Private and public enterprise: interoperability

World experience shows that without a free market economy, without independent manufacturer, with no business activity, the prosperity of society is impossible. The formation of small and medium-sized enterprises in various sectors corresponds to the world trends of the development of the economies where there are significant numbers of small businesses of various profile and complements the state enterprise.

Public entrepreneurship is a critical element of a market economy, significantly contributing to the growth of GNP.

At this point in the country, this sector accounts for 70% of all enterprises and accounts for approximately 35-40% of population employed in social production. Therefore, it can be argued that entrepreneurship in its economic nature is a product of the market economy and dialectically connected with it.

To examine the role of entrepreneurship in economic development of the country, it is advisable to define its basic functions in the economic mechanism and forms of state support of small entrepreneurship, which are implemented today in our country. However, note that the functions of entrepreneurship can vary depending on the actual situation, the specific economic situation in the country and the world economy and the methods of state support of small business prevails in a given moment of development.

For the harmonious development of private and public enterprise must be considered taking into account all the features of enterprise development. In this context, refers to the autonomy of private enterprise, on the one hand, and its dependence on the state institutions.

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The Autonomy is manifested through its basic functions (gain and innovation activities) and defines the common characteristic of entrepreneurship in any socio-economic environment. And the dependence of private enterprise expressed through its interaction with the state economy through competition and the mechanism of its regulation. In this dialectical development of entrepreneurship, is the internal mechanism of stimulation of entrepreneurial activities.

The business must develop in all directions. In this regard, the state is obliged to take into account the autonomy of the enterprise, and at the same time to regulate his activities. Public entrepreneurship  it is advisable to develop in those segments of the economy where private business is simply not able to perform the tasks specified public needs.

In science developed a few areas where private enterprise can be an important factor of economic life, as in the structural context of the economic mechanism of the country and in the regional.

International experience shows that effective development of a variety of forms of entrepreneurship is an objective symptom of the development of the whole economic system. Enterprise has a number of specific properties that contribute to the acceleration of economic processes and distinguish it from other elements of the market economy. Entrepreneurship is a “troublemaker” and all the while, as if takes the economy to a new qualitative state. It is in the sphere of entrepreneurial activities generated a lot of resources, which are the factors of economic growth. The system functions of the enterprise from this point of view may be represented as follows:

The Increasing wealth of society - the production of goods as a permanent increment of the aggregate wealth of society; significance of intelligence as the development of the most important factor in the economy;

Participation in national programmes - the allocation of funds for implementation of programmes of social development;

Participation in the state policy of employment of the population - the opening of new production facilities or expansion of production;

The environmental safety of goods and services and the responsibility for the environmental damage their products and services;

The Expansion of productive capacity and output to a new level - improving technologies and production management methods;

Profit - profitability of your firm;

Innovation - permanent search for new solutions in the production, organization and management and focus on scientific and technological progress;

Cost Reduction - identification of internal costs of the business, the opportunities provided by external factors.

Competition in the market - definition of tactics and strategy behavior in the market;

Reduced losses: the development of waste-free production;

Bear risk and responsibility - the desire to insure from risks or to distribute them.

Thus, the function of private and public entrepreneurship are not only compatible, but also can effectively as to complement each other and to be replaced with appropriate development needs of the economic system of society.