Methods of organizing production in the business system

World experience shows that without a free market economy, without an independent producer, without entrepreneurial activity, the prosperity of society is impossible. The formation of small and medium - sized enterprises, the methods of organization of production used in their practice, must constantly be in the field of view of state institutions.

In order to consider the role of entrepreneurship in the development of the country's economy, it is necessary to carefully study its macroeconomic and microeconomic functions, production planning methods used in the course of economic activity. It should be borne in mind that they can be significantly modified and supplemented depending on the real situation, the specific socio-economic situation in the country and the world economy.

Microeconomic and macroeconomic functions of entrepreneurship, the principles and methods of production management on them, indicate that with the development of market principles, the role of entrepreneurship becomes one of the most important in the economy.

For the harmonious development of entrepreneurship, it is necessary to take into account all its features, in particular the dialectical nature of the development of entrepreneurial activity and specific methods of organizing production. In this context, autonomy of entrepreneurship is meant, on the one hand, and on the other, its dependence on the economic climate in the country.

The autonomy of entrepreneurship is manifested through its main functions (obtaining benefits and innovative activities, specific methods of organizing production) and determines what is common for entrepreneurship in any socio-economic environment. And the dependence of entrepreneurship is expressed through its interaction with the economic system through competition and the mechanism of regulation of the economy. This dialectical development of entrepreneurship, as an independent sphere of the economy, is its main resource.

At the same time, entrepreneurial activity should develop in all directions. In this regard, the state should take into account the autonomy of entrepreneurship, and at the same time regulate its activities, the methods used to organize production.

World practice shows that the effective development of this economic complex is an objectively necessary component of the economic system. Entrepreneurship has a number of specific properties that contribute to the acceleration of economic processes and distinguish it from other elements of a market economy. Speeding up the processes of changes in factors of production, forms of labor and organization of activity, entrepreneurship is thus a “troublemaker” and constantly transfers the economy as it were to a new dimension. It is in his sphere that a significant share of national resources is created, which act as the most important factors of economic growth. Entrepreneurship, as well as the infrastructure for supporting it, acts as an effective testing ground for testing modern management methods and organization of production, due to the objectively inherent in entrepreneurship, economic dynamism.

The system of functions of entrepreneurship, as an institutional system, is a combination of macro- and microeconomic tasks that this sphere solves in the activity of the entire economic complex of the state. Macroeconomic functions include:

- Building wealth of society (production of goods as a constant increment of the aggregate wealth of society; increment of intelligence as the development of the most important factor in the economy);

- Participation in national programs (allocation of funds for the implementation of social programs of the company, participation in the state policy of employment, health care, etc.);

- Ensuring the environmental safety of goods and services (responsibility for causing environmental damage with their goods and services);

- Expansion of production capacities and jobs (opening of new industries, or expansion of production);

- Expanding production capabilities and taking to a new level (improving technology, technology, organization and management).

Microeconomic functions include:

- Making a profit (ensuring break-even of the work of your company, expanding production);

- A combination of factors of production (a combination of factors of production (material, personal, intellectual) to achieve the goal of entrepreneurship);

- Innovative activity (the search for modern solutions in production, organization and management, focus on scientific research and development);

- Lower costs (identifying the internal costs of their business, using the opportunities presented by external factors);

- Competition in the market (defining a strategy for competition in the market);

- Decrease in losses (development of non-waste production);

- Getting benefits (in addition to economic benefits in the form of making a profit, there may also be a gain in market share, obtaining profitable orders, developing the prestige of the company, etc.);

- Bearing risk and responsibility (the desire to insure yourself against the risk or, if possible, distribute it).

Source: https://habr.com/ru/post/C10209/


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