4-5 June 2013 Proceedings Science Book Publishing House Yelm, wa, usa

FORMATION OF MANAGEMENT

IN A COMPETITIVE MARKET FOR SMALL BUSINESS

I. A. Holodilin

Pacific National University, Khabarovsk, [e-mail]
Small business can respond more quickly to changes in the structure of the market conjecture due to various reasons and the specific construction of the organization. Also, it gives the possibility of involvement of all employees in the organization of value creation, small businesses, and to facilitate the development of those industries that cannot be developed within the larger business.

At the initial stage of small businesses the mechanisms embracing newly emerged commodity could attract in a short period of time a significant number of consumers were used. With a growing number of goods and own small businesses to attract the necessary volume of consumers is becoming more complex, where to get the results not only an entrepreneur skills are necessary, but the whole team.

At this stage, the development of competitive small business and entrepreneurship in the world every year is more and more increasing. At this stage of the modern business environment has the opportunity to change. Competition is also continuous. There are a lot of reasons for it at the moment. They are the accumulation of financial resources in the most crowded places of the mass of the working population and an increase in all-round support in building their businesses using public and private funds, as well as a strong information support for this activity.

It is necessary to carefully approach to building management systems within the organization to effectively build a competitive environment in the present conditions of economic relations in the creation and development of small businesses. Special attention to this element is proposed to focus on the fact that the dynamic growth of access to resources for small businesses and comprehensive support to starting your own business at the present time leads to a situation in which the number of small businesses is increasing, but often the life of small businesses is quite small. The reason for this is a particularly poor quality of management. So, in small business and entrepreneurship there is such a thing as the result of several factors, the decision to establish their own businesses, while having enough superficial knowledge in your chosen industry and often having a low level of knowledge in the field of business management and re-created and acquired resources. This situation at the start of your own small business often means that after a short period of time without much growth the company moves to a state close to bankruptcy, and in such situations, instead of looking for ways to solve the existing problems in the organization, an entrepreneur or business owner decides to sell or available resources or the sale of the business as a whole, while these processes can be done in parallel. The decrease in this situation, the cost of the final product for the consumer has a positive effect, but for the market and the industry it is negative. This occurs both because of the short life of the individual companies within industries, not allowing to form positive associations with groups and sectors, as well as forming the objective of plant closures with minimal disruption to beneficiaries within the organization, the last user gets the goods at drastically reduced price, which reduces the level of competition in the industry and enables a variety of other market participants to develop. The absence of a significant amount of information necessary for small businesses in all areas of its operation also leads to the formation of a short-term competition negatively reflecting on all small businesses. The complexity of the organization of an effective process in general for small businesses and the lack of sufficient management skills, as well as of the often short-term existence of small business often means the decline in the quality of competition within the industry as a whole and in small business, and in a small competition business with medium and large.

Thus, the issue of the development of competitive small businesses is a matter of not only increasing the quantity, but also the issue of increasing the quality of the newly establishing and operating small businesses. But at the same time it would be a mistake to form the ways of stimulating the development of small businesses by increasing only the quality of small businesses, as this will reduce competition within the industry, as well as to reduce the number of implemented innovative technologies. The reason for this could be the accumulation of a range of well-defined boundaries of associations of available resources, which will lead not only to an increase in the price of the final product, as well as to a decrease in the quality of our products. Under these conditions the need to create a competitive environment for small business and entrepreneurship we should make a significant emphasis on creating not only a greater number of small businesses and entrepreneurs, but also the quality of management in these enterprises.

In fact, at the moment, despite the high number of existing and newly emerging small businesses leaders face sufficient weight management problems. Small businesses often have a low level of control without having a clear picture of it, because the problems of governance can be seen as the influence of various factors, and thus present problems given different, often a consequence of confusing the cause, interpretation. So in today's world of small business the leader of a small company has to take into account the more specialized needs of employees for the formation of the atmosphere motivating to achieve the goals of the company. In particular, this is due to the fact that the team is not a small company formed by local groups where you can highlight the clear leaders of public opinion, and to be guided in the formation of motivational elements on these employees, as indicators of the state workforce. In a small number of companies each employee can be regarded as a separately taken leader of public opinion. Achieving the result in this case may be difficult in particular the inability to meet the personal needs of mikro-collective, not only because of the limited material resources, but also in part because of the misconception of the position of head of the junior staff. This position of the head may be dictated by the architecture and true system of the organization based on common practices for managing large organizations. The effectiveness of control system in entrepreneurship and small business is rarely defined on the basis of a specific list of indicators increasingly relying on the underlying values ​​of the organization as a whole and intuitive method.

There are also options in which the head of a small business building a control system based on their own judgment considers itself a leader of public opinion, on the fact of being a figurehead in the organization that leads to a significant reduction in the efficiency of the organization. The compression of head’s functions to a director of operations at the same time being a figure with the function of the sole manager also leads to reducing the effectiveness of the organization's managers. It reduces the possibility of organizing a situation to develop.

The key to high-performance business in the future may be a number of skills enabling significantly more efficient approach to the organization. The primary skill for an entrepreneur should be to have a high competence in an industry that is supposed owner for further building the business. The manager must be familiar with the specifics of the industry and the business processes of the enterprise He also needs to know the characteristics of the enterprise development in this direction and have an accurate idea of ​​how to apply technology introduced in this form.

He must understand clearly every single stage of development of the industry business chain.

Also, for further achievements manager of a small business must have enough broad knowledge in the field of management. So, it is this area of knowledge allows a higher quality factor to build an effective system of management within the organization.

Peter Drucker pointed out that the modern manager has to manage discrete chaos. The reason for this statement was the provision that the lack of a large amount of financial resources, and often not enough qualified staff, and subject to ever-changing external environment are the reasons that small businesses and entrepreneurs as anyone else is required to take the most accurate and rapid decisions. And this situation is more and more aggravated by increasing the number of participants every year, and in the long term this development should consider the option to change the paradigm for the management of small business and entrepreneurship.

In connection with the above, organizations aimed at developing needs the definition of a system that allows more accurately take into account the personal needs of specific employees of the company, establishing milestones and indicators for them in the control system, the formation of an effective system of coordination between different parts of the organization in small business and entrepreneurship.

Under this system of improving the competitiveness of small business the scheme may be used to control the alignment of a small business with the involvement of individual sections of the enterprise business, thereby creating business structures within the organization. Thus the individual units will be aimed at improving the organization through the improvement of the structure. However, it is worth noting that there is the risks in the system primarily associated with the need to define the vision and mission of the organization for the efficient operation and requires a system of indicators for each structure of the organization to clearly track the performance of individual structures.

Due to the fact that the volume of information to consumers every year is continuously increasing, it is reflected in the system and method for selecting end-users the necessary goods, and should take into account that the rate of change of enterprises and small businesses must continually increase. In such dynamic market information, small businesses are forced to change and be more mobile to respond effectively to the last user query leaving either the same or expanding market share.

Thus, the formation of high-quality competition in the small business depends not only on the level of access to resources, but also internal factors such as the quality of management. Due to the lack of necessary knowledge within small businesses, including by attracting low-skilled personnel to small business it is becoming increasingly difficult to go to higher levels of competition for the last user with medium and large enterprises. Improvement of the quality of management in small enterprises in this case will lead to a higher financial performance, market share growth and maturity of life of small businesses. Also, due to the above factors it will shape not only the brand of a separate company and have long-term development plans, but also to develop an industry and associations. More efficient spending of budget funds allocated for the creation of small businesses and entrepreneurship can be achieved through the improvement of the quality of management in a small business.

The Questions of Taxes

E. N. Lavrenchuk

National Research University Higher School

of Economics - Perm regional branch, Perm, Russia

[e-mail]
One of the first economists who proposed a systematic approach to the formation of tax science was D. Ricardo. David Ricardo gave one of the first economic characteristics of the tax in his book “On the Principles of Political Economy and Taxation”. “Taxes аге а compulsory financial contribution bу а person оr body of persons towards the expenditure of а public authority. They derive from the division of society into classes, and the emergence of the state. Taxes are a portion of the produce of the land and labour of a country, placed at the disposal of the government» [9]. In this case, D. Ricardo believed that if the consumption of the government, when increased by the levy of additional taxes, be met either by an increased production, or by a diminished consumption on the part of the people, the taxes will fall upon revenue, and the national capital will remain unimpaired; but if there be no increased production or diminished unproductive consumption on the part of the people, the taxes will necessarily fall on capital, that is to say, they will impair the fund allotted to productive consumption.

K. Marx and F. Engels clarified the definition of tax «Taxes аге а compulsory financial contribution bу а person оr body of persons towards the expenditure of а public authority. They derive from the division of society into classes, and the emergence of the state. Socio-economic substance of taxes and types and the role are determined by the economic structure of society and the ensuing nature and functions of the state» [5].

Taxes embodies an existence of the state in economic terms, - K. Marx points out [5].

In the modern interpretation the tax is defined as an obligatory and individually non-refundable payment collected from organisations and individuals in the form of alienation of monetary resources owned by them by right of ownership, economic jurisdiction or operational management for the purposes of financing the activity of the state and/or municipalities (art.8, the Tax Code of the Russian Federation (TCRF)) [6]. Given characteristics do not differ much from each other. Within the meaning of them all - taxes are necessary for the financial provision of the state.

The alignment of the tax relationship between taxpayers and the state demonstrates the need for uniformity of terminology in the question of proportionality of payment. Different economists have used terms such as: tax take, tax salary, tax field, tax liability, tax burden. Comparative characteristics of the terms listed in Table 1.

Table 1- Comparative characteristics of the terms

Title	Characteristic
Tax take	The share of income exemption of economic agent to the budget system and extra-budgetary funds in the form of taxes and fees, and other payments to tax character [13].
	The extent of influence of the current system of taxation on the financial condition, character and incentives for the development at the macro level [3].
Tax salary	Tax salary is the amount of tax paid by the taxpayer with a taxable object [8].
	The amount of tax paid by the taxpayer for a single object of taxation [7].
Tax field	«Tax field» of the organization determines the tax framework within which the organization can carry out its activities [2].
	The list of tax payments, classified according to the subject of taxation on the following homogeneous groups: revolving taxes (or payments on sales), taxes on expenses, payments on the volume of production, property taxes and income taxes [12].
Tax liability	Economic relationship, by virtue of which the taxpayer is obliged to fulfill all the necessary requirements for the calculation and payment of the tax, and the state represented by the competent authorities has the right to require the taxpayer to fulfill this obligation [7].
Tax burden	In a general sense - the total amount of taxes paid; in the narrow sense - the level of economic constraints posed by the allocation of funds to pay taxes and diverting them from other possible uses [7].