In the market system, the main place is occupied by entrepreneurship and business. One of the main functions of business is to regulate the state economy and maintain the level of jobs and taxation.
Definition
Many mistakenly represent business as a system of sale of any goods or services. In fact, a business means any business, that is, activities aimed at making a profit. You can also perceive business as a set of business relations of various people, organizations and enterprises to meet any needs of the population, while earning income. His main goal stimulates the businessman to search for new ways to make a profit, which, accordingly, leads not only to economic growth and the development of the company itself, but also to the active growth of scientific and technological progress.
Business Feature
In the modern world, business has acquired a very wide range of distribution. Very often it not only partially goes to the Internet, but also develops exclusively in it. Many blogs, video feeds, and social media groups are also businesses. The characteristic features of a business include:
- The investment nature of any activity. Each business always gives profit only after a while. As in investment activities, in business there is a risk of non-profit.
- The possibility of buying and selling. In this case, a business can be perceived as a product, that is, you can buy or sell any business, regardless of scope and scale. The main thing is to make an assessment and set an adequate price.
- The ability to influence price, supply and demand. This feature depends on the size of the enterprise. In general, only a global business can influence the economy.
- State control. Based on the last paragraph, it is very dangerous if a business takes the entire economy into its own hands. In order to avoid such situations, the country has special laws and bodies that control entrepreneurial activity. For example, the antimonopoly service, which ensures that one company does not occupy the entire sphere.
Business entities
Subjects perform active business functions, own basic rights and obligations in the course of entrepreneurial activity. There are many different classifications of business entities as well as the entities themselves, but the main ones can be distinguished:
- Company. The main subject that performs all the functions of a business. It is on it that entrepreneurial activity is built.
- Consumers. This is also one of the most important entities without which there would be no business. After all, as you know, demand forms supply.
- Owners and investors. Persons owning the enterprise perform the basic functions of business management, as well as decide the fate of the future.
- State and government bodies. They control that the legislation of the country is not violated.
Economic functions of a business
As mentioned above, business has a very large impact on the economy. Any entrepreneurial activity performs the following functions:
- General economic. This is the basic concept of an organization’s business functions. It is thanks to it that the economy is growing and the number of enterprises remains at the proper level. Thanks to business, the level of gross national product and national income as a whole are growing. Special economic ties are being created within and between the state.
- Healthy competition and pricing are taking shape. There is a limitation of the monopoly of enterprises, as well as pricing in the framework of this competition.
- Resource. Business allows you to convert all types of resources into a finished product. These include natural and labor resources, scientific achievements and entrepreneurial talent. It is also worth emphasizing that the main goal of a business is to make a profit. Therefore, very often, in pursuit of it, businessmen steal resources that, due to their limitations, are public, which leads to harm to nature and the environment.
- Tax. The entire business is required to pay taxes, with the exception of certain areas. Tax revenues are one of the main sources of budget revenue.
- Reduces unemployment. With the exception of self-employment enterprises, any business gives the state new jobs and reduces unemployment.
Social features
Despite public opinion, business is important not only as an element of the economy, but also as a constituent structure of the social sphere. In it, he also performs his functions:
- Creative and innovative activity. In the modern world, it is business and the desire for profit that drives scientific and technological progress. Some entrepreneurs seek to expand the scope of their business, while others want to achieve more profit at lower cost, while others do not withstand competition and want to go into that area where it does not exist. Many enterprises create entire scientific departments or even research complexes.
- The social business function of the enterprise is manifested by the self-realization of individuals. With this function, each person can prove himself in any field. Moreover, he can realize himself as he wants in the framework of the current legislation. There is also an interweaving of economic function with a reduction in unemployment. Business development provides an increase in jobs. Due to this, there is a reduction in the social layer of disadvantaged families and the criminal situation in the country.
- Organizational function. It allows you to develop organizational abilities, as well as analytical skills. Thus, the entrepreneur learns to make decisions in an ever-changing environment. Business allows people to connect and organize new communities.
Business principles
Each type of activity has its own principles, and business is no exception. We can distinguish the basic principles of entrepreneurial activity:
- The principle of limitation and exchange. The essence of this principle is that any business develops under constant restrictions, so businessmen must exchange among themselves in order to get those resources that they lack.
- An adversarial principle, which in conditions of healthy competition makes business compete with each other. Healthy competitions are only for the benefit of any activity, forcing it to develop.
- The principle of freedom and unlimited in their actions. This principle implies that a businessman is limited only by law and a certain framework in the conditions of his activity.
- The principle of uncertainty of the future, which means that no one guarantees business a successful outcome and development.
The main goal of the business
Entrepreneurial activity pursues more than one goal, but among all we can single out profit. This is the primary goal. It is because of income that many organize a business. Profit is the basis for fulfilling the functions and goals of the business in order to satisfy the individual and social needs of the entrepreneur, as well as ensure the survival of the company. Other social goals of the business can be achieved only by ensuring positive cash flows. However, not all economists hold such views. Some theorists believe that business should be socially responsible, and profit - this is a secondary task that will be in the implementation of the main.
Other business goals
In addition to making a profit, a business must achieve other goals:
- Provision of a product or service that a community needs. This task is that the business must be needed, otherwise, it will soon collapse.
- Satisfying demand in the services market. Business should offer to compensate for the demand arising in the market, or be close to it.
- Social purpose. It consists in providing employees with social privileges and the ability to achieve some goals within the enterprise. Thus, reduce staff turnover and increase reputation in the labor market.
- Help to the community. As mentioned above, some put this task first. Business should be not only necessary, but also useful to society.
Conclusion
Any organization has goals and performs certain functions. A business can be considered successful if it performs all its functions and achieves its goals. It is their implementation that leads to the prosperity of not only a single business, but also of the branches of the economy.