Small Business Niche
Firms that represent small businesses in Russia are commercial organizations with a staff of 30 people. (retail trade, consumer services) up to 100 people. (industry, construction, transport). Statistics show that construction industry is one of the main sectors of small business activity.
For example, in Moscow, which, along with St. Petersburg, leads in the number of small enterprises per capita, their total number is made up of trade, real estate transactions, manufacturing and construction. Small enterprises are least represented in such areas as mining, financial activities, provision of utility, social and personal services.
According to the St. Petersburg Construction Committee, out of 400 industrial enterprises building materials 320 belong to the small business sector.
According to Petrostat, in 2007 in the territory Leningrad region Almost 15 thousand small enterprises operated, including 12% in construction. The number of employees in these enterprises amounted to 20% of all employees in small businesses, and the share of turnover of small construction enterprises reached 20.5%.
What place does small business have in construction today?
According to the general opinion, small businesses are being pushed into the sphere of subcontracting work, specializing in the installation of intra-house networks, installation of heating and ventilation equipment, electrical installation, roofing, finishing and other types of work that a large developer can entrust to small companies, subject to compliance with deadlines and quality.
According to Deputy Director of Soyuzpetrostroy Evgeniy Kaplan, the field of small business in construction is limited, and in some areas even doomed, unless the company plans to develop and enlarge.
The share of small businesses in the production of building materials depends on the type of sub-industry. For example, the production of windows using wood, aluminum and PVC profiles is almost entirely owned by small companies, regardless of production volume. At the same time, 80% of St. Petersburg enterprises producing metal-plastic windows produce only up to 500 products per month.
In general, small companies in the construction industry have to compete with larger enterprises. As a rule, when producing a small batch of products, its cost is higher than when producing large batches, unless we are talking about modern automated production.
Much is determined by the responsibility of the employees of a particular small enterprise and their qualifications. For example, restoration companies have “specialist” specialists on their staff, who are responsible for the quality of their work with their reputation.
Advantages and problems
The success of a small business is based on mobility, prompt response to changes occurring in business processes, and the ability to reorient its activities. The more correct and accurate the reaction to certain market trends, the higher the profit may be.
At the initial stage, organizing a small business requires mainly organizational and intellectual resources from the new team. When this stage is passed, there comes some stabilization and the need to expand the enterprise. Many small businesses begin to experience a shortage of working capital during this period.
But it is quite difficult to obtain a loan for business development, since a small enterprise has neither high-value production assets nor a collateral fund (buildings, land, etc.). For example, representatives of small businesses actively used mortgage programs.
According to experts, in St. Petersburg, up to 30% of issued mortgage loans were spent not on the purchase of housing, but on the development of small businesses.
The situation is aggravated by the lack of transparency of small businesses. Small businesses try to hide income, optimize taxation, often using shadow payments. In addition, in small businesses the competition is quite high, and funds for development are necessary, and not every small company can provide high salaries. Therefore, if a small business begins to honestly pay all taxes and high legal salaries, it will quickly find itself uncompetitive.
The issue of small business competitiveness is closely related to the quality of services provided or products produced. It would seem that small businesses The volume of orders is smaller, they can devote more time and attention to their customers, so the quality should be better. But, on the other hand, given that the choice of contractor under a contract often determines the cost of the contract, it is not always possible to ensure proper quality for minimal money.
For example, according to the A-Beton association, in St. Petersburg from 50 to 100 enterprises produce concrete mixtures. Most of them are small concrete units whose quality and control parameters are often substandard.
Consumer concerns are also related to quality paint and varnish products small producers. But these are examples where compliance with technology, availability modern equipment, raw materials with stable quality and competent technologists, which is not always typical for small businesses. Hence the opinion that there are more unscrupulous manufacturers in small businesses.
On the other hand, the release of exclusive products is just the destiny small companies.Director of the Institute of Innovation Joseph Tukkel gives an example of the creation of a small enterprise by two Polytechnic students. Having bought a license for the technology of applying images to various surfaces, they adapted it to produce tiles with an original pattern based on the customer’s design and paid for their implementation in the first year.
A look at the future
No matter how inert the modern construction market may be, innovative hopes are associated with small companies in any sector of the economy.
“The basis of any business is small enterprises with a number of employees from 5 to 50 people,” he agrees with this Alexey Stepanov, development director of the road construction company Apex.– It is vital for both large and small enterprises to introduce innovation, but this is especially important for small ones, because they have freedom of maneuver and flexibility. It is much more difficult to rebuild a large enterprise.
It is not advisable for a small company to order innovative developments, but it is possible to borrow new technologies and materials in its activities. It is enough to find an organizational, marketing or financial idea that is conceptually new for your market. In this, much depends on the personality of the leader, on his ability to take risks and on his understanding of what entrepreneurship is.
– According to forecasts, in conditions financial crisis about 30% of construction enterprises may leave the market, says Ivan Sukharev, Deputy General Director of the Kirov House-Building Plant. – That is, the market will decrease by a third. Factories will be forced to diversify and switch to other products. With growing competition, the remaining producers on the market will begin to reduce prices, but for the main raw materials - crushed stone, cement and sand - prices are unlikely to fall. That is, the price reduction will occur due to our already low profitability.
We are not against cost-reducing innovations, which for a manufacturer of reinforced concrete products means the development of new materials using modern plasticizers and other additives. But which bank, in the context of slowing economic growth and decreasing consumer activity, will provide loans for innovative developments?
“Today, any enterprise needs normal financing for the development of production,” believes Alexander Barsky, general manager scientific and production company "Skar-Let".– But it turns out that it is easier for an individual to get a loan than for an enterprise. We use innovative technologies. Therefore, unlike other manufacturers of anti-corrosion pigments, we have a gap in profitability even now, when the price of raw materials has increased by 2.5 times. But we cannot satisfy all incoming orders - there is not enough capacity.
Small enterprises, in the context of the development of market relations, play an important role in the formation of the antimonopoly structure of the market, in overcoming departmental economic monopolism, and also have an great influence for development national economy. In many countries with market system business results of small enterprises determine the types of economic growth, the structure and quality of the gross national product.
In the United States, small businesses make up about 92% of the total number of enterprises, they account for 50% of scientific and technical developments, more than 60% of all services, about 40% of volume industrial products. The total number of small enterprises is more than 7 million, employing about 110 million people.
The role of small businesses in the Japanese economy is well known as "Japanese miracle" In the total number of enterprises, small enterprises are about 77%, which is about 6.5 million; they employ about 40 million people, or 70-80% of new jobs.
Small businesses, with only 3.4% of the value of fixed assets of the Russian economy, produced about 12% of the gross domestic product (GDP) in 1998 and provide one-third of the profit in the national economy. In those operating as of January 1, 1999, 877 thousand small enterprises work for on an ongoing basis 9 million people and 6 million part-time workers. About 17%, or about 130 thousand, of small enterprises work in the construction industry; the predominant form of ownership is private, its share in the total is more than 90%.
As we can see, the role of small enterprises in the economies of developed countries is quite large, and this trend not only continues, but even intensifies. Russia is only at the very beginning of the path of mass creation and development of small businesses.
The basis for the creation and development of legal norms of entrepreneurship is the Law of the RSFSR "On Enterprises and entrepreneurial activity", Resolution of the Council of Ministers of the RSFSR dated July 18, 1991 No. 6 "On measures to support and develop small enterprises in the RSFSR" and ( Federal program state support for small businesses in Russian Federation for 1998-1999) dated July 3, 1998 No. 697. These acts opened up wide scope for everyone who is inclined to entrepreneurial activity, created conditions for the manifestation of economic initiative and entrepreneurship based on the implementation of the principle of equality of all forms of ownership, free disposal of property and selection of areas of activity.
Russian legislation defines the main advantages of creating a small business. These include:
- 1) an extremely simplified (application-based) procedure for registration and licensing of business activities;
- 2) the availability of small business in most of its forms to many citizens due to small initial investments of capital and the absence of the need for large working capital;
- 3) increased mobility, flexibility, ability to quickly respond to changes in market demand;
- 4) solving the problem of creating new jobs;
- 5) small management apparatus and, therefore, lower overhead costs;
- 6) use of local raw materials;
- 7) support for domestic producers;
- 8) new taxation systems and accounting and reporting.
According to the Law of June 14, 1995 No. 88-FZ “On State Support of Small Business in the Russian Federation”, small enterprises in the construction industry include enterprises of any organizational and legal form, including cooperatives with a maximum number of employees of up to 100 people ., where the share of a legal entity or persons in the charter capital does not exceed 25%. The law also includes small businesses as individuals those engaged in entrepreneurial activities without forming a legal entity.
The mechanism for forming a small enterprise is based on the following principles:
- 1) all small businesses, regardless of their form of ownership, must be in the same starting business conditions;
- 2) the ease of creating a small enterprise, primarily the application-based nature of education;
- 3) small businesses can be created in all industries national economy, with the exception of activities that are the prerogative of the state.
The goals of creating small enterprises are: activation of structural restructuring of the economy, saturation consumer market goods, overcoming industry and regional monopolism, expanding competition, creating a material basis for the employment of workers released from existing enterprises, strengthening economic base local authorities authorities, etc.
There is a legal basis for the development of small businesses, but at the same time you have to start a small business from scratch and under the influence of a number of factors:
- 1) the economic situation in the country, and above all the state budget deficit, does not allow the state to widely finance the small business development program;
- 2) the country lacks the infrastructure of the construction market, and above all, a risk and credit insurance system;
- 3) an acute shortage of specialist entrepreneurs with experience in entrepreneurial activity in a market economy.
A significant factor in the development of small business is the system of government support measures. By providing assistance to small businesses, the state thereby forms the market infrastructure and supports entrepreneurial activity. State assistance to small businesses includes two main areas: organizational and economic. Government support includes the Federal Fund for Support of Small Business, regional funds, agencies and business support centers. Using a system of tax incentives, creating a civilized space, information support small enterprises, presentation of statistical and financial statements in a simplified manner, training personnel, establishing coordination between the federal level and the constituent entities of the Federation, which determine the emergence of positive changes in the field of small enterprises.
In accordance with Decree of the President of the Russian Federation of December 22, 1993 No. 2270 “On some changes in taxation and in the relationships between budgets of various levels,” maximum benefits are available to small businesses operating in priority areas of activity that carry out:
- 1) construction of housing, industrial, social and environmental facilities;
- 2) repair and construction work.
Small enterprises operating in these areas of activity do not pay income tax in the first two years of operation, provided that the income is specified types activity exceeds 70%, and in the third and fourth years of work they pay income tax in the amount of 25% and 50% of the basic rate, respectively, if the income from the listed activities is 90% of the total income of the products (works, services) sold by them.
All small businesses, regardless of their field of activity, organizational and legal form, or form of ownership, throughout the entire period of their operation, have the right to tax exemption for that part of the profit that is allocated for the following purposes:
- 1) financing, including through equity participation, capital investments for production and non-production purposes;
- 2) repayment of bank loans used as capital investments industrial and non-productive purposes;
- 3) voluntary contributions to the Fund for the Support of Entrepreneurship and Competition Development;
- 4) charitable purposes, but not more than 5%;
- 5) carrying out R&D, as well as Russian Foundation basic research, but not more than 10% of taxable profit.
All these tax benefits should not reduce the actual tax amount calculated without taking into account the benefits by more than 50%.
Small businesses are provided with a number of special benefits:
- 1) exemption from payment of advance contributions on profits;
- 2) the Federal Fund for Support of Small Business issues guarantees to the bank for the repayment of the loan, while the fund itself can issue loans;
- 3) payment by banks and insurance companies, respectively, providing at least 50% of the total amount of loans to small businesses and at least 50% of insurance premiums for the reporting period received from insurance of the property of small businesses, 1.5 times reduced income tax in accordance with the resolution Governments.
Ministry of General and vocational education Sverdlovsk region
GOU SPO SO Ural College of Technology and Entrepreneurship
CHARACTERISTICS OF A SMALL ENTERPRISE IN CONSTRUCTION
Professional task of the final interdisciplinary exam
majoring in “Management (by industry)”
Completed by: Burakov A.V.,
2nd year student of group 201A
Head: Kozlova T.L.
teacher of special disciplines, 1st category
Yekaterinburg
Introduction
The role of small business and its organizational and economic features
Organizational structure enterprises
Production plan LLC "ASK - Stroy"
Conclusion
References
Introduction
World practice convincingly demonstrates that even in countries with developed market economies, small business has a significant impact on the development of the national economy, solving social problems, increasing the number of busy workers" In terms of the number of employees, the volume of goods produced and sold, work performed and services provided, small businesses in individual countries play a leading role.
Small and medium-sized enterprises, compared to large ones in some countries, occupy a dominant position, both in number and in specific gravity in the production of goods, performance of work, provision of services.
Experience shows that most failures of small firms are associated with managerial inexperience or professional incompetence of the owners of small and medium-sized enterprises.
In modern small business, it is extremely necessary specialized knowledge. Usually new business it starts either with a businessman who knows almost nothing about production, or with an engineer who knows nothing about commerce. Often the owner small company has too little experience in managing specific business structures.
For the economy as a whole, the activities of small companies turn out to be an important factor in increasing its flexibility. Based on the level of development of small businesses, experts even judge the country’s ability to adapt to a changing economic situation.
Practice shows that technical progress and the fullest satisfaction of consumer demand today are largely determined by the efficiency of small enterprises. High rates of innovation implementation, mobility of technological changes, introduction of inventions, rapid growth of the service sector and employment, acute price and non-price competition, leading, on the one hand, to lower prices, and on the other, to the fact that the consumer receives products and services high quality, the opportunity for the state to receive large funds in the form of tax revenues - all this constitutes the contribution of small enterprises to the country's economy.
The purpose of the work was to study the small construction enterprise ASK-Stroy LLC in the city of Yekaterinburg. To achieve the goal, the following tasks were set:
1. Get acquainted with the characteristics of the enterprise.
2. Study and analyze the activities of the enterprise.
3. Present the collected information in the form of a report.
The role of small business and its organizational
economic features
Small business plays a significant role in many developed countries of the world. The performance of small enterprises in a number of countries determines the rate of economic growth; their share in the gross national product reaches 70%. For example, in the United States, small businesses provide about 60% of all services. In Germany, Great Britain, and Italy, two-thirds of jobs are created through small businesses.
A small enterprise specializes in a specific field of activity (for example, construction, renovation and decoration of premises, furniture manufacturing, etc.), and the clients are mainly individual citizens.
The success of a small business providing individual services depends on the number of clients. To do this, M/P needs to work on the quality of its goods and services.
Small business allows you to unleash the creative potential, realize the activity and ability of millions of citizens, and fill the market necessary goods and services.
A small enterprise has a number of features:
employees form a small team united by common goals;
the work uses interchangeability and mutual assistance
high intensity of employee activity, which is due to a heightened sense of personal responsibility;
The manager's innovations are quickly implemented.
The advantages of small enterprises include:
the opportunity for many citizens to become co-founders (due to small initial investments in fixed and working capital);
the possibility of using local raw materials and production waste;
creation of new jobs;
small management staff compared to large enterprises, as a result, lower overhead costs;
revival of auxiliary industries and folk crafts;
promoting economic and social development small businesses and small settlements.
All small businesses can be divided into two groups:
1. "helpers" large enterprise;
2. independent, focusing on individual services.
Small businesses are commercial organizations in whose authorized capital there is a share of other enterprises ( legal entities), which are not small businesses, does not exceed 25%. Depending on the type of activity of these organizations, the maximum number of personnel is limited: in retail trade And consumer services- 30 people; V wholesale trade- 50; in industry (construction) - 100; V agriculture- 60; on transport - 100; in the scientific and technical field - 60; in other types of activities - 50 people.
Taking into account the peculiarities of the work of small enterprises, they can be divided into two groups: traditional and innovative.
Traditional small enterprises are distinguished by the stability of production volumes in a certain field of activity. They produce required types services that a person cannot do without, produce consumer goods. Examples of such enterprises are small specialized stores, repair shops household appliances, hairdressers, etc. Owners of traditional small businesses focus on a small amount of profit and the preservation of traditions in production or service, and not on the rapid development of their enterprise.
Innovative small businesses arise on the basis of specific scientific discoveries. They often turn out to be a “conductor” of a new type of production, new products. Creating innovative enterprise, the owner takes a risk: if there is no demand for new types of goods, the enterprise will go bankrupt and all the capital invested in it will be lost. But if the new business becomes successful, then profits will grow quickly and the owner of the enterprise will turn from a small businessman into a large entrepreneur.
When establishing a small enterprise, use one of the following forms:
individual entrepreneurship;
partnership of faith;
limited liability company;
additional liability company;
joint stock companies closed and open types.
Characteristics of the enterprise LLC "ASK - Stroy"
The repair and construction company ASK-Stroy LLC has been operating in the construction services market since 2005. The founders of the company are:
LLC "ASK - Stroy"
Organizational structure of the enterprise
Was chosen linear type organization, because he has a clear system of mutual connections, clear responsibility, reaction, feedback in response to orders from superior management.
Officials in the organization.
Director is the highest level of management. His responsibilities include:
· conclusion of contracts
· improvement of the target segment
· management organization personnel
· Reception of personnel.
Brigadier – intermediate level management. His responsibilities include:
· technology of work execution
· safety precautions
· supply of inventory
· labor organization
· discipline
Accountant – the responsibilities of an accountant include:
· work with documents
· accrual wages
income distribution
Estimator - the responsibilities of the estimator include:
· work with estimates.
· calculation of materials needed for work.
Driver – the driver’s responsibilities include:
· driving a vehicle
· material delivery
· delivery of workers to their place of work
Workers - Workers' responsibilities include:
· execution of work
· cleaning the premises after work is completed
Each employee who comes to work for the company ASK-Stroy LLC will be required to undergo an interview based on the results of which a conclusion will be made whether this employee is suitable for the company or not.
Workers' wages are discussed in advance and specified in the contract. With good performance, staff will receive incentives expressed in monetary terms. After the first year of work (if there is a good profit), an increase in wages is possible in the organization.
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Small enterprises, in the context of the development of market relations, play an important role in the formation of the antimonopoly structure of the market, in overcoming departmental economic monopolism, and also have a great influence on the development of the national economy. In many countries with a market economic system, the performance of small enterprises determines the types of economic growth, the structure and quality of the gross national product.
In the United States, small businesses make up about 92% of the total number of enterprises; they account for 50% of scientific and technical developments, more than 60% of all services, and about 40% of the volume of industrial products. The total number of small enterprises is more than 7 million, employing about 110 million people.
The role of small businesses in the Japanese economy is well known as "Japanese miracle" In the total number of enterprises, small enterprises are about 77%, which is about 6.5 million; they employ about 40 million people, or 70-80% of new jobs.
Small businesses, with only 3.4% of the value of fixed assets of the Russian economy, produced about 12% of the gross domestic product (GDP) in 1998 and provide one-third of the profit in the national economy. The 877 thousand small enterprises operating as of January 1, 1999 employ 9 million people and 6 million part-time workers on a permanent basis. About 17%, or about 130 thousand, of small enterprises work in the construction industry; the predominant form of ownership is private, its share in the total is more than 90%.
As we can see, the role of small enterprises in the economies of developed countries is quite large, and this trend not only continues, but even intensifies. Russia is only at the very beginning of the path of mass creation and development of small businesses.
The creation and development of legal norms of entrepreneurship are based on the Law of the RSFSR “On Enterprises and Entrepreneurial Activities”, Resolutions of the Council of Ministers of the RSFSR dated July 18, 1991 No. 6 “On measures to support and develop small enterprises in the RSFSR” and (Federal Entrepreneurial Activity), Resolutions of the Council of Ministers RSFSR dated July 18, 1991 No. 6 “On measures to support and develop small enterprises in the RSFSR” and (Federal program of state support for small businesses in the Russian Federation for 1998-1999) dated July 3, 1998 No. 697. These acts opened up wide scope for everyone who is inclined to entrepreneurial activity, created conditions for the manifestation of economic initiative and entrepreneurship based on the implementation of the principle of equality of all forms of ownership, free disposal of property and choice of areas of activity.
Russian legislation defines the main advantages of creating a small business. These include:
1) an extremely simplified (application-based) procedure for registration and licensing of business activities;
2) the availability of small business in most of its forms to many citizens due to small initial investments of capital and the absence of the need for large working capital;
3) increased mobility, flexibility, ability to quickly respond to changes in market demand;
4) solving the problem of creating new jobs;
5) small management apparatus and, therefore, lower overhead costs;
6) use of local raw materials;
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