Social entrepreneurship. Social entrepreneurship - earn a good deed

11.10.2019

Story

The terms "social entrepreneurship" social entrepreneurship) and "social entrepreneur" (eng. social entrepreneur) are first mentioned in the 1960s in the English-language literature on social change. They became widely used in the 1980s, thanks in part to the efforts of Bill Drayton, founder of Ashoka: Innovators for the Public, and Charles Leadbeater. In 1950-1990, Michael Young played a big role in the development of social entrepreneurship. Harvard professor Daniel Bell has called Young "the world's most successful social entrepreneur" due to his role in building over 60 organizations around the world, including several Schools of Social Enterprise in the UK. Another notable British social entrepreneur is Lord Mawson MBE. Andrew Mawson received a peerage in 2007 for his work in economic and social renewal and urban improvement. He is the author of The Social Entrepreneur and the CEO of Andrew Mawson & Associates. Andrew Mawson Partnerships), which is engaged in the dissemination of his experience.

Although the term "social entrepreneurship" is relatively new, the phenomenon itself has a long history. Examples of social entrepreneurship include Florence Nightingale, founder of the UK's first nursing school, who developed and promoted progressive nursing standards; Robert Owen, founder of the cooperative movement; Vinobu Bhave (विनोबा भावे, Vinoba Bhave), founder of the Indian Bhoodan movement. In the nineteenth and twentieth centuries, some of the most successful social entrepreneurs contributed to the spread of innovations whose usefulness was so highly valued that they were introduced on a national scale with the support of the state or business.

In Russia, social entrepreneurship appeared at the turn of the 19th-20th centuries. An example of social entrepreneurship is the House of Diligence, founded by Father John of Kronstadt. Here, everyone in need (from single mothers to the homeless) could find a job, receive shelter and care. The idea of houses of industriousness subsequently spread throughout Russia.

Social entrepreneurship today

One well-known contemporary social entrepreneur is the 2006 Nobel Peace Prize winner Muhammad Yunus, founder and manager of the Grameen Bank and its associated social venture group. The activities of M. Yunus and the Grameen Bank are an example of an important feature of modern social entrepreneurship: the implementation of social tasks using business principles often brings great success. In some countries, including Bangladesh and to a lesser extent the United States, social entrepreneurs take on tasks that the state, which plays a limited role, does not take on. In other countries, in particular in Europe and South America they work quite closely together with state organizations, both at the national and local levels.

Russia

In Russia, the first and until now the main fund to support social entrepreneurship has become the Fund for Regional Social Programs “Our Future”, a private fund of businessman Vagit Alekperov. The Fund holds an All-Russian competition of projects in the field of social entrepreneurship and issues long-term interest-free loans to entrepreneurs, helps aspiring entrepreneurs by offering them business plan preparation services, legal and accounting services, an opportunity to rent a micro-office (Our Future consulting and outsourcing centers operate in 6 cities: Astrakhan, Arkhangelsk, Volgograd, Kaliningrad, Nizhny Novgorod, Perm). Over the 5 years of its activity, the Fund has provided support to 74 social entrepreneurs for a total amount of about 150 million rubles. The Fund actively cooperates with the Agency for Strategic Initiatives and the Ministry economic development RF on legislative initiatives and measures to stimulate the development of social entrepreneurship in Russia. The Our Future Foundation created the first 2 Internet resources in Russia entirely dedicated to social entrepreneurship: the New Business: Social Entrepreneurship portal and the Bank of Social Ideas portal.

Also in Russia there is the Russian Microfinance Center (RMC), which was established in 2002. RMC President Mikhail Mamuta considers one of the main tasks of the RMC to be the support of social business and socially oriented NGOs both through public initiatives (creation of the Council for the Development of Social Business at the Chamber of Commerce and Industry of the Russian Federation) and through specific projects together with Russian and international partners (for example, Grameen Creative Lab, Yunus Center and Yunus Social Business).

Competitions of projects on social entrepreneurship in Russia are also held charitable foundation“Towards Changes” (Reach for Change - a representative office in Russia opened in December 2011), as well as the Interregional Public Organization (IPO) “Achievements of the Young”. The latter is holding a “Relay race of social innovations”, focused on work with schoolchildren and students.

Social entrepreneurs in Russia today are divided into three categories. First - representatives of specialized enterprises(for example, enterprises working with the visually or hearing impaired), which were modernized after perestroika and became commercial organizations (for example, Volgograd enterprises for the visually impaired - Etalon for the production of lids for canning and Luch, which produces household paper products : napkins, toilet paper). An example from the second category - non-profit and charitable organizations, embarked on a commercial footing. Most of them are in Russia. The Nadezhda Charitable Foundation operates in St. Petersburg, which produces rehabilitation equipment for the elderly, the disabled, and people who have suffered a serious injury. "Nadezhda" signed an agreement with the Social Insurance Fund and all products - strollers, crutches, etc. - people receive free of charge by providing medical certificates about the need to purchase rehabilitation equipment for medical reasons. "Nadezhda" also opened a paid rental point that provides rehabilitation equipment for the period of collecting certificates (after the necessary certificates are collected, the rental cost is returned to the client). In Rybinsk, the women's social support society "Woman, Personality, Society" works with low-income mothers with many children, and under it - the workshop "Merry Felt", which produces felt toys, jewelry and other art products. In Tula, an example of social entrepreneurship is the Berezen household services salon - here, in a social hairdressing salon, a photo workshop or an atelier for tailoring and repairing clothes, a shoe repair shop, citizens are served by people with disabilities. For large families, the disabled, pensioners and low-income citizens who come to the salon, the prices for services are provided at a discount. The most advanced category of social entrepreneurs - representatives of small business, new business, whose goal is not profit, but a methodical solution to the problems of socially unprotected categories of citizens. Dospekhi LLC is successfully operating in Moscow, an organization engaged in the production of an orthopedic system that allows people with injuries or diseases of the spine that have led to paralysis of the legs to move independently. In Yekaterinburg, the Scientific and Social Center Elfo LLC is engaged in the psychological and physical rehabilitation of children with the help of hippotherapy.

Great Britain

In 2002, seven leading UK not-for-profit organizations founded UnLtd, a Public Entrepreneurs Fund with £100 million in capital to invest in social entrepreneurship in the UK. UnLtd provides individuals grants and practical support in the form of training and networking opportunities useful in the implementation of local projects. One of the fund's divisions is UnLtd Research, which is rapidly becoming the world's leading center for collecting, analyzing and disseminating information on social entrepreneurship.

Another British association of various social initiatives, as well as regional and national organizations that support social entrepreneurship, is the Social Entrepreneurship Coalition (eng. Social Enterprise Coalition) .

Ukraine

In recent years, social entrepreneurship in Ukraine has become increasingly popular among public organizations as an effective mechanism for solving local social and economic problems of territorial communities. Since October 2010, on the basis of the SESP Association, the Social Entrepreneurship Support Center has been operating. The center was created with the financial support of the Eastern Europe Foundation under the Social Entrepreneurship Development program, which is a joint initiative of the Eastern Europe Foundation, the British Council in Ukraine, PricewaterhouseCoopers in Ukraine and Erste Bank. The Center acts as a platform for the accumulation of knowledge, successful experience, a kind of mechanism for promoting the idea of social entrepreneurship at the regional level and a platform for communication and exchange of knowledge and experience for social enterprises and social entrepreneurship support structures.

In Odessa, there is a public organization "The Road to Home", within the framework of which a newspaper for the poor is published, and also workshops for tailoring work. Association “Mir. Beauty. Culture.» creates jobs throughout Ukraine for low-income women in a crisis situation. Thanks to the work at the enterprise, they acquire economic independence. In Zhytomyr, a workshop for the manufacture of metal products (lattices, gates, etc.) operates at the Samaritan Mission in Ukraine public organization. The movement of social entrepreneurs in Ukraine exceeds 700 enterprises throughout the country.

India

There are also commercial organizations solving social problems. One example is SKS Microfinance, founded by former McKinsey employee Vikram Akula. This company is engaged in microfinance in the villages of the Indian state of Andhra Pradesh, and its activities have significantly improved the economic situation of many women from the poorest segments of the population.

Other examples

There is an ongoing debate about who exactly can be considered a social entrepreneur. Some feel that the term should only refer to the founders of organizations whose main source of income comes from the fees of their clients. Others include in this concept those who perform work under government contracts, while others add here organizations that rely primarily on grants and donations. No immediate consensus is expected on this issue.

Currently, non-profit and non-governmental organizations, foundations, governments and individuals support, fund and advise social entrepreneurs around the world. More and more programs are coming higher education for social entrepreneurs.

Organizations such as Ashoka: Innovation for Society, Skoll Foundation, Omidyar Network, Schwab Foundation for Social Entrepreneurship, Canadian Social Entrepreneurship Foundation, New Profit Inc. , Echoing Green are busy searching around the world for people whose activities significantly change society, but so far do not have sufficient funds. The Foundation for Regional Social Programs "Our Future", established in 2007 on the initiative of Vagit Alekperov, is looking for and supporting social entrepreneurs in Russia. Information and analytical portal " New business: social entrepreneurship”, a project of the Foundation, informs about the events in the world of social entrepreneurship and promotes the term “social entrepreneurship” in Russia. Ashoka's program "Change the World" Changemakers) uses the Internet to organize a kind of competition, which results in communities that solve pressing problems. In North America, organizations tend to support outstanding individuals, while in Asia and Europe there is more emphasis on the interaction of social entrepreneurs with organizations, individuals and social movements.

Youth social entrepreneurship is becoming more widespread as a method of involving young people in solving social problems. Youth organizations and programs support these efforts through a variety of incentives. An example is the Australian program of The Foundation for Young Australians' Young Social Pioneers, which invests in young people's initiatives that bring positive change to society.

Fast Company Magazine publishes each year a list of the 45 Best Social Entrepreneurs of the Year, which the magazine names organizations that "use the discipline of the corporate world to solve complex social problems."

additional literature

Craig Darden-Phillips, "Your Chance to Change the World. A Practical Guide to Social Entrepreneurship." Craig Dearden-Phillips, "Your Chance to Change the World. The No-fibbing Guide to Social Entrepreneurship", Albina Publisher, M. 2012. ISBN 978-5-9614-1826-2 .

Notes

Links

Publications/Blogs/Portals

Portal New Business: Social Entrepreneurship
Magazine Innovations: Technology|Governance|Globalization MIT Press
Social Enterprise Reporter Portal - innovative business solutions for social entrepreneurs
Blog Socialentre about social entrepreneurship in Russia.
The A Developed World blog is a story about the world's social entrepreneurs.
Nobel laureate Muhammad Yunus: "We give people money to change the world." "New Newspaper"
"Social Entrepreneur-2005": join us! "Mirror of the Week"

Documentaries

Social entrepreneurship in Russia (unavailable link)
"Nadezhda" - Charitable Foundation for Assistance to the Disabled and the Elderly (unavailable link)
Berezen - Tula Center for Social Rehabilitation of the Disabled (unavailable link)
"Merry felt" - a workshop at the Women's Society for Social Support "Woman, Personality, Society" (unavailable link)
Uncommon Heroes: Short film series profiling social entrepreneurs, Skoll Foundation
Social Entrepreneurship Series: A film series profiling the global greats of social entrepreneurship Ashoka: Innovators for the Public
Frontline/World Social Entrepreneurs Stories, documentaries about social entrepreneurs, PBS Frontline/World online

Organizations

Wikimedia Foundation. 2010 .

The essence of social entrepreneurship

There are many opinions on the definition of “social entrepreneurship”, but all of them can be grouped into three groups:

Concepts that define social entrepreneurship as the organization of commercial enterprises for the purpose of providing social services. At the same time, an enterprise can have any activity, as long as the income is directed to solving social problems. Social entrepreneurship is identified with such concepts as corporate social responsibility, charity, philanthropy, etc.
Definitions based on the innovative activity of entrepreneurship, the result of which is a social effect. This approach overestimates the importance of the innovative aspect of solving social problems, does not take into account the idea of entrepreneurship in terms of financial viability. The definitions indicate the need to mobilize resources in order to solve social problems, equalize the activities of social entrepreneurship and non-profit organizations.
Definitions showing the peculiarity of social entrepreneurship in the ways of transmitting social transformation leading to extensive strategic changes. Such a concept diverts attention from a real social problem to the transformation of the entire social order.

Remark 1

Social entrepreneurship is a way of socio-economic activity that accumulates the social purpose of an organization or enterprise, entrepreneurial innovation and the achievement of sustainable self-sufficiency.

The basis of social entrepreneurship is the activity of social enterprises created to solve specific social problems, functioning on the basis of innovations, business practices adopted in the private sector, and financial discipline. Any social entrepreneurship seeks to fulfill a social mission, and, at the same time, within the framework of business, “save society” from global problems.

Remark 2

The social entrepreneur seeks to equally satisfy both the needs of society and his own interests.

Forms of social entrepreneurship

V different countries exists various forms social entrepreneurship, which have their own characteristics and depend on the share of the commercial component in their activities. Let's characterize the main ones.

Non-profit organizations with commercial components. Commercial activity can be focused on covering the costs of implementing a non-commercial social activities (commercial activity integrated into the social) or aimed at generating income.

Social enterprises. Commercial-type organizations created to reduce or mitigate social problems as well as social benefits. They are characterized by innovative activity, financial discipline, determination of a market company. In their activities, social enterprises to stimulate social evolution and create public good use market and entrepreneurial approaches, strategic planning, innovation, determination and discipline. Enterprises are created to organize social change by solving social problems and eliminating market failures. Particular emphasis is placed on public administration and the public nature of the benefits created.

Socially responsible business. Fulfills the dual goals of creating a public good and making a profit. The degree of influence exerted on decision-making by market incentives, the volume of funds spent on social functions, can vary greatly. Such organizations can include various social components in their activities and for the sake of their implementation they are able to give up profits. Sometimes socially responsible entrepreneurship can be considered as a social enterprise. For example, if it is a subsidiary of a non-profit organization created to fulfill the goals of the parent company.

Corporate social responsibility. This is the activity of commercial enterprises seeking to make a profit and, at the same time, participating in charity. Such activities can bring profit, increasing the capitalization of the company. "Strategic philanthropy" promotes profit maximization, achievement of market goals, solves problems social development(sponsorship, volunteering, launching grant programs). This activity has a positive impact on the image of the enterprise, motivates staff, and contributes to the achievement of business results.

Types of social entrepreneurship

The main types of social business functioning are the production of goods and the provision of socially significant works and services. For example, the production of socially significant goods - playgrounds and rehabilitation equipment. Production of goods common use- food, clothing, furniture, handicrafts, etc.

The provision of socially significant works and services includes:

legal, socio-pedagogical, socio-psychological counseling;
training and advanced training (courses, seminars, trainings, development of creative abilities);
medical and social assistance;
household services (laundries, hairdressers, shoe repair, copy services, etc.);
cultural services ( decoration, theatrical performances, etc.);
development of ecological tourism;
employment of the unemployed;
development of agricultural activities.

Currently, the following areas of social entrepreneurship are relevant:

Help and support for citizens in difficult times life situation(single, low-income people, people who owe banks, lost their jobs, pensioners, etc.).
Environmental business. Activities aimed at improving the environmental situation.
Organization of employment for persons with disabilities.
Organization of children's development and leisure (organization of children's events, creation of training groups, circles, etc.).
Organization of healthy and useful leisure (cleaning and gardening of territories, equipment of children's and sports grounds, organization of holidays, cultural events).
Rehabilitation of citizens after traumatic situations.

Everything you do will come back a hundredfold, and especially good. Those who live according to this law try to share the received benefits, resources, and opportunities. Therefore, not so long ago, a massive insight happened in the field of business - you can not only help people in difficult situations, but also make money from it. As they say, you're good, and we're good.

For those who first encountered this concept, it may seem that we are talking about making money on someone else's misfortune. But this is not so: socially oriented entrepreneurship has a charitable connotation in the first place, and already generates income in the second place.

The essence of social entrepreneurship lies in the independence of the philanthropist from someone else's kindness, his independence and the ability to engage in humanitarian activities, having his own financial base under his feet.

What is social entrepreneurship?

Social entrepreneurship is a kind of business where the main idea is to solve social problems and help people. Unlike pure charity, the idea of self-sufficiency and profitability of the project is important here. Researchers identify several features of a social business that allow it to be called such:

social orientation (resolution or relief of people's problems);
the novelty of the approach (since the old methods usually offered by the state do not work, new solutions must be sought);
replicability (the ability to transfer experience to other entrepreneurs in the country and even around the world);
self-sufficiency (the ability to work without sponsorship);
profitability (in order for the business to develop and its owner to eat, the project must bring money).

This concept appeared not so long ago and has been actively used in the world for only three decades, but its beginnings can be traced back in the mists of time. Philanthropists periodically appeared in different countries, bringing elements of business into charity and vice versa. So, one can recall Florence Nightingale, who founded a nursing school on the British island in the 19th century and developed new standards for their work.

Social entrepreneurship in Russia began to “peck” at the turn of the 19th and 20th centuries, but then a revolution happened and its development was suspended in anticipation of a better time. In recent decades, social business is increasingly gaining momentum, and in Last year he became especially popular. We can say that in the business environment, he is now experiencing a real boom.

Types of social entrepreneurship

We can distinguish the following types of social entrepreneurship by target orientation:

improvement of the ecological situation;
helping people going through difficult times;
employment of the disabled;
useful leisure;
child development;
rehabilitation after psychological and physical injuries.

Ideas for social entrepreneurship

There are a huge number of ideas for social entrepreneurship, and some of them are quite unexpected. This niche is so new that it allows endless experimentation. The main thing is not to flirt and not to forget about the key component - the benefits for people. Here we will look at the most common and already tested ideas in practice.

Ecological packaging. It takes up to two hundred years for an ordinary plastic bag to decompose. And remember how many bags of kefir, juice, frozen vegetables and sausages we carry every day in a garbage (again) bag! All these package mountains will grace our planet for decades if we don't stop. The manufacturers of eco-packaging also thought the same, deciding to use fundamentally different materials for this purpose. In principle, nothing new - most eco-friendly packaging consists of paper and cardboard. They decompose in just two years - much faster than polyethylene. So far, not all products have learned how to pack eco-friendly - for example, a replacement for plastic bottles has not yet been found. However, this is a breakthrough.
Recycling of plastic. Mankind annually consumes a huge amount of plastic products - bags, bottles, cans, films, boxes, etc. This problem is not only about pollution. environment, but also the total consumption of resources. After all, while we throw tons of bottles into the landfill, enterprises use the same amount of material to produce new ones. So why not kill two birds with one stone? Plastic waste can be used to make new packaging, bristles for brushes, building materials and much more.
Rural tourism. This entertainment is quite popular today among residents of megacities. Many townspeople have already forgotten what an ordinary cow looks like and what trees potatoes grow on. For them, going to a remote village is a whole adventure. They are even willing to pay to help a rural grandmother dig a garden, milk goats and collect eggs in a chicken coop. Fresh air and occupational therapy have a beneficial effect on the psyche, at the same time such tourism contributes to the development of villages where it is common.
Educational computer games for children. Children love to play on various gadgets, and the field of game development is quite lucrative. So why not combine business with pleasure? In the form of a game, you can learn languages and school subjects, master the ten-finger set. With the help of computer games, social learning can also be carried out, modeling the behavior of characters so that children acquire useful skills for interacting with society.
Children's development center or kindergarten. Another type of social business that helps children develop their abilities. By the way, such a center can be combined with a private kindergarten, thereby helping parents free up time for work. Not everyone can arrange a child in the garden on time because of the long queues, and the quality of child care there is not so hot. A private kindergarten for 10-15 children is in many cases preferable - it is easier for caregivers to keep track of fewer children, such kindergartens are better equipped, higher requirements are placed on staff, and the development program always keeps up with the times. True, there is more pay, but it's worth it.
Healthy lifestyle club. Many people dream of becoming slim, beautiful, eating right, running in the morning and hiking in the summer. But doing it alone is boring. So why not create an organization in which participants for a certain amount of money will be united in groups, advised, motivated, and held classes?
Crowdfunding (collective financing of projects). On the Internet, you can find platforms where business financing is carried out according to the principle “from the world by thread”. Those who want to implement their idea present it on the page, and those who are interested deposit as much as they can afford into the account. This is how good and useful startups rise to their feet. It is noteworthy that most of them concern culture, art, journalism, cinema and the same social entrepreneurship.
Training, retraining and employment of people who find themselves in a difficult life situation. Many categories of our fellow citizens fall under this concept - people who have recently been released from prisons, single mothers, women who have experienced domestic violence, those who are undergoing a rehabilitation process after getting rid of drugs and alcohol addiction, disabled people. It is difficult for them to find work. For them, you can open training courses for simple professions and open a company where only people with a difficult fate are recruited. Benefits for an entrepreneur? Those who get a second chance are, for the most part, diligent and diligent, holding on tight to workplace and do not require a large salary.
A dating club for single people. After 30 years, it is already more difficult to make acquaintances and fall in love. But everyone wants warmth and love, regardless of age - both at 40 and at 70. Therefore, any organization that helps the older generation find each other will be in demand. It can be a search agency for a soul mate, and a club of interests, and " speed dating”, and dancing for those who are a little over 20.

As you can see, you can do good for your own benefit. It's nice that the social component in entrepreneurship is becoming more and more, many businessmen are pouring into philanthropy. Even "ordinary" firms do not stand aside - some donate part of their income to charity, others make discounts on their products for the poor, and others conduct charity events. It's good when good deeds are popular: this is exactly the case when being fashionable is necessary and even necessary.

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§1 Entrepreneurship and its role in the social sphere.

The term “entrepreneurship”, as well as the very phenomenon of entrepreneurial activity, entered public practice in Russia only in the second half of the 1980s.

Entrepreneurship can be characterized as an initiative independent activity of the owner (full or partial), aimed at making a profit at his own risk and property liability.

It can be carried out in different sectors of the economy, both with and without the involvement of wage laborers. The business environment is important for the development of entrepreneurial activity. Entrepreneurial Environment - a set of public institutions and conditions, legal norms, systems of state support. It is also a certain social climate, security conditions, a special infrastructure for entrepreneurship, i.e. everything that ensures the further formation and development of entrepreneurship.

One of the areas of entrepreneurial activity is small business, or small business. It is most characteristic of the social sphere.

The concept of small business is connected, first of all, with the criterion of the size of the enterprise. Based on this, the assignment of entrepreneurship to small business can be carried out by assessing the amount of profit, by the volume of trade, by the number of employees. In the current legislation of the Russian Federation, the most significant criterion is the accounting of the number.

The law “On State Support of Small Business in the Russian Federation” proposes to classify as small enterprises those that have the following number of employees:

In industry - up to 200 people;

In construction - up to 100 people;

In wholesale trade - up to 50 people;

In agriculture - up to 50 people;

In science and non-production sphere - up to 25 people;

In retail - up to 15 people.

To date, small business has taken a fairly significant place in the Russian economy. It is most widely used in industries such as retail and services. Small business occupies a prominent place in construction, auditing, and insurance. A significant number of small enterprises and individual entrepreneurs are involved in the urban economy, health care, and science.

Entrepreneurship performs important socio-economic functions in society, in its individual subsystems, in the process of implementing economic reform. First of all, it is necessary to single out the role of small business as a flexible, fast-reacting sector of the economy in meeting changing consumer demand and establishing a certain balance in the consumer market. Small business successfully solves the problem of fast delivery of small and medium-sized consignments of goods to a specific consumer and the provision of services based on a wide variety of needs. It very successfully searches for the necessary goods both in the domestic and in the world market.

Small business, in principle, by its nature, is most effective in using small resource potential - unoccupied and obsolete fixed assets, secondary resources, waste, specific resources of the urban environment (which were practically not used before), small unoccupied land plots.

The role of small business in creating new jobs is extremely important. Here it largely compensates for the reduction in employment at large state-owned and simply unprofitable enterprises of all categories. A workplace in a small business does not require large expenses; it can be organized anywhere, including at home. In this regard, its role in providing employment for the disabled, women, and the elderly is significant. Small business, as the practice of a number of countries shows, plays a very important role in the production of a number of socially necessary goods and services. This is the production of many household items, clothing, certain foodstuffs, various types of repair work, construction services, the provision of the most different types services within the framework of social assistance to the population, organization of sports and cultural leisure of citizens.

Small business contributes to the restructuring of the economy, the formation of a publicly recognized market infrastructure (including credit and financial), a softer change in property relations, land reform, and the creation of new organizational and technological forms of production organization.

In the formation of small business there are a number of unresolved problems that hinder its development and call into question the possibility of survival. This is a system of strict taxation, an acute shortage of funds for potential and existing entrepreneurs to expand their business or to open it, a criminal environment that flourishes in this area.

Small business challenges include:

The absence of a realistic concept for the development of small business at the state (municipal) level and, accordingly, effective measures his state support;

High level of risk;

Lack of normal relations with authorities.

The solution of these problems is possible only with an effective combination of supporting and regulating activities in relation to small businesses at all levels of government. At the same time, the emphasis should increasingly shift towards expanding the powers and degree of participation of local structures.

The main prerequisites for the development of entrepreneurship in the social sphere are:

The legal framework that creates opportunities for engaging in this type of activity;

Change in property relations and shifting the focus of the activity of the subject (entrepreneur) towards making a profit;

A sharp reduction in financial resources coming from the budget to the social sphere;

The emergence of wealthy strata of the population, which form the solvency of the demand for a number of new services in the social sphere.

Who can be called an entrepreneur? An entrepreneur is an economic entity that organizes activities for the production of products or the provision of services at the expense of its own and (or) borrowed funds in order to make a profit.

The hallmarks of an entrepreneur are:

Participation in the formation of initial capital;

Participation in the management of the enterprise;

Financial responsibility for the results of activities;

The right to make decisions when choosing a development strategy;

The right to distribute and use profits.

In the social sphere, entrepreneurship is developing in the following areas:

Additional services within the framework of the main activity (for example, the creation of computer courses at school in order to train users of personal computers, learn foreign languages, use sports facilities for commercial purposes);

Services related to the main activity (for example, the university sells textbooks published by it);

Services not related to the main activity (rental of premises and equipment).

Questions for self-examination.

1. What is entrepreneurship?

2. Prerequisites for the development of entrepreneurial activity.

3. The role of small business in the social sphere.

4. What is the main goal of entrepreneurial activity?