Volume 03 Issue 03-2023
5
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
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03
Pages:
05-13
SJIF
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(2023:
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)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
Small business and private entrepreneurship play an important role in the socio-economic development of all
countries in the conditions of globalization taking place in the world today. In the current era of rapid changes,
attention is being paid to business and entrepreneurship as one of the decisive, strategically important, priority areas
of economic reforms. Because this industry is an industry that can quickly adapt to the demands and changes in the
world and regional markets, and can quickly withstand the threats and negative consequences of the global financial
and economic crisis. Today, 90% of businesses in developing countries are small and medium-sized enterprises, and
they provide the opportunity to create more than 50% of jobs. Formally established small business enterprises account
for 40% of the GDP of these countries. The World Bank estimates that by 2030, 600 million jobs will be needed to keep
up with the growing population. This requires rapid development and institutional modernization of small business
and private entrepreneurship. Therefore, this problem sets the task of expanding the scope of scientific research in
this regard, introducing innovative technologies to the field on a large scale.
KEYWORDS
Small business, gross national product, income, profit, entrepreneurship, enterprise, budget.
Research Article
ANALYSIS OF SOME ASPECTS OF SMALL BUSINESS MANAGEMENT
Submission Date:
March 15, 2023,
Accepted Date:
March 20, 2023,
Published Date:
March 25, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue03-02
Gofur Abdilakimov
Associate Professor Of Tashkent State Pedagogical University, Phd Tashkent, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 03-2023
6
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
03
I
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03
Pages:
05-13
SJIF
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FACTOR
(2021:
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(2022:
5.
705
)
(2023:
7.
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)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
INTRODUCTION
It is generally accepted that one of the first who
became seriously interested in entrepreneurship was
A. Smith (1723-1790). In his fundamental work
"Research on the Nature and Causes of the Wealth of
Nations", he summarized the century-old experience
of classical political economy, substantiated the idea of
commodity production and exchange as a sphere of
human activity developing according to objective laws.
It is believed that the well-known English economist,
banker and one of the early researchers of capitalist
production R. Cantillon (1680-1734) and the French
economist J.-B. Say (1760-1832).
THE MAIN RESULTS AND FINDINGS
It was R. Cantillon who introduced the concept of
"entrepreneur" into scientific circulation. Considering
the peculiar characterization of an entrepreneur given
by R. Cantillon, it should be noted that it still meets the
main feature of an entrepreneur - a person who acts at
his own peril and risk to obtain a variable income, in
contrast to a worker and civil servant who receive a
constant salary . It is interesting that R. Cantillon
considered trade to be the main object of
entrepreneurship. Exploring business theory.
Say identified three stages in social production:
scientific, entrepreneurial, production. He believed
that in the entrepreneurial and industrial spheres, the
entrepreneur is the main figure in social production. In
our opinion, in all three stages of social production, an
entrepreneurial initiative is inherent, the ability "... at
one's own expense and risk ..." to reproduce a product,
including at the scientific stage, that gives the
entrepreneur the maximum income. Say defined an
entrepreneur as an economic agent that combines
factors of production, moving "economic resources
from an area of low productivity and low income to an
area of high productivity and profitability." One of the
founders of the Austrian school, F. Wieser, believed
that an entrepreneur is an owner of the means of
production and an employer, a creditor and a debtor, a
landlord and a tenant with simultaneous participation
in the management of an enterprise.
The concepts of "business" and "entrepreneurship",
"businessman" and "entrepreneur", "capitalist" and
"entrepreneur" began to be used as synonyms. The
social division of labor at all stages of the development
of society contributed to saving labor and increasing its
productivity. Considering small business as one of the
components of the social division of labor, we note
that entrepreneurship in the form of a small business,
before the industrial stage of development, is the main
activity, if this is translated into the modern language
of small business concepts. Small industrial
production, trade not in the volumes that we imagine
it now, all this was entrepreneurship, small business,
small business. Further development of the theory of
entrepreneurship contributed to the formation of such
Volume 03 Issue 03-2023
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Publisher:
Oscar Publishing Services
Servi
aspects and factors of entrepreneurship as social,
ideological,
spiritual,
ethical,
characterological.
Representatives, developers of this are German
economists and sociologists G. Schmoller, M. Weber,
W. Sombart.
We believe that by exploring not only the material
component of entrepreneurship, the efforts of
researchers contributed to the education among
entrepreneurs of a sense of civic duty, responsibility to
society, formed the spirit of an entrepreneur, in terms
of social responsibility to society.
Analyzing
the
process
of
development
of
entrepreneurship both in theoretical and practical
terms, its role in shaping the social division of labor at
various stages of social development, we will single out
several of its stages. The first stage in the development
of entrepreneurship, the formation of its essence, is
reduced to risk Cantillon in his writings put forward the
provision on risk as the main characteristic of
entrepreneurship. He argued that an entrepreneur is,
first of all, any individual who has foresight and is
willing to take risks, looking to the future, whose
actions are characterized not only by the hope of
gaining income, but also by the willingness to lose.
The followers of this theory were representatives of
the German classical school of the 19th century,
I.Tyunen and G. Mangold, as well as the American
economist F. Knight. At the second stage of
understanding entrepreneurship, the main attention
was paid to the personality of the entrepreneur. The
above-mentioned V. Sombart, as well as J. Pilevsky,
study the entrepreneur and entrepreneurship in a
historical perspective, focusing on the advantages of a
particular social system where people with
entrepreneurial abilities operate. This stage is
associated with the name of J. Schumpeter, who
believed that “economic development is based on a
specific function of the entrepreneur, which manifests
itself every time in the desire to use a“ new
combination ”of production factors, which results in
innovation, innovation. If instead of the number of
factors, we change the very form of the function, then
we get an inn
ovation.” The interpretation of
entrepreneurship as innovation, and the entrepreneur
as a person who is the driving force behind progressive
changes in the economy, corresponded to the stage of
the development of scientific and technological
revolution. The emergence of a multifunctional
business model that emerged from the second half of
the 20th century characterizes the third stage in the
development of entrepreneurship.
The
theoretical
studies
of
J.
Schumpeter,
representatives of the New Austrian school L. Mises
and F. Hayek present entrepreneurship at this stage as
a process of developing an idea. I.Kirtsner built the
theory of entrepreneurship as a process of transition
from one equilibrium state of "arbitrage" transactions
to another. From the point of view of J. Schumpeter,
"... the specific role of entrepreneurs is to overcome
the inertia of the economic system and the desire of
Volume 03 Issue 03-2023
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(ISSN
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VOLUME
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(2021:
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5.
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(2023:
7.
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
economic entities to act in accordance with
established practices".
The economic system itself has, according to
Schumpeter, a colossal economic potential. Any
innovation in the economic sphere is associated with a
certain risk, which most economic entities seek to
avoid. As a result, they tend to act traditionally rather
than innovatively, even to the detriment of their own
benefit.
Since such inertia is a property of the socio-economic
environment, business entities are often not inclined to
innovate, not because of their own inadequacy, but
quite the opposite, because of the rational nature of
their actions. “The best from
an economic point of
view and technically perfect combinations (of
productive forces), - writes J. Schumpeter, - although
with inevitability, but still very often do not coincide,
moreover, due to the adaptation of the economy to
correctly recognized conditions, and not simply due to
the absence knowledge or inertia. At the same time, J.
Schumpeter points out that the greatest profits or
losses are obtained as a result of spontaneous,
unpredictable changes in the external environment.
With the transition to the industrial stage of
production, the branches of material production
become the priority area for the application of
entrepreneurship.
The entrepreneurial function ceases to be the
monopoly of the owner, and the content side of
entrepreneurship is considered in the combination of
factors of production in order to use them most
efficiently. To produce in the concept of J. Schumpeter
means "to combine the things and forces available in
our field." The theoretical basis for the study of the
phenomenon of entrepreneurship, which was
developed by J. Schumpeter, is determined by two
factors: - he presented a detailed conceptual scheme
for the analysis of entrepreneurship as an independent
phenomenon,
not
directly
reducible
to
the
phenomenon of capitalist production; - gave a detailed
justification for the positive role of entrepreneurs in
the economic system, thereby laying the foundation
for the development of constructive theories of
entrepreneurship. The fourth stage refers to the
modern era.
The post-industrial stage of the development of
society, with its characteristic growth of innovation
and the socialization of production, has established
other
priorities
for
management.
Not
the
rationalization of the use of resources, but the
rationalization of the very form of management and
the method of management becomes a key link in
economic activity. The key role is played not by
adaptation to changing conditions, but by the ability to
transform the economic conditions themselves in
accordance with the trends in the development of
social needs and production. Therefore, in the post-
industrial economy, innovation activity becomes the
defining feature of entrepreneurship, and it itself
begins to play a fundamental role in social production.
Volume 03 Issue 03-2023
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Publisher:
Oscar Publishing Services
Servi
If entrepreneurship is called a certain type of economic
activity, then one cannot do without such categories as
cooperation and division of labor, independence in
decision-making, the use of hired labor, close
connection with the market, freedom of choice of
actions and a number of other features that determine
any type of economic activity.
According to V.I.Dal, entrepreneurship is the ability,
readiness, “to start, decide to do something, start
doing something significant.” Profit should be a
necessary condition for entrepreneurship, but not its
main goal. Entrepreneurship owes its appearance in
the social division of labor to small business, small
business, small business, which contributes to the
development and spread of entrepreneurship - the
locomotive of a market economy.
“Modern worldview
of the entrepreneur comes from the usefulness of the
recognition of business, the fundamental component
of which is an exchange, a transaction, an act of sale”.
The socio-economic life of the region is impossible
without the participation of entrepreneurship,
including small businesses. The role of small business in
the region is characterized by many functions, over
time, the value of certain functions may change. So in
the political aspect, the functions of small business can
be represented as: the formation of political views,
become the object of various political forces in their
struggle, can have a decisive influence, especially in the
context of an economic downturn; a decrease in social
differentiation with the growth of those employed in
small businesses, the growth of the "middle class".
"Organization
management
structure",
or
"organizational management structure" is one of the
key concepts of management, closely related to the
goals, functions, management process, the work of
managers and the distribution of powers between
them. Within the framework of this structure, the
entire management process takes place (the
movement of information flows and the adoption of
managerial decisions), in which managers of all levels,
categories and professional specializations participate.
Hence the attention that leaders of organizations
should pay to the principles and methods of building
management structures, the choice of their types and
types, the study of trends in change and assessment of
compliance with the tasks of organizations. Known
definitions of organizational structures can be roughly
divided into three groups. The first group includes
definitions that interpret the organizational structure
as an ordered, fixed relationship and interconnection
of elements and divisions of the organization. V.
Andreev considers the organizational structure as an
ordered set of bodies that manage production
activities.
L.Evenko, in turn, when considering the organizational
structure, focuses on the aspect of the relationship of
the
organization's
divisions,
defining
the
organizational structure as "a set of connections and
relations between the divisions of the organization
that arise in the process of management".
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Publisher:
Oscar Publishing Services
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S. Valuev combines the above two points of view,
arguing that the organizational structure is the
composition
and
relationship
of
structural
management links. B. Milner focuses on the need to fix
(formalize) the relationship between departments and
employees of the organization when building an
organizational structure. The definitions related to the
second group reveal the concept of the organizational
structure through the tasks it solves.
The definitions of Y. Varyas and T. Kono say that the
organizational structure is characterized by the
distribution of management goals and tasks between
departments and employees in the administrative
apparatus at all levels. I. Mazur, V. Shapiro note that
the organizational structure, in addition to the
distribution of goals and objectives, regulates the
composition, size, location, responsibility and
subordination hierarchy. The definitions related to the
third group emphasize the need to design an
organizational structure based on the organization's
goals and objectives. M. Mascon, F. Hedouri consider
the organizational structure of an organization as a
logical relationship between management levels and
functional areas, built in such a form that allows you to
most effectively achieve the goals of the organization.
T. Saaty and K. Kerne concretize: when building an
organizational structure, it is necessary to proceed
from the most common goal, and then move on to
certain functions of its parts, to the information flows
necessary to perform functions, and to the structure
that limits and directs these flows. It seems
appropriate to integrate these approaches in a
generalized definition. Then, the organizational
structure is understood as an ordered, mutual
arrangement and interconnection of the elements and
divisions of the organization, regulating their
composition, placement, activity profile, responsibility,
hierarchy of subordination and allowing the most
effective achievement of the organization's goals.
Consider the main types of organizational structures
and their classification. Many existing types of
organizational structures are proposed to be
combined into two subgroups according to the
following features: structural characteristics and
behavioral type of organizational management
structures. Organizational structures can be classified
according to the following structural characteristics.
Complexity refers to the degree of differentiation
within an organization. It includes: the number of
levels of the organization's hierarchy (vertical
differentiation). This indicator depends on the range of
control, which means the size of the team that is
subordinate to one leader. Reducing the number of
persons reporting to one leader (ie, narrowing the
range of control) generates a management structure
that is a "high" organizational structure, which is
characterized by a large number of levels in relation to
the number of employees. If an organization has a
large scope of control, it takes the form of a "flat"
structure, characterized by simpler communications
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
and less formal relationships between managers and
subordinates. Level of specialization or division of
labor (horizontal differentiation). With a large
horizontal differentiation, significant disagreements
arise between separate departments and divisions,
which complicates the communication process
between members of the organization and
complicates the task of coordination. Features of
management in small business due to the fact that the
relationship between the leader and subordinates are
direct and open. In a small team, the manager is
expected to be exceptionally ready to ensure effective
performance.
Small business public administration methods can be
grouped as direct and indirect. The first ones consist in
the direct management of small businesses through
budget financing, the provision of free information
services, etc. Such actions on the part of the state also
have a downside: they can contribute to the
emergence of a dependent mood among small
businesses, lead them to unequal competitive
opportunities. Indirect methods are manifested in
concessional
lending,
the
development
of
infrastructure for small businesses. Methods of
administrative-legal management are based on laws,
as well as on the strength and authority of power. At
the federal, regional and municipal levels, these
methods are manifested in the form of laws, programs,
concepts for the development of small businesses and
for their control.
Economic methods of small business management are
associated with the cost of monetary and material
resources. However, the practice of recent years
shows that insignificant funds are allocated from the
budget for these purposes (approximately from 10 to
50 rubles per small enterprise per year). It is more
expedient, in the opinion of the author of the
dissertation, to direct such meager sums to the
development of infrastructure, financing of exhibition
activities, etc. Methods of social management consists,
in particular, in the popularization of small business as
an important sector of the economy and social life of
the country. It is known that a significant part of the
population has a negative attitude towards business in
general, and small business in particular. The reason for
this phenomenon is that a large number of people have
unsuccessfully tried to go into business. There are also
such citizens who identify entrepreneurship with
predatory speculation, the desire for profit. The
negative attitude towards small business is supported
and even reinforced by the media.
Journalists focused on the negative aspects of this
activity and give insufficient attention to the positive
role of small business in the socio-economic life of
society. Organizational management methods consist
in the fact that authorities and public organizations
assist small businesses in promoting goods to the
domestic and foreign markets, covering conferences,
exhibitions, and round tables in the media. The
problems of personnel training should also be
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Publisher:
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attributed to the organizational methods of managing
small businesses.
There has long been an overproduction of
accountants, economists, and other general specialists
in the country. At the same time, they are not enough
to work in small businesses. Methods of material and
technical management consist in providing small
business entrepreneurs with premises on lease,
transport on lease, computer equipment on
preferential terms and the repair of these funds.
A
holistic
system
of
public
administration
infrastructure for small business with a shift in the
center of gravity to the regional and municipal levels
should contain business incubators, small business
support funds, leasing companies, innovation and
technology centers, technology parks, training and
business
centers,
and
other
organizations
representing the integration of the state, finance ,
science and production, created on a parity basis of the
federal, regional and municipal budgets. These
requirements, in our opinion, are met by the scheme
proposed by N.G. Agurbash.
The production of more profitable market goods
inherent in large companies, to the detriment of the
less profitable production of goods, small businesses
are able to fill this market niche. According to the social
status, small business in the region should play a
leading role.
The social functions of small business in the region,
with its sufficient development, in our opinion, can play
a decisive role. Among them are the following: first of
all, the formation of a wide layer of small proprietors,
the middle class as a guarantor of political stability in
the region and the main driving force of a market
economy, as the experience of all democratic countries
shows; the ability of small businesses to create jobs at
a faster pace, which will certainly contribute to the
growth of employment and the reduction of social
tension; Small businesses in competition, sometimes
not equal to large businesses, take greater risks by
introducing organizational, technical and technological
innovations, which contributes to a more accelerated
introduction
of
scientific
achievements
into
production.
CONCLUSION
Exploring the process of formation and development
of small business in the Vladimir region, we note that
small business plays a certain role in the economic
development of the region. From the point of view of
the social division of labor, small business enterprises
in the region occupy a rather modest place in terms of
their share in the gross regional product and in the
sectors of the economy.
Features of management in small business due to the
fact that the relationship between the leader and
subordinates are direct and open. In a small team, the
manager is expected to be exceptionally ready to
ensure effective performance. All this determines the
high requirements for the personality of a small
business manager: he must be highly professional,
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Publisher:
Oscar Publishing Services
Servi
have great flexibility in work, be able to anticipate
events and adapt the activities of the enterprise to
changing conditions, form and develop effective
directions for the work of the company.
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