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 structures in various sectors is in line with global economic trends in the formation of such economies, where there are a significant number of small enterprises of various profiles and complement state enterprise.
State enterprise is an essential element of a market economy, significantly contributing to the growth of GNP.
At present, in the country this sector makes up 70% of all enterprises and it accounts for approximately 35-40% of the number of people employed in social production. Therefore, it can be argued that entrepreneurship by its economic nature is a product of a market economy and is dialectically related to it.
In order to consider the role of entrepreneurship in the development of the country's economy, it is advisable to determine its main functions in the economic mechanism and the forms of state support for small businesses , implemented today in our country. It should be borne in mind that the functions of entrepreneurship can be supplemented depending on the real situation, the specific economic situation in the country and the world economy, and on what methods of state support for small business dominate at the moment of development.
For the harmonious development of private and state entrepreneurship must be considered taking into account all the features of the development of entrepreneurship. In this context, autonomy of private enterprise is meant, on the one hand, and its dependence on state institutions.
Autonomy is manifested through its basic functions (obtaining benefits and innovative activities) and determines the general that is characteristic of entrepreneurship in any socio-economic environment. And the dependence of private enterprise is expressed through its interaction with the system of the state economy through competition and the mechanism of its regulation. In this dialectical development of entrepreneurship, there is an internal mechanism for stimulating entrepreneurial activity.
At the same time, entrepreneurial activity should develop in all directions. In this regard, the state is obliged to take into account the autonomy of entrepreneurship, and at the same time regulate its activities. It is advisable to develop state entrepreneurship in those segments of the economy where private business is simply not able to fulfill the tasks determined by social needs.
In science, several areas have been developed where private enterprise can become an important factor in economic life, both in the structural context of the country's economic mechanism and in the regional one.
World experience shows that the effective development of the most diverse forms of entrepreneurship is an objective sign of the development of the entire management 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. Entrepreneurship is a "troublemaker" and all the time, as it were, translates the economy into a new qualitative state. It is in the field of entrepreneurship that a lot of resources are generated that act as factors of economic growth. The system of functions of entrepreneurship from this point of view, can be represented as follows:
Increasing the wealth of society - the production of goods as a constant increment of the total wealth of society; increment of intelligence as the development of the most important factor in the economy;
Participation in national programs - the allocation of funds for the implementation of social development programs of society;
Participation in the state employment policy - the opening of new industries, or the expansion of production;
Ensuring the environmental safety of goods and services and responsibility for causing environmental damage with their goods and services;
Expanding production capabilities and taking to a new level - improving technologies and methods of production management;
Making a profit - ensuring breaking-even of the work of your company;
Innovation activity - the constant search for new solutions in production, organization and management and orientation towards scientific and technological progress;
Cost reduction - the identification of the internal costs of their business, the use of opportunities presented by external factors.
Competition in the market - the definition of tactics and strategies for market behavior;
Loss reduction - development of non-waste production;
Bearing risk and responsibility - the desire to insure yourself against risks or, if possible, to distribute them.
Thus, the functions of private and state entrepreneurship are not only compatible, but can also be effective, both complementing and replacing, with the corresponding need for the development of the economic system of society.