Social roles of entrepreneurship in modern society, Diversity...

Social roles of entrepreneurship in modern society

Variety of roles and functions of entrepreneurship

The functions and roles of entrepreneurship in modern society and in its economic life are diverse. In the very concept of entrepreneurship, different meanings are attached depending on the context: it is an economic category, a special method of management, and a factor in the development of production; at the same time, entrepreneurship is understood and a special phenomenon of culture associated with a particular value system, as well as with a specific way of life. Through various roles performed by entrepreneurship in relation to various spheres of society's life, the functions of entrepreneurship as a social institution are realized.

Entrepreneurship includes the execution of a number of socio-economic roles , namely:

1) possession of capital, based on private property, ordering it for the development of the case;

2) the orientation of economic activity to obtain profit and its subsequent capitalization; sociological tradition of the XIX century. considered these two functions as the most significant;

3) a combination of factors of production in order to find options for maximum profitability and profitability; management activities, oriented not only to routine reproduction, but also to optimal adaptation to changing market conditions;

4) the entrepreneur acts as an economically active entity acting on the market independently, on his own initiative, and focused on freedom of choice, decision-making and assignment of results;

5) the economic freedom of the entrepreneur causes his responsibility for the decisions he has taken, also on his own;

6) the entrepreneur's activity is never realized in conditions of full clarity and predictability of results, therefore he carries the burden of risk associated with the uncertainty of many factors of economic activity in a free market: fluctuations in the market, exchange rates, consumer demand, competition, as well as external social and political circumstances, with possible natural and man-made disasters, etc .;

7) the most important role of the entrepreneur is to participate in free competition, which involves not only activity, initiative, risk and responsibility, but also high attainment orientations, the pursuit of success and leadership;

8) The entrepreneur acts as a carrier of innovation, creativity in management, offers new ways to solve problems, and finds new opportunities.

Along with the listed socio-economic roles of entrepreneurship, we can distinguish a number of sociocultural roles :

1) reproduction of entrepreneurial culture as a set of values ​​associated with free innovative self-organized economic activity in a competitive environment;

2) Reproduction of entrepreneurial ideology;

3) the implementation of socially responsible activities and the creation of conditions for socio-cultural development through charitable and patronage activities (for more details, see Chapter 7);

4) creating conditions for personal self-realization and vertical mobility.

The listed social roles of the entrepreneur are interrelated and mutually conditioned, but researchers differently identify the main ones that determine the very essence of entrepreneurial activity in the sphere of economy.

In relation to society as a whole, as a dynamically developing system, entrepreneurship as a social institution performs the following functions:

• the formation and reproduction of the market as a form of integration of the economy;

• Innovative development in the economic, social and cultural spheres;

• providing channels of vertical social mobility;

• Ensuring conditions for the growth of public welfare.

The American economist F. Hayek emphasized the importance of freedom of entrepreneurship, in which he saw the only guarantee of the prosperity of modern Western society, while ensuring the inalienable right of everyone to independence and initiative, destiny. Free competition Hayek considered the discovery procedure effective economic decisions, the dynamics of compensation for which is the most reliable indicator of the adaptation of the individual to changing conditions. No restrictions on the freedom of competition, as well as the artificial maintenance of an equal and reliable welfare of all members of society, Hayek considered not only unacceptable from the moral point of view, but also economically unrealizable without the intervention of a totalitarian dictatorial political regime.

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