LECTURE No. 7. Entrepreneurial risk

1. Risk: concept and types

In business, entrepreneurial activity, risk means the possible loss of invested capital. An entrepreneur or businessman, starting his activity, must be ready for the necessary risk, since the market will be his habitat. In the conditions of market relations, uncertain situations constantly arise in which it is necessary to conclude risky transactions, as a result of which you can both win and lose. Of course, you can not put your business at risk, but in this case, the business may soon come to naught.

A successful entrepreneur must learn to predict, evaluate possible risky situations, and also have in reserve ways to resolve it.

Entrepreneur and risk are inseparable concepts. But, having studied the basic laws and rules of entrepreneurial risk, a businessman will be ready for extreme situations in the course of his activities.

Concept entrepreneurial risk includes the possible loss of money, property, goods, i.e. unforeseen expenditure of resources and a decrease in income. In other words, as a result of a risky situation, there is a loss of possible income with an unforeseen increase in additional costs.

For example, an entrepreneur is engaged in the manufacture of umbrellas. Having set the selling price of one umbrella at 300 rubles, he is counting on a certain profit. Unfavorable circumstances for the sale of his goods was sunny weather with no rain. As a result of these circumstances, the price had to be reduced to 200 rubles per umbrella. As a result, the entrepreneur loses 100 rubles of income for each umbrella.

There are differences in concepts in terms of "losses", "losses" and "expenditure". In entrepreneurial activity, in the process of production of goods, certain resources are consumed. Losses represent unforeseen expenses, as well as expenses that do not bring profit. Losses can be determined by additional costs not provided for by the entrepreneur's action plan. Losses can be associated with moral damage, as a result of which the social status or image of the entrepreneur is lost. In legal practice, moral damage is compensated in cash.

Since entrepreneurial risk is determined by the magnitude of possible losses, we can assume its level, which is measured either in monetary terms or in material terms. Losses in entrepreneurial activity are determined by an unforeseen decrease in the profits of the entrepreneur. Accordingly, the study of risk is closely related to the study of losses.

When an entrepreneur predicts possible losses at the beginning of his activity, he can obtain a quantitative risk assessment. Often possible losses are random. It is impossible to foresee in advance the change in weather conditions, the instability of prices, the demand for goods, random events in the process of performing a business operation. A random event can have both a favorable and an unfavorable effect on the final results of a business operation.

For example, a businessman is engaged in breeding chickens. In the process of rearing, some of the birds may die from any diseases. This will result in losses. The entrepreneur must take into account the possible percentage of such losses. On the other hand, reducing the number of chickens reduces the cost of keeping them. There is also a favorable moment in this situation.

Types of business risk depend on the types of possible losses. Dividing losses into types helps to find ways to reduce risk in each specific case.

There are several types of losses:

1) material;

2) financial;

3) labor;

4) loss of time;

5) special types of losses.

Material losses expressed in unplanned costs, as well as losses of equipment, goods, material resources, energy, building materials, property, products, etc.

Each of these types of losses has its own unit of measurement (kg, weight, area, volume, etc.). It is impossible to combine different units of measurement into one common measure, so material losses are measured in monetary terms. By analyzing the probable losses of certain types of resources, it is possible to determine their total value.

Financial losses are determined by the monetary loss that may be associated with additional spending of money on fines, unforeseen payments and taxes. It can also be finance that the entrepreneur was counting on, but for some reason they were not received, or were not received in full. In addition, financial losses may be associated with inflation, delay or delay in payments.

Labor losses may be represented by loss of working time resulting from unforeseen circumstances. The measurement of such losses can be expressed in labor hours and days.

Lost time occurs when the process of a business transaction is not going as fast as planned, i.e. late. Such losses are estimated in certain periods of time (hours, days, weeks, months).

Special types of losses include damage to the health, reputation of the entrepreneur. These types of losses are difficult to assess and determine their value.

2. Classification of risks

Based on the analysis of possible losses, three risk groups can be distinguished:

1) acceptable risk;

2) critical risk;

3) catastrophic risk.

Tolerable risk arises at such level of losses when their size does not exceed the expected profit. This means that the entrepreneur receives only a part of the profit, or does not receive it at all. In this case, the risk is that the business operation has failed.

Critical Risk occurs when the loss exceeds the desired profit. In this situation, the entrepreneur loses not only profit, but also incurs costs in the form of funds invested in this project.

For example, a businessman invested 6 million rubles in production, expecting to make a profit of 10 million rubles, the gross profit would be 4 million rubles. By coincidence, half of the goods were damaged. The revenue amounted to only 5 million rubles. As a result, the entrepreneur not only does not make a profit, but loses 1 million rubles invested in production.

catastrophic risk It is dangerous because an entrepreneur can lose more than his money and even the state of his property cover.

Such losses lead to collapse, ruin, as the entrepreneur is simply not able to compensate for them. The probability of catastrophic losses should be practically zero, otherwise it simply does not make sense for a businessman to start an entrepreneurial activity.

3. ​​Risk factors, their structure

In the process of entrepreneurial activity, it is necessary to monitor the main factors of the macro-environment and the micro-environment.

Macro-environment factors include:

1) demographic;

2) economic;

3) political;

4) technological;

5) legal;

6) social;

7) cultural.

Microenvironmental factors include:

1) consumers;

2) suppliers;

3) distribution channels of goods;

4) competitors.

Unfavorable situations and the presence of dangerous moments in the external business environment lead to a decrease in sales and a decrease in the income of a firm or company. Minor threats can be ignored, but serious threats need to be controlled and ways to minimize them should be sought.

Demographic environment is an important factor in the macro environment. She represents the people of the country. The number and growth rate of the population of various regions, cities and countries are a constantly changing value. In addition, variables include such indicators as ethnic composition, age structure, educational level, level of economic organizations.

A large population growth leads to an increase in the need for resources necessary for the life of people (energy, food, building materials, etc.). In the field of entrepreneurial activity, population growth is reflected in an increase in demand for consumer goods and services.

Differences in the age structures of the population pose to entrepreneurs the question of the diversity of manufactured goods in accordance with the age interests and needs of the population.

In the modern world, there are many processes of population migration. In this regard, entrepreneurs face the question of the emergence of new groups of buyers in the trading markets. Businessmen need to use this information to create new market opportunities.

Economic environment represents the purchasing power of the population. The level of income of entrepreneurs depends on the level of solvency of the population. In turn, the solvency of buyers depends on their current income, savings, creditworthiness, pricing level.

Entrepreneurs who have the ability to correctly navigate purchasing opportunities avoid the threat of entrepreneurial risk in the economic environment by choosing the main segment of the population, which is the most solvent when purchasing goods in the middle price range.

One of the most important problems of modern business is the deterioration of the natural environment. Environmental pollution negatively affects the activities of many enterprises and firms that are forced to incur additional costs for the purchase of treatment facilities, exhaust gas catalysts, and other equipment that contributes to the production of environmentally friendly products. Entrepreneurs must be prepared for the emergence of new dangerous situations that can lead to an increase in the price of energy carriers, a reduction in natural resources and other consequences of the current situation.

Natural resources are divided into several types: limited renewable, limited non-renewable and inexhaustible. Limited renewable resources require increased attention, these include: agricultural plants, forest plantations. In a state of limited non-renewable resources, there is a threat of their depletion. This situation is a major problem for firms as they face rising commodity prices. Sources of limited non-renewable resources include: coal, oil, zinc, silver, platinum and other resources.

The most serious economic problem is the rise in oil prices. This leads to the need to search for new sources of energy. Developments and research are being carried out on the use of alternative energy sources: nuclear and solar. In this regard, oil companies are forced to reduce oil prices, which worsens the position of oil companies.

Technological environment presented in the form of the need to create new technologies. However, this is a direct threat to the old industries. For example, television has damaged newspaper production, the advent of mobile phones has stopped the production of pagers, the production of digital technology has eclipsed simpler technical products. It is not possible to predict such technological breakthroughs, so the entrepreneur must have the ability to quickly transition in the creation of new technologies and the production of new types of goods.

The emergence of new technologies is also a major challenge for today's entrepreneurs. The period that passes from the moment a product is produced to the moment it enters the market is getting shorter and shorter. These changes are having a huge impact on consumer markets. There is a need to produce new and affordable goods.

There are government agencies set up to identify and impose bans on the production of products that do not meet the conditions for the safety of their use. In the development and production of such products, it is necessary to take into account the restrictions imposed on the release of these products.

Political and legal spheres are presented in the form of events taking place in them, which occur in the field of politics and legislation, have a significant impact on entrepreneurial activity. The political sphere includes state institutions and laws that affect the activities of business organizations and individual entrepreneurial activities.

There are three main tasks facing the legislation, which ensures the regulation of entrepreneurial activity. These include:

1) protection of consumers from dishonest methods of entrepreneurs;

2) protection of entrepreneurs from unfair competition;

3) protection of society from uncontrolled behavior of market participants.

Business laws make entrepreneurs liable for the social costs that may arise from the use of products produced by entrepreneurial firms.

The adoption of new laws may lead to a slowdown in the economic growth of companies and firms due to the weakening of the initiative of entrepreneurs.

It is the responsibility of marketers to have a thorough knowledge of consumer protection, public protection and competition law.

Sociocultural environment is formed from the formation of public beliefs in matters of values ​​and norms of each person individually. The characteristics of the sociocultural environment include:

1) people’s views on society. There are many different views of society, depending on the individual needs of people. Among the population, there are several categories of people who have a special relationship to society:

a) consumers strive to get as much out of life as possible;

b) guardians are the defenders of society;

c) actors strive to manage society;

d) seekers all their lives want and search for something more;

e) escapists try to hide, to escape from the bustle of life;

f) reformers seek to change the world in accordance with their convictions;

2) a person’s view of himself. A person’s opinion of himself depends on the level of his needs and the possibility of satisfying them. Many people, before making any purchase, compare it with their actual income and try not to make unjustified purchases;

3) a person’s view of other people. In modern society, there is an increasing demand for social goods and services that satisfy people’s need for communication. These include various technical means (telephones, Internet), television, public clubs, religious organizations and others;

4) relationships between people and organizations. To establish strong connections with consumers of goods and services, firms need to find new ways to gain the trust of the population. Firms and enterprises must create a reputation for themselves as decent organizations, then their goods and services will enjoy trust and constant demand among consumers;

5) relationships between people and nature. Humanity has always sought to subjugate nature. In this regard, natural resources were mercilessly destroyed and environmental conditions worsened. Recently, society has begun to understand the danger of what is happening. The need of people to communicate with nature has increased. Companies involved in providing tourist trips, cruises, and travel have gained popularity. People began to show more interest in hiking, fishing, and relaxing in a tent on the river bank. Entrepreneurs need to take into account the modern needs of the population and produce products that could satisfy all emerging needs.

Microenvironment factors include: consumers, suppliers, distribution channels for products and services, competition.

Consumer behavior is influenced by social factors, which include reference groups, family, statuses and roles of people. Reference groups are groups of people that influence a person's attitude towards something. These may include peer groups, family members, neighbors, trade unions, and other organizations. Reference groups can strongly influence the choice and purchase of certain types of goods. When an entrepreneur encounters the influence of reference groups, it is necessary to determine possible ways of influencing them. To do this, marketers are required to study the demographic and psychological characteristics of consumers. The consumer's opinion about the product is also influenced by his family, in which certain values, positions in society, life goals, and economic positions are formed. The position of a person in society is determined by his social status and role. A person strives to buy products that correspond to his status and image. In the process of entrepreneurial activity, manufacturers need to take into account the characteristics of consumers, the motives of their behavior and the reaction to the product. The further success or lack of success of the company depends on this. If the needs of consumers are fully satisfied, they will continue to use the services and products of these companies in the future, as well as give positive recommendations about the product to their relatives and friends. In the case of unsatisfactory consumer reviews about the product, its purchasing power will decrease due to dissatisfied buyers conducting anti-advertising of this product among their acquaintances.

A serious factor in entrepreneurial risk is the problem of competition. If there are already strong competitors in the market segment, the feasibility of a business operation decreases. In addition, the decrease in the expediency of the operation is facilitated by the stabilization of profits or its decrease, an increase in the level of fixed costs, and the need to increase production investments. In such markets, price competitions, advertising competitions, and the struggle for the release of new products are constantly taking place.

The threat is the emergence of new participating firms in the markets. In market segments, there is the concept of barriers to entry. Barriers have entrances and exits. If entry barriers are high, the firm has the opportunity to make high profits, but the level of risk will be very high due to the constant market struggle with competitors. With low barriers, the firm's earnings will be stable, but low. The throughput at low barriers is high, as firms can easily enter this market and just as easily leave it. The most convenient option is a market segment with a high entry and low exit barrier. In this case, it is very difficult for new companies to enter the market, but under adverse circumstances they can easily leave this market segment.

A threatening factor is the appearance on the market of products that can replace an existing product. In this case, there is a change in prices and, as a result, a decrease in the company's profit.

Buyers may have strong bargaining power that allows them to control the price of a product, the quality of goods and services, and even influence the attitudes of competitors. The bargaining power of buyers has its strength when it is well organized and few in number. It can increase in order to protect the rights of consumers in the event of an increase in the sensitivity of buyers to prices, an increase in their costs for the purchase of a product, with significant overpricing, and a long-term monotony of goods. To compete successfully, a company needs to choose buyers that do not have significant power to influence the company's activities in the markets.

The next important threat to entrepreneurial activity is the threat to the bargaining power of suppliers. The power of suppliers may increase when the buyer does not have the opportunity to refuse to purchase the goods offered by suppliers by reducing its quantity on the market. Suppliers can reduce the supply of goods, raise prices for it. The necessary actions of an entrepreneur are actions aimed at building mutually beneficial relationships with suppliers.

After identifying market competitors, the firm needs to determine their goals, strategies, strengths and weaknesses, and possible reactions to the firm's actions.

Distribution channels are designed to ensure the delivery of goods and services from producers to target consumers. Distribution channels perform several important functions in the process of moving goods from the initial channel to its final destination. The threat of entrepreneurial risk is the possibility of conflict situations.

The causes of conflicts are:

1) incompatibility of the goals of manufacturers and dealers. At a time when the manufacturer is trying to quickly penetrate the market segment by setting low prices, dealers intend to make more profit by setting high prices for goods;

2) incorrect distribution of roles and rights of participants;

3) incompatibility of the perception of the reality of the manufacturer and his partners. The manufacturer may misjudge the prospects of a business operation and incur large losses due to increased procurement costs;

4) dependence of intermediaries on manufacturers. Supplier companies can dictate their terms in matters of setting prices for goods, which can lead to conflict situations.

Risk factors include a huge number of reasons that affect the occurrence of business losses. It is impossible to list them all, but some groups of reasons can be formed, which are main risk factors... These include:

1) natural disasters;

2) illness or death of the entrepreneur or members of his group;

3) increased material costs;

4) dishonesty, irresponsibility of project participants;

5) discrepancy between factors of production;

6) unfavorable change in market conditions;

7) unforeseen political events;

8) developers' mistakes, their incompetence;

9) unforeseen increase in taxes;

10) unfair competition;

11) insolvency of participants in a business transaction;

12) increase in the level of remuneration of employees.

These risk factors are the main causes of entrepreneurial losses. Some of these reasons do not depend on the actions of entrepreneurs, while others are due precisely to the wrong actions of the participants in the business operation.

Risk factors that are independent of the actions of the entrepreneur include:

1) natural disasters (earthquakes, fires, floods, robberies, accidents, epidemics) that cannot be foreseen;

2) unforeseen political events, as a result of which the rules and regulations of business management, laws, and property relations may change. These events are also impossible to foresee;

3) illness or death directly relate to unforeseen situations;

4) unforeseen tax increase or the imposition of new taxes increases the risk of business losses due to higher costs. Such a risk can become critical.

The factors due to the wrong actions of the entrepreneur include:

1) unfavorable change in market conditions. This factor is expressed in the form of a decrease in demand for a product and, as a consequence, a drop in prices for it. The reason may be poor quality of the product. Such losses are unacceptable for an entrepreneur and can become critical. If a businessman has invested all his funds in a business operation, the risk can become catastrophic;

2) dishonesty and irresponsibility of the entrepreneur or a participant in his business operation is a great threat of risk;

3) mistakes and incompetence of developers business plan and business operations may lead to an incorrect calculation of the ratio of expected income and costs. In this case, the costs may be higher and the income lower than expected. In this case, instead of profit, you can get losses;

4) mismatch of production factors manifests itself in the absence of raw materials, equipment breakdown, loss of working time, increase in marriage. In this case, a decrease in income may occur, which threatens with a partial or complete loss of profit. If the businessman does not take the right action, the risk can become critical;

5) excess resource consumption is the overspending of raw materials, energy, material resources, funds for wages. This leads to increased costs and reduced or lost profits;

6) unfair competition in the form of the use of illegal methods by competitors (bribery of officials, slander, harm to health, material damage) can lead to a high level of business losses.

4. Risk assessment

Only a highly qualified and experienced businessman can assess the expected risk in entrepreneurial activity. Rich experience in conducting business operations allows the entrepreneur to feel the degree of risk at the level of intuition.

The scientific calculation of entrepreneurial risk should be carried out by a specialist in the field of economics, but an approximate assessment of possible losses is available to an entrepreneur without a special economic education. To do this, it is necessary to study the types and factors of possible risk, as well as the main causes that can lead to catastrophic and critical risk.

Before embarking on any entrepreneurial activity, a self-respecting businessman should analyze such operations, study the statistics of losses that occurred during such operations. Having studied the statistics of losses, it is possible to conduct a comparative analysis of previous operations, from which one can assume their outcome depending on the level of losses. For example, if the number of risk cases is large enough, then the probability of repeating risk situations in the future will be high. On the contrary, if the probability of avoiding a loss is slightly higher than the probability of a critical level of risk, the entrepreneur can go for this business operation.

With a correct assessment of the possible risk, the entrepreneur always has a choice: to start a planned operation or to refrain from this risk. In the event that a businessman is not able to assess the degree of possible risk, he can lead his business to catastrophic losses and, as a result, end his entrepreneurial activity. In order to avoid possible risks when carrying out large business projects, it makes sense to seek the help of experts in the field of business and entrepreneurial risk.

Entrepreneurial risk assessment begins with an assessment of the strengths and weaknesses of the company, which depends on the analysis of the external and internal business environment.

An analysis of the external business environment allows you to determine the opportunities and threats of the company when deciding to realize its entrepreneurial ideas. The capabilities of the company are the ability to meet the needs of consumers. Threats of the external business environment consist in the unfavorable influence of macro-environment factors (demographic, technological, economic, legal, political, social, cultural) and micro-environment (consumers, competitors, suppliers, distribution channels). Threats and dangers that can cause a company or firm to take a critical and catastrophic risk must be strictly controlled. It is necessary to prepare a strategic plan of action for the company in case of risky situations.

Analysis of the internal business environment includes assessing the strengths and weaknesses of the company's business capabilities, identifying weaknesses in the work of its various departments and finding means and ways to eliminate them.

A general assessment of the strengths and weaknesses of a company or firm is called a strategic analysis, as a result of which a strategic business plan is drawn up.

The first stage of a strategic plan is to formulate goals. Goals must be clearly and structurally organized, quantifiable, realistic and consistent. There is a choice between two alternative ways to achieve the company's ultimate goal: searching for new market segments or penetrating existing ones; shortened time to profit when prices are high or long-term prospects for profit growth when prices are low; accelerating growth rates with a high level of business risk or minimizing risks.

When assessing business risk, it is necessary to analyze previous similar events of a company or firm. The general analysis of the company's activities combines the analysis of sales, market segment, comparative analysis of costs and sales volumes, financial analysis, analysis of the company's marketing.

Sales analysis is carried out using two methods: variance analysis and microsales analysis. In the process deviation analysis the influence of various factors on the level of planned and actual sales volumes is determined. Under analysis microsales factors are determined and highlighted, the influence of which adversely affects the achievement of planned targets (territorial features, low sales volumes, pricing features). The general sales analysis is carried out based on the results of a comparative analysis of the planned and actual sales volumes.

Segment analysis market is calculated based on the percentage of the company's sales relative to the total sales in the market. In the case of an increase in the relative share of the company in the market, we can conclude that it is approaching the main competitor in the market.

Analysis of the ratio of costs and sales is to strictly control the main annual indicators of costs and sales. Normally, this ratio may have slight fluctuations. But if the deviations exceed the allowable values, this should be taken into account, since this fact can become a serious problem.

Financial analysis necessary to establish the factors that affect the rate of return on net worth. The rate of return is determined depending on two indicators: financial leverage and profit from assets. The rate of return can increase in two cases: with an increase in the ratio of net profit to the value of assets, and also with an increase in the ratio of assets to net worth. The structure of assets depends on cash receipts, the use of equipment, and the volume of reserves.

Marketing Analysis companies are evaluated by consumers and shareholders. Customer evaluation includes the following purchasing criteria: the number of customers, their preferences, the number of regular customers, the number of dissatisfied customers, the availability of information about the product in the markets, the relative assessment of the quality of the product, the relative assessment of service. The system of such market assessments helps to prevent possible dangers in this area.

One of the factors of entrepreneurial risk is the presence of competing firms. To determine the level of entrepreneurial risk in this area, it is necessary to identify competitors and study their strengths and weaknesses. In the market, a company can occupy one of several positions:

1) dominant. A company occupying this position has the right to control the market behavior of other firms or companies, and also uses various strategies in its activities;

2) reliable. This position allows the company or firm to conduct long-term activities in the market. But improving the firm's position is not possible due to constant pressure from the dominant firm;

3) strong. The company has the ability to maintain its position in the market for a long time, and is also able to carry out independent trading activities;

4) favorable. The company has good prospects and confidently maintains its position in the market due to its advantages over other firms and companies;

5) weak. A company occupying this position does not have a confident position in the market, but can improve it by changing its strategy. Otherwise, this firm will have to leave the market;

6) not viable. The company is unable to improve its position in the market due to unsatisfactory business management.

To determine the correct assessment of the position of competing firms, three components must be examined: market shares, buyer preferences, and associations with the firm. Firms or companies that have large market shares and generate large amounts of profits are leaders in terms of buyer preference. The firm must determine the prerequisites of competitors, which adversely affected their position in the process of changing the situation in the market. Accordingly, a strategy for further action can be developed.

There are several categories of competing firms:

1) picky competitor. This type of competitor responds with action only to certain moments of the behavior of rivals, while simultaneously ignoring their other activities. Having studied this feature, you can develop a strategy for dealing with this company;

2) leisurely competitor. The reaction of these competing firms to the behavior of their rivals is belated. In this case, you should study the reasons for such slowness, while simultaneously developing a strategy for dealing with this company;

3) fast competitor. This rival is characterized by its rapid reaction to the actions of other firms. It is difficult to compete with him, since he always strives to take a dominant position;

4) unpredictable competitor. The actions of this competitor cannot be calculated. Only a few companies can dare to compete with him.

With the right analysis of the actions of competing firms, you can make the most accurate forecast of the possible behavior and reactions of competing firms. In accordance with this forecast, the firm can develop strategies for behavior in the markets, which will minimize the influence of competitors as much as possible.

Reducing the influence of competitors is also facilitated by a comparative assessment of consumer attitudes towards the firm and the competing company. In order to correctly evaluate consumers, it is necessary to analyze consumer values. Information about the preferences and attitudes of consumers is collected using the method of surveying buyers and customers. Having formed an idea of ​​consumer preferences and wishes, the firm evaluates its chances of competing for the greatest amount of profit and improving the firm's position in the market.

5. Ways to reduce risk

For reducing the level of probable risk There are several ways that a successful entrepreneur needs to know. Let's name the main ones:

1) before starting a business operation, it is necessary to assess possible losses in the course of this operation, determine their magnitude and frequency of occurrence;

2) do not avoid risk, but try to reduce its level;

3) if a businessman has decided to take the risk of probable losses, it is necessary to use insurance for the operation.

This method leads to a reduction in risk. Insurance covers property, health, life, commercial operations, safety of transported goods. In the case of insuring a business transaction, the entrepreneur is obliged to make insurance premiums, which in its own way is a certain loss of funds. If the level of risk is acceptable, i.e. the amount of losses does not exceed the expected profit, a businessman can decide to conduct a business operation:

1) if the probability of a critical risk is sufficiently high, there is a need to conclude an operation agreement, according to which the possible risk is divided among all participants so that later losses can be compensated by joint efforts;

2) with a high level of probability of occurrence of a critical risk, it is necessary to organize a reserve fund, having determined in advance the sources of compensation for losses;

3) it is impossible to start a business operation with a high level of probability of a catastrophic risk, as a result of which the business activity may end in failure.

After analyzing the competitiveness of the company, it is necessary to choose the right strategy for further actions. Some firms undertake a strategy of attacking a competitor. In order to maintain its position in the markets, it is necessary to fight against strong rivals. If competitors are a similar company, do not seek to eliminate them. These actions can only attract a stronger competing firm to the vacant seat. Positive competitors who follow certain rules should be contacted, as they contribute to the development of a healthy economy in the markets. Their activities are usually limited to a certain market segment and contribute to the separation of market sectors and overall cost reduction. Negative competitors contribute to the imbalance of the state of market industries, deliberately take risks.

If a firm has a dominant position in the market, it needs to use a strategy such as market expansion. To do this, the company must engage in the search and attraction of new consumers, new ways of using products, increasing the intensity of use of the company's products.

One of the ways to reduce the level of entrepreneurial risk is to protect market share from the attacking actions of competitors. An effective way to protect is the constant introduction of new products and services. There are defensive strategies that reduce the likelihood of attack by competitors.

Defensive strategies include:

1) flank protection. The firm concentrates its strongest bases on weak areas of the market;

2) positional defense. This strategy calls for the introduction of new types of products, which will allow long-term maintenance of dominant positions in markets;

3) proactive defensive actions. This strategy allows the company to get ahead of its rival without giving the competitor a chance to analyze the situation and quickly respond to it;

4) counterattack. The strategy involves tactics of counter actions in response to the behavior of a competitor;

5) mobile protection. The company is trying to expand the market and its influence into new territories;

6) reduction. If a company comes to the conclusion that it is not possible to protect the territorial integrity of its part of the market, it chooses the only correct way out of this situation - to concentrate resources in the most promising areas.

Strategic measures aimed at protecting the company from entrepreneurial risk are price struggle, cost reduction, expansion of the product range, development and production of new types of goods, work to improve distribution channels, advertising campaigns, and improving the level of service.

Authors: Egorova E.N., Loginova E.Yu.

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Random news from the Archive quantum flute 26.07.2022 American scientists have created a "quantum flute" that can make photons move in sync and interact with each other, something they almost never do in nature. The device could help improve future quantum computer designs. Like the musical instrument of the same name, the team's "quantum flute" is a piece of metal with a long cavity in the middle, accessed by a series of holes from the surface. But this device is designed not for sound waves, but for light. "Just like with a musical instrument, you can send one or more wavelengths of photons through it all, and each wavelength creates a 'note' that can be used to encode quantum information," said David Schuster, lead author of the study. In their experiments with the device, the researchers were able to control the interaction of up to five notes, or qubits, at the same time, using a superconducting electrical circuit as the master qubit. This shows that if the system is scaled up, it can greatly simplify the management of future quantum computers. "If you wanted to build a quantum computer with 1 bits and could control them all with a single bit, that would be incredibly valuable," Schuster said. A "quantum flute" is a piece of metal with holes drilled into it that can capture and manipulate photons of different wavelengths to encode quantum information. But perhaps the strangest thing about this "quantum flute" is that it works by manipulating photons to do things they rarely do in nature. These light particles usually do not interact with each other, that is, they pass by or even through each other. Under certain conditions, they can sometimes be made to interact in pairs, but in the new device, the team was able to get all the photons to interact with each other at the same time, after the energy in the system reaches a critical point. Usually, most particle interactions are one-on-one—two particles bounce off or are attracted to each other. If you add a third, they tend to still interact consistently with each other. But in this system they all interact simultaneously.

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