at improving the functioning of the economy and achieving the main objectives of the government. National accounts allow systematic monitoring of the economic health of a society and the determination of policies that help maintain and improve this health (economic growth, full employment, income growth, etc.).
Introduction
A market economy, which is based on the economic freedom of economic entities, regardless of the form of ownership of their economic involvement in rational management, largely allows society to realize the strengths of commodity production and the market in the interests of socio-economic progress.
It creates an optimal (although not absolutely the best in economic and social terms) system for attracting effective, proactive and responsible economic behavior. In a market economy, if the latter is imposed, it is primarily through economic methods. People and groups focus on their own interests and strengths, and they themselves are responsible for the negative consequences of management. This forces us to be vigilant about resources, proactive, active, resourceful economic activity.
At the same time, the market economy is quite rigid in social terms, it does not allow equalization and containment, excludes the possibility of equal distribution of income and wealth of society, and is therefore characterized by chronic social instability.
A market economy is characterized by irrational use of resources, a clear manifestation of which is economic crises with their devastating impact on the production forces created by society, increasing underutilization of production capacity and unemployment. But it is impossible to provide a more decent standard of living to all members of society without a transition to a socially oriented market, as most economists and practitioners in Ukraine now admit.
The road to a socially oriented market economy is not easy and painful; it involves resolving a set of fundamental problems:
1) Mastery of different forms of ownership and management, ensuring their economic equality, denationalization of the economy;
2) Ensuring structural restructuring of the economy and overcoming its deficit nature;
3) Improving the financial, credit and monetary infrastructure, overcoming inflationary processes;
4) A gradual shift away from the cost-based pricing model “freeing prices for the main part of industrial products, Agriculture, service sector;
5) Demonopolization of the sphere of circulation, credit servicing enterprises and population, scientific support of the economy;
6) Reorganization of the national market as part of the world economy;
7) Overcoming the non-market orientation of the education and training system. According to sociological research, no more than 5% of managers and specialists of economic services of enterprises are ready to work in market conditions in Ukraine.
Social market economy V mandatory provides for effective measures of state regulation of the economy. And although economists continue to argue about the effectiveness of these measures, the degree of state intervention in the economy and its necessity in general, [Kredisov A., Bodrov V., Leonenko P. “The essence, structure and principles of organizing a social market economy”, “Economy of Ukraine”, No. 4, 1993, p. 38-47; Mocherny S. “Which system should we move towards?”, “Economy of Ukraine”, No. 6, 1993, p. 14-24.] in practice, this issue has been clearly positively resolved in most countries of the civilized market.
At the same time as solving these issues, it is necessary to envisage and prepare a system of measures aimed at protecting the population, especially that part of it that receives low incomes.
However, despite all the difficulties, progress is noticeable in Ukraine’s advancement towards the market: a the legislative framework, market infrastructure has been created, after deep economic crisis There has been a rise in production levels and real income growth.
1. The essence and socio-economic forms of the enterprise. The workforce of the enterprise. Target settings of the company.
The enterprise occupies a central place in the national economic complex of any country. This is the primary link in the social division of labor. This is where national income is created. The enterprise acts as a manufacturer and ensures the reproduction process on the basis of self-sufficiency and independence.
The volume of gross output generated depends on the success of individual enterprises. national product, socio-economic development of society, the degree of satisfaction in the material and spiritual benefits of the country's population.
An enterprise as an independent economic unit has the rights of a legal entity, that is, it has the right to freely dispose of property, receive a loan, and enter into contractual relations with other enterprises. It has a free bank account, where there are funds that are used for settlements with other enterprises and for salaries.
It is generally accepted that the optimal sizes are those that provide the most favorable conditions for using the achievements of science and technology at minimal production costs and at the same time achieving efficient production of high-quality products.
An enterprise is a form of economic organization in which an individual consumer and a producer interact through the market in order to solve three main economic problems: what, how and for whom to produce.
Moreover, none of the entrepreneurs and organizations consciously decided on this triad economic problems not busy (everyone decides in the elements of the market at the individual level).
IN market system everything has a price. Various types of human labor also have a price - salary level, tariff for services. Market economy for the unconscious coordination of people and enterprises through a system of prices and markets. If we take all the different markets, we get a broad system that spontaneously ensures equilibrium in prices and production through trial and error.
By means of coordination between buyers and sellers (demand and supply) in each of these markets, a market economy solves all three problems simultaneously:
1) what to produce? - determined daily by voting through money (by the buyer choosing a product and purchasing it);
2) how to produce? - determined by competition between manufacturers (everyone strives to use the latest technologies, win price competition and increase profits, reduce production costs);
3) for whom to produce? - determined by the relationship between supply and demand in markets, factors of production (labor and means of production).
These markets determine the level of wages, rent, interest and profit, that is, the sources from which income is formed. The manufacturer sets his prices by moving his capital to industries with high profits and leaving unprofitable production of the product. All this determines what to produce. Profit here is a decisive factor in the functioning of a market economy.
In accordance with the forms of ownership, the following types of enterprises can operate in Ukraine:
1) individual, based on personal property and on his labor (without hiring);
2) family, based on the property and labor of citizens of the same family living together;
3) private enterprise, based on the property of an individual citizen with the right to hire work force;
4) collective, based on the property of a labor collective, cooperative or other statutory company;
5) state or municipal, based on the ownership of administrative-territorial units;
6) state enterprise , based on republican (national) property;
7) a joint, based on the combination of property of different forms of ownership (mixed form of ownership).
Depending on the volume of production and the number of workers, an enterprise can be small, medium, or large. Small enterprises - up to 200 employees (in industry and construction), up to 50 people (in other sectors of the production sector), up to 100 people (in science), up to 25 people (non-production sphere), up to 15 people (retail trade).
Enterprises have the right to combine their production, scientific and commercial activities and create the following unions:
1) association- a contractual association created for the purpose of constant coordination of economic activities; the association has no right to interfere in production activities any of its participants;
2) corporation- a legally independent company whose property is distributed among participants who bear limited liability in accordance with their contributions. The peculiarity of a corporation is that it is an independent, really existing unit pursuing its own policy, and not just a collection of owners; (1, p. 46)
3) consortium- temporary statutory association of industrial and banking capital to achieve a common goal;
4) concern- statutory association of industrial enterprises, scientific organizations, transport, banks, trade, etc. based on complete dependence on one or a group of entrepreneurs.
Each enterprise, in order to solve problems related to the production and sale of goods and the provision of services, must be staffed with a certain number of people capable of performing these works. Workers, engineers and office workers engaged in social labor at an enterprise form the labor collectives of these enterprises. In the political-economic understanding, a labor collective is a collective employee of an enterprise and at the same time a subject of economic relations who carries out common activities in state, collective, cooperative, and private enterprises, aimed at satisfying both personal and collective social needs.
The work collective is a complex organizational and socio-economic structure, which includes employees of workshops, teams and other departments of the enterprise. For coordination and consistency between them, an appropriate management system is created.
The transition from a command-administrative management system to economic methods at all levels requires widespread democratization of the entire system of economic activity, management through interests, and the comprehensive activation of workers - members of the labor collective. Therefore, the introduction of self-government at the enterprise is of great importance.
The idea of self-government of work collectives is associated with the need to democratize the production process management system at the enterprise. While the labor collective does not have sufficient powers of the owner, it only acts as the owner, without actually being one. And he will not become one until all acts that secure the alienation of the worker from the means of production are annulled.
Target settings of the company. Getting maximum profit is the ultimate goal of any business activity. This goal is achieved through the definition and implementation of a set of targets, both tactical and strategic. They are:
Increase in sales;
Achieving higher growth rates;
Increasing market share;
Increase in profit in relation to invested capital;
Increase in earnings per share of the company (if it is a joint stock company);
An increase in the market value of shares (if it is open Joint-Stock Company);
Change in capital structure.
The nature of these target settings of the enterprise is determined by the state of the economy as a whole, the development trends of the specific industry to which the company’s activities belong, as well as the stage of the life cycle of the enterprise itself.
Of course, some businessmen do not follow this principle, having other motives for entrepreneurship. But science is built on the assumption of profit maximization, and does not claim that profit is the only factor influencing the actions of the company (3, p. 104).
There is a theory of enterprise life cycles, according to which there are three stages of this cycle: Any enterprise, firm, organization consists of their internal elements. The main elements of the organization’s internal environment include: Mission of the organization Business strategy Structure Resources Technologies. Below is a diagram of the interaction of these elements: From the diagram we see that all these elements are interconnected and if a change occurs in one of these, this will entail a change in the others. Every organization has its own purpose, i.e. this can be expressed as the organization's Mission. My company strives to produce products that would be accessible to all segments of the population, satisfy all needs and be of high quality. To achieve its mission, any organization must set certain goals that would regulate its activities. These goals should be common to both management and executive teams. The company's value system. Creating value is a fundamental function of an enterprise. The process of creating value is the satisfaction of group or individual needs, as a result of which the enterprise achieves public recognition of its activities. A thriving enterprise is an enterprise that receives sustainable profits from its activities. The owners (or shareholders) of the enterprise are interested in a constant and ever-increasing flow of income and in such a use of their own and borrowed funds that increases the value of their property (dividends, shares). Personnel and suppliers are interested in the stability of the enterprise, long-term relationships with it, as well as a favorable working atmosphere. For consumers, the highest value is provided by goods and services that satisfy them in quality and price. Public recognition, in turn, gives the company the opportunity to expand production, increase sales and services, and ultimately increase its profits. The main working tool in the implementation of the target functions of the enterprise is the market strategy, within the framework of which it is implemented competitive advantages enterprises. In international business theory and practice, three main types of enterprise market strategy are distinguished. The management of the enterprise must seriously analyze the existing competitive advantages and choose one of the strategies for behavior in the market. After the market strategy has been carried out, the next tool for implementing the target function of the enterprise, ensuring sustainable profit generation, is planning aimed at achieving the goals of the enterprise.
2. On-farm structure of the enterprise and the turnover of its production assets. The main task of the enterprise is to satisfy some social need of this region, while receiving profit, through which the social and economic interests of the given team and the owner of the enterprise’s property are satisfied. Every enterprise, firm, association, regardless of its form of ownership, operates on the basis of economic (commercial) calculations. Principles of self-financing: 1) self-financing; 2) self-sufficiency; 3) material interest; 4) economic responsibility; 5) freedom of economic activity; 6) competition between commodity producers, control over their economic activities. Commercial calculation is an economic category of commodity production, which reflects a complex system of economic relations that arise in the process of using the means of production, selling products, and in the distribution and use of income and profit. The transition to market economic relations exacerbates the problem of finding ways to increase the stability of enterprises. The most important stabilizing and at the same time little studied factor is the creation of an intra-farm (relative to the enterprise) infrastructure that meets modern requirements that are put forward to the conditions and nature of work, the relationship of interests of individual workers and teams, and the socio-psychological situation. Insufficient attention to these requirements both when creating new ones and in the process of organizing the functioning of existing enterprises leads to the fact that equipping enterprises with high-performance equipment is often characterized by low economic efficiency. Analysis of the experience of thriving companies in developed countries akh leads to the conclusion that their consistently high results are determined by ensuring the interaction of technological, organizational and social elements of production, which is achieved through the implementation of a new concept of economic development. The basis of this concept is the orientation of management towards people, in contrast to the methods used for a long time, in which the main objects of management were machine complexes and technological processes. Integration of technological, organizational and social processes is achieved through the creation of an on-farm social infrastructure, the basis of which is a set of factors formed as a result of the fulfillment of a set of social requirements. By its economic nature, the structure of an enterprise is an integral part of the production forces of society, which performs the functions of ensuring conditions for the effective development of a given production system. In order to ensure the effective functioning of objective and subjective factors of production (methods of production and labor), two components of the on-farm structure of the enterprise should be considered separately: the production itself (designed to provide conditions for normal functioning objective factors) and social. The latter represents part of the means of production, working and living conditions capable of ensuring rational organization labor activity, improving the professional level of workers, protecting and strengthening their health, satisfaction with work and its results, the opportunity to work with full dedication. As is known, in any production process, regardless of its social form, material and personal factors of production - means of production and people - take part. From the material and technical side, the production assets of an enterprise are characterized by a certain structure. Thus, production assets are divided into productive and circulating funds, into fixed and circulating assets, into monetary, productive and commodity parts, and fixed assets into active and passive parts, etc. The material and technical structure of the enterprise varies depending on the industry, technical progress and is an important indicator of the development of the productive forces of society. The socio-economic nature of the enterprise is determined by the form of ownership of production assets. Property can be state, communal, private, collective, mixed, joint-stock. Based on this, production assets should be considered material and personal factors of production that are owned or disposed of by an enterprise and serve as the material basis for its production activities. Production assets are in constant motion. They go through three stages, change three forms - monetary, productive and commodity - and in each of them they perform a corresponding function. The first stage of the circuit lies in the transformation cash funds into productive ones, that is, into means of production and production personnel. This stage lies in the purchase of means of production and the hiring of workers and takes place on the market. The second stage of the circulation of productive assets lies in the transformation of productive assets into finished products, goods. This stage occurs in the sphere of production. At the stage of circulation, production assets function in a productive form, that is, in the form of means of production and producers. The third stage of the circulation of production assets lies in the transformation of goods into money. It happens in the service sector. At the third stage, productive assets pass into the form of goods. This product differs from the product purchased at the first stage both in its natural form and in cost, since it includes, in addition to the cost of labor and the cost of spent means of production, additional cost. The circulation of production assets is their movement, during which they go through three stages, three forms and in each of them perform a corresponding function. 3. Types of enterprises. Small businesses and their role in economic progress. In Ukraine, in the process of denationalization of the economy, the most important socio-economic goal is the transfer of a significant part of state property to labor collectives. This is the main way to overcome the alienation of workers from ownership of the means of production and the results of labor, from the labor process itself, from production management, from economic power, etc. The laws of Ukraine define three main types of enterprises: state, collective and individual. At the same time, the latter group has the opportunity to create an individual, family and private enterprise. If we consider this issue more broadly, we can distinguish the following types of enterprises: 1. Rental and collective. Rent is the primary mechanism for denationalization of property, a means of forming and multiplying collective property. In accordance with the agreement, the state can lease enterprises, production assets and working capital. In a rental enterprise, its founder is the labor collective, which is registered as an organization of tenants, that is, as an independent legal entity. Rent is a type of economic calculation, while the tenant of an enterprise has the right to independently distribute economic income, use it for the development of production, social needs and wages at his own discretion (rent is a form of management, not a type of property). Rent is an amount fixed by the lessor, set by the lessee for a certain period. The rental team strives to improve and develop production. It has more independence compared to a rental company. 2. Joint-stock partnerships. A partnership or company means an association of several owners who jointly manage a business. Creating associations is a way of combining individual capabilities and resources in order to create a more powerful and competitive company.(1. p. 46) In a socially oriented market economy, joint stock ownership can perform the following functions: It allows you to expand sources of accumulation due to Money the population through the purchase and sale of shares; Joint-stock entrepreneurship promotes the democratization of enterprise management, promotes the creation of a material and technical base, increasing the interest of workers in the better use of means of production and working time; Eliminates the imbalance in the economy between supply and demand, between group A and B; The amount of money is regulated more effectively, and this form also contributes to the development of commodity-money relations. In Ukraine, there are the following types of joint stock partnerships: open joint stock partnerships, where shares are distributed through open subscription, that is, through purchase and sale on the stock exchange; closed joint stock partnerships, the shares of which are distributed only among their founders. A share is the main attribute of a joint-stock partnership. This is a security without a specified maturity date, confirming share(share contribution) of a shareholder in the authorized capital of a joint-stock company, confirming membership in it and the right to receive profit in the form of dividends. The share gives the right to participate in the division of property upon liquidation of the partnership. Types of shares: registered, bearer, preferred, simple. If the share is registered, then information about each registered share must be entered in the share registration book: owner, time of acquisition, number of such shares for each shareholder. Unlike a simple share, a preferred share gives its owner a priority right to receive dividends, as well as priority participation in the distribution of property of the joint-stock company in the event of its liquidation. Owners of preferred shares do not participate in the management of the joint stock company. Dividends of a joint stock company are paid only at the end of the year from the profits that remain after paying taxes and interest on a bank loan. Disadvantages of joint stock companies: 1) millions of small shareholders go bankrupt, especially during economic crises; 2) joint-stock companies can carry out various financial frauds on stock exchanges. 3. Contractual partnerships. They are created by legal entities and individuals when they seek benefits in joint activities on the market, but do not want to lose their independence. 4. Limited liability partnerships. These are closed partnerships that are created by combining share contributions. A limited liability partnership includes several partners who are responsible for organizing the work of the firm and have almost the same status as co-owners of a regular partnership. But the form of enterprise organization under consideration includes a number of limited liability partners who contribute funds to the organization of the company, receive profits, but whose liability for the company’s obligations can never exceed the amount they invested in the business (4, p. 286). This is what makes this form of enterprise attractive and convenient. Before registering a partnership, each founder must deposit at least 30% of his contribution into a bank account. Only after this is it registered with the executive committee of people's deputies at its location. 5. Non-profit firms. In addition to the indicated forms of enterprise organization - such forms of enterprise organization that aim to make profits in the private sector, there are many non-profit firms. These include churches, colleges, hospitals, relief societies, trade unions, clubs and some others. Like profit-oriented firms, these organizations are involved in trade, production of goods and services, and provision of employment (5.p. 289). 4. Enterprise management and self-government of the workforce. Management and marketing in enterprise management. Whatever the form of organization of a company, it always solves one problem - coordinating economic activities, that is, making responsible decisions about what, how and how much to produce. To solve this problem, the company, firstly, must ensure the relationship between the participants in the production process and a certain sequence of their actions, and secondly, develop a system of tools that encourage work activity and increase its effectiveness (1. p. 47). There are two basic principles for organizing economic activity – spontaneous order and hierarchy. Spontaneous order is caused by the interaction of independent parties in response to certain information and economic incentives obtained directly from surrounding activities. Markets, where decisions are made in response to changing prices, are the basic economic example of spontaneous order. The second example of organization is hierarchy, in which individual activities are controlled by the command of a central authority. The internal structure of firms, where employees act in accordance with the orders of managers and managers, is a basic example of hierarchy (5.p.288). To carry out the production, economic and social functions of the enterprise, an administrative apparatus is created. The number of divisions, the organizational structure of the enterprise, and staffing depend on the specifics of production and are determined by the enterprise itself. The main principle of management of state-owned enterprises has been and remains the principle of democratic centralism. Its essence lies in combining centralized management with granting them a certain independence. Under the conditions of the command-administrative system, there was excessive centralization in management, and the independence of the enterprise was limited and fictitious in nature. An important principle of management is unified leadership, that is, subordination to the head of all departments of the enterprise, all members of the workforce. This also means that the head of the enterprise or the corresponding department personally manages, organizes and is responsible for the effective activities of the enterprise and its workforce. Such management is carried out by him through his deputies and heads of the relevant departments of the enterprise (personnel department, economic planning, legal departments, accounting, office), who are functionally subordinate only to the director of the enterprise. The quality of leadership greatly depends on effective work enterprises. The success of the enterprise depends on the manager, his economic and technical awareness, and ability to manage a team. Management is power relations, and their content is determined by the nature of the property. Within the framework of his property and rights, the owner-owner himself determines the methods and management system. He has a monopoly over the management of his property. If the enterprise is state-owned, then the corresponding management functions are carried out by the state through its authorized managers. And the collective is only an organized set of hired workers, who, partially, at the request of the owner, to a greater or lesser extent, can be allowed to manage production. If the owner of the enterprise is a labor collective, a joint-stock company, or a cooperative, then the heads of such enterprises are elected. The highest management body of such enterprises is the general collection of property owners. Executive functions The management of the collective enterprise is carried out by the board. The board of the enterprise is elected by property owners for general fees by secret ballot on an alternative basis. The board elects a chairman and his deputies from among its members, or their role is performed alternately by all members of the board. At all enterprises where hired labor is used, a collective agreement is concluded between the owner and the workforce. This agreement regulates the productive, labor and economic relations of the workforce with the administration of the enterprise, issues of labor protection, social development, participation of employees in the use of enterprise profits, etc. The labor collective reviews and approves the draft collective agreement, decides, in accordance with the enterprise's charter, issues of self-government of the labor collective, determines and approves the list and procedure for providing social benefits to the enterprise's employees. At all enterprises, the indicator of the financial result of economic activity is profit. The procedure for using profits is determined by the owner of the enterprise or a body authorized by him in accordance with the charter of the enterprise. Issues of social development, including improvement of working conditions, life, health, guarantees of compulsory medical insurance, insurance of members of the labor collective and their families, are resolved by the labor collective with the participation of the owner in accordance with the charter of the enterprise, the collective agreement and legislative acts Ukraine. 5. Adaptation of enterprises to market relations.
Economic development at the present stage, inevitability and necessity transition period from one management system to another, the transformation of the administrative system and management mechanisms into market ones poses problems of adaptation to new conditions for enterprises. Their solution determines the adaptability and survival of enterprises, the flexibility of their response to changes in external causes, to the factors of instability and uncertainty that are inherent in the current transition period. Therefore, it is necessary to consider the main problems facing entrepreneurship in the context of the transition to market relations, and to build adaptation mechanisms to solve them, which will allow, by coordinating the goals of the enterprise, the interests of the owner, different groups and categories of workers, by creating appropriate models and methods for the restructuring and development of enterprise systems to ensure a place in the market environment and effective functioning in it. First of all, it is necessary to set the task of creating such transformations that would have a natural, organically inherent nature of implementation, and secondly, a general methodological approach to eradicating stagnation in the economy, which underlies the disintegration of management and production, is theoretically formulated (at the enterprise level) , differentiation of forms of ownership. The specific essence of this approach, which takes into account the monopoly of producers, the existing, formed even before the transition period, the features of the management and management system, the presence of virtually the only so far - state - form of ownership, and consists in the division of very large enterprises, production and management processes and the simultaneous transition to mixed forms of ownership. The starting point in motivating the restructuring and development of enterprise systems is that each group and category of workers should have an interest in achieving fully defined specific goals, which together ensure the effective functioning of the enterprise in the context of the transition to market relations and in the long term with stable economic situation. In this case, it is necessary to consider the general elements of motivation that apply to all groups and categories of workers, and special ones that apply to individual groups and categories. The efficiency of an enterprise, all its systems and mechanisms, is largely determined by external factors operating at the micro level. It is necessary to consider two sets of issues in this area, which are closely related to adaptation mechanisms enterprises, - management product quality, denationalization and privatization, as well as ways and methods of their improvement in order to create an environment of greatest assistance for enterprises. Particularly important is the issue of using a new management function for industrial enterprises - forecasting. The developed predictive system and predictive models of technical-organizational development, as well as the methodology and methodology for modeling the interconnected strategy for the development of the technical-organizational and organizational-economic system of an enterprise are worthy of study. The main issues that will require solutions in the process of restructuring the organizational and economic system of the enterprise are: Determination of the property management model of the enterprise and its structural divisions; Formation of a system for accounting costs and work results; Management of intra-company pricing and division of business results. 6. Economic freedom of enterprises. Unrestricted activity of an enterprise creates serious social injustice, and often environmental hazards. Therefore, the company must comply with clearly defined requirements from the government, consumers and environmentalists. The most advanced foreign enterprises are responding to this by developing social programs in order to assign oneself the status of a responsible member of society. At the same time, enterprises take targeted actions to prevent the adoption of laws restricting entrepreneurial freedom. The most important thing for the work of those enterprises that do not want to cease to exist is adaptation to the demands of society. The success of an enterprise largely depends on who and how regulates and controls relationships with the regional environment. Soviet experience showed that full-scale control of enterprises from above is undesirable, since it makes them ineffective. The experience of developed countries, in turn, shows that with minimal control from above, enterprises create more benefits and are more efficient. But due to the fact that national wealth is constantly increasing, and the distribution remains uneven, this increase is accompanied by the destruction of the political, economic and social Environment, and indifference to the urgent problems of enterprises. Traditional areas of control of entrepreneurial behavior from the outside government agencies management are: products, production technology, competitive behavior, profit, resources, ownership and organization of intra-company management. Entrepreneurs have the right to make decisions without restrictions and independently carry out any activities that do not contradict current legislation. Features of regulation of certain types of entrepreneurship are established by the legislation of Ukraine (see Chapter 8, paragraph 2, “Law on Entrepreneurship of Ukraine”). 7. Economic problems of entrepreneurship and ways to solve them.
During the beginning of a new stage of economic reform in Ukraine, it becomes especially important to find additional reserves for increasing the efficiency of the economic mechanism and taking drastic measures to create conditions for the country to emerge from the crisis situation. The search for the most acceptable methods for improving the economy for Ukraine first of all leads to the need to turn to world experience in solving these problems. Among a number of different factors economic growth The most significant is considered to be the skillful implementation of the entrepreneurial potential of the country's citizens, the effective use of a person's independent economic initiative in the economic mechanism, the recognition of entrepreneurship as an irreplaceable force of economic dynamics, competitiveness and social prosperity. To intensify efforts in this direction and more fully understand the entire range of existing problems, it is first necessary to focus on theoretical aspect problems of entrepreneurship. Despite a large number of works on this topic, to date, a clear, scientific theory-based, unambiguous definition of the concept of entrepreneurship has not yet emerged. The concepts existing today characterize entrepreneurship in three directions: 1) the availability of various types of resources and the ability to manage them in order to make a profit with the constant presence of a risk factor and uncertainty of the final result of the activity; 2) effective management and organization of the production process with constant and widespread use of innovations; 3) the special innovative, creative behavior of an economic entity, its entrepreneurship, which is the driving force of the economic process. Scientists and practitioners see the main condition for the existence of entrepreneurship in creating a competitive environment and providing economic freedom business entity. Already such an understanding of the essence of the problem makes it possible to explain an important feature of the development of the modern world economy - the ever-increasing role of small business. Its quality criteria are: The predominance of private ownership of the means of production; Legal and economic independence in decision making; Simplified control system; Professional interchangeability of workers; Direct participation of the owner in the management of the enterprise; Initiative, exploratory nature of the activity. It is easy to see that the operating principles of these firms are close to the characteristics of entrepreneurship. Indeed, almost everywhere there is an identification of entrepreneurship with small business, and the term “small business” is widely used in domestic science and practice. The reason for this phenomenon is also obvious - the widespread spread of entrepreneurship in small businesses. It is this sector of the economy that represents the most effective system for selecting talented and enterprising people, allows creating the necessary atmosphere of competition, and contributes to the rapid solution of a number of problems that cannot be resolved by larger economic structures. Ukraine, like other countries with economies in transition, inherited from the Soviet state-monopoly system a set of relations between enterprises that is incompatible with a competitive environment. In a system based on the general nationalization of property and over-centralization, large and major enterprises significantly predominated. IN former USSR enterprises with more than 1000 employees. produced almost 3/4 of all industrial products, concentrated 80% of the main industrial production assets, and consumed more than 90% of all electricity. This level of concentration was adequate to the planning-directive system, the theory and practice of which was based on the idea of the economy as single complex. It is convenient to manage a small number of large enterprises, set targets and standards for them, distribute resources between them, appoint and remove managers, etc. The monopoly of the planning-directive system is mainly departmental monopolism, the nature of which, in essence, is not related to the size of enterprises and their number. Meanwhile, the destruction of departmental monopolism in itself does not at all create a competitive environment, since in most industries it remains high level concentration of production, that is, the predominance of a small number of large enterprises. There is only a slight shift in the structure of monopolism - departmental monopolism is being replaced by enterprise monopolism. In terms of its negative consequences, the latter is no better than departmental monopoly. On the contrary, if departmental monopolism leaves some possibilities for control over the excessive “appetites” of monopolistic enterprises, then the monopoly of enterprises in its pure form gives rise to price chaos, creates the opportunity to “press buyers to the wall” in terms of the range of products and their quality, and postpone technological development for an indefinite period of time. production renewal. Of course, a competitive environment can be created even under these conditions on the basis of liberalization of relations with the foreign market, in particular by weakening customs restrictions for foreign goods entering the domestic market, while simultaneously strengthening control over their quality. But this way of forming a competitive environment during a deep economic crisis is extremely dangerous. The competitive environment created in this way can only strengthen the forces that are destroying the national economy. It is impossible not to take into account that the goods produced at most Ukrainian enterprises are uncompetitive in comparison with goods on the world market. Most Ukrainian enterprises will not withstand this competition, which may aggravate their already difficult situation. There is an opinion that the solution to this problem lies in the technological renewal of production, which should make the products of enterprises competitive. However, this decision also seems questionable, primarily because of the conditions for its implementation. Galloping inflation makes innovation unlikely, since normal business activity is unable to provide the necessary funds for investment. It is also doubtful to receive funds for this purpose from the outside, since the conditions of the same inflation and instability of the Ukrainian economy force investors to look for such investments of capital that can provide immediate returns, while investments in production are always associated with a significant period of time and risk. But even if large enterprises manage to update technology, in many cases they are doomed to remain uncompetitive in the global market. This is due, not least of all, to the peculiarities of their structure, which has developed under the conditions of a command-administrative system. Enterprises (primarily large ones, but not only them) were created on the principle of a maximally closed complex of divisions. This was dictated by the real operating conditions of enterprises and was legitimized by regulations governing their standard structures. The composition of the main production units was formed in such a way as to minimize the dependence of enterprises on suppliers. Each enterprise created a wide range of auxiliary and service industries. The management apparatus, as a rule, included numerous departments, groups, bureaus, and laboratories. This approach to the formation of the structure of enterprises was dictated not only by the desire to limit connections as much as possible due to interdepartmental barriers, but also by the fact that payment for the services of third-party organizations, as a rule, was more expensive compared to the costs of maintaining their respective departments. In addition, this approach to the formation of the structure of enterprises was facilitated by the accepted procedure for remunerating managers depending on the category of enterprises. The market economy responded to this structural feature of “traditional” enterprises with certain trends. Over the past years, in countries with modern market economies, there has been a clear desire of enterprises to distance themselves from many of the functions previously performed by their internal divisions, primarily those that were characterized by pulsating loads. It is due to this factor that the number of industrial giants is decreasing and, at the same time, the number of small enterprises is increasing. Contrary to the theoretical dogma about the inevitability of the process of concentration of production, the average size of enterprises shows a clear tendency to decrease. This process makes the market economy more dynamic, mobile, receptive to innovation, and increases its ability to quickly respond to market demand and its changes. At the same time, a growing part of business risk is transferred to small enterprises, and the work of large enterprises, which remain the foundation market economy and its export potential, becomes more sustainable. It should be especially noted that the development of small business is accompanied by the expansion of the competitive environment, the invasion of competition into areas that were previously represented by non-competitive relations internal divisions enterprises. Of course, when characterizing the increasing role of small enterprises in a market economy, one should take into account not only their importance in the entire infrastructure of enterprises, but also the social side of the process, in particular, the role of small enterprises as a factor in changing the ownership structure, as a regulator of employment, and in general as a buffer zone of the market economy. an economy capable of mitigating the consequences of structural changes occurring in it. Various options for the process of forming a network of small enterprises that perform the functions of forming infrastructure in the entire set of enterprises can be named. First of all, small enterprises can be created by spinning off divisions, that is, separating them from a larger enterprise and granting them the appropriate rights (legal entity, opening a current account, independent balance sheet, etc.). At the same time, a small enterprise gets the opportunity to independently form a portfolio of orders, which makes its income directly dependent on the results of its own activities. However, numerous problems and difficulties are inevitable along this path. In particular, they are associated with the formation of ownership of the property of small enterprises, with the logistics of production and, consequently, the distribution and use of its income. These problems do not disappear even if the creation of small enterprises is carried out on the basis of the transfer of property for rent. The creation of small enterprises by spinning them off from larger ones can be associated with corporatization - for example, by giving the divisions the form of small joint-stock companies, the shares of which can be distributed both among the workforce of the enterprise (large and small) and through free sale. But with any variant of budding, the main problem remains. Receiving independence from the hands of a large enterprise, small enterprises become independent subjects of market relations. Therefore, the question inevitably arises to what extent these newly formed subjects of production activity are able to reliably and efficiently perform their functions as elements of the infrastructure of other enterprises, including in relation to those from which they separated, and also how much their products and services will cost the enterprises left without appropriate units. The problem noted above arises due to the fact that the very method of creating small enterprises based on the disintegration of larger ones is not capable of creating a competitive environment and, consequently, mechanisms that influence the activities of small enterprises, the quality of their products and services, as well as prices their implementation. This is precisely what explains the failure of many attempts to form small enterprises on this basis. There were cases when the separation of a number of small enterprises from large enterprises not only did not bring success, but also became an additional factor in reducing production output and reducing its competitiveness. The correct conclusions are suggested by the experience of large companies in countries with developed modern market economies. It is known, for example, that enterprises such largest company, like General Motors, serves 32 thousand suppliers that form its infrastructure (mainly in the form of small businesses). The company's products are sold by 11 thousand independent dealers operating in many countries. The same data can be provided for Japanese companies - electronics, automotive, construction and others. A characteristic feature of such systems is the mobility of the composition and structure of small enterprises. A significant part of them exist only for a short time, and then disappear or change their type of activity. At the same time, new small businesses are emerging offering their products and services. And as a result, systems, including large, medium and small enterprises, function sustainably and in accordance with the emerging market conditions. From the foregoing it follows that on the basis of spin-offs alone it is impossible to create systems that optimally combine enterprises different sizes and various functions. One of the most important conditions for Ukraine to reach a level of competitiveness with enterprises from far abroad is the creation of the most favorable conditions for the formation of such a mass of small enterprises that, taken together, are capable of performing infrastructure functions on a competitive basis. These should be small enterprises with a wide range of social orientation, size and type of activity. These can be enterprises with a minimum number of hired workers and without hired workers at all - family enterprises. Small enterprises can specialize in the manufacture of relatively simple elements of products, the composition and nomenclature of which change in accordance with market requirements. Ukraine also needs enterprises that, on a contractual basis, carry out maintenance and repairs of equipment, computer technology, instruments and equipment. This entire vast area of small business should be such that all enterprises, and primarily large and medium-sized ones, have the opportunity to choose suppliers and partners whose products and services are of high quality, reliability and stable prices, thereby proving the advantages of this system compared with a number of closed-loop enterprises that were inherited from the command-administrative system. Naturally, the creation of such a small business network requires certain logistical, financial, credit and organizational prerequisites. Giving the process of creating small enterprises a mass character leads to the emergence of a small business zone that can successfully enter the infrastructure of enterprises. Meanwhile, in Ukraine this process faces many difficulties and problems. Behind last years In particular, there have been generally favorable changes in the mechanism for creating new enterprises, including small ones. The procedure for passing documents related to obtaining business permits has been significantly simplified. This led to a significant reduction in the time required for this. Previously multiple visas were required officials, which delayed the processing of documents for many weeks and even months, now this time has been reduced to several days, and the deadline for processing is practically limited only by the frequency of meetings of commissions of executive authorities that give the final decision. True, it should be noted that the difficulty and complexity of filling out necessary documents. But this difficulty is easily overcome, since companies have emerged that take on the entire registration process for a relatively small fee. With all this, however, numerous factors remain that impede the development of small business as a special buffer zone of a market economy. Moreover, first of all, this applies to the production sector and that part of it that is capable of performing the functions of enterprise infrastructure. The intensity of this process is completely insufficient. At the same time, there are obvious deformations in its directions that do not correspond to the needs of the formation of a modern market economy. The current procedure for creating enterprises is (as before) permissive in nature. Legislative acts list the types of activities for which it is permitted to create enterprises. As a result, if a particular type of activity is not included in the list of permitted activities, that is, it is extraordinary, the apparatus of the executive authorities receives ample opportunities for unreasonable prohibitions. Meanwhile, the essence of a market economy corresponds to such a form of regulations when prohibited types of activities are listed. The creation of new enterprises, including small ones, is hampered by the practice of collecting fees associated with the preparation of documents and permits. Permit fees vary. It is necessary to pay both for permission to engage in entrepreneurial activity in general, and for the right to engage in each type of activity specifically. All these contributions ultimately increase enterprise costs and reduce their revenues and profits. It should be especially noted that the current procedure for taxing enterprises stands in the way of the development of entrepreneurship in Ukraine. Formally, in accordance with this procedure, only the profits of enterprises are taxed. Moreover, the tax amount is 30%, which corresponds to the idea accepted in a market economy of the optimal level of taxation of profits. But this is just a deceptive appearance. Enterprises are required to include in their costs contributions to various funds (there are five of them), which, in essence, are part of added value. Thus, the level of costs is significantly increased, and profits are correspondingly reduced. This taxation procedure contains a deep internal contradiction. It presupposes the absence of a competitive environment, the monopoly position of subjects of a market economy, their ability to set prices on a cost basis, that is, in essence, the emergence of non-working market pricing mechanisms. If the same enterprises operated under normal market conditions, in which prices are set not on a cost basis, but as equilibrium prices of the market competition mechanism, then most of the enterprises would certainly become unprofitable and would lose the main motive and basis of their activity - profit. In the real economic conditions of Ukraine, monopolistic price increases do not so much ruin existing enterprises as prevent the creation of new ones and, what is especially significant, inevitably lead to a reduction in production due to the discrepancy between the purchasing power of the population and price levels. The system of profit taxation and deductions included in costs adopted in Ukraine not only hinders the development of entrepreneurship, but also deforms its directions. Free capital clearly avoids the production of goods and services, where relatively large initial investments are required. capital investments with problematic payback prospects. He focuses mainly on trade and intermediary activities. It is significant that registered individual labor activity predominantly rushed into this same area, a significant part of which was based on the voyages of the so-called “shuttles”. In a modern market economy, tax levers are considered the most effective tool for its regulation. In Ukraine, these levers, in essence, are practically not used either for the development of entrepreneurship or for regulating its directions. Currently, new businesses, including small ones, are not eligible for tax breaks. There is no differentiation in the level of income taxes and the amount of deductions depending on the types and areas of business activity, as well as on the use of profits. There are no tax discounts if profits are used to create new jobs, technological upgrades in production, etc. (note that these and other tax breaks were eliminated in early 1995). There is no such form of government support for small businesses as preferential terms their lending (for example, by providing government guarantees to banks providing loans for the creation of enterprises and development entrepreneurial activity). A broad, and, moreover, regulated process of entrepreneurship development, especially in the field of small business, becomes possible in its synchronous connection with the output national economy out of the crisis on the basis of curbing inflation and introducing a stable national monetary unit. Only on such a basis can the development of entrepreneurship stop the decline in production and gross national product, achieve their stabilization, and then growth. Mass entrepreneurship requires the training of people capable of this type of activity. This task must be addressed at all levels of education and training. A legislative framework should also be formed to regulate relations related to the creation and functioning of small businesses, ensuring its protection from monopoly structures, arbitrariness of officials and racketeering. In turn, the program created at the state level should be based on scientifically developed conceptual frameworks for the development of entrepreneurship in certain areas and areas of the economy. Only this approach can help avoid major mistakes in the process of creating a small business support system, guarantee the consistency of its formation and ensure the practical implementation of all its elements. World experience in the development of small business structures indicates that their greatest efficiency is achieved under the conditions of the existence of a private form of ownership. The formation of its legal framework in Ukraine should include a number of measures: Improving legislative acts regulating mass privatization; Establishing a long-term perspective for the development of private entrepreneurship, approval of the right of inheritance and sale of property; Providing reliable political and administrative guarantees against unlawful attacks on property by the state, other individuals and legal entities. Particular attention should be paid to the fact that in the regulations on entrepreneurship regulation there is some uncertainty in the understanding of the terms “small enterprise”, “small entrepreneurship”, “small business”, insufficient differentiation of organizational, organizational-legal and organizational-economic forms of economic activity . In world practice, the vast majority of small enterprises are legally and financially independent, independent, small in number of employees, based on the private property of one or more citizens who directly manage and work in their enterprise. Only these qualities make it possible to classify such forms as small businesses and give them the right to significant support from the state. The main problem for small businesses is difficulties with financing. Lack of sufficient capital among the majority of the population, complexity, unprofitability, and sometimes impossibility of obtaining borrowed money hinder the development of small businesses. The task of the state is to create preconditions that stimulate investment and entrepreneurial energy in this sector of the economy. 8. Legislative regulation of the activities of enterprises. 1) Law of Ukraine on enterprises dated March 27, 1991. The Law of Ukraine “On Enterprises” creates equal legal conditions for the activities of enterprises, regardless of the form of ownership of property and organizational forms of the enterprise. The law is aimed at ensuring the independence of enterprises, defines their rights and responsibilities in conducting economic activities, and regulates the relations of enterprises with other enterprises and organizations, government bodies. The enterprise is the main organizational unit of the national economy of Ukraine. An enterprise is an independent economic statutory entity that has the rights of a legal entity and carries out production, scientific and commercial activities in order to obtain appropriate profit (income). The enterprise has an independent balance sheet, current and other bank accounts, a seal with its name, and the industrial enterprise also has a trademark. The enterprise does not include other legal entities. The enterprise carries out any types of economic activities, if they are not prohibited by the legislation of Ukraine and meet the goals provided for by the charter of the enterprise. According to the forms of ownership, enterprises of the following types can operate: Individual enterprise based on private property individual and exclusively his work; A family enterprise based on the property and labor of Ukrainian citizens - members of the same family who live together; A private enterprise based on the property of an individual citizen of Ukraine, with the right to hire labor; A collective enterprise based on the ownership of the labor collective of an enterprise, cooperative, other statutory company, public and religious organization; State utility enterprise based on the ownership of administrative-territorial units; State enterprise based on national ownership; A joint venture based on the combination of property of different owners (mixed form of ownership); An enterprise based on the property of legal entities and citizens of other states. According to the volume of economic turnover of the enterprise and the number of its employees (regardless of the form of ownership), it can be classified as a small enterprise. Small enterprises include newly formed and existing enterprises: In industry and construction - with a workforce of up to 200 people; In other industries of the production sector - with a workforce of up to 50 people; In science and scientific services - with a workforce of up to 100 people; In non-production sectors - with a workforce of up to 25 people; In retail trade - with a workforce of up to 15 people. An enterprise is created in accordance with the decision of the owner (owners) of the property or the body authorized by him (them), the founding enterprise, organization or the decision of the workforce in cases and in the manner provided for by this and other laws of Ukraine. An enterprise can be created as a result of the forced division of another enterprise in accordance with the antimonopoly legislation of Ukraine. An enterprise can be created as a result of secession from an existing enterprise, the organization of one or more structural divisions, as well as on the basis of a structural unit of existing associations in accordance with the decision of their labor collectives, if there is the consent of the owner or an authorized body. An enterprise acquires the rights of a legal entity from the date of its state registration. State registration of an enterprise is carried out in the executive committee of the district or city Council of People's Deputies at the location of the enterprise. For state registration of an enterprise, an application, the founder’s decision on creation, a charter and other documents are submitted to the executive committee of the relevant Council of People’s Deputies. If a small enterprise does not have its own premises at the time of registration, it is carried out at the legal address of one of its founders. The enterprise has the right to create branches, representative offices, departments and other separate units with the right to open current and current accounts. The company operates on the basis of its charter. The charter is approved by the owner (owners) of the property, and for state enterprises - by the owner of the property with the participation of the workforce. The charter of the enterprise defines the owner and name of the enterprise, its location, the subject and purpose of its activities, its governing bodies, the procedure for their formation, the competence and powers of the workforce, the procedure for the formation of the property of the enterprise, the conditions for reorganization and termination of the enterprise. The property of the enterprise consists of fixed assets and working capital, as well as other valuables, the value of which is reflected in the independent balance sheet of the enterprise. The sources of formation of the enterprise’s property are: Monetary and material contributions of the founders; Income received from the sale of products, as well as from other types of economic activities; Loans from banks and other lenders; Capital investments and subsidies from budgets; Proceeds from denationalization and privatization of property; Acquisition of property of another enterprise or organization; Free or charitable receipts, donations from organizations, enterprises and citizens; Other sources not prohibited by Ukrainian legislation. The company has the right to issue its own valuable papers and their implementation to legal entities and citizens of Ukraine and other states. The workforce of an enterprise consists of all citizens who, through their labor, take part in its activities on the basis employment contract(contract, agreement), as well as other forms regulating the employee’s labor relations with the enterprise. The workforce of an enterprise with the right to hire labor: Reviews and approves the draft collective agreement; Considers and decides, in accordance with the charter of the enterprise, the issue of self-government of the labor collective; Determines and approves the list and procedure for providing social benefits to employees of the enterprise; Takes part in the material and moral stimulation of productive labor, encourages inventive and rationalization activities. The workforce of state and other enterprises in which the state’s share in the value of the property is more than 50 percent: Considers, together with the founder, changes and additions to the charter of the enterprise; Together with the founder of the enterprise, determines the conditions for hiring a manager; Takes part in deciding on the withdrawal of one or more structural divisions from the enterprise to create a new enterprise; Together with the owner, resolves issues regarding the entry and exit of the enterprise from the association of enterprises; Makes decisions about leasing an enterprise, creating a body based on the labor collective for the transition to leasing and purchasing the enterprise. With a partial buyout of an enterprise, the labor collective receives the rights of a collective owner. A collective agreement must be concluded at all enterprises that use hired labor, between the owner or a body authorized by him and the labor collective or a body authorized by him and cannot contradict the legislation of Ukraine. At all enterprises the main socialized indicator financial results economic activity is profit (income). The procedure for using income is determined by the owner of the enterprise or a body authorized by him in accordance with the charter of the enterprise. State influence on the choice of directions and volumes of use of profit (income) is exercised through taxes, tax benefits, as well as economic sanctions in accordance with the legislation of Ukraine. The enterprise independently determines the wage fund without restrictions on its increase by government agencies. Minimum size wages cannot be lower than the subsistence minimum, which is established by legislative acts of Ukraine. Enterprises can use tariff rates and official salaries as guidelines for differentiating wages depending on the profession, qualifications of workers, complexity and conditions of the work and services they perform. The enterprise independently provides material and technical support for its own production and capital construction through a system of direct agreements (contracts) or through commodity exchanges and other intermediary organizations of Ukraine. The enterprise sells its products and property at prices and tariffs that are established independently or on a contractual basis, and in cases provided for by legislative acts of Ukraine, at state prices and tariffs. In settlements with foreign partners, contract prices are used, formed in accordance with the conditions and prices of the world market. The products of enterprises that occupy a monopoly position in the goods market, which determine the scale of prices in the economy and the social protection of the population, are allowed government regulation in accordance with the Law of Ukraine “On Prices and Pricing”. At the same time, state prices must take into account the industry average cost of production and ensure a minimum level of profitability of the products to which they apply. Issues of social development, including improvement of working conditions, life, health, guarantees of compulsory medical insurance, insurance of members of the labor collective and their families, are resolved by the labor collective with the participation of the owner in accordance with the charter of the enterprise, the collective agreement and legislative acts of Ukraine. The state guarantees the inviolability of the rights and legitimate interests of the enterprise. Interference in the economic and other activities of an enterprise by state, public and cooperative bodies, political parties and movements are not allowed, except in cases provided for by law Ukraine. Losses (including expected and not received income) incurred by an enterprise as a result of the execution of directives of state or other bodies or their officials who violated the rights of the enterprise, as well as due to improper implementation by such bodies or their officials of obligations stipulated by law in relation to enterprises, are subject to compensation at their expense. Disputes regarding compensation for losses are resolved by court or arbitration according to their competence. The state helps the development of the market by regulating it through economic laws and incentives, implements the antimonopoly program, and ensures social security for all workers. The state provides preferential conditions to enterprises that introduce advanced technologies, create new jobs, and use the labor of citizens who require social protection. The state should stimulate the development of small enterprises in Ukraine: provide tax benefits, receive government loans, and create funds to assist the development of small enterprises. A commercial secret of an enterprise is understood as information related to production, technological information, management, finance and other activities of the enterprise, which are not state secrets, but the disclosure (transfer, leak) of which may harm its interests. The enterprise is obliged: Protect the environment from pollution and other harmful activities; Compensate the relevant Council of People's Deputies for losses caused by irrational use of land and other natural resources and environmental pollution; Ensure production safety, sanitary and hygienic standards and requirements to protect the health of its workers, the population and consumers of products. Control over individual aspects of the enterprise’s activities is carried out by the state tax inspectorate and government bodies entrusted with monitoring production and labor safety, fire safety and environmental safety. Liquidation and reorganization (merger, division, exit, transformation) of an enterprise are carried out by decision of the owner and with the participation of the workforce or by decision of a court or arbitration. An enterprise is also liquidated in the following cases: Declaring him bankrupt; If a decision is made to prohibit the activities of an enterprise due to failure to comply with the conditions established by law, and within the period provided for by the decision, fulfillment of these conditions is not ensured or the type of activity is not changed; If by a court decision the documents and the decision to create an enterprise are declared invalid. (Art. 10) 2. Law of Ukraine on entrepreneurship. This Law defines the general legal, economic and social principles of entrepreneurial activity (entrepreneurship) by citizens and legal entities on the territory of Ukraine, establishes guarantees of freedom of entrepreneurship and its state support. Entrepreneurship is an independent initiative, systematic, at one’s own risk, activity in producing products, performing work, providing services and engaging in trade with the aim of making a profit. Business entities (entrepreneurs) can be: Citizens of Ukraine and other states who are not limited by law in their legal capacity or capacity; Legal entities of all forms of ownership, established by law Ukraine “On Property”. In relation to legal entities and citizens for whom entrepreneurial activity is not their main activity, this Law applies to that part of their activity that is entrepreneurial in nature. The following categories of citizens are not allowed to engage in entrepreneurial activities: military personnel, officials, prosecutors, courts, state security, internal affairs, state arbitration, state notaries, as well as government and administrative bodies called upon to monitor the activities of enterprises. Persons who have been prohibited by the court from engaging in certain activities cannot be registered as entrepreneurs with the right to carry out the corresponding type of activity before the expiration of the period established by the court verdict. Entrepreneurs have the right to make decisions without restrictions and independently carry out any activities that do not contradict current legislation. Peculiarities of regulation of certain types of entrepreneurship are established by the legislation of Ukraine. Activities for the production and sale of narcotic drugs, military weapons and ammunition, and explosives can only be carried out by state enterprises, and pawnshop operations can also be carried out by general companies. Without a special permit (license) issued by the Cabinet of Ministers of Ukraine or an authorized body, the following cannot be carried out: Search and exploitation of mineral deposits; Production and repair, sale of sports, hunting, firearms and ammunition, as well as bladed weapons; Production and sale of medicines and chemicals; Making beer and wine; Production of alcohol, vodka, liqueur and cognac products; Manufacturing of tobacco products; Medical practice; Veterinary practice; Legal practice; Creation and maintenance of gambling establishments, organization of gambling; Trade in alcoholic beverages; Domestic and international transportation of passengers and cargo by air, river, sea, rail and road transport; Agency and chartering of merchant marine fleet; Production of securities and postage signs; Intermediary activities with privatization papers; Providing services for the protection of state, collective and private property; Installation, repair and preventive maintenance of security alarm systems; Extraction, production and use of radioactive substances and sources of ionizing radiation, processing and disposal of radioactive waste; Collection, processing of solid and liquid industrial waste containing precious metals and precious stones, and their scrap; Performing aeronautical chemical works and aerial photography; Design, construction and operation of nuclear energy facilities, as well as provision of services for their maintenance; Auditing activities; Insurance activities; Production and sale of veterinary medicines and preparations; Construction and maintenance of national data transmission and documentary communication networks; Construction and maintenance of satellite communications transmitting stations; International and intercity postal transportation; Processing of postal correspondence; Issuing and receiving money transfers; Use of radio frequencies; Production and repair of measuring and control equipment; Carrying out topographic-geodetic, cartographic works and cadastral surveys; Carrying out engineering survey and design work for energy facilities, government communications, defense complex, as well as for gas pipelines, main pipelines, bridges, tunnels, power plants, airports, seaports, carried out in areas subject to seismicity, as well as karst formation, flooding, other types of subsidence, completion, landslides and collapses. A permit to carry out entrepreneurial activities is issued by the Cabinet of Ministers of Ukraine or an authorized body within no more than 30 days from the date of receipt of the application. The refusal to issue a permit is issued within the same period and is a written act. Entrepreneurship is carried out on the basis of the following principles: Free choice of activities; Attracting on a voluntary basis property and funds of legal entities and citizens to carry out entrepreneurial activities; Independent formation of an activity program and selection of suppliers and consumers of manufactured products, setting prices in accordance with the law; Free hiring of workers; Attraction and use of material, technical, financial, labor, natural and other types of resources, the use of which is not prohibited or limited by law; Free disposal of profits remaining after making payments established by law; Independent implementation by an entrepreneur - legal entity foreign economic activity, the use by any entrepreneur of the share of foreign exchange earnings due to him at his own discretion. State registration of business entities is carried out on an application basis within no more than 15 days. The body carrying out registration is obliged to issue a certificate of registration within this period and submit information to the relevant tax office and to state statistics bodies. A certificate of state registration of a business entity serves as the basis for opening accounts in bank institutions at the place of registration of the business entity or in any other bank institutions by agreement of the parties. The bank is obliged to open a bank account and notify the tax office about it within three days. To carry out entrepreneurial activities, an entrepreneur has the right to conclude agreements with citizens on the use of their labor. When concluding an employment contract, the entrepreneur is obliged to ensure labor conditions and safety, his payment is not lower than the minimum subsistence level established in the state, as well as other social guarantees, including social and health insurance and social security in accordance with current legislation. The entrepreneur is obliged not to cause damage environment, not to violate the legally protected rights and interests of citizens, enterprises, institutions, organizations and the state. The entrepreneur's activities cease: On the entrepreneur’s own initiative; Based on a court decision or arbitration court in cases provided for by the legislation of Ukraine; If the license expires; On other grounds provided for by the legislative acts of Ukraine. The state guarantees all entrepreneurs, regardless of the organizational forms of entrepreneurial activity they have chosen, equal rights and creates equal opportunities for access to material, technical, financial, labor, information, natural and other resources. The state legally ensures freedom of competition between entrepreneurs, protecting consumers from manifestations of unfair competition and monopolism in all areas of business activity. Organs government controlled build their relationships with entrepreneurs using: Tax and financial and credit policy, including setting tax rates and interest on government loans; tax benefits; prices and pricing rules; targeted subsidies; exchange rate; the size of economic sanctions; State property and reserve system, licenses, concessions, leasing, social, environmental and other norms and regulations; Scientific, technical, economic and social, state and regional programs. Conclusion. The dynamism, development and diversification of small business forms give reason to assume that in the foreseeable future this economic sector will develop in Western countries. I would like to hope that in the near future our country, given the vast Foreign experience, will follow the path of adapting small businesses to today's economic conditions in Russia. Moreover, having deep roots in economic history our country is small and medium business is not fully used both in increasing production volumes and in increasing its efficiency and balance. Small business leads to the improvement of the economy as a whole, which is clearly seen from this work. Therefore, the best way out of the crisis situation in Ukraine would be the government’s public policy aimed at expanding and developing small businesses in our country. I would like to note that the undoubted prospects of the small and medium-sized enterprise sector in modern economy and, therefore, great interest in it should not be considered only as another company in the system of anti-crisis measures, but also as a long-term direction of structural policy, which naturally ensures an organic link between reproductive and market processes in the Russian economy, the implementation of a modern economic growth strategy during a long-term transition . For it is small enterprises, especially in the case of satisfactory development of a new state policy in the field of small business, that can become the basis of market structures in many industries, ensure the flow of investment into areas of the most efficient application of resources and thereby connect the processes of structural policy and the formation of an all-Russian market. List of used literature: 1. V.N. Lisovitsky. Microeconomics. Kharkov, RIP "Original", 1993 2. O. Yastremsky, O. Grishchenko. “Fundamentals of microeconomics”, Kiev 1998 3. V.F. Maksimova. Microeconomics. Moscow 1996 4. R. Pindyck, D. Ribinfeld, Microeconomics. Moscow 1992 5. E. J. Dolan. Microeconomics. St. Petersburg, 1994 6. Campbell R. McConnell, Stanley L. Brew. "Economy". Moscow, publishing house "Respublika", 1992, volume 2. 7. “Small business in Western Europe.” Moscow, 1992 8. “How to achieve success” (under the general editorship of V. Khrutsky) Moscow, publishing house “Political Literature”, 1991. 9. “Small business and the efficiency of the American economy”, Moscow, “Fakt”, 1991. 10. Law of Ukraine on enterprises dated March 27, 1991. 11. Law of Ukraine on entrepreneurship. 12. Stapleik J.F. - “Economics for Beginners”, Moscow, 1994 13. Edited by Bulatov A.S. - Textbook for the course “ Economic theory”, 2nd edition, Moscow, 1997. 14. Y. Baranov “Enterprise in the system of regional management” // “Economy of Ukraine”, No. 10 1994. 16. R. Zabotina “Intra-economic infrastructure of enterprises” // “Economy of Ukraine”, No. 3 1994.