Functions of entrepreneurial activity in the economy. Functions and role of entrepreneurship in the economy


In a market economy, entrepreneurship performs general economic, resource, creative search (innovative), social, organizational functions.

1) The general economic function is objectively determined by the role of entrepreneurial organizations acting under the responsibility of a legal entity and individual entrepreneurs acting on their own behalf and under their property responsibility.

Entrepreneurial activity is aimed at the production of goods (works, services) and is carried out under the influence of the system of economic laws of a market economy (supply and demand, competition, cost, etc.), which is the objective basis for the manifestation of a general economic function. Entrepreneurship development is one of the determining conditions for economic growth, increase in gross domestic product and national income. This factor also acts as a manifestation of a general economic function in the system of economic relations.

2) The resource function is an important function of entrepreneurship. Entrepreneurship development involves effective use both reproducible and limited resources, and resources should be understood as all material and non-material conditions and factors of production, primarily resources (in the broad sense of the word): labor resources, land and natural resources, means of production and scientific achievements, as well as or entrepreneurial talent.

An entrepreneur can achieve the highest success if he can generate scientific and technical ideas, innovations in the field of activity in which he creates his own business, and combine all this with the use of a skilled workforce and the efficient consumption of all types of resources. However, the pursuit of maximum income (profit) often leads to the predatory use of resources. Such entrepreneurs by their activities harm the environment and the population. In this regard, the regulatory role of the state, which establishes the forms of responsibility of entrepreneurs for the misuse of the resource function, is of great importance. This function of entrepreneurship is controversial. On the one hand, the entrepreneur is interested in the rational use of resources, and on the other hand, he can treat them ruthlessly.

  • 3) The creative search (innovative) function is associated not only with the use of new ideas in the process of entrepreneurial activity, but also with the development of new means to achieve the goals. This function of entrepreneurship is closely related to all other functions that complement each other. It follows from the level of economic freedom of business entities, from the conditions of decision-making.
  • 4) social function It is manifested in the ability of each capable person to be the owner of the business, it is better to show their individual talents and capabilities. This function of entrepreneurship is more manifested in the formation of enterprising people, prone to independent economic activity, able to create their own business, overcome the resistance of the environment and achieve their goals. However, at the same time, a layer of employees is growing, who, in turn, are economically and socially dependent on the sustainable activities of entrepreneurial enterprises.

The more efficiently business enterprises operate, the greater will be the amount of their funds received by the budgets of various levels and state non-budgetary social funds. Entrepreneurship development provides an increase in the number of jobs, a reduction in unemployment, an increase in the living standards and social status of employees.

5) The organizational function of entrepreneurship is manifested in the adoption by entrepreneurs of an independent decision to organize their own business, in the formation of entrepreneurial management, in the creation of complex structures, in changing the strategy of the company, etc. The organizational function appears especially clearly in the rapid development of small and medium-sized businesses, and also in "collective" (network) entrepreneurship.

Thus, the essence of entrepreneurship is most fully manifested in the combination of all these functions and those associated with them, which are objectively inherent in civilized entrepreneurship, but largely depend on the subjects of entrepreneurial activity and state support.

In a market economy, entrepreneurship performs general economic, resource, creative search (innovative), social, organizational functions.
The general economic function is objectively determined by the role of entrepreneurial organizations acting under the responsibility of a legal entity and individual entrepreneurs acting on their own behalf and under their property responsibility.
Entrepreneurial activity is aimed at the production of goods (works, services) and is carried out under the influence of the system of economic laws of a market economy (supply and demand, competition, cost, etc.), which is the objective basis for the manifestation of a general economic function. Entrepreneurship development is one of the determining conditions for economic growth, increase in gross domestic product and national income. This factor also acts as a manifestation of a general economic function in the system of economic relations.
The resource function is an important function of entrepreneurship. Entrepreneurship development involves the efficient use of both reproducible and limited resources, and resources should be understood as all material and non-material conditions and factors of production, primarily resources (in the broad sense of the word): labor resources, land and natural resources, means of production and scientific achievements, as well as entrepreneurial talent.
An entrepreneur can achieve the highest success if he can generate scientific and technical ideas, innovations in the field of activity in which he creates his own business, and combine all this with the use of a skilled workforce and the efficient consumption of all types of resources. However, the pursuit of maximum income (profit) often leads to the predatory use of resources. Such entrepreneurs by their activities harm the environment and the population. In this regard, the regulatory role of the state, which establishes the forms of responsibility of entrepreneurs for the misuse of the resource function, is of great importance. This function of entrepreneurship is controversial. On the one hand, an entrepreneur is interested in the rational use of resources, and on the other hand, he can treat them ruthlessly.
The creative search (innovative) function is associated not only with the use of new ideas in the process of entrepreneurial activity, but also with the development of new means to achieve the goals. This function of entrepreneurship is closely related to all other functions that complement each other. It follows from the level of economic freedom of business entities, from the conditions of decision-making.
The social function is manifested in the ability of each capable person to be the owner of the business, to better show their individual talents and capabilities. This function of entrepreneurship is more manifested in the formation of enterprising people, prone to independent economic activity, able to create their own business, overcome the resistance of the environment and achieve their goals. However, at the same time, a layer of employees is growing, who, in turn, are economically and socially dependent on the sustainable activities of entrepreneurial enterprises.
The more efficiently business enterprises operate, the greater will be the amount of their funds received by the budgets of various levels and state non-budgetary social funds. Entrepreneurship development provides an increase in the number of jobs, a reduction in unemployment, an increase in the living standards and social status of employees.
The organizational function of entrepreneurship is manifested in the adoption by entrepreneurs of an independent decision to organize their own business, in the formation of entrepreneurial management, in the creation of complex structures, in changing the strategy of the company, etc. The organizational function is especially clearly manifested in the rapid development of small and medium-sized businesses, as well as in "collective" (network) entrepreneurship.
Thus, the essence of entrepreneurship is most fully manifested in the combination of all these functions that are objectively inherent in civilized entrepreneurship, but largely depend on the subjects of entrepreneurial activity and state support.

More on the topic ยง 26.2. FUNCTIONS OF ENTREPRENEURSHIP:

  1. Entrepreneurship and its role in a market economy. The main organizational and legal forms of enterprises in the Russian Federation.

Entrepreneurship is a free economic management in various fields of activity (except those prohibited by law), carried out by subjects of market relations in order to meet the needs of specific consumers and society in goods (works, services) and to obtain profit (income) necessary for the self-development of their own business (enterprise) and ensuring financial obligations to budgets and other business entities.

Entrepreneurship is a fundamentally new type of management based on the innovative behavior of the owners of the enterprise, on the ability to find and use ideas, and translate them into specific entrepreneurial projects. This is usually a risky business, but one who does not take risks cannot succeed in the end. However, risk is different. An entrepreneur, before deciding to create his own business (this will be discussed separately), must make calculations, study the intended sales market and competitors, while not neglecting his own intuition.

Entrepreneurship is a way of managing, which, as a result of centuries of evolution, has established itself in the economies of developed countries. Initially, entrepreneurs were called enterprising people operating in the market, or simply people who are energetic, reckless, prone to risky operations. In the future, entrepreneurship began to include any activity aimed at increasing profits and not prohibited by law. Entrepreneurship has developed in a complex manner, accompanied and is accompanied by an endless process of emergence and resolution of numerous contradictions. Its first sprouts began to break through along with the formation of market relations. However, the emergence of entrepreneurship as an established sustainable phenomenon is attributed to the 17th century.

Entrepreneurial Functions

In a market economy, entrepreneurship performs general economic, resource, creative search (innovative), social, organizational functions.

The defining factor in a developed market economy is general economic function, which is objectively determined by the role of entrepreneurial organizations and individual entrepreneurs as subjects of the markets. Entrepreneurial activity is aimed at the production of goods (performing work, rendering services) and bringing them to specific consumers: households, other entrepreneurs, the state, which primarily predetermines the general economic function.

The most important function of entrepreneurship is resource. Entrepreneurship development involves the efficient use of both reproducible and limited resources, and resources should be understood as all material and non-material conditions and factors of production. First of all, these are labor resources (in the broad sense of the word), land and natural resources, all means of production and scientific achievements, as well as entrepreneurial talent. An entrepreneur can achieve the highest success if he can generate scientific and technical ideas, innovations in the field of activity in which he creates his own business, and combine all this with the use of a skilled workforce and the efficient consumption of all types of resources. However, the pursuit of maximum income (profit) often leads to the predatory use of resources. Such entrepreneurs by their activities harm the environment and the population. In this regard, the regulatory role of the state, which establishes the forms of responsibility of entrepreneurs for the misuse of the resource function, is of great importance. This function of entrepreneurship is controversial. On the one hand, an entrepreneur is interested in the rational use of resources, and on the other hand, he can treat them ruthlessly.

Pioneering feature- assistance in the process of producing new ideas (technical, organizational, managerial, etc.), the implementation of research and development, the creation of new products and the provision of new services, etc.

creative search, an innovative function associated not only with the use of new ideas in the process of entrepreneurial activity, but also with the development of new means and factors to achieve the goals. The creative function of entrepreneurship is closely related to all other functions and is determined by the level of economic freedom of business entities, the conditions for making managerial decisions.

social function- production of goods and services necessary for society, according to the main goal, the requirements of the operation of the basic economic law.

social function It is manifested in the ability of each capable person to be the owner of the business, it is better to show their individual talents and capabilities. This function of entrepreneurship is more manifested in the formation of enterprising people, prone to independent economic activity, able to create their own business, overcome the resistance of the environment and achieve their goals. However, at the same time, a layer of employees is growing, who, in turn, are economically and socially dependent on the sustainable activities of entrepreneurial enterprises.

The more efficiently business enterprises operate, the greater will be the amount of their funds received by the budgets of various levels and state non-budgetary social funds. Entrepreneurship development provides an increase in the number of jobs, a reduction in unemployment, an increase in the living standards and social status of employees.

Organizational the function of entrepreneurship is manifested in the adoption by entrepreneurs of an independent decision on organizing their own business, its diversification, in the introduction of intra-company entrepreneurship, in the formation of entrepreneurial management, in the creation of complex entrepreneurial structures, in changing the strategy of an entrepreneurial firm, etc. The organizational function is especially clearly expressed in the rapid development of small and medium-sized businesses.

The organizational function appears especially clearly in the rapid development of small and medium-sized businesses, as well as in "collective" (network) entrepreneurship.

In a developed market economy, entrepreneurship as an integrated set of entrepreneurial organizations (companies, firms), individual entrepreneurs, as well as complex associations of entrepreneurial organizations performs the following functions: general economic, creative search (innovative), resource, social, organizational. Some scholars believe that entrepreneurship also has a political function, which, as a rule, is carried out by associations (unions) of entrepreneurs.

  • 1) General economic the function of entrepreneurship in a developed market economy is due to the role played by individual entrepreneurs and entrepreneurial organizations as market entities. The essence of the general economic function of entrepreneurship is manifested through the expenditure of various resources in the production of goods and services and bringing them to consumers (specific people, households, other entrepreneurs, the state, etc.). Moreover, entrepreneurs act under the influence of the entire system of economic laws (supply-demand, competition, price and cost, etc.), which is the objective basis for the manifestation of the general economic function. In economically developed countries, due to the fulfillment of its general economic function, entrepreneurship is one of the determining conditions for economic growth, an increase in GDP and national income, etc.
  • 2) Creative-search, innovative function - this is the second function of entrepreneurship, which is associated not only with the use of new ideas by entrepreneurs, but also with the development of new means and factors to achieve their goals. The creative function of entrepreneurship is closely related to all other functions and is determined by the level of economic freedom of business entities and the conditions for making managerial decisions.
  • 3) resource function - is one of the most important functions of entrepreneurship. Its essence lies in the fact that, as a rule, entrepreneurship involves the highly efficient use of all available resources. This refers to both reproducible and non-reproducible resources, various material and non-material conditions and factors of production. An entrepreneur can achieve success only when he finds the most effective scientific, technical and organizational ideas and innovations in his field of activity, is able to use a highly skilled workforce and efficiently use material resources. Since, in the pursuit of maximum profit, entrepreneurs often take a predatory approach to consuming resources, the state becomes important in regulating the resource function of entrepreneurship. The history of the development of entrepreneurship clearly shows that entrepreneurs are very rational about their own or paid resources and completely ruthless about public resources.
  • 4) Social function - its essence is manifested in the fact that any capable individual can show his talents and abilities by creating his own effectively functioning business. This function is manifested most of all in the processes of formation of a new category of people - enterprising people, gravitating towards independent economic activity, able to create and develop their own business, overcoming resistance. environment. On the other hand, it also increases the number employees, which economically and socially depend on how successful the activities of entrepreneurial organizations are.
  • 5) Organizational function - is manifested in the adoption by entrepreneurs of independent management decisions regarding the organization of their own business, its modernization and diversification, the merger and division of enterprises, participation in large entrepreneurial projects, etc. The organizational function is especially clearly manifested in the development of small and medium-sized businesses, in the development of new business forms (network organizations, Internet organizations, "people's" enterprises, etc.).

The more efficiently business organizations function, the more significant are the receipts of their funds to the budgets of various levels and to state non-budgetary social funds. At the same time, the development of entrepreneurship provides an increase in the number of jobs, a reduction in unemployment, and an increase in the social status of employees.

Consequently, the essence of entrepreneurship is most comprehensively manifested in the combination of all its inherent functions, which are objectively characteristic of civilized entrepreneurship, but largely depend on the business entities themselves, on the system of state support and regulation of entrepreneurship.

As a socio-economic phenomenon of our life, entrepreneurship performs many different functions. The most important of them are discussed below.

General economic the function of entrepreneurship in a developed market economy is due to the role played by individual entrepreneurs and entrepreneurial organizations as market entities. The essence of the general economic function of entrepreneurship is manifested through the expenditure of various resources in the production of goods and services and bringing them to consumers (specific people, households, other entrepreneurs, the state, etc.). Moreover, entrepreneurs act under the influence of the entire system of economic laws (supply-demand, competition, price and cost, etc.), which is the objective basis for the manifestation of the general economic function. In economically developed countries, due to the fulfillment of its general economic function, entrepreneurship is one of the determining conditions for economic growth, an increase in GDP and national income, etc.

The second most important function of entrepreneurship is resource function. Its essence lies in the fact that, as a rule, entrepreneurship involves the highly efficient use of all available resources. This refers to both reproducible and non-reproducible resources, various material and non-material conditions and factors of production. An entrepreneur can achieve success only when he finds the most effective scientific, technical and organizational ideas and innovations in his field of activity, is able to use a highly skilled workforce and efficiently use material resources. Since, in the pursuit of maximum profit, entrepreneurs often take a predatory approach to consuming resources, the state becomes important in regulating the resource function of entrepreneurship. The history of the development of entrepreneurship clearly shows that entrepreneurs are very rational about their own or paid resources and completely ruthless about public resources.

The third most important function of entrepreneurship is creative-search, innovative, which is associated not only with the use of new ideas by entrepreneurs, but also with the development of new means and factors to achieve their goals. The creative function of entrepreneurship is closely related to all other functions and is determined by the level of economic freedom of business entities and the conditions for making managerial decisions.

In a normally functioning market economy, the fourth most important function of entrepreneurship is also manifested - social. Its essence is manifested in the fact that any capable individual can show his talents and abilities by creating his own effectively functioning business. This function is manifested most of all in the processes of formation of a new category of people - enterprising people who gravitate towards independent economic activity, capable of creating and developing their own business, overcoming the resistance of the environment. On the other hand, this also increases the number of employees, who economically and socially depend on how successful the activities of entrepreneurial organizations are.


The fifth most important function of entrepreneurship is organizational, which is manifested in the adoption by entrepreneurs of independent management decisions regarding the organization of their own business, its modernization and diversification, the merger and division of enterprises, participation in large entrepreneurial projects, etc. The organizational function is especially clearly manifested in the development of small and medium-sized businesses, in the development of new business forms (network organizations, Internet organizations, "people's" enterprises, etc.).

In addition to the above functions, entrepreneurship is also characterized by many others, which, although not considered the most important, but without which entrepreneurship loses its meaning. These are: the organization of direct production, inventory and product quality management, the choice of production technologies, the planning of new products and the modernization of old ones, marketing planning and the selection of sales markets, and much, much more.