Republic of uzbekistan andijan machine-building institute fundamentals of business management

7.3. Starting a small business 
An entrepreneur according to the German economist V. Zombart (late 19th - early 20th century) 
- this is a person who is conqueror, who has the ability to be ready to take risks, is morally free, 
rich in ideas, ambitious and speaks his word, an organizer, who unites many people in a joint work. 
Austrian economist I. Schumpeter made an important contribution to the theory of 
entrepreneurship. In his 1912 book "Theory of Economic Development", he calls an entrepreneur 
a person who implements new combinations of the use of production factors and thus ensures 
economic progress. The implementation of new combinations means the introduction of various 
innovations, the production of new things that were previously unknown or of new quality, the 
introduction of new technologies, the acquisition of new markets for selling products, raw material 
sources, Organizational changes in economic activities meant the implementation of creations. 
According to Schumpeter, if new combinations cannot be implemented, then there is no reason to 
talk about entrepreneurship. According to Schumpeter, entrepreneurship is primarily manifested 
in the economic sphere, but this phenomenon is more a socio-economic phenomenon, but a 
psychological reality. In a broad sense, a person's entrepreneurial status is initiative, innovation, 
interest, a new approach to work, not the old one. Schumpeter distinguishes three main aspects of 
entrepreneurial activity: According to Schumpeter, entrepreneurship is primarily manifested in the 
economic sphere, but this phenomenon is more a socio-economic phenomenon, but a 
psychological reality. In a broad sense, a person's entrepreneurial status is initiative, innovation, 
interest, a new approach to work, not the old one. Schumpeter distinguishes three main aspects of 
entrepreneurial activity: According to Schumpeter, entrepreneurship is primarily manifested in the 
economic sphere, but this phenomenon is more a socio-economic phenomenon, but a 
psychological reality. In a broad sense, a person's entrepreneurial status is initiative, innovation, 
interest, a new approach to work, not the old one. Schumpeter distinguishes three main aspects of 
entrepreneurial activity: 
1. Resistance to power, domination and freedom; 
2. Willingness to fight and strive for success for success's sake; 
3. Being happy with his work, having fun, but such a state will be a means of determining his 
behavior. Schumpeter does not deny the importance of economic factors, but admits that private 
property and profit stand side by side with the characteristic of entrepreneurship. 
According to the Nobel Prize laureate (1974), English economist F. Hayek, entrepreneurship 
it is not the practice of any profession, it is the behavior of an economic entity. Hayek sees 
entrepreneurship as a socio-psychological event that appears more active in the field of economics. 
Firm decision was one of the principles of entrepreneurship and prudence - state management. 
Amir Temur in Movarannakhr. In conclusion, it can be said that the theoretical economist-
scientists gave a full description of entrepreneurship and considered it as a socio-economic reality 
that includes psychological aspects. Thus, researchers have given different concepts to an 
entrepreneur in different periods: 
- An entrepreneur is an innovator who develops new technology, new production and new services. 
- A strong person who acts in risky situations; 
- Someone who makes the most of every opportunity; 
A person who shows initiative, is a businessman, and organizes a socio-economic mechanism. The 
results of the activities of an entrepreneur and a businessman are completed differently. 
An entrepreneur receives business income at the expense of his ability, while a 
businessman receives a profit from his invested capital. 
Goods and servicesSince creation is primary for the market economy, entrepreneurship is its 
foundation. Entrepreneurship is the pillar of the economy, the reliable garden, and the driving 

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force. To earn income by bringing material and monetary resources (capital) of business people 
(property entities) into economic circulation. 

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intended economic activity. Entrepreneurship does not mean making money at all, but earning 
income through creative activity. Entrepreneurship sees free income at the expense of capital 
without doing business, and refuses to absorb it like parasites. Entrepreneurship requires a number 
of innate and acquired qualities. That's why real entrepreneurs are rare. For example, according to 
information based on American scientific research, only 7 people out of every 100 of the working 
population are real entrepreneurs. There are many people who are businessmen. Business means 
"Work", "commerce". American business is a system of production to meet the needs and wants 
of society. Business is a hard and profitable job. Entrepreneurship takes place within the framework 
of property relations. 
Important characteristics (signs or aspects) of entrepreneurship are as follows: 
♦ independence; 
♦ risk taking; 
♦ independent thinking; 
♦ believe in one's own strength; 
♦ creativity, innovation ability; 
♦ relentless pursuit; 
♦ initiative work; 
♦ perseverance. 
♦ being a participant in property relations, owning all or some of the factors of production and 
created goods. 
♦ feel responsible. 
♦ economic freedom, freedom to choose the type of economic activity, to provide it with 
resources, to conduct trading activities, to manage production. 
♦ taking responsibility for economic actions: responding to the result of work, 
being able to take risks, fighting economically risky work. 
♦ profit seeking:to take measures to achieve profit, to use the received profit as one knows. 
♦ owning a trade secret: business-related and others 
♦ participating in the competition: participating in honest competition in accordance with 
the rules of the market and abandoning its wild, wild ways. 
♦ to act honestly, not to be prone to fraud, embezzlement and deception. Having a reputation 
(image), trusting others and gaining fame by gaining the trust of others, honoring the name of the 
company and not harming it, not discrediting the company. 
♦ establishing a good relationship with the external environment (tax and other organizations, own 
employees and hokozas). 
1. The entrepreneur clearly defines the goal, creates a production program and achieves it. It 
combines land, capital and labor resources into a single process in order to produce goods and 
services. Takes the initiative. An entrepreneur simultaneously drives production. 
is a power and mediator. Ensures the addition of other resources to implement useful processes. 
The program should reflect the guidelines for achieving the goal, provision and procurement. 
It is desirable that the program should reflect the number of items, the period it covers, the structure 
for which departments of the enterprise, the changes in the internal conditions and the external 
environment. When creating an enterprise program, an entrepreneur pays attention to the following 
main considerations: 
- How to achieve the goal; 
- What is expected of the enterprise in the future (that is, work planning). 
If these two goalsif they can be brought together, it is possible to create an enterprise activity 
program. Creating a program can be conditionally divided into three stages: 
1. It is necessary to analyze the market where the product is sold. The analysis is done in a two-
way cross-sectional manner. The first is to study the positive aspects of the product produced by 
the enterprise in the market, and the second is to estimate the negative aspects. In both cases, the 
entrepreneur is supply and demand 

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should predict one to five years, taking into account changes in science and technology, changes 
in competition. 
2. Ability to correctly set the goal, taking into account the internal capabilities of the enterprise. 
Best of all, the company's strengths and weaknesses are compared against each other and tied to 
changes in supply and demand. As a result of the comparison, it becomes clear which goal 
corresponds to the opportunity and which one does not. Based on these, the entrepreneur should 
review his goal once again. Then the tasks that are possible and can be done are selected. 
3. Choosing the most useful option for the development of the enterprise. 
The set of raw materials and organizational capabilities of the enterprise is 
determined. In this case, it is necessary to pay attention to three indicators: 
a) the place of the enterprise in the market environment, i.e., how well the 
released products meet the demand, both in terms of quality and quantity; 
b) to which economic form the enterprise belongs, i.e. whether it belongs to 
the industry or to the economic sector, etc.; 
c) the diversity of the type of manufactured products, that is, how well the offered type corresponds 
to the demand. As can be seen from the above-mentioned indicators, it is quite difficult to predict 
both within the enterprise and in market conditions according to its origin and characteristics. For 
this reason, it is advisable to consult additional consultants when studying the third stage of the 
program. 
1. Another important task of an entrepreneur is to undertake complex tasks, such as making key 
decisions that determine the direction of the company's activities, while doing business. 
2. An entrepreneur - on a commercial basis, produces new products, uses them, introduces new 
production technologies or even new forms of business organization into everyday life. 
3. An entrepreneur is risking his work time, labor, reputation in his work, therefore, he works as a 
pledge of his personal and the funds spent by his partners or shareholders. The entrepreneur is not 
guaranteed profit. That is why in the capitalist economy, entrepreneurial ability is given a special 
place, it is not included in the concept of "labor", because it has its own characteristics and 
importance. 
"Labor" is the physical and mental abilities of people to produce goods and provide services. 
"Labor" and "entrepreneurial ability" constitute labor resources. 
After the entrepreneur chooses a specific production activity and runs his enterprise, his main task 
is to continuously manage the production process. 
In this case, in the eyes of the businessman, he seems to be needed everywhere, as if he does not 
do any work for you. But it is not correct to think like that. It is wrong to assume all tasks, because 
there are cases in the production process when others can do this work better. He should do 
business with entrepreneurship. For example, an entrepreneur is a good initiator and organizer in 
matters of personnel, supply, purchasing, and ensuring the production process. It is desirable for 
an entrepreneur to use the advanced knowledge that is effectively used from the achievements of 
science, such as creating a program of the production process of the enterprise, systematic 
management, economic analysis, forecasting the future of the enterprise, in the implementation of 
the above-mentioned service tasks. 
In the conditions of the market economy, the main goal of an entrepreneur is to produce a product 
that meets the market requirements, making effective use of the means of production and resources 
at his disposal, and to get a profitable profit. Entrepreneurs must have their own program when 
developing ways to achieve their goals. The structure of the program is appropriate, regardless of 
the size of the enterprise, whether it is large or small.