5 Simple Tips To Find Your True Purpose In Life

Get ready with me for a week Brené brown on self reliance

Small business as type of business activity most fully reveals through the characteristic of her subject, that is businessman. The businessman is the subjective (personal) factor of reproduction capable on an initiative and innovative basis, without being afraid of a full economic, to take the risk and a special, rational image to connect other factors of production so that in the long term there was an additional income (21, page.

the shock-absorber of social tension as small business is a fundamental basis of formation of "middle class" and, therefore, easing to inherent market dynamics of a tendency to social differentiation;

The first group of characteristic features of small enterprise is as follows: limitation of of the applied means of production and technological processes; a small of the let-out products, that is narrow specialization; simplified nature of distribution system.

Toughening of criteria of reference to small enterprises is represented a short-sighted step, so in the developed countries the social and economic value of this sector of economy is realized for a long time, quantitative criteria are expanded and it is about small and medium-sized enterprises in system of state support. So, in the USA the integrated concept "small business" includes market activity of family business, small enterprises (to 100 people) and medium-sized enterprises (from 100 to 499 people).

As for quantitative characteristics of small business, carry to them: absolute and specific number of the small enterprises, number occupied at small enterprises, a share of small firms in GDP, etc.

The dimensional structure of branch (economy) by definition assumes coexistence the enterprise of various sizes, including small, forming the relevant dimensional group. This set of units of small scale is characterized by the concept "small-scale production". The public form of a small production facility in the conditions of market economy small enterprise which main economic lines are:

Proceeding from the above, it is possible to draw a conclusion on the big importance of small business for national economy: small enterprises carry out considerable purchases for production needs, increase elasticity and an environment of the markets, over 50% of able-bodied population provide employment, promote formation of the competitive environment.

Thus, defining essence of small business, we revealed that it is the economy sector which is characterized by small-scale production. Owing to limited resources (raw, financial, labor) this sector is most subject to influences of environment, however therefore the small enterprise is the most mobile the dimensional managing unit not demanding bulky administrative systems. Between the head (owner) and the worker there are no intermediaries, that is the manager-owner has to be the universal expert (the administrator, the marketing specialist, to operate production and sale) and thus to combine functions of the owner. It follows from this that small business is also special type of business activity.

Considering the revealed potential it would be possible to assume that small business has to develop superfast rates since the beginning of reforms and till today; that the mechanism of self-control of market economy has to turn on, stimulating creation and development of small business by economic methods. However it does not occur, apparently in drawing

The small enterprise is "unit" of small business. From this it follows that the last - the special sector of economy formed by set of small and therefore being a specific form of a small-scale production in the conditions of the market.

At the characteristic of labor market it should be noted that it differs in serious regional and branch disproportions. A manpower is insufficiently mobile. Their relative low cost "is compensated" by insufficient qualification.