The main directions of business activity support in region

In a remarkably short period of time, economic globalization has changed the world economic order, bringing new opportunities and new challenges. In this new economic order, Europe cannot compete unless it becomes more inventive, reacts better to consumer needs and preferences and innovates more.

The state support of business is the most important condition of activity of businessmen. It represents purposeful creation of economic, legal, political, social, organizational conditions and incentives for business development and preferential terms of business. It also includes an investment in it material and financial resources. The state support promotes the solution of problems of employment, competitive environment creation, improvement of quality, innovative projects development.

Today’s businesses, especially the large ones, simply will not survive in this period of rapid change and innovation unless they acquire entrepreneurial competence. An entrepreneur is an individual who owns, organizes, and manages a business and, in so doing, assumes the risk of either making a profit or losing the investment. Entrepreneur is a person of telescopic faculty drive and talent who perceives business opportunities and promptly seizes them for exploitation. Entrepreneur needs to possess competencies to perform entrepreneur activities. An Entrepreneur has to perform a number of functions right from the generation of idea up to the establishment of an enterprise. He also has to perform functions for successful running of his enterprise. Entrepreneur has to perceive business opportunities and mobilize resources like man, money, machines, materials and methods.

For a business to be receptive to entrepreneurship, innovative performance must be included among the measures by which that business controls itself. Only if we assess the entrepreneurial performance of a business will entrepreneurship become action. Human beings tend to behave as they are expected to. In the normal assessments of a business, innovative performance is conspicuous by its absence. Yet it is not articularly difficult to build measurement, or at least judgment, of entrepreneurial and innovative performance into the controls of the business.

According to the continuous statistical supervision over activity of small and average business subjects entrepreneurship develops and becomes stronger. The total number of businesses (subjects of small and average business) in the territory of Omsk in January, 1, 2013 was 74 767. This number includes also individual entrepreneurs.

Entrepreneurship is purposeful activity of an individual or a group of associated individuals, undertaken to initiat, maintain or earn profit by production and distribution of economic goods or services [1, 2]. One of early decision, made by the entrepreneur, is choosing the legal form of ownership. Three options are sole proprietorship, partnership, and corporation. In a sole proprietorship, a single person owns and operates the business. The owner assumes all risks and responsibilities for the business, including debts.

Two or more individuals may form a partnership and serve as co-owners of the business. If the partnership is a general partnership, all partners assume unlimited liability. However, if the partnership is a limited partnership, one or more of the partners assumes unlimited liability while the remaining partners do not. Instead, they may lose up to the amount of their investment, while having limited involvement in the business.

The third form of ownership is the corporation. A corporation is a group of individuals, who obtain a charter, giving the organization formed by the group legal rights and privileges. This organization can perform different functions, for example buying and selling, as well as owning property, as if the group were an individual person. The corporation is actually owned by individuals who purchase stock. A major advantage of this form of ownership is that the stockholders themselves have limited liability. It minimizes financial risks.

For any business to be successful, an adequate level of funding must be furnished. The amount needed varies according to the scope and nature of the business. Another key factor in the success of an entrepreneurial organization is planning, including planning for the marketing, management, and financial aspects of the business.

The financial aspects of the business must be planned. It is very important process. The financial plan includes several financial statements. One of these statements is the statement of financial requirements, which identifies the projected expenses and the assets. They will create for a specified time period. The entrepreneur also needs money to meet personal expenses as the business grows. The expenses are used to create assets. Assets are items of value that are owned by the business. For example, if a business purchases land, upon which to place a facility for the business, the money needed for the purchase is an expense, that then creates the asset of land.

The financial plan also includes the sources of the funds, needed to meet the financial requirements. Sometimes an entrepreneur will already have all the funds needed, but more often these must be acquired from family members, private lending agencies, or governmental loan programs [3].

The state support of business provides creation of such conditions in which entrepreneur can effectively reach the goals, for example maximizing profit, risk minimization, efficiency of an investment, protection of property and the personality. In the field of crossing of the purposes and interests of the state and business the effective state policy can be carried out.

The state support of business represents the difficult system which formation is long process. This process includes following components:

• the legislative and regulatory base, defining conditions of activity of entrepreneur, regulating forms and methods of its support;
• the mechanisms, providing respecting the rule of law and equality of representatives of business in the relations with authorities and other managing subjects;
• creation of infrastructure of business support;
• safety and protection of businessmen against criminal actions;
• state programs, programs of social and economic development of regions;
• resource (floor spaces, the land plots, buildings, structures, constructions, non-residential premises, the equipment, mechanisms, installations, stock, tools) and financial security (including budgetary appropriations), necessary for realization of measures of business support.

The structure of the organization of authority and management providing support and interaction with business, in various regions isn't identical. Thus subjects of the Russian Federation have the right to resolve independently all issues, connected with support of small business in the territory, taking into account local features and conditions. They take additional measures at the expense of own means and resources.

In the Omsk region realization of tasks and functions of the state business support is provided within existing target programs. Now the long-term target program of the Omsk region «Development of small and average business in the Omsk region (2009 - 2013)» and the long-term target program of the city of Omsk «Development of small and average business subjects of the city of Omsk for 2010 – 2015» are used in Omsk for entrepreneurship development. Besides, business support is provided by creation of infrastructure of business support.

Nowadays the most effective forms of business support are defined. They provide the following types of support: information, consulting, image, property and financial support.

Information support consists in carrying out seminars, lectures, «round tables», discussions, «hot lines», conferences, connecting with questions of business development, overcoming of difficulties and problems. Besides, information support is realized in release of various reference materials (books, leaflets, posters).

Consulting support assumes carrying out for businessmen of consultations on administrative, economic, financial, tax, accounting problems, and also on planning, organization and implementation of business activity, ways of decrease in risks, the directions of  investments, opportunities of business expansion, ways of production or services advance and increases arrived.

Image support is directed on carrying out exhibitions, fairs, competitions, the championships.  For increase of prestige of professions and prestige of business in Omsk different competitions are held («The Best Enterprise of Small and Medium Business (the Best Businessman)», «The Best Seller of Year», the hairdresser's art championship, decorative cosmetics and nail service, the annual city exhibitions «Innovations of Year» and «Omsk Brand», etc.).

Property support consists in giving to subjects of small and average business privilege to acquisition of rented property without carrying out auction. The privilege is realized under certain conditions. Repayment of property is made at the certain price. It equals market cost, determined by the independent appraiser. Property support is carried out by department of the property relations of the Administration of Omsk.

Financial support of business is the priority direction. In the Omsk financial support as the individuals, planning to become businessmen and operating subjects of business is provided (picture 1).

The subsidy is provided to the citizen once and is used on purpose on develop of business activity according to the business plan within thirty working days. The subsidy can't be used for the personal, family, house and other needs which haven't been connected with implementation of business activity.

Grant support is provided on a competitive basis. The amount of grant support makes no more than 85% from total amount of target expenses and can't exceed 200 thousand rubles. Share of own financing of the project of not less than 15% from total amount of target expenses.

Picture 1. The scheme of providing financial support

For compensation of part of expenses incurred by subjects of small and average business provide subsidies from the Ministry of Economics of the Omsk region and from department of economic policy of the Administration of Omsk. The list of provided subsidies is revised, new types are entered [4].

Thus, the state support of business plays the major role in activity of subjects of small and average business. Each subject of the Russian Federation independently resolves all issues connected with support of small business in the territory. For territories of the Omsk region allocate some types of support which are successfully and effectively realized. The particular interest is represented by the financial support which possibilities of granting extend.

 Ссылки на источники

1. Drucker, P. Innovation and entrepreneurship /  P. Drucker // Perfect bound. – 293 p.
2. Management and entrepreneurship / New age international (P) limited Publishers. – 2009, 195 c.
3. Berns, R., Hairston, J. Entrepreneurship / R. Berns, J. Hairston // Encyclopedia of Business and Finance – 2nd ed., 2007.
4. Соловьева Е.А. Основные направления поддержки предпринимательской деятельности в Омском регионе / Е.А. Соловьева // Наука о человеке: гуманитарные исследования. – 2012.  – № 2(10). – С. 101-107.