Commercial activity. Resources, factors and business results (lecture notes)

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Commercial activity. Resources, factors and business results (lecture notes)

Lecture notes, cheat sheets

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6. Resources, factors and business results

Business has a huge potential for the intensive development of the economy and society as a whole. A characteristic feature of the business is high efficiency in the use of all types of resources and the constant desire to minimize losses, ensure their most rational proportions for the given conditions - after all, the enterprise does not have extra equipment, excess stocks of raw materials and materials, excess labor. This factor is one of the most important circumstances for achieving dynamic indicators of the economy as a whole.

Thus, in general, for the country's economy, the importance of business cannot be overestimated, and its influence on various aspects of social reproduction is very significant.

A special role for a single country is played by small business as the leading sector that determines the rate of economic growth, the structure and qualitative composition of the gross national product. However, it is not only quantitative indicators that matter; this factor, in principle, is typically a market one and underlies the modern market infrastructure.

The main advantages and characteristics of a small business:

1) mobility, the ability to make more flexible, timely and operational decisions;

2) orientation of producers mainly to regional and local markets;

3) maintaining the level of employment of the population and creating new jobs;

4) performing auxiliary functions in relation to large enterprises;

5) small initial investment volume.

Venture capital firms are very active in the field of innovation, which can quite successfully create competition with large ones, achieving accelerated rates of introduction of scientific and technical innovations. Small firms with their mobility and innovative solutions in the conditions of competition of new products have found their place in the management system.

They are engaged in the development of innovations, allocating large firms only capital-intensive stages of industrial production. The achievements of scientific and technological progress used make it possible to quickly connect to knowledge-intensive industries in the absence of large capital.

Small firms have to work in conditions of strong market competition, which not everyone is able to cope with. In most cases (about 90%), firms go bankrupt not because of a lack of finance or irrational technology, but because of the lack of managerial knowledge that is necessary to make competent decisions in market conditions. Reasons for failure can be: incompetence or lack of experience in the field of commerce and financial operations, in supply, production and management, small sales volumes, fierce competition, too high production costs.

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

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