Entrepreneurship Management and Main Directions of Regulating
Entrepreneurship Activities
Bababekova Nargiza Bakhtiyarovna
1
, Mirzaraakhimova Aziza Azimdjanovna
2
, Adolat Odiljan kizi
Tukhtamuratova
3
1
Senior teacher, University of Tashkent for Applied Sciences Tashkent City Chilonzor, Gavhar Street 1
2
Senior teacher, Dept. Economics in ICT sphereTashkent University of Information Technologies named after Muhammad
al-Khwarizmi Tashkent, Uzbekistan,
3
Senior teacher, University of Tashkent for Applied Sciences Tashkent City
Chilonzor, Gavhar Street 1
adolatxontukhtamurodova@gmail.com
https://doi.org/10.5281/zenodo.10467757
Keywords:
Cost, entrepreneurship, management, pricing methods.
Abstract:
This article discusses entrepreneurship and the current position of management organizations. In addition, the
main directions of regulation of the activities of financial and legal entrepreneurship were analysed, as well
as a conclusion and recommendations were given.
1 INTRODUCTION
Any enterprise, whether large or small, must be
managed. Meaning the art of managing enterprise, the
word "Management" means an effective enterprise
management system. Property and investment owners
do not have to run the business on their own, but it is
also possible to involve well-qualified managers who
have the necessary knowledge and skills. Skilled
managers in developed countries are entrusted with
the ultimate goal of doing business - high profitability.
The profession of manager is one of the highest paid
professions.
Enterprise management is a comprehensive
activity that includes the following tasks:
•
Elaboration of the enterprise's goals and
directions for the short and long term, and the
strategy for its effective development;
•
Production, commercial and financial planning
of the enterprise;
•
Organizing
the
manufacturing
process,
overcoming routine failures in production,
management and technological processes;
•
Establishment and management of material
equipment;
•
Organization and management of marketing
activities;
•
Financial management;
•
Employment, recruitment, distribution and
management of responsibilities;
•
Risk management;
•
Creating a system for data collection and
analysis;
•
Increasing the efficiency of the enterprise;
•
Creation of reliable and effective system of
control
over
the
implementation
of
management enterprises, etc.
Internal and external factors influence the
performance of management functions in the
enterprise. Internal factors include tools such as
enterprise size, resource allocation, technological
armament, labour organization methods, production
costs and pricing policies. These factors can be
planned and controlled to some extent. The level of
their effective use is measured by management
decisions. [1]
Methods of management are a set of techniques
that target employees can exert on their control.
Effective use of material, financial and labour
resources through management methods influences
economic processes to achieve high results.
Production efficiency is largely dependent on the
perfection of management methods.
There
are
organizational,
administrative,
economic and socio-psychological methods of
management.
Organizational-administrative methods refer to the
process of management through organizational
means, using the power and authority of the enterprise
managers. Organizational and administrative methods
of management include an impact system that ensures
the effective functioning of management and managed
systems. In many cases, organizational influence is
based on the application of administrative law, that is,
the implementation of orders and directives.
Organizational-administrative
methods
provide
organizational accuracy, define the tasks of each
branch of management, ensure the efficiency and
operation of the administrative apparatus, select and
place personnel, monitor the execution of orders and
instructions, and maintain order instalments and so on.
The essence of economic methods is to manage an
enterprise's activities through economic means (price,
credit, business plan, cost, profit, taxes, salaries,
economic incentives, etc.). Another aspect of
economic methods is the creation of economic
conditions for the employees and the production
community to meet their interests. Economic methods
take the leading place in the system of management
methods.
Socio-psychological methods of management are
tools for managing the social needs and psychological
characteristics of employees. Applying social-
psychological management techniques requires an in-
depth study of social events occurring in the enterprise
and knowledge of the psychosocial (psychological)
factors that affect the mood of the employees.
2
Materials and Methods
Pricing of products in the small businesses and
private entrepreneurship is a complex and multi-step
process. It can be illustrated in Figure 1 below.
FIGURE 1. STAGES OF PRICING [1]
2.1.
Setting a goal
In the course of carrying out its activities, any
enterprise must pursue a specific goal. It is also easier
to form a pricing policy if the objectives of the
enterprise and its market position are clear. There are
three main objectives of pricing policy: ensuring the
enterprise's viability, maximizing profits and
maintaining its market position (Figure 2).
FIGURE 2. GOALS OF ENTREPRISE
PRICING POLICY
2.2.
Providing the viability
When a large number of companies offer the same
product in a competitive environment, the main
purpose of the company is to maintain its market
presence. The enterprise chooses this goal in the
following cases:
•
The demand for the product is variable [Ed>
1];
•
The company seeks to increase its total revenue
and sales by partially reducing the revenue
(price) of its products;
•
Increased sales are expected to reduce
production and sales costs;
•
Low prices weaken competitors;
•
There is a large consumer market.
Under these conditions, lowered prices - the
"jumping price" - will be set to gain a significant
market share and increase sales.
2.3.
Maintaining the status in the market
The main focus of the enterprise is to maintain its
market position and create favourable conditions for
it. To do this, it will take steps to maintain its sales
volume and maintain its competitive environment,
with due attention to changes in market conditions,
price dynamics, emergence of new goods and
competitors. In this case, a sharp rise or fall in prices
is not justified. Therefore, we need to look for ways
to reduce production and time costs.
2.4.
Profit maximization
The desire to maximize profits is typical of both
newcomers to the market and stable businesses with
a prominent position. In the policy of maximizing
profits, the company focuses on increasing long-term
investment returns, maximizing profitability over the
next few years, and increasing production efficiency
and
profitability
through
increasing
capital
investment. Determination of demand for the product.
One of the most important factors influencing pricing.
Without estimating the demand, the price cannot be
calculated correctly.
2.5.
Analysis of production costs
Analysis of production costs is the next step in
pricing. It is important to know the proportion and
weight of total, permanent and variable costs in the
cost structure, as the company needs to determine the
minimum sales amount to cover at least constant costs
to ensure that certain market conjunctions. At the
same time, it is necessary to analyse the impact of
average total, moderate, constant, and variable costs
on product prices. Analysis of competitors' values.
The prices are significantly influenced by the
behaviour of competitors in the market and the level
of prices for this product. Each enterprise should
carefully analyse the pricing policy of its competitors
and its features. The data obtained from the analysis
can be used to determine an enterprise's pricing
policy.
2.6.
Selection of pricing method
In the market economy, there are the following
ways of valuing small businesses' products: An
enterprise introducing a new product to the market is
priced using one of the following methods: “cream”
or “market penetration”.
The method of “sour cream” sets the maximum
value based on the consumers who are ready to pay a
high price for the product at the initial stage of its
creation and market entry. The price can be reduced
once the consumer is satisfied at the maximum price
level. The advantages of this method are:
•
Provides for reimbursement and sufficient
profits associated with early production of
high value goods;
•
Creation of the first high-quality brand image
and its successful sale in the future;
•
Consumers are attracted to the high price and
are convinced that the profitability of the
product is high (consumers tend to understand
that the more expensive the product, the higher
its consumer properties);
•
High marking errors can be corrected by
reducing the price without damaging the unit.
The main disadvantage of this method is that it
attracts the attention of its competitors. Therefore, it
is advisable to use pricing in the “creamy” method in
markets that limit the competitive environment.
Using a 'push-to-market' approach, an enterprise
sets a low price on new products being introduced to
the market with respect to those of its competitors.
The main purpose of this is to attract a wide range of
consumers and capture as much of the market as
possible. This method of pricing can be justified if the
output is large. For this purpose the demand for the
product is highly volatile and should allow for a
significant amount of profit, covering the increased
costs of sales.
By using the market price method, which is
determined by the demand and supply of the product,
businesses set prices for their products based on the
market demand and supply fluctuations. Based on
market pricing, production costs and consumer
behaviour are crucial rather than production costs
2.7.
Psychological pricing method
The psychological valuation method should focus
on the buyer's perception of the product. In this
method, the seller does not set a price in a single
currency. For example, if a particular product is
priced at $ 9.5 instead of $ 10, the following effect
may be achieved:
•
Buyers conclude that the cost structure
includes a clear calculation of production
costs;
•
a lower price indicates that the buyer is biased;
•
Buyers often like to receive refunds.
As a result of this, the seller will benefit more.
This is because the amount of money sold and the
cash flow increases.
The method of valuation of consumer segments
of the market determines different levels of prices for
the same type of goods or services based on the
income, age, sex, category, taste and other
characteristics of consumers. The aim is to take into
account the needs of different segments of the
consumer and come up with appropriate proposals.
The following pricing forms are available for
competitors:
•
Lower pricing than competitors. This pricing
system can withstand the competition of large-
scale products in the market and those with
lower costs per unit of output. To avoid damage
caused by low prices:
-
increasing sales by accelerating turnover;
-
focus on small-scale goods that do not require
significant development costs;
-
development of production methods that are not
beneficial to large enterprises.
Competitive pricing policies apply to high-grade
goods that are of high value, rather than price
levels for consumers. The basis of this pricing is
not the costs of producing and selling the goods,
but the level of "acceptance" of the goods by the
buyers, with the following factors:
-
Providing high quality customer service and
additional conveniences (fast delivery of goods
to home, beautiful packaging, access to credit,
post-sale warranty service, etc.);
-
Rare goods production;
-
Advance small changes in consumer tastes;
-
Be courteous to customers and organize sales
wherever they can find them.
•
The "follow the lead competitor" method
The "follow the lead competitor" method is based on the
competitors' prices for these products. The largest
competitor of the highest rank is based on the price of this
product and ignores the cost and demand of its products. The
level of the enterprise's pricing should not be higher than that
of the leading competitor. The following methods of pricing
differ depending on the cost of production:
-
Estimates are based on the deduction of profit margins
for product costs when adjusting the cost to the
average cost. This is the simplest and most common
method, with the estimated cost of the product being
planned for the product cost.
P=PrimeC+PeriodC+ MC (PrimeC+PeriodC)
Where P= price of product;
PrimeC= prime cost;
PeriodC= periodical costs;
MC= marginal cost.
The disadvantage is that this method is based on the
cost of production, ignoring the level of supply and demand
for products and the competitive environment in the market.
However, this method is widely used for three reasons:
CONCLUSIONS
A graph is given of the ratio of the values of the
results obtained, in percent. The values of the total
monthly inflow of the specific heat flux per 1 m
2
calculated by the analytical method take into
account such factors as: the transparency of the
atmosphere, the actual conditions of cloudiness,
the movement of the Sun during the day in the
celestial sphere, which have a significant impact
on the final results of the calculation.
In Uzbekistan, solar and wind resources are
monitored using automatic measurement systems.
Long- term averaged weather data allows you to
determine the optimal installation locations and
types of solar and wind power plants that work
effectively with such resources.
ACKNOWLEDGMENTS
The work was financially supported by the
Ministry of Innovative Development of the
Republic of Uzbekistan within the framework of
the project F-OT-2021-497 - “Development of the
scientific foundations for the creation of solar
cogeneration plants based on photovoltaic thermal
batteries”.
The authors express their gratitude to the
professors of Tashkent State Technical University
N.F.Zikrillayev and I.A. Yuldoshev for his
scientific and practical help in writing this article.
REFERENCES
[1]
The Law of the Republic of Uzbekistan “On
Guarantees of Freedom of Entrepreneurship and
Entrepreneurship”, 25 May 2000.
[2]
Khodiyev
B.Y.
and
others.
Small
Business
Management. Training manual. - Tashkent: EU
TEMPUS Program Matador 2000, 2004.
[3]
Дебелок Д. Планирование в маркетинге:
выигрышные стратегии для любого молодого
бизнеса/ Дон Дебелок: пер. с англ. И.А.Демченкою
– М.:АСТ: Астрель, 2006.
[4]
Bekmurodov A.Sh. and others. The development of
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