Small business

The concept and the essence of entrepreneurship. Overview of the functions and conditions of small business. The study of his subjects and forms. Characteristic of the rights and duties of entrepreneurs. The state support and regulation of business.

Рубрика Экономика и экономическая теория
Вид курсовая работа
Язык английский
Дата добавления 27.03.2013
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Contents

Introduction

I. Entrepreneurship: concept, essence, features

II. The conditions of business

III. Overview of Small Business

III.1 Small business: concepts, subjects, forms

III.2 Rights and obligations of small businesses

III.3 Advantages and Disadvantages of Small Business

III.4 Role of entrepreneurship in the economy

IV. Analysis of the current state of development of small business in Kazakhstan

V. The system of state support and regulation of small business in Kazakhstan

Conclusion

References

Introduction

Entrepreneurship - a dynamic, innovative process, the process of creating something new, something has value, the process of bringing cash income and personal satisfaction with the outcome. Entrepreneurship acts as a special kind of economic activity, which is considered today one of the main factors of economic growth, the most important condition for the functioning of the market system.

Entrepreneur - a person who takes on the risk of a new enterprise, the development of a new idea or a new product offered by the company. He is able to creatively solve problems with the reconciliation of economic resources. The ability to find ideas, set goals, implement them in specific cases - one of the characteristics of successful entrepreneurs. Entrepreneur v must be of such quality you as: initiative, determination, perseverance, responsibility, organizational skills, ability to persuade and build connections. He must be competent in the field of business, which consists of or is self-employed. Entrepreneur needs a good understanding of what the market and what tools and dependencies involved here. Should clearly know the legal side of the case - the relevant sections of the legislation, the tax system, navigate the technology, products, market opportunities.

Enterprise - an essential attribute of a market economy. Business associated with the notion to do something new or improve existing. It is associated with the concepts of "dynamism", "initiative", "courage" and releases in the society to the potential that many interesting ideas are turned into reality.

World practice shows convincingly that even in countries with developed market economies, the small business has significant impact on the national economy, social development, and increase the number of employed workers. On the number of employees, volume produced and sold products, works and services small businesses in certain countries play a leading role.

Background study lies in the fact that the strategic objectives are the development of the economy of Kazakhstan national high-tech industry, the development and introduction of new information technologies to obtain competitive products and ensuring the interests of national economic security through conservation and development of industrial, scientific and technological potential of the country.

The aim of the course work - to reveal the essence of small business, the business environment, economic, social and legal environments that ensure economic freedom capable citizens to do business, to identify the advantages and disadvantages of small businesses, to identify trends in the development of small business in the Republic of Kazakhstan. In conclusion makes recommendations to improve business in the Republic of Kazakhstan.

I. Entrepreneurship: concept, essence, features

With the development of market economy, the role of business increases. There is no single definition of the essence of entrepreneurship. Representatives of the various branches of knowledge have different interpretations of the content of the term. A difference of opinion in the interpretation of the term «entrepreneurship» reflects not only the ambiguity of the economic, social, financial role of business in a market economy, but also on the openness of business as a management system.

Entrepreneurship - initiative economic activity, performed with the risk from their own debt and other funds and assets in order to obtain for all actors involved mutually beneficial results and income.

By the rules of the American scientists, business - an activity to implement bold, important and challenging projects. Entrepreneurship - is a risky business, voluntarily undertaken by citizens on their own risk and responsibility. In Western countries, the modern enterprise is characterized as a special, innovative, anti-bureaucratic style of management, which is based on the constant search for new opportunities, a focus on innovation, the ability to attract and use for the task resources from a variety of sources.

According to the American scholar RS Ronstadt, entrepreneurship - a dynamic process of building wealth. The wealth created by those who are most at risk with their money, property, career, who does not spare time to create their own business, who offers customers a new product or service. Your product or service does not necessarily have to be something new, the main thing that a businessman was able to give them a new quality, increase their value, at a cost of necessary capabilities.

According to the Russian scientist, economist AV Busygina entrepreneurship is the art of business, is, above all, the thought process that is implemented in the form of business planning. In his view, entrepreneurship is seen as the ability to organize your own business quite successfully perform the functions associated with running a business. Here's how interpreted the term "enterprise" in the Encyclopedic Dictionary of an entrepreneur: "Entrepreneurship - initiative independent activity of citizens, aimed at gaining profits or personal income, carried out on his behalf, under the responsibility of their property or on behalf of and under the legal responsibility of the legal entity. The entrepreneur can carry out any business activities that are not prohibited by law, including commercial brokerage, commercial and procurement, consulting and other activities, and securities trading."

Business entities can be as individual private citizens, and bringing partners. Individuals as business entities serve in that capacity, usually by organizing individual or family business. Such entrepreneurs may be limited to costs of their own labor or use hired labor. Associates as business entities can take the form of various business associations: corporations, partnerships, etc.

The most important features of the business include:

- Autonomy and independence of economic actors. Any business is free to decide on a particular issue, of course, within the framework of the law;

- Economic interest. The main purpose of business - to maximize your profits. At the same time, pursuing their own interests exclusively produce high income entrepreneur contributes to the achievement of public interest;

- Business risk and responsibility. In any calculation of the most tuned uncertainty and risk remain.

It seems more correct assessment of the entrepreneur, this Schumpeter as shapes, decisively scrap the old forms of production and organization of society, which is revolutionary in the economy, the pioneer of the social and political revolution. On the report of Joseph Schumpeter, the entrepreneur is constantly carrying out a "creative destruction", as the main figure in the economic development of society.

From the above it can be concluded that entrepreneurship and innovation in modern society are interrelated whole.

II. The conditions of business

For the formation of business requires certain conditions: economic, social, legal, etc.

Economic conditions - is: supply of goods and the demand for them, types of products that consumers can buy, the amount of money that consumers can spend on these purchases, the excess or lack of jobs, labor, affecting the level of wages, i.e. is on their ability to purchase goods. The economic environment significantly affect the availability and accessibility of financial resources, which are ready to address the entrepreneurs to finance their business and are willing to give them credit institutions. Everyone is doing a lot of different organizations that make up the infrastructure of the market. This is - the banks involved in the provision of financial services providers, supplying raw materials, materials, fuel, energy, machinery and equipment, tools, etc., wholesalers and retailers, service providers to bring the goods to the consumer; specialized firms and institutions that provide professional legal, accounting, brokerage services, employment agencies, educational institutions, training of workers and specialists, employees, other agencies - advertising, transportation, insurance, etc. means of communication and information.

Social conditions of the formation of business - is, above all, the desire consumers to buy products that meet certain tastes and fashions. At various stages of the needs may vary. Essential role played by the moral and religious norms depending on the socio-cultural environment. They have a direct impact on the lives of consumers, and its demand for commodities. From business entrepreneur needs to be satisfied. He is involved in social issues related to employment of its employees, their health care, job security, etc. Important role in shaping entrepreneurship play training, retraining and advanced training of entrepreneurs.

Legal conditions for the formation of business are important, because any business of operating within an appropriate legal framework. These refers to the existence of laws regulating business activity and create favorable conditions for entrepreneurship: a simplified and expedited discovery and registration of enterprises, protection of the entrepreneur from the state bureaucracy, improvement of tax legislation in the direction of motivation manufacturing business activity, the development of joint activities of domestic and foreign entrepreneurs. This includes the creation of regional centers to support small businesses, improvement of accounting and statistical reporting forms. An important role is also played by the preparation of legislative initiatives on legal guarantees of a business, including especially the right to property and compliance with treaty obligations.

Justifying the need for government regulation of business, Kotler identifies three main reasons why when the relevant legislation:

- Companies need to protect each other. Employers with one voice glorify the competition, but when it affects their own interests, trying to neutralize it;

- The need to protect consumers from unfair business practices;

- The need to protect the best interests of society from unbridled business.

- In the business sphere in Kazakhstan system of laws only add up.

III. Overview of Small Business

III.1 Small business: concepts, subjects, forms

About definition of business given in paragraph 1 of Article 10 of the Civil Code of Kazakhstan, according to which "Entrepreneurship - this initiative activity of citizens and legal entities, irrespective of ownership, aimed at generating net income by meeting the demand for goods (works, services), based on private property (private business) or to the right to run state-owned enterprise (public enterprise).Business activities conducted on behalf of, for risk and financial responsibility telya entrepreneurs."

Small business - it's a business carried on subjects of the market economy in certain prescribed by laws, government agencies or other representative organizations of criteria (indicators). As international and national practice, the main indicator of criterial on which the enterprise (organization) of the various legal forms are to small businesses, is the first average number of employees during the reporting period in the enterprise (organization).In a number of papers by small business refers to activities undertaken a relatively small group of persons or companies controlled by one owner. Typically, the most common criterial indicators on which economic operators are small businesses, is the number of employees (employed), the size of the authorized capital, the value of assets, turnover (profits, income).

According to the World Bank, the number of indicators for which the company refers to small businesses, more than fifty. However, the most commonly used criteria are the following: the average number of employees in the enterprise employees, annual turnover, obtained by the enterprise, usually a year, and the value of assets. However, in almost all developed countries, the first criterion for classifying enterprises to small businesses is the number of workers. We give criteria of the companies to small businesses, which are used in the countries with developed market economies.

In the UK, for example, the assignment to small businesses based on the data traffic and the number of employed. Refer to the smallest firms with employing 1 to 24 people, to small - from 24 to 99 people. In the manufacturing sector is a small company with employment below 200, while the retail trade - are companies with a turnover of 400 000 GBP. Under the Companies Act in the UK small business must meet two of the following criteria: turnover of not more than 2 300 000 ECU, assets are not more than 1 500 000 ECU, and the average number of employees - 50 people. In France are considered as small enterprises, where the number of employed less than 500 employees and an annual turnover of up to levy taxes, valued at the close of the final balance, below 200 million francs. And in various sectors of the economy size of the firm is estimated differently. If in the agriculture and food industry firms, employing more than 200 people are considered large, the industry producing equipment firms employing up to 500 people are classified as small businesses. In Sweden, for small and medium enterprises are enterprises with up to 200 people.

However, for the classification of small and medium enterprises and apply the following parameters: growth, stages (initial, survival, growth) branch;
geographical areas (local, regional and national level), the specific characteristics of the owners and managers (for example, women entrepreneurs, foreigners, etc.), the types of problems that are typical of the enterprise (for example, funding, quality control, etc.) . In Russian practice, the existence of small businesses were allowed in 1988During this period, a small number of classified state enterprises, where the average annual number of employees does not exceed 100 persons. According to more recent regulations, in particular with the Council of Ministers, adopted in August 1990, the number of small businesses were treated annually with the number of employees, not to exceed: in industry - 200 people, Science and scientific services - 100 people., in other branches of production areas - 50 per., the non-production sphere - 25 people, retail - 15 people. In addition, the integrated and the amount of economic turnover, the right to determine quantitative values that provide the Union republics.

However, the amount of economic turnover almost never was installed.

The principle of allocation to small enterprises by employment preserved in Kazakhstan legislation. According to Article 6 of the Law "On Private Entrepreneurship" small businesses are individual entrepreneurs without legal entity from the annual average number of employees is not more than fifty persons and legal entities engaged in private enterprise, with the average number of employees not more than fifty persons, and the average value of assets year up to 60,000 times the monthly calculation established by the law on the national budget for the financial year.

The small businesses cannot be considered self-employed persons and legal entities engaged in:

- activities related to trafficking in narcotic drugs, psychotropic substances and precursors;

- production and (or) the wholesale distribution of excisable products;

- activities for the storage of grain in grain-points;

- the lottery;

- activities in the field of gambling and entertainment;

- activities in the field of certification, metrology and quality management;

- mining, processing and sale of petroleum, gas, electric and thermal energy;

- activities related to radioactive materials;

- banking (or certain types of banking operations) and in the insurance market (excluding insurance agent);

- auditing;

- professional activities in the securities market.

Average number of employees of the Partnership, as a small business is determined by taking into account all employees, including employees of branches, representative offices and other separate subdivisions of mentioned Partnership.

The main legal form of small entrepreneurship is a partnership, joint stock companies, co-operatives. Partnership established with the participation of two or more partners. The advantages of a partnership are the ability to raise additional capital and implementation expertise within the company based on the knowledge and skills of each partner. Disadvantages of this form: each participant has an equal liability regardless of the size of his contribution, actions of one partner are binding on all the others, even if they do not agree with these actions. The participants of the partnership are divided into two groups - the general partners and limited comrades. As part of the limited partnerships partner can have unlimited, and some - limited liability.

Society are created by agreement of at least two citizens or legal entities by combining their contributions to the economic activities. The participants of the limited liability company are not liable for its obligations, and are liable only up to the value of their contributions. Society, attracting the necessary funds by issuing securities - stocks, called joint-stock. Participants of the Company are responsible for the results of its activities in the value of their shares.

Cooperatives - are companies started by a group for the joint production or other economic activity on the basis of property shares.

III.2 Rights and obligations of small businesses

Small business is the subject of entrepreneurship. Of private entrepreneurs may:

- To carry out any kind of private enterprise, unless otherwise provided by the laws of the Republic of Kazakhstan;

- To carry out private business with employees in accordance with the laws of the Republic of Kazakhstan;

- To establish branches in the manner prescribed by the laws of the Republic of Kazakhstan;

- To fix prices for manufactured goods (works, services), except as required by laws of the Republic of Kazakhstan;

- To provide funds (loans) of private enterprises on a commercial basis;

- Carry out foreign economic activities within their capacity;

- To establish association of private enterprises;

- To participate in the expert advice through accredited association of private enterprises;

- Apply to law enforcement and government authorities exercising control and supervisory functions for the prosecution of perpetrators of violations of the rights of private business;

- Apply to the courts to protect their rights and interests;

- Submit for the consideration of proposals to the authorities to eliminate the causes and conditions conducive to non-performance or improper performance of regulations on the promotion and protection of private enterprise.

Of private enterprises should:

- Comply with the legislation of the Republic of Kazakhstan, the rights and lawful interests of individuals and legal entities;

- To ensure the conformity of products (works, services) with the legislation of the Republic of Kazakhstan;

- Obtain licenses for types of private enterprise to be licensed in accordance with the law of the Republic of Kazakhstan on licensing;

- To carry out compulsory insurance of civil liability in accordance with the laws of the Republic of Kazakhstan.

III.3 Advantages and Disadvantages of Small Business

Small businesses as agents of the market economy have both advantages and disadvantages.

Analyzing foreign and domestic experience of small business, you can set it to the following benefits:

- More rapid adaptation to local economic conditions;

- Greater independence of action;

- Flexibility and speed in making and carrying out decisions;

- Relatively low costs, especially the costs of administration;

- A great opportunity for an individual to realize their ideas, develop their skills;

- Lower the need for initial capital and the ability to quickly implement changes to its products and production in response to the demands of local markets;

- A relatively high turnover of equity, etc.

Thus, the report of the International Labour Office notes that small and medium enterprises have significant competitive advantages, often require less capital investment per employee than large companies, are widely used local material and labor resources.

The owners of small businesses are more likely to save and invest, they always have a high level of personal motivation to succeed, which is good for the whole enterprise. Small businesses more aware of local demand for (local) markets, often products are manufactured to order specific customers, give money to the large number of employees. Small businesses contribute to the employment of more workers than large enterprises, thereby promoting the training of professional staff and the dissemination of practical knowledge. SMEs compared to large in some countries dominate, both in number and in proportion in the production of goods, performance of work, rendering of services.

At the same time, small businesses and certain inherent disadvantages, among which we should highlight the most significant:

- A higher levels of risk, so a high degree of instability of the situation in the market;

- Dependence on large companies;

- Shortcomings in the management of the case;

- Poor management competence, sensitivity to changes in the business environment;

- Difficulties in raising additional funds and obtaining credit;

- Uncertainty and cautious business partners at the conclusion of agreements (contracts), etc.

Of course, the shortcomings and failures of small businesses are defined as internal and external factors, the conditions of small businesses. Experience shows that most of the failures of small firms due to the inexperience of the managerial or professional incompetence of the owners of small and medium enterprises.

In today's small businesses are vital expertise. Usually, new business starts or merchant, who knows nothing about the production, or an engineer who does not know anything about commerce. Often, the owner of a small firm has little experience in the management of specific business structures.

The chances of success of small firms increase as its maturity. Firm, long existing under one owner, bring a higher and more stable returns than firms that often change owners. U.S. statistics show that women - owners of small firms more successful in business than men. Studies states that do well are the small entrepreneurs who work hard, but at the same time does not pass in its activities beyond common sense.

The failures of small businesses affected by low-skill entrepreneurs. Entrepreneurs who already have experience of doing business in small firms are generally more successful. If the management company involved more than one person, and the entrepreneurial team consists of two three or four people, the chances of survival of the above, as a collective decision more professional. On the vitality of small businesses affected and funding for the first phase. The larger the initial capital invested in the firm, the more it may be saved in times of crisis.

Constant search for what appears and disappears public needs and continuous adaptation to it form the basis of a strategy of small business. Some Western experts tend to view the small business as a school of new personal relationships, testing the methods and principles of the future of business.

III.4 Role of entrepreneurship in the economy

Development of small business in the country is one of the areas of economic reforms that promote competition, filling the consumer market in goods and services, job creation, formation of a broad section of owners and entrepreneurs.

For the economy as a whole activity of small companies is an important factor in increasing its flexibility. The level of development of small business experts even judge a country's ability to adapt to the changing economic environment. And the same time the creation and development of small business sector should be the fundamental social restructuring of society, providing training of the population of the whole economy and the transition to a market economy. Despite the difficulties and failures, small business is developing, gaining growth, solving economic, social, scientific and technical problems. Analysis of the economic literature and the actual statistics of small businesses strongly indicates an increase in the role of small businesses even in developed market economies, although the sustainability of small enterprises relatively low. With the growth of the number of small enterprises, developing infrastructure and state support for small business is an important factor in addressing economic, social problems, and employment. Speaking about the role of small business, building on the experience of developed countries, we can formulate a conclusion that the progressive development of small business is the most important factor in the successful solution of the following problems:

- Development of competitive, civilized market relations, contributing to better meet the needs of people and communities in the goods (works, services);

- Expansion and improvement of the quality of goods, works and services. Striving to meet the demands of consumers, small businesses contribute to the quality of goods (works, services) and cultural services;

- Approaching the production of goods and services to specific customers;

- Promoting economic restructuring. Small business makes an economy flexibility, mobility, maneuverability;

- Attraction of community funds for the development of production. Partners in small businesses are investing their money in the business with more interest than large;

- The creation of new jobs and reducing unemployment;

- To promote a more efficient use of creative opportunities for people reveal their talents, the development of different types of crafts, crafts;

- Involvement in the labor force certain groups, for which large-scale production imposes certain restrictions (housewives, pensioners, students);

- The formation of social class of owners, owners and entrepreneurs;

- Intensification of scientific and technical progress;

- The development and use of local raw materials, waste of large enterprises;

- Promotion of large enterprises through manufacturing and delivery of components and equipment, creation of support and service industries;

- Release the state from low-profit and unprofitable enterprises through their rent and purchase.

These and other economic and social functions of small business development put it in the category of most important national problems, make an integral part of economic reforms in Kazakhstan.

Experience shows that technical progress, the most complete satisfaction of consumer demand today is largely determined by the efficiency of small businesses. High rates of innovation, mobility, technological change, the introduction of inventions, the rapid growth of services and employment, intense price and non-price competition leading, on the one hand, to lower prices, and on the other to ensure that the consumer receives the goods and services of high quality, opportunity for the state to get a lot of money in the form of tax revenue - all this is the contribution of small businesses to the economy.

IV. Analysis of the current state of development of small business in Kazakhstan

Kazakhstan business - is a sector of the economy, which is generated in the literal sense reforms. Period of the birth of a civilized country can be considered a business in 1997, when he was the President's Decree of 07/07/1997, the № 3589 "On priorities and regional programs of support and development of small business in the Republic of Kazakhstan." Since its priority development is an integral part of public policy, and with him is due most fundamental changes in society. Formation of the domestic private sector in Kazakhstan was the first years of independence. It was a time of difficult decisions. Completely lacked the legal basis for the development of market relations. Current laws were repressive toward private property and entrepreneurship.

During the market reforms the business sector took a prominent place in society. Create a competitive market for goods and services and identify institutional arrangements for support and development of small business. Reached the main strategic goal: the ability to engage in business and become a real part of the constitutional rights of the citizens of the republic, for which the state made available. Establish a legal framework for the regulation of small business.

Support for small business is a cornerstone of public policy. This is enshrined in the founding documents as "Strategy of Kazakhstan - 2030", "Strategic Plan 2010" and "Strategy of Industrial and Innovation Development of Kazakhstan till 2015."Further strengthening the business environment paid exclusive attention to the Presidential Address to the people of Kazakhstan.

Conducted SWOT - analysis of small businesses shows that weaknesses have not changed since 1997, when preparing development strategy of the Republic of Kazakhstan for the period up to 2030:

- Lack of clear practical steps to implement policies to support small businesses, and training;

- Inconsistency of laws and regulations;

- The problem of access to financial resources (lack of seed capital, effective collateral and insurance mechanism);

- The lack of an effective mechanism of cooperation with large enterprises, the conditions for the development of franchising;

- The lack of start-up entrepreneurs the knowledge and skills in the market conditions, their legal ignorance;

- Bureaucracy, corruption, extortion;

- The weakness and fragmentation of small business support infrastructure;

- Tough tax and customs policy, especially in the administration;

- Increased sensitivity of small business to economic changes;

- Low level of specialization of small business, a lack of the necessary information support.

Adopted by the recent efforts by the government to create a legal and regulatory framework governing small businesses do not have solved the problem by creating a favorable environment for the sector. In the current legislation there is a discrepancy in the criteria for the definition of small business, which created problems in getting the real statistics, not to mention the promotion of the development of this sector.

The tax legislation has significantly increased the tax administration, without regard to the specifics of the small businesses, which led to a significant increase in the payment of fines.

There are 11 thousand acts of the Government, about 3 thousand orders, registered by the Ministry of Justice, more than 25,000 regulations adopted at the local level. A large part of the by-laws contradict the laws, and the laws themselves are found in non-compliance, which creates great difficulties in their daily work. Periodically conducts s action "officials and businessmen," although facilitated the identification and abolition of illegal acts, but could not solve the root of the problem.

Up to now there is no infrastructure to support small businesses, which affects the rate of development of the sector in the country.

Business associations are poor, they often prefer to lobby for the interests of a small group of companies. This is a decisive factor in the fact that small business is, in the vast majority of trade and mediation.

Remain unresolved issues and business skills training. Highly qualified consulting services on registration, business planning, business valuation, market analysis, searching, access to new technologies are still inaccessible to many potential entrepreneurs.

An important limitation of becoming productive private enterprises stands unavailability of funds. Loss of use of loan capital is determined, first, by the fact that the loan poorly provided: a body weight of real estate in the early years of the most established business organizations do not have a share capital, are usually formed by them in an amount not exceeding the established state minimum. Moreover, it is a risk of not returning: credit terms are calculated in months, and the return, if it comes to producing significantly distant in time, to the same rate of capital turnover in this field corresponds poorly with monthly interest payments, and the real return products by inflation and limited paying customers often do not even cover the amount of the discount rate.

Table 1 - Statistical data on the number of small - Entrepreneurship for 2006-2007:

Section No

Parameters

at 01.04. 06g.

at 01.04. 07g.

%

1

The number of registered business entities of small business units, including:

758 658

838 359

110.5

2

- Legal

161 902

177 402

109.6

3

Physical:

596 756

660 957

110.8

4

The number of existing business entities of small business units, including:

567 262

635 218

115.2

5

- Legal

119 769

113 347

94.6

6

Physical:

447 493

521 871

116.6

7

The number of employed small business people

1520141

1645253

108.2

8

- Legal

553 451

555 914

100.4

9

Physical:

966 690

1089339

112.7

10

The volume of production, billion tenge

1234

1532

124.2

According to the Statistics Agency of Kazakhstan on April 1, 2007, there were 177,402 small businesses (entities), of which 113,347 were valid, or 63.9%.January 1, 2005, the share of active enterprises was 71.2%. (Registered 145,087 operating 103,291). With the growth of the number of registered enterprises in 2005-2007 to 32,315 or 22.3%, the number of actors has increased by 10,056 or 9.7%.

Growth in the number of employees in small businesses slowed annually: in 2002, it was created 88,000 new jobs in 2003, 27,800 jobs, and 74,600 in 2004, while on 01.02.2005 number of employees at small businesses fell by 62,800.Only on the 04/01/07, the number of employees at small businesses grew by 125 thousand people.

If we consider the industrial structure of small business, from the beginning of the 90's, she almost did not change. The main part of entrepreneurs engaged in trade intermediary services, industrial enterprises occupy no more than 13%.

The share of small business in GDP in recent years has remained at 16-17%.

Analysis of previous programs support and development showed that their implementation does not provide the expected development of small businesses and put figures on the number of subjects, create new jobs and increase the proportion of business in GDP have not been achieved even at the half.

Quarterly rating of small business conducted by Agency for Regulation of Natural Monopolies, Protection of Competition and Small Business Support has identified a differentiation in the level of small business development in regions of Kazakhstan. The category of regions with a relatively high level of development of small business include the city of Almaty and Astana, Kostanay region. The category of regions with an average level of small business includes South Kazakhstan, Almaty, East Kazakhstan, Karaganda, North Kazakhstan, Atyrau, Zhambyl, Kyzyl-Orda and Mangistau region. The region with the relatively low level of development of this sector can be considered Pavlodar, Aktobe, West Kazakhstan and Akmola region. Monitoring of the development of small businesses in regions of the second group (with average) showed that the leading position in the development of entrepreneurship in industries occupy Atyrau and Almaty region.

Obviously, the contribution of small business in the economy increases. However, the rise occurs in waves, alternate periods of growth slowdown, then again some recovery, there are significant untapped reserves. The above leads to the conclusion that the problems faced by small businesses and prevent its development in the country are stable and all taken to date, attempts to solve them have been unsuccessful. Requires the deepening of economic, legal, institutional and structural reforms through systematic work to support small business on the basis of international experience and the experience of previous years.

The analysis of the status and trends in the development of business in Kazakhstan shows that business - the most important area of economic development, and at the time of his contribution to the country's economy is becoming more important. However, despite the fact that, in general, for the country, the number of employees in business increases, and the proportion of the economically active population is still low compared with countries with developed markets.

V. The system of state support and regulation of small business in Kazakhstan

State support for small business is carried out in the following areas:

- Improvement of the legislation on the regulation of private enterprise;

- The creation and development of private business support centers, business incubators, technology parks, industrial areas and other infrastructure facilities for private enterprise;

- Educational-methodological and scientific-methodological and information support activities of private enterprises from the budget;

- Creating the conditions for small businesses government financial, statistical, logistical and information resources, as well as scientific and technological developments and technologies;

- Development of the state, branch (sector) and regional development programs for small businesses;

- Establishment of a simplified procedure for state registration and liquidation of small businesses;

- The establishment of optimal taxation;

- The adoption of small business loan programs;

- Establishing a system of attraction and use of investments, including foreign investments, to support and develop small businesses;

- Provision of guaranteed procurement of goods (works, services) for public use;

- The organization of training, retraining and skills development through the development of existing and new training and research centers, consulting organizations and information systems support and development of small businesses;

- National development institutions;

Basic principles of state support of small business are:

- The priority of development of small business in the country;

- The complexity of the state support of small business;

- The availability of small business support infrastructure and measures implemented for all small businesses;

- International cooperation in support of small businesses.

State support and development of small business conducted by:

- Provide financial support;

- Organization of the network of small business support;

- Organization of business incubators;

- Transfer to small businesses in trust or lease unused for more than one year of state property;

- Free transfer of small business ownership facilities leased or trust for the organization of industrial production and the development of services to the population after one year from the date of conclusion of the contract in the case when the conditions stipulated by it in accordance with the Government of the Republic of Kazakhstan.

These conditions do not apply to small businesses engaged in trade and intermediary activities.

The financial support of small businesses carried out by:

- Purchase of guaranteed volume of goods (works, services) for public use. The range of goods (works, services) purchased from small businesses, and their volume is determined annually by the Government of the Republic of Kazakhstan;

- Organization of lending through commercial banks;

- Issuing state grants for the organization and implementation of social projects in the sectors of the economy;

- Implementation of specific investment programs;

- Loans from the budget.

Financial support for small businesses from the state by a special fund created by the decision of the Government of the Republic of Kazakhstan, whose main purpose is to facilitate access to financial resources.

The main objectives of the foundation are:

- Project financing;

- The development of a network of micro-credit institutions with those of the private enterprise;

- Establishing a system to guarantee small businesses in obtaining loans in banks;

- Development of financial leasing;

- Training and consulting services to small businesses;

- The development of grant co-financing operations to implement a quality management system for small businesses.

Lending to small businesses is Foundation with funds raised and equity. Loans to small businesses engaged in agricultural activities, are provided on a priority basis.

Small business support centers are created for public involvement in private enterprise, creation of new small businesses.

Objectives of the Center for Small Business are:

- Analysis of the business environment, the domestic and international markets, industries and sectors of the economy;

- Providing a range of services in the field of marketing and management;

- Providing services for the development of investment and business projects, consulting and other services;

- Promotion of innovation activity of small businesses;

- Promoting the professional growth of small businesses;

- Access to information and expert resources;

- Seminars and trainings;

- Creation of a database of small businesses;

- Analysis and synthesis of information on small business development and problematic issues of development.

Business incubators are established to assist in the development of small businesses.

The objectives of the business incubator are:

- Selection of small businesses to be placed in a business incubator;

- Providing small business training, marketing, consulting, and other organizational and administrative services.

The establishment and operation of small business support centers, business incubators established by the Government of the Republic of Kazakhstan.

State support for small business is based on the state, regional and sectoral programs and a series of measures aimed at the development and support of small business.

Government programs to support small business development and approved by the President of the Republic of Kazakhstan and are binding on the entire territory of the republic's government and by private enterprise.

Government, industry (sector) and regional programs of support and development of small businesses include:

- Proposals to improve the regulatory framework;

- The priority activities of small business;

- Measures to build infrastructure to support small businesses;

- Measures to monetary and property support for small businesses;

- Measures to involve private enterprise in disadvantaged populations;

- Measures aimed at stimulating the transfer of large industrial organizations of the business to small business, as well as their non-core procurement related activities;

- Measures to promote public policies to support small business, etc.

Since 1992, Kazakhstan adopted a lot of orders and programs aimed at the development of small and medium enterprises in the country:

- The Law of the Republic of Kazakhstan dated July 4, 1992"On the protection and promotion of private enterprise";

- Government programs to support and develop business in the Republic of Kazakhstan for 1992-1994., 1994-1996.;

- The Law of the Republic of Kazakhstan dated June 19, 1997"On state support of small business";

- The Law of the Republic of Kazakhstan dated June 19, 1997"On the individual rated entrepreneurship";

- National Program for the Development and Support of Small Business in the Republic of Kazakhstan for 1999-2000., 2001-2002.;

- Program of the Government's support and development for 2002-2004.The main goal of the program - the formation of the "middle class", which is the basis of social stability;

- National Development and support of small business in the Republic of Kazakhstan for 2004-2006.The main objectives of: improving the tax administration for small businesses; small businesses easier access to credit, improving the efficiency of public and private institutions to support small businesses, optimizing state regulation of business, the creation of a unified educational and informational and methodological support system for small business, improving the regulatory framework on entrepreneurship;

- The Law of the Republic of Kazakhstan "On private entrepreneurship" of 31 January 2006;

- National Development and support of small business in the Republic of Kazakhstan for 2006-2008. Purpose: To create an enabling environment for the realization of freedom of entrepreneurship and the creation of an integrated system of state support in order to: create the conditions for active growth of the number of small businesses, especially in the form of legal entities, changes in the structure of the small businesses in the direction of a significant increase in the proportion of small businesses in priorities (manufacturing) industries, involvement in innovation, involvement of the population in entrepreneurial activity, the emancipation of their initiatives and create new jobs, and increase the share of small business in GDP to 30%.Objectives of the program:

- Improvement of the regulatory framework for business;

- Improvement of the tax system for small businesses;

- Development of the financial and credit and investment support for small businesses;

- Infrastructure development, training and information support to small businesses;

- Creation of an optimal control and inspections of small businesses.

The implementation of the program will create 150 thousand new operating small businesses in the form of a legal entity, so the total number of active small business (excluding farms and individual entrepreneurs) will be in 2008 - 300,000.This will create new jobs for not less than 500 thousand people. Increase the share of small business in GDP to 30%.

Relevance of small business dictates the present and the path of development, which chose Kazakhstan. Small Business in Kazakhstan - certainly a tool that can give a new impetus to the dynamics of development.

Conclusion

Entrepreneurship - initiative economic activity, performed with the risk from their own debt and other funds and assets in order to obtain for all actors involved mutually beneficial results and income.

Business entities can be as individual private citizens, and bringing partners. The most important features of the business include:

- Autonomy and independence of economic entities;

- Economic interest;

- Business risk and responsibility.

For the formation of business requires certain conditions: economic, social, legal, etc. Economic conditions - is: supply of goods and the demand for them, types of products that consumers can buy, the amount of money that consumers can spend on these purchases, the excess or lack of jobs, etc. Social conditions of the formation of business - is, above all, the desire consumers to buy products that meet certain tastes and fashions. Essential role played by the moral and religious norms depending on the socio-cultural environment. Important role in shaping entrepreneurship play training, retraining and advanced training of entrepreneurs. Legal conditions for the formation of business: We are referring to the existence of laws regulating business activity and create favorable conditions for entrepreneurship: a simplified and expedited discovery and registration of enterprises, protection of the entrepreneur from the state bureaucracy, improvement of tax legislation in the direction of motivation manufacturing business and so etc.

Small business - it's a business carried on subjects of the market economy in certain prescribed by laws, government agencies or other representative organizations of criteria (indicators). H he most common criterial indicators on which economic operators are small businesses, is the number of employees (employed), the size of the authorized capital, the value of assets, turnover (profits, income).The principle of allocation to small enterprises by number of employees remained in Kazakhstan legislation. According to Article 6 of the Law "On Private Entrepreneurship" small businesses are individual entrepreneurs without legal entity from the annual average number of employees is not more than fifty persons and legal entities engaged in private enterprise, with the average number of employees not more than fifty persons, and the average value of assets year up to 60,000 times the monthly calculation established by the law on the national budget for the financial year.

The main legal forms of small entrepreneurship is a partnership, joint stock companies, co-operatives. Small businesses as agents of the market economy have both advantages and disadvantages.

Advantages of Small Business:

- More rapid adaptation to local economic conditions;

- Greater independence of action;

- Flexibility and speed in making and carrying out decisions;

- Relatively low costs, especially the costs of administration;

- A great opportunity for an individual to realize their ideas, develop their skills;

- Lower the need for initial capital and the ability to quickly implement changes to its products and production in response to the demands of local markets;

- A relatively high turnover of equity, etc.

Among the disadvantages of small business should be to identify the most significant:

- A higher level of risk, so a high degree of instability of the situation in the market;

- Dependence on large companies;

- Shortcomings in the management of the case;

- Poor management competence, sensitivity to changes in the business environment;

- Difficulties in raising additional funds and obtaining credit;

- Uncertainty and cautious business partners at the conclusion of agreements (contracts), etc.

...

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