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Abstract

Content

Introduction

Business is an important strategic resource that can provide economic growth, the effectiveness of economic interactions and the enhancement of national welfare. The process of establishing business as an instrument for regulating economic relations between individual sectors and spheres of the economy, various groups of the population, increasing the efficiency of entrepreneurial activity of economic entities play an important role in the economy. In the period of transformation, business development contributes not only to the formation of an efficient economy, to the growth of production of goods and services, to competitiveness, but also to the solution of many social issues-employment growth, solvency, and social tension. The development of business creates a platform for the development of the republic through the formation of a middle class – the guarantor of a democratic, prosperous and socially prosperous society. Increasing the efficiency of entrepreneurial activity of economic entities has an impact on the economic development of the republic.

1. Theme urgency

The state of scientific development of the problems of this sector in the economic literature is voluminous. Studies in the master's thesis will deal with the features of managing entrepreneurship in the region in a strategic perspective, taking into account specific conditions.

2. The purpose and objectives of the study

The purpose of the master's thesis is to develop and substantiate the main directions of the strategy for managing the development of entrepreneurship in the country on the basis of an analysis of current trends and the dynamics of entrepreneurship development in the region in modern conditions.

To achieve this goal, it is necessary to solve the following tasks:

The object of research of the master's thesis is the process of entrepreneurship development in the region.

The subject of the study is the organizational, economic, methodical, informational resources for research and implementation of recommendations for managing the development of entrepreneurship in the region in a strategic perspective.

The information base of the research includes normative legal acts, official and operational data, analytical and information materials of institutions, organizations and enterprises.

3. Theoretical researches of development of business in modern conditions

3.1. The essence of entrepreneurship, classification, types, forms

In modern conditions, a key element in the progress of the leading countries of the world is small and medium business, the development of which contributes to the creation of favorable conditions for dynamic development, the formation of a competitive environment, the creation of additional jobs, and the saturation of the market.

Entrepreneurial is called an independent activity carried out at its own risk aimed at the systematic receipt of profits from the use of property, the sale of goods, the performance of work or the provision of services by persons registered as such in the manner prescribed by law.

Business – activity for the implementation of transactions of the exchange of goods and services between economic participants in market relations. In a certain respect, business is a broader phenomenon than entrepreneurship, since it covers itself, including the commission of one-time commercial transactions. Legislation of all states regulates the activity of businessmen (businessmen), establishing for them a number of initial positions and parameters, without which commercial activity is impossible [1].

Distinctive features of entrepreneurial activity:

Distinctive features of entrepreneurial activity

Figure 1 – Distinctive features of entrepreneurial activity (animation: 6 frames, 5 cycles of repeating, 146 kilobytes)

Small business – the sector of the economy, which includes individual and small business, the conditional name of the aggregate of small and medium-sized enterprises, limited by certain legal norms.

Small and medium-sized businesses include consumer cooperatives and commercial organizations (except for state and municipal unitary enterprises) entered in the unified state register of legal entities, as well as individuals entered in the unified state register of individuals-entrepreneurs and carrying out entrepreneurial activities without the formation of a legal persons (hereinafter referred to as FLP), peasant (farm) farms, corresponding to the conditions listed below.

The subjects of large business in the Donetsk People's Republic (hereinafter – DPR) are legal entities – economic entities of any organizational and legal form and ownership form, in which the average number of employees for the reporting period (calendar year) exceeds 250 people and the annual income from any activity exceeds the amount , equivalent to 50 million euros, determined by the average annual rate of the Central Republic Bank of the DPR (hereinafter – CRB DPR) [3].

Only persons registered as a FLP without the formation of a legal entity and legal entities that are established, operate and terminate in a special procedure established by law are entitled to engage in small and medium business.

3.2. Conceptual framework for business development

The most important theoretical and practical value is research in the sphere of interaction between business and the state. In the strategy of economic development, the DPR identifies four components of the republic's successful functioning: state regulation of the economy, public-private partnership, scientifically sound investment policy and territorial management. In addition, there are situations when business ideas, because of financial or spatial limitations in their capabilities, require state support, and vice versa, the state can use entrepreneurial structures to solve socially significant or large-scale projects, attract professionals, new technologies and technology that would not be appropriate purchase for budgetary funds. The analysis of problematic issues was reflected in the development of a conceptual framework for interaction between state and business structures.

The conceptual scheme for organizing interaction between government and business structures includes the subject, goals, objectives, principles, subject, objects and spheres of interaction, theoretical and methodological foundations for organizing interaction, as well as scientific and methodological approaches to the organization of interaction that will promote effective cooperation between power and business.

The main principle of socio-economic interaction between the state and business structures is the overall orientation of the tasks and the achievement of the ultimate goal. Failure to comply with this principle can lead to disagreements, conflicts, which in its daughter will negatively affect the work of all structures. When forming common goals and objectives, it should be noted that their achievement is possible only on the basis of mutually beneficial contractual relations [8].

In the conceptual framework, much attention is paid to scientific and methodological approaches to the development of interaction between power and business structures. Their essence lies in determining the effectiveness of the state program, for which entrepreneurial structures are involved. Participants in the state program provide the executive and co-executor with the information necessary to assess the effectiveness of the state program and prepare the annual report and report.

Russian economists have developed a number of instrumental methods in which methods for analyzing and sequencing the evaluation of public projects and programs are disclosed: Guidelines for evaluating project proposals under the EU-Russia Cooperation Program (Tacis) [7], The Procedure for Developing, Implementing and Evaluating the Effectiveness of State Programs of the Russian Federation [4].

In particular, this document stipulates that the programs should contain: a list of target indicators and indicators of the state program, with a breakdown of the planned values by the years of its implementation, as well as information on the relationship between activities and the results of their implementation with the generalized target indicators of the state program; substantiation of the composition and values of the relevant target indicators and indicators of the state program for the stages of its implementation and an assessment of the influence of external factors and conditions on their achievement; description of measures of state regulation and risk management in order to minimize their impact on the achievement of the objectives of the state program; method of assessing the effectiveness of the state program.

Analyzing this Order, N.N. Anyurova states that the methodology for assessing the effectiveness of programs in the document is not contained, only the requirement for its development is given. It turns out a kind of methodology for developing methods. Therefore, continuing the theoretical study, let us turn to E.I. Gabdullina, who notes that for all the diversity of forms of public-private partnership, they are basically designed to provide a certain benefit for each of the participants. However, the expected effect may lie in different areas for each of the stakeholders, have different criteria that are not relevant to the area of financial indicators [5]. According to N.N. Anyurova evaluation of the effectiveness of programs should have a common methodology, and also be distinguished by simplicity, concreteness and efficiency. At the same time, it is necessary to develop a methodology that takes into account the characteristics of various social spheres, namely, educational and cultural structures, social protection, and health care. Currently, such techniques are used in the Russian Federation not only by line ministries, but also by regional authorities, which use them when selecting performance indicators. The analysis and assessment of the effectiveness of interaction between government and business at different stages differ in their goals and methods. Therefore, we must determine the life cycle of joint projects, and then build a sequence of analytical procedures. According to works devoted to questions of the life cycle, such authors as V.Zh. Dubrovsky, E.A. Kuzmin [7], M. Chernigovskiy [8], interaction of power and entrepreneurial structures has three stages of the life cycle:

  1. The preparatory stage includes several directions. Initially, it is necessary to approve: a) the goals and priority areas of interaction, specific tasks; b) the corresponding normative legal acts (laws, strategies, concepts, programs) regulating the legal relations of the state and small and medium-sized businesses on the interaction within a certain object (industry, construction site, region); c) the period – short, long-term, on an ongoing basis, until the planned results are achieved; d) an assessment of the feasibility of attracting private businesses to perform tasks. Then follows the definition of participants in the relationship from the authorities (responsible executors, fund managers, supervisors, evaluators, performance experts) and from the business on a competitive basis (specific executors or the object of state influence). Depending on the directions of interaction, the sources and amounts of funding are estimated, estimates are compiled for program activities with details on the periods of disbursement of funds, attribution of responsible executors and specification of effective performance indicators for each measure for timely monitoring and elimination of negative factors/consequences, followed by fixing of amounts with a budget planning (state, federal or local budget).
  2. The stage of implementation of joint activities – the implementation of specific types of work, services; implementation of production, construction or maintenance of a specific subject of interaction between government and business; achievement of intermediate results; their control and evaluation of the effectiveness of the tasks (degree of achievement of the goal); preparation of an interim progress report.
  3. The stage of completion of interaction is characterized by legal procedures for completion: the special commissions verify the degree of readiness of the facility for operation (concerns construction), the quality of the finished product (concerns production); the degree of achievement of the ultimate goal in the areas and objectives; appropriate documentation is prepared, confirming the results of the completion of the joint project (program); the object is transferred to the customer and put into operation (technology and finished products are transferred to the right of use).

Interaction of power and entrepreneurial structures is viewed from two sides: the influence of power on business and business on power.

Considering the process of interaction before power structures, there are two main tasks. The first is the development of small and medium-sized businesses. To do this, it is necessary:to analyze the activities of small and medium-sized businesses in order to identify promising areas of development; organize investment of small and medium-sized businesses, which is possible when realizing investment projects in the real sector of the economy, as well as work out a strategy for promoting goods, which will allow entrepreneurs to enter the world's wounds, and the state to enhance the image of the Republic and attract investment. All these organizational arrangements will support and improve the work of business structures.

With the interaction of government bodies and business structures, problems arise that need to be addressed. Therefore, the second main task of state bodies of power is to form such a regulatory field that would allow to take into account the interests of all parties.

The influence of government bodies on entrepreneurial structures can be seen through:

In the framework of this work, all existing models based on partnership will be considered. Such models include: public-private partnership; social partnership; patronage; corporate; associated.

According to the analysis conducted in the Russian Federation, the leading area of PPP projects in 2015 was the housing and communal services – 194 of the implemented projects. In the social sphere, this indicator was 165 projects, in the energy sector – 163 projects, in the transport sector – 64 projects. In 2016, at various stages of implementation, there are 1285 projects. Of these, 505 projects are in the energy sector, 482 projects in the public sector, 203 projects in the social sphere, 95 projects in the transport sector. A significant increase in PPP projects in the energy sector is due to the involvement of representatives of domestic and foreign business for the construction of the energy bridge and transport bridge in the Crimea.

Proceeding from this, the importance of the development and implementation of PPP is obvious. The main objectives of public-private partnership in the DPR are to attract private investments into the economy of the DPR, pool resources and distribute the risks of partners for the implementation of investment projects and republican programs having important state and public importance.

In the Donetsk People's Republic, a draft law On public-private partnership has been prepared, which is currently being finalized. Adoption of this bill will create conditions for effective interaction of the state and business in the DPR. This will help attract financial resources of the business for mutually beneficial cooperation with the state in various projects, such as construction, reconstruction, modernization, as well as operation and maintenance of a certain facility. The framework of this law is expanded and provides for municipal-private partnership. This will allow local administrations to attract private investors to implement their projects in the tourism business.

Investors, in turn, will be able to invest in long-term projects with fixed yields under state guarantees and obligations. Also positive is the fact that the business will be able to freely dispose of the investments and the resulting products and revenues provided by the agreement of activity.

Within the framework of the legislative project, the main tasks of public-private and municipal-private partnerships are as follows:

In the DPR, among the main principles of partnership between power and entrepreneurial structures can be identified:

Thus, special attention is paid to the development of small and medium-sized businesses, as small and medium-sized businesses are seen as one of the key conditions for the country's renewal, the economy, and as a basis for realizing the enormous creative and entrepreneurial potential of the population.

The specifics, content and main role of small and medium-sized enterprises is the active participation of SMEs in the formation of a competitive environment and the elimination of monopoly influence; the formation of an active middle class as the basis for the formation of civil society, the reduction of unemployment in general.

Small business represents entrepreneurial activity carried out by economic entities under certain criteria established by laws, which determine the essence of this concept. The criteria for classifying enterprises as small and medium-sized businesses vary from country to country.

Strengthening the regulatory role of the state is relevant, since the existing set of measures, programs to support small and medium-sized businesses do not form an integral system because of the disparate goals and inconsistencies of regulators.

In writing this essay master's work is not yet complete.

Final completion date: June 2018. The full text of work and materials on the topic can be obtained from the author or his manager after that date.

References

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