Commercial activity. Private, collective, public entrepreneurship (lecture notes)

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Commercial activity. Private, collective, public entrepreneurship (lecture notes)

Lecture notes, cheat sheets

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9. Private, collective, state entrepreneurship

Entrepreneurial activity is classified according to various criteria: type of activity, forms of ownership, number of owners, organizational, legal and economic forms, the degree of use of hired labor and other indicators.

In the conditions of monopolistic competition with complex, requiring injections of huge capital and energy-intensive production, the monopolies themselves became interested in strengthening the regulatory role of the state, in supporting it, and with its help providing access to new domestic and foreign markets. The market mechanism is unable to solve all the difficulties associated with defense, science, ecology, reproduction of the labor force and, ultimately, with the overall economic growth of the country.

State enterprise takes over management in cases where huge capital investments are required, the payback period is long and the risks are high. This is where the main difference from private entrepreneurship emerges: the primary goal of state entrepreneurship is not to make a profit, but to solve social and economic problems.

But private enterprise for objective reasons, it is developing at a faster pace than the state.

State can regulate market relations only when powerful economic control levers are in its hands.

The state influences the market mechanism through:

1) their expenses;

2) taxation;

3) regulation;

4) public entrepreneurship.

Government spending represents government purchases and transfer payments. Such spending contributes to national income and directly uses resources.

Taxation is an indispensable element of state policy. Taxes make up 75-85% of the budget. The government levies various types of taxes.

At high tax rates, massive tax evasion begins, and budget replenishment decreases. It's a vicious circle.

The legislative form of regulation shapes the activities of entrepreneurs (antimonopoly laws).

Tax and credit forms affect the national volume of production, changing the volume and direction of production, affecting private and collective entrepreneurship.

collective enterprise acts in two forms: on the one hand, it hires labor, on the other, members of the labor collective live by selling their own labor. This feature determines the specifics of the economic behavior of such an enterprise.

The utility function of a collective enterprise is comparable to the utility function of a family enterprise and includes the total money income and the total free time of the work collective. Each of its members is faced with a contradiction in the desire to get the maximum income and free time. The assessment of value in this case will be subjective.

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

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