Academic journal article Asian Social Science

The Essence and Characteristics of Investment Processes in Small Innovative Enterprises

Academic journal article Asian Social Science

The Essence and Characteristics of Investment Processes in Small Innovative Enterprises

Article excerpt

Abstract

In this article we paid attention to the essential characteristics of entrepreneurship and its main elements-the subject and object of business activity. We found that the most important feature of a small business it is commercial focus of its activities. Based on a study of foreign and domestic regulatory and scientific literature summarized quantitative and qualitative criteria for the identification of small businesses. Through a comparative analysis with big business representatives identified characteristics of investment and innovation processes in small enterprises from the perspective of the object, the implementation of innovation and coverage areas of activity, the level (degree) of novelty of innovation, its potential prevalence and source of initiation, development and distribution of spheres, factors of production, options for investment and innovation processes. We paid attention to the unity innovation and investment processes in small enterprises, made proposals for the integrated management of these processes in the direction of overcoming the limitations of small business.

Keywords: small business, innovation, risk, entrepreneur, business object, identification criteria, investment process, a source of financing

1. Introduction

The modern economy is developing on the basis of various forms of activation of entrepreneurial activity, one of the most important of them is the small business, which has a relatively small volume of activity, number of employees and a combined turnover.

Due to the fact that a large part of the investments of small businesses in today's conditions is put to innovation, that is why special attention needs the issues of innovation and investment processes in this area.

It should be noted significant scientific potential generated by domestic and foreign economists in the study of various forms of business activities, including small business (Andreeva, 2007; Gorfinkel et al., 2011; Chernyak, 2010 etc.), their investment support (Endovitskiy et al., 2010; Markowitz, 1987; Ross, 1976 etc.), the role of innovation processes in this sphere (Arkatov, 2013; Doroshenko et al., 2013; Ogoleva et al., 2008; Santo, 1990; O. S. Sukharev & S. O. Sukharev, 2010; Twiss, 1989; Foster, 1987; Schumpeter, 1982 etc.).

However, investment and innovation processes in the subjects of small business not fully disclosed in the economic literature, as a result, small businesses do not always make the best decisions on the sound management of innovation and the objects of their sources of investment financing.

2. Methods

Theoretical and methodological basis of the study are selected works of foreign and domestic economists in the field of innovation management and other economic sciences; Legislative Acts of the Russian Federation, and other legal documents. The research process was based on scientific methods of knowledge (analysis, synthesis, abstraction, generalization, logical method), the methods and techniques of economic analysis.

2.1 Comparison of the Different Points of View on the Entrepreneurship

For the first time the concept of "entrepreneurship" was introduced in in 1755 by R. Cantillion in his "Essay on the general nature of commerce." He defined the entrepreneur as a person who carries out various operations and economic activity at risk, and highlighted the main components of business-foresight and willingness to take risks, allowing to obtain entrepreneurial income (Mukoseev, 2012).

Specifying the economic aspects of entrepreneurship, some authors define it as activities aimed at maximizing profits; initiative activity of citizens, is to develop products and services; direct function of the implementation of the property, the process of organizational innovation for profit; actions aimed at the increase of capital, the development of production and appropriation of profit; specific activity aimed at the search for changes in the existing forms of life companies (Vybornova et al. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.