INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
International journal of theoretical and practical research
Scientific Journal
Year: 2021 Issue: 1 Published:
Volume: 1 01.11.2021
http://alferganus.uz
Citation-.
Kurpayanidi, K. (2021). Analysis of scientific and theoretical ideas about entrepreneurship. SJ International journal of theoretical and practical research, 1 (1),50-59.
Doi- https://dx.doi.org/10.5281/zenodo.5731500
DOI 10.5281/zenodo. 5731500
QR-Article
Kurpayanidi Konstantin
PhD in economics, Professor of the Russian Academy of Science, Fergana Polytechnic Institute,
Uzbekistan E-mail: konstantin@ferpi. uz
ANALYSIS OF SCIENTIFIC AND THEORETICAL IDEAS ABOUT
ENTREPRENEURSHIP
Abstract: Entrepreneurship is certainly considered as the catalyst for the active formation of a market economy, the formation of a competitive market mechanism, and a source of stable economic growth, which is the most important internal strategic factor for sustainable self-development of the national economy. At the same time, entrepreneurship can become a stable source of self-development of the economy only on condition of scientific understanding of its economic essence and content, research of ways of its formation and establishment. Despite the fact that entrepreneurship has passed a long historical path of development, a generally recognized common understanding of this process has not been achieved at the present time. In the article, the author examines the evolutionary formation of scientific and theoretical ideas about entrepreneurship.
Keywords: Foreign economic relations, foreign economic relations, foreign trade, globalization, innovation, management, economy of Uzbekistan.
Курпаяниди Константин
PhD in economics, профессор Российской академии естествознания, Ферганский политехнический институт, Узбекистан
E-mail: konstantin@ferpi. uz
АНАЛИЗ НАУЧНО-ТЕОРЕТИЧЕСКИХ ПРЕДСТАВЛЕНИЙ О ПРЕДПРИНИМАТЕЛЬСТВЕ
@ CD
so
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
Аннотация: Катализатором активного становления рыночной экономики, формированием конкурентоспособного рыночного механизма, источником стабильного экономического роста, безусловно, считается предпринимательство, которое является важнейшим внутренним стратегическим фактором устойчивого саморазвития национальной экономики. Вместе с этим, предпринимательство может стать устойчивым источником саморазвития экономики только при условии научного понимания его экономической сущности и содержания, исследования путей его формирования и становления. Несмотря на то, что предпринимательство прошло длительный исторический путь развития, общепризнанного единого понимания данного процесса не достигнуто и в настоящее время. В статье автор рассматривает эволюционное становление научно-теоретических представлений о предпринимательстве.
Ключевые слова: бизнес, малое предпринимательство, предпринимательство,теория предпринимательства,рыночная экономика, саморазвитие, интеграционное развитие.
Kurpayanidi Konstantin
PhD, Rossiya tabiiy fanlar akademiyasiningprofessori, Farg'onapolitexnika instituti, O'zbekiston E-mail: konstantin@ferpi. uz
TADBIRKORLIK TO'G'RISIDA ILMIY-NAZARIY G'OYALARNI
TAHLILI
Annotatsiya: Tadbirkorlik, shubhasiz, bozor iqtisodiyotini faol shakllantirish , raqobatbardosh bozor mexanizmini rivojlantirish, barqaror iqtisodiy o'sish manbai, milliy iqtisodiyotning barqaror o'z-o'zini rivojlantirishning eng muhim ichki strategik omili hisoblanadi.Shu bilan birga, tadbirkorlik faqat uning iqtisodiy mohiyati va mazmunini ilmiy tushunish, uni shakllantirish va barpo etish yo'llarini tadqiq etish sharti bilan iqtisodiyotning o 'zini-o 'zi rivojlanishining barqaror manbaiga aylanishi mumkin. Tadbirkorlik uzoq tarixiy rivojlanish yo'lini bosib o'tganiga qaramay, bu jarayon haqida umumiy e'tirof etilgan yagona tushunchaga hali erishilgani yo'q. Maqolada muallif tadbirkorlik haqidagi ilmiy-nazariy g'oyalarning evolyutsion shakllanishini ko'rib chiqadi.
Kalit so'zlar: biznes, kichik tadbirkorlik,tadbirkorlik,tadbirkorlik nazariyasi, bozor iqtisodiyoti, o'z-o'zini rivojlantirish, integratsion rivojlanish.
Introduction
In the context of the modernization of the economy and the development of digital technologies, the issues of state regulation of small business deserve special attention. Entrepreneurship has been an area of intellectual and academic research for many decades. His research is interdisciplinary in nature, as it affects many areas of
51
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
human life. At the same time, scientists have not yet developed a paradigm for the consistent study of entrepreneurship, in particular its structural sectors - small, medium and large.
Literature review
The beginning of the development of the theory of entrepreneurship was laid in the works of representatives of the classical school of political economy R. Cantillon and J.-B. Say, who introduced the category of "entrepreneur" into scientific circulation and focused on his ability to take the risk of inconsistent income and to perform management functions and coordination of production factors. The theory of entrepreneurship was further developed in the works of H. Magoldt, J. Thünen, who considered the uncertainty of the external environment as a source of entrepreneurial income. Representatives of the German historical school (M. Weber, W. Sombart, G. Schmoller and others) interpreted the entrepreneur as an innovator and creator. J. Schumpeter defined the ability to create new combinations of traditional factors of production as an attribute of entrepreneurship.
Further development of the theory of entrepreneurship is associated with the names of F. Knight, who develops the position of the uncertainty of the external environment as a source of entrepreneurial income; J. Shackle, who analyzed the role of time in economic theory; neo-Austrian school (L. Mises, F. Hayek), which analyzed entrepreneurship as a process; D. McCleland, T. Schultz, who studied entrepreneurial motivation, etc.
A significant contribution to the development of the theory of entrepreneurship was made by representatives of the institutional direction, such as T. Veblen, J.C. Galbraith, J. Commons and others. The use of institutional methodology made it possible to reveal the content of the agency contradiction and the essence of the firm as a network of contracts (J. Akerlof J. Berle, R. Coase, J. Means and others).
Some attempts to integrate the category of "entrepreneurship" with the standard economic model were made in the works of V. Baumol, R. Willigol, J. Panzar, and others. The results of studies of factors affecting the degree of entrepreneurship are presented in the works of K. Dean, S. Thomas et al. The relationship between economic growth and the level of entrepreneurship development was studied using analytical tools of the neoclassical concept, which was reflected in the works of Z. Griliches, E. Mansfield, M. Nadiri, M. Porter, P. Romer, R. Solow and others. ...
Features of the functioning of small business, its impact on the level of innovativeness of the national economy and the rate of economic development were analyzed in the works of G. Berle, P. Weil, D. Gammon, E. J. Dolan, I. Kirzner, D. Lindsay, M. Mescon, I. Maitland, F. Hayek, and others.
52
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
It follows from the above that the theory of entrepreneurship has gone through a long period of development, which made it possible to justify a number of conceptual principles for analyzing the entrepreneurial community.
Research Methodology
The theoretical and methodological basis of the study was the concept and hypothesis, which formulated the principles of entrepreneurial activity. In the course of the study, works were used in which the theory of entrepreneurship, the theory of innovation and innovative development, the theory of state regulation of the economy, etc. were formulated. The solution of the set scientific problems was carried out using general scientific methods of studying economic processes.
Analysis and results
In our opinion, the essence of small business logically follows from the essence of the basic concept of "entrepreneurship", the scientific evolution of which can be traced through the works of famous classics and contemporaries. Nowadays it is difficult to say who was the first to study this phenomenon. Nevertheless, the founder of the term "entrepreneur" is considered the French scientist R. Cantillon, who in 17251730 presented a logically formed general idea about the subject of this phenomenon. According to R. Cantillon, an entrepreneur is someone who takes risks and can legitimately appropriate any income. [1,2]. Subsequently, this concept was clarified and expanded by other scientists. For example, at the beginning of the 19th century, A. Turgot and J. B. Say established the difference between the capitalist and the entrepreneur. According to them, the entrepreneur, accepting risk and acting under conditions of uncertainty, combines the factors of production in new ways, while the capitalist provides his needs with funds [3,4]. At the end of the 19th century A. Marshall in his writings showed the difference between the functions of an entrepreneur and a manager (administrator). He wrote that both perform the functions of organizing and managing production, but the functions of an entrepreneur are broader than those of a manager, since he takes on the risk and full responsibility for the success of the business. A special place in the formulation of the concept of "entrepreneurship" is given to J. Schumpeter. His approach to this phenomenon is purely functional. This is evidenced by the definition he proposed at the beginning of the twentieth century. Entrepreneurs, according to J. Schumpeter, are people who carry out the function of transforming or reconstructing the production system, and they remain so as long as they perform this function. The function of an innovator provides an opportunity for a liberal system to continue to exist without its contradictions [5].
© ©
53
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
R. Cantillon, A. Turgot, J. B. Say and J. Schumpeter are considered the founders of the dominant positions in the theory of entrepreneurship. Meanwhile, F. von Hayek, A. Shapiro, R. Hizrich, D. McCleland, P. Drucker and many other scientists who studied various aspects (psychological, managerial, resource) entrepreneurial activity, reflecting the characteristics of the types of economic growth, priorities of economic interests and socio-cultural circumstances in a particular society. So, A. Shapiro saw in the future entrepreneur an individual who is ready to act taking into account previous experience and perception of current opportunities [6]. According to A. Shapiro, an individual's general readiness to create an enterprise arises at the moment when he is dismissed from work. At the same time, the desire to create his own enterprise turns into reality only when the individual sees a convenient opportunity and can collect the necessary funds and other required resources. R. Khizrich, summarizing research on entrepreneurial behavior, revealed that an entrepreneur should be considered only one who demonstrates initiative and creative thinking, who is able to organize social and economic mechanisms for using resources in practice, to accept risk and losses [7]. In turn, D. McCleland suggested using a similar set of characteristics explaining entrepreneurial behavior, such as the need for growth, a moderate propensity to take risks, a preference for vigorous activity, and the acceptance of personal responsibility for success or loss [8].
At first glance, it seems that it is actually impossible to suggest something new in defining the content in this category, since there are countless different interpretations. Nevertheless, relying on the works of modern scientists, we will try to carry out a theoretical analysis of the existing condition and clarify the interpretation of the specific concept of "small business". The reference to the works of scientists of the second half of the twentieth century is explained by the fact that a fundamental reassessment of the role of small business in the economic development of an industrial society took place in the 1970s. The basis for this was the practical refutation of the theoretical paradigm, according to which the ownership of capital is continuously concentrated and enterprises grow in size. Meanwhile, the increase in consumer demand for more differentiated goods has led to industrial reconstruction of two types: the decentralization of enterprises and the formation of associations of new enterprises.
It seems to us that all of the modern views on "entrepreneurship" can be conditionally subdivided into four groups.
The first group should include scientists who regard it as a socio-economic phenomenon that covers a variety of forms of realization of the economic activity of the population, organizational and legal forms of enterprises. At the same time, entrepreneurship is based on the economically independent activity of individuals (legal entities) aimed at achieving socio-economic effect. In reality, entrepreneurship
54
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
is a multidimensional socio-economic phenomenon, covering all spheres of economic activity, and it is based on the economic independence of individuals. The only exceptions are traditional societies and the socialist economic system that commanded in the countries of Eastern Europe and the CIS. We believe, therefore, the authors of some definitions emphasize that entrepreneurship is a market form of management. ... In our opinion, J. Schumpeter would not agree with such a statement, since he believed that a socialist economy in the presence of a "dynamic entrepreneur" could achieve greater efficiency by eliminating non-labor elements [9]. In this context, the phenomenon of the Chinese system of "market socialism" has now taken shape as a separate line of economic research.
The second group can include scientists who refer entrepreneurship as a market form of management. In their opinion, as a form of management, it is based on an extremely rational combination of factors of production, an innovative foundation and is implemented with the aim of generating entrepreneurial income.
In the third group, we put scientists who study entrepreneurship as a specific type of behavior with an innovative component. In their opinion, such behavior is mainly focused on residual income and it is not available to the standard operating agents of the market process.
The fourth group included scientists who consider entrepreneurship to be one of the types of proactive and independent activities carried out at their own risk and under their property responsibility and aimed at generating income. Numerous studies have proved that the initiative to start a new enterprise often manifests itself under the pressure of a situation related to a change in lifestyle, family environment, education, age, professional activity, role models and supportive networks. Some people become entrepreneurs under the influence of negative factors, such as dissatisfaction or job loss, career difficulties.
As a result of generalization and analysis, we found that the substantive part of most definitions describes the main features of entrepreneurial activity. Realization of the fact that the market economy is essentially an economy of entrepreneurship logically leads to the conclusion that the concept under consideration is a socioeconomic phenomenon. At the same time, the central figure is the entrepreneur, who is characterized by initiative, independence, innovation, as well as the focus of all his activities on generating income. Traits such as the creative expression of a personality, creative work, a self-organizing subject of the economic process, a system-forming factor of the economic system, also refer to the subject and object of entrepreneurial activity, generally indicating the versatility of the phenomenon under study.
It is well known that the listed features also contain other forms of activity that are not related to entrepreneurship. We see the essence and main difference of
55
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
entrepreneurial activity in the creation of new value with a certain value, and aimed at generating income. Although in this approach there are also differences of opinion. Thus, some scientists believe that the possibilities of creating new value are limited by the boundaries of the entrepreneur's capital resources, namely, by the scale of their human and social capital. Most small businesses produce little and no value, but make a significant contribution to the formation of "social wealth" and jobs [10]. Therefore, for example, V. Baumol proposes to separate the "entrepreneur organizing the company" from the "innovative entrepreneur" [11]. For the first type of entrepreneur, value development may not be as important as intrapersonal changes affecting their area of know-how, network of relationships, or social status. The second type of entrepreneurs carries out a set of sequential actions that ensure the emergence, transformation and use of innovation for the production of new consumer goods, profit, achieving competitiveness through the growth of production efficiency. Obviously, for them, first of all, it is important to implement their own ideas, which, ultimately, are reflected in the inner world of the innovator.
K. Brut and P. Julien, in turn, believe that the types of entrepreneurship are not limited to these two types. In the context of the "individual - creation of a new value" dualism, they distinguish four forms of its demonstration. These are entrepreneurial reproduction, imitation, realization and risk [12]. According to scientists, entrepreneurial reproduction is demonstrated when an individual with extensive experience in a particular field decides to start his own business. At the same time, the entrepreneur creates a slightly new value, which cannot be referred to the category of "innovation". In addition, there will be no internal changes in it.
Entrepreneurial imitation involves the production of the same value, but in a new way (borrowing technology), accompanied by internal transformations in the business entity. This category includes the organization by a large business of a standard restaurant as a result of a radical revision of the direction of business.
If an engineer, previously responsible for innovative projects in large companies, is now developing a new project in a well-studied and promising area for himself, then here is an entrepreneurial implementation. An engineer is considered to have unique knowledge and a network of relationships (customers and suppliers who trust him; potential employees with rare know-how who will follow him without hesitation, etc.). This form of entrepreneurship acts as a source of innovation, where new value is produced through the implementation of the specific qualities of the founder of the business.
World experience shows that entrepreneurial risk is rare, as it is accompanied by a high degree of uncertainty and unpredictability. However, the entrepreneur's innovative potential is fully realized here. At the same time, it is not the potential itself
56
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
that is important, but its difference (between investment in innovation and return; input and output of the system), only in this case there is an effect, a result. If successful, they lead to radical changes in the external environment through the creation of a new distinctive value (usually a new product, and sometimes a new economic sector).
As a result, the first two forms should be attributed to the group of traditional entrepreneurship, and the next two - to innovative entrepreneurship. In its most general form, innovative entrepreneurship is a special, innovative process that leads to the creation of goods (products, services) and technologies that are best in their properties through the practical use of innovations, a constant search for opportunities, an orientation towards innovation, the willingness of an entrepreneur to take all the risks associated with the implementation of a venture project or with the improvement of an existing one, as well as the resulting financial, moral and social responsibility. In the economic literature, there are four main types of innovative entrepreneurship: product innovation; technology innovation; social innovation; management innovation [13].
The main and defining part of all types of innovative entrepreneurship is the creation and production of scientific and technical products, the manufacture of new types of products (goods, services, works, information, intellectual (spiritual) and material values, production technologies, know-how), subject to subsequent implementation.
According to the method of organizing the innovation process in a venture capital company, several main models of innovative entrepreneurship can be distinguished, created on the basis of:
internal organization, when an innovation is created and (or) mastered within the firm by its specialized divisions on the basis of planning and monitoring their interaction on an innovative project;
an external organization using contracts, when an order for the development, creation and (or) partial development of innovations, innovations are placed by the firm between third-party organizations, and fully masters them, as a rule, on its own;
external organization, when the head company for the implementation of venture projects establishes subsidiaries that raise additional funds from external sources.
Additional factors affecting the degree of manifestation and transformation of the above-described forms of entrepreneurship are the type of market (with low, medium or high technology), the investment opportunities of the individual and the state of the external environment (favorable or hostile).
Conclusion
© ©
57
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
In general, in our opinion, entrepreneurship is a type of economic management to create new value, carried out on its own initiative, at its own risk and responsibility and aimed at generating income as a result of meeting the needs of counterparties in goods and services. The proposed characterization of the essence of this concept is quite applicable to small business, which is the most widespread form of economic activity in the world, and its boundaries are determined by the scale (coverage) of activities. It is entrepreneurial reproduction and imitation that have found expression in small business in the traditional sense. Entrepreneurial implementation and risk are more inherent in small venture capital firms that carry out scientific and practical research in the development of new products, equipment and technology.
Our proposed definition is consistent with the description of a self-developing and self-sufficient business to create value. At the same time, in practice, most enterprises are formed with the aim of redistributing value and capital flight. In this situation, it is more appropriate to consider entrepreneurship as "the process of discovering and implementing new opportunities for using known resources, discovering new resources, as well as markets for the sale of manufactured products" [14, 15]. Although this definition to some extent reflects the marketing strategy of the entrepreneurial structure in the market.
Reference:
1. Hébert, R. F., & Link, A. N. (2009). A history of entrepreneurship. Routledge.
2. Cantillon, R., & Van den Berg, R. (2015). Richard Cantillon's Essay on the Nature of Trade in General: A Variorum Edition. Routledge.
3. Turgot, A. R. J. (2011). Turgot Collection, The. Ludwig von Mises Institute.
4. Say, J. B. (1816). Catechism of Political Economy: Or. Familiar Conversations of the Manner in Which Wealth is Produced, Distributed, and Consumed by Society, Sherwood, London.
5. Schumpeter, J. A. (2017). The Theory of Economic Development: An Inquiry into Profits, Capita I, Credit, Interest, and the Business Cycle. Routledge.
6. Shapero, A. (1975). The displaced, uncomfortable entrepreneur. University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.
7. Hisrich, R. D. (1990). Entrepreneurship/intrapreneurship (Vol. 45, No. 2, p. 209). American Psychological Association.
8. McClelland, D. C. (1961). The Achieving Society Van Nostrand Reinhold. Princeton, NJ.
9. Schumpeter, J. A. (1942). Capitalism, socialism and democracy. New York.
58
INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
10. Bruyat, C., & Julien, P. A. (2001). Defining the field of research in entrepreneurship. Journal of business venturing, 16(2), 165-180.
11. Baumol, W. J. (1993). Formal entrepreneurship theory in economics: Existence and bounds. Journal of business venturing, 8(3), 197-210.
12. Bruyat, C., & Julien, P. A. (2001). Defining the field of research in entrepreneurship. Journal of business venturing, 16(2), 165-180.
13. Romanovich, G. L., Romanovich, A. M., Vybornova, V. V., & Nikolayevna, R. V. (2014). Small businesses is a sphere of innovation in the age of globalization. Journal of Applied Engineering Science, 12(4), 297-301.
14. Shastitko, A. E. (2010). New Institutional Economics. 4th ed. Voprosy Ekonomiki. (8):152-154. (In Russ.) https://doi.org/10.32609/0042-8736-2010-8-152-154
15. Курпаяниди, К. И. (2021). Создание малых предприятий: саморазвитие или интеграционное развитие, какой путь выбирают страны мира. Проблемы современной экономики, 3.
© ©
59