Entrepreneurial Function Research Articles

PRAXEOLOGICAL ANALYSIS OF ESG: THE PRACTICAL IMPLEMENTATION OF THE STAKEHOLDER MODEL

This paper presents a praxeological examination of ESG —Environmental, Social, and Governance— conceptualized as the practical enactment of the Stakeholder Model, where the corporation is seen as an instrument for social organization. At the heart of this scrutiny is the entrepreneurial function, explored through the lens of the impossibility of economic calculation theory, dynamic efficiency theory, and the theory of spontaneous order. These notions are contrasted against the neoclassical critique of ESG challenges, underscoring that the Austrian viewpoint penetrates more profoundly into the fundamental issue: ESG is an institutional encroachment on the entrepreneurial function and, thus, a variant of socialism that induces miscoordination in social processes. The paper delves into the multifaceted causes and resultant effects, elucidating why the prevailing prescriptions for ESG enhancement are likely to lead to augmented regulation and further miscoordination.

AN ETHICAL AND ECONOMIC CRITIQUE OF INSIDER TRADING REGULATION

Insider trading, a controversial phenomenon in finance, has been the subject of extensive debate both in the field of economics and in the legal framework. Insider trading refers to the practice of purchasing or selling financial securities by individuals with inside information about a particular company or market. Although the exact definition may vary by jurisdiction, it generally involves the use of non-public information to gain an advantage in financial transactions. The ban on insider trading is widely supported and regulated in many countries with the aim of promoting equality of information and fairness in financial markets.This paper aims to present an alternative perspective on insider trading under the theoretical framework of the Austrian School of Economics. Unlike conventional economic schools, the Austrian School emphasizes the importance of market mechanisms and voluntary coordination in the economy, placing special emphasis on the entrepreneurial function and private property. From this perspective, it is argued that the ban on insider trading is an unnecessary and counterproductive regulation that hinders the proper functioning of the market and economic efficiency.In sections 2 and 3, we briefly present the historical

Entrepreneurial functions performed by women entrepreneurs: Do incubators make a difference?

Women entrepreneurs often face impoverished social networks, hindering opportunity recognition, resource mobilization, and innovation. Governments promote incubator to boost entrepreneurship, but these are often male dominated, perpetuating gender inequalities. This study examined whether incubation benefits women as much as men entrepreneurs. Data from 268 incubated (men and women) and 140 non-incubated women entrepreneurs showed significant differences in entrepreneurial functions between incubated and non-incubated women. Contrary to expectations, no significant differences were found between incubated men and women. Thus, incubators offer alternative affiliation by providing valuable networks for women beyond their familial connections. Furthermore, incubators create a level playing field for women entrepreneurs. JEL Classification: M13, L26, C83, 030

Role of Women Entrepreneurship in Economic Development of Nepal

The study tells that women entrepreneurs play a vital role not only in the development of industrial sector of a country but also in the development of farm and service sector. The role of women entrepreneurship in economic development varies from economy to economy depending upon its material resources, industrial climate and the responsiveness of the political system to the entrepreneurial function. The objective of the study is to find out the role of women entrepreneurship in economic development of our country. The study is based on secondary data and analytical approach. Women entrepreneurs, in the form of new goods & services, result in new employment, which can produce a cascading effect or virtuous circle in the economy. It is necessary that we understand the benefits of women entrepreneurs, a balanced approach to nurturing entrepreneurship will definitely result in a positive impact on economy and society.

Analysis of economic growth through the context conditions that allow entrepreneurship

AbstractThe literature that recognizes the entrepreneurial function as a fundamental factor in regions’ and countries’ growth abounds. When studying the macroeconomic conditions that favor entrepreneurship, most studies analyze the problem from an organizational level. This article assumes the value of entrepreneurship as a mediating element in economic growth. It analyzes the most relevant legal and macroeconomic conditions that improve the suitable adjustment of entrepreneurial initiatives to the demands and available resources of a given economy. These conditions are not analyzed strictly from an economic perspective but in terms of their impact on the entrepreneurial function. To validate our hypotheses, a qualitative methodology focused on Latin American countries is used to reduce the heterogeneity of the cultural and historical context of the studied cases. The results reveal that low or moderate inflation, together with investment freedom and low tax burden, are the most determining factors of economic growth in Latin America.

ПІДПРИЄМНИЦТВО В АГРАРНОМУ СЕКТОРІ: ВІТЧИЗНЯНІ РЕАЛІЇ В УМОВАХ СУЧАСНИХ ВИКЛИКІВ ТА МІЖНАРОДНИЙ ДОСВІД ДЕРЖАВНОЇ ПІДТРИМКИ

The article examines current issues of the functioning of agrarian entrepreneurship in world practice and in Ukraine. The role and importance of entrepreneurship in the agricultural sector for the functioning of the country and raising the standard of living of its population are substantiated. An analysis of theoretical approaches regarding the essential characteristics of the concept of "entrepreneurship" in the historicalevolutionary context of the formation of agricultural production was carried out. The main approaches that allow to increase the effectiveness, profitability and efficiency of agrarian entrepreneurship are systematized for the main assessments of losses in the agricultural sector of Ukraine and the analysis of the functioning of agricultural production in the world's leading countries. The importance of state support for the agricultural sector of the economy, as one of the more risky among other economic spheres, has been proven. The specific and general risks of an agricultural enterprise in Ukraine in modern business conditions are outlined, which will allow them to be taken into account when making management decisions on the basis of intellectualization, digitalization, environmentalization, and adaptability. The special relevance of the implementation of "green" economy measures and the improvement of the risk insurance system of agrarian entrepreneurship is emphasized. The main components of agrarian entrepreneurship are systematized: resource; organizationalmanagerial and creative-creative, which require a systematic approach in the implementation of entrepreneurial functions. The strategic goals of the development of agriculture in Ukraine are outlined on the basis of optimization of agrarian entrepreneurship and domestic sustainable development on the way to achieving high indicators that the economy is capable of achieving in its post-war recovery.

CONSEPTUAL ISSUES OF INTERNAL AUDIT

The characterization of internal audit and the scope of organizational functions are perceived differently by stakeholders. Formed much later than external auditing, internal auditing developed relatively quickly, and that too in several directions. Currently, the most common types of internal audit are operational audit, management audit and performance audit. Studies show that in practice, the listed types of internal audit overlap in their functions, which not only causes confusion among audit beneficiaries, but also takes additional resources from the organization. The article clarifies the functions of operational, management and performance audit from the point of view of the beneficiaries. Operational audit pursues the identification of efficiency reserves in the implementation of various entrepreneurial functions, which are related to production, service provision. The task of management audit is to promote the functioning of the effective management system used in the organization. And the performance audit is mainly related to the public sector organizations and aims not only to find out the reliability of the budgets of state finances, but also their effectiveness in terms of the expectations of the beneficiaries. Therefore, the areas of operational, management, and performance auditing may intersect somewhere in organizations. And the smaller the scope of managerial, operational and performance audit functions, the more effective the organization of internal audit in organizations.

Higher Entrepreneurship Education: Guidelines for the Formation and Mitigation of Restrictions

The publication focuses on the guidelines for the formation of entrepreneurship education as an important direction in the space of Russian higher education. Based on the functional map of entrepreneurship as a special type of professional activity and the allocation of groups of professional entrepreneurial functions, the article substantiates the appropriateness of including professional entrepreneurship competencies in educational programs on entrepreneurship. The formation of entrepreneurship competencies in graduates is regarded as achieving key learning outcomes based on the application of competency-based and practice-oriented approaches. In this conceptual context, the prospects for the implementation of the «Startup as a Diploma» program are considered.It is noted that in the absence of agreement on the recognition of entrepreneurship as an independent direction of higher education in the Russian Federation, universities are forced to search for non-standard ways to build entrepreneurship education programs aimed at the formation of necessary competencies by graduates. The authors draw attention to the possibility for graduates to obtain professional qualifications simultaneously in two types of professional activity as a result of mastering educational programs on entrepreneurship in universities, which traditionally have an industry orientation.The current results of the activities of the Federal Innovative Educational Platform created for the development of models of continuous entrepreneurship education have shown inexpediency of compulsory inclusion of entrepreneurship programs in bachelor’s and master’s degrees in management. The article supports the idea of separating entrepreneurship education as an independent direction of higher education in Russia and provides the corresponding arguments.

Entrepreneurship: The Ideas of J.A. Schumpeter and R.A. Dahl

The concepts of public and political entrepreneurship were introduced in relation to public administration in the 1960s. Early examples were constructed in relation to institutional change (Eisenstadt 1964; 1980), the bridging role of the entrepreneur between different spheres in local communities (Barth 1972), and the carrying out of urban redevelopment and social programs in local government (Dahl 1961; Murphy 1971). Although the concepts of entrepreneurship were used later to describe a variety of phenomena (Sheingate 2003), there are few comparisons of the differences and similarities between early contributions on public- and private-sector entrepreneurship. Motivated by few comparisons, this paper compares the contributions of Joseph A. Schumpeter and Robert A. Dahl as early examples by asking the following guiding question: What are the important similarities and differences in their ideas—and what is the relevance of their work today? While Schumpeter is seen as a main figure in the literature on entrepreneurship, Dahl’s very early contributions are less well known. Schumpeter treated the entrepreneur and the entrepreneurial function in at least 15 publications, whereas Dahl (1961) used the concept in his case study of power in the Mayor Lee–era of the city of New Haven. The theoretical discussion is based on key publications by Schumpeter (15 publications) and from the New Haven case (4 publications). The discussion and comparison have at least two implications for research and practice. Schumpeter’s conception of entrepreneurship was broader than expected and also relevant in studying entrepreneurship in the public sector. Future studies should still explore Schumpeter’s ideas in other contexts to enhance our knowledge of what ideas should be developed further. Dahl’s conception of political entrepreneurship may inform policy makers and researchers regarding entrepreneurship in a political context, which is not easy. Future case studies and practical efforts should therefore be aware that many contemporary entrepreneurs may only be partially political entrepreneurs compared to those in Dahl’s conception.

The Entrepreneurial Function as an Element of the Institutional Framework of Capitalism: The Enterprise, Not the Pure Entrepreneur, is Relevant

The enterprise is a part of the institutional framework of capitalistic societies. It is a fictional agent created by accounting and sanctioned by law. It is based on capital and its purpose is to yield monetary profit. This article demonstrates that in capitalism, the entrepreneurial function is not fulfilled directly by pure entrepreneurs, but indirectly through enterprises. By situating the entrepreneurial function in the enterprise, this article fruitfully combines the gist of the theories of the pure entrepreneur with that of the institutionalist approach. The applicability of the main point of the article is demonstrated by reference to three approaches to the theory of the entrepreneur. It is the institutional framework of capitalistic societies that allows for the entrepreneurial function, regardless of whether the entrepreneur is defined as (1) the one who brings about equilibrium, (2) the one who destroys equilibrium and thus creates development and progress, or (3) the one who bears the uncertainty which prevails in disequilibrium. By factoring in the role of institutions, the article demonstrates that the theory of the entrepreneur does not have to be a mere dynamic add-on to otherwise static economics. Instead, the entrepreneurial function is necessary for the existence and coordination of production factors, and therefore for economic theory itself.

Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

Mergers and acquisitions (M&A) are a form of corporate entrepreneurship involving strategic decisions that require discussion and approval by the board of directors of the acquiring firm. We focus on board attributes to analyze the entrepreneurial function of the board of directors and its involvement in corporate entrepreneurship. Building on different theories (agency theory, resource dependence theory, stewardship theory, and stakeholder theory), we examine whether board composition affects the number of acquisitions, the risk involved in bids, and the creation of value for the acquirer's shareholders. For a sample of European firms over the period 2002 to 2020, we find that board size and the percentage of external directors are related to the number of acquisitions. However, neither the percentage of women on the board nor CEO duality affects the number of acquisitions by a given firm. We also show that more risky acquisitions are associated with larger firms with a lower proportion of women directors, whereas less risky transactions are related to smaller firms where the CEO is also the chair of the board. Finally, our results indicate that firm acquisitions create value for the acquiring firm and that the market reaction is positively related to board size and CEO duality.

An event-oriented approach to the transmission of ex-leaders’ entrepreneurial endeavor to employees’ entrepreneurial intention

Departing from the conventional feature-oriented approach, this study introduces event system theory to highlight the importance of salient workplace events in shaping employees’ motivation for entrepreneurship and to uncover how the spatial and temporal issues inherent in the event of ex-leaders’ entrepreneurial endeavor may combine to influence employees’ entrepreneurial intention. The results of two time-lagged studies reveal that ex-leaders’ entrepreneurial success, relational proximity, and time proximity interact to affect employees’ entrepreneurial intention such that the positive impact of ex-leaders’ entrepreneurial success on employees’ entrepreneurial intention is stronger in the presence of high relational proximity and time proximity. The results further indicate that employees’ entrepreneurial self-efficacy functions as a crucial mechanism in translating this impact of ex-leaders’ entrepreneurial endeavor. These findings highlight the value of an event-oriented approach to investigating the impact of workplace events on employee outcomes.

Mutual insurance in the entrepreneurial landscape

In this article, the authors introduce mutual insurance as a constructive component of the modern entrepreneurial landscape aimed at the protection of the wealth-related interests of the participants of the mutual insurance company (mutual insurance society, friendly society, etc.). Analyzing mutual insurance, the authors display it from the standpoint of entrepreneurship and assume that such companies (MICs) are among the insurance market actors. The specific feature of MICs is that they form the community of their members-policyholders. As far as members of each organization of this kind are its co-owners, they carry out some critical entrepreneurial activity functions. The object of this research is represented by the insurance market of the Russian Federation, through the prism of which the degree of development of MICs was demonstrated, and the barriers to its infrastructure growth were determined.

Global trends in the assessment of scientific, innovative and educational activities of higher education institutions

New approaches and principles of forming a system of indicators for the analysis and assessment of scientific, innovative and educational activities are analyzed in the article. There is still no standardized system of indicators of evaluating the scientific and innovative activity of higher education institutions, so countries develop such indicators based on national specificities and the level of economic development. Approaches and methods of assessing the quality of education are changing in the world’s leading countries, taking into account its scientific and innovative component. A comprehensive system approach based on multi-aspect expert research with the involvement of a small number of scientometric indicators is spreading. Preference is given to criteria of economic, social, and cultural significance of scientific research. Forming and updating of the system of criteria and indicators are significantly influenced by new trends in the development of higher education institutions under the conditions of the economy of knowledge and innovation: the growing importance of the functions of forming intellectual capital; increasing the role of educational science; forming of innovation-oriented functions of highereducation institutions: generating of innovative ideas; knowledge and technology transfer, entrepreneurial function, etc. The evaluation indicators of higher education institutions in international rankings reflect important changes in the development of the modern university most effectively. Based on the analysis of indicators of well-known international ratings and the methodology of their forming, groups of modern criteria and indicators have been selected for possible use in the domestic practice of evaluating the scientific, innovative and educational activities of higher education institutions.

The Function of the State in Providing Health Services: Indonesia Perspective

The function of the state in providing health services is divided into the regulatory function, the controllingfunction, the entrepreneurial function and the supervisory function. In the regulatory function, the statedevelops policies in the field of health services that ensure that all people can enjoy health services. Thestate control function is responsible for the availability of equipment and medicines as well as maintainingthe stability of the flow of health service distribution. In the entrepreneurial function, the state in addition toproviding health services can receive income from health services which can later be used to equalize thecosts of health care dependents, especially for the poor and underprivileged. In the oversight function, thestate is responsible for carrying out full supervision of health facilities in order to optimally provide healthservices to the people.Keywords: State functions, health services, the right to health.

Foundations of Contemporary Economics: Israel Kirzner and the Function of Entrepreneurship

Israel Kirzner has made profound contribu­tions to the theory of entrepreneurship. His con­siderable insights address the entrepreneurial function in the market process. Kirzner belongs to the Austrian school and hence assumes subjective decision-making, incomplete sets of knowledge for all subjects, and market disequi­libria. He ascribes to entrepreneurs the ability to detect through alertness market disequilibria in dynamic competitive markets. Entrepreneurs as arbitrageurs bring markets closer to equilib­ria even if in a dynamic competitive market an equilibrium remains a theoretical utopia. In this short paper, we outline the most important as­pects of Kirzner’s entrepreneurial approach and the function entrepreneurship has in market-driven processes.

Artificial intelligence, dynamic efficiency and Economics

In this work I will lend support to the theory of «dynamic efficien - cy», as outlined by Prof. Huerta de Soto in The Theory of Dynamic Efficiency (2010a). Whereas Huerta de Soto connects economics with ethics, I will take a different approach. Since I have a back-ground in Artificial Intelligence (A.I.), I will show that this and related fields have yielded insights that, when applied to the study of economics, may call for a different way of looking at the eco-nomy and its processes.
 At first glance, A.I. and economics do not seem to have a lot in common. The former is thought to attempt to build a human being; the latter is supposed to deal with depressions, growth, inflation, etc. That view is too simplistic; in fact there are strong similarities.
 First, economics is based on (inter-)acting individuals, i.e. on human action. A.I. tries to understand and simulate human (and animal) behavior. Second, economics deals with information pro-cessing, such as how the allocation of resources can best be orga-nized. A.I. also investigates information processing. This can be in specific systems, such as the brain, or the evolutionary process, or purely in an abstract form. Finally, A.I. tries to answer more philosophical questions like: what is intelligence? What is a mind? What is consciousness? Is there free will? These topics play a less prominent role in economics, but are sometimes touched upon, together with the related topic of the «entrepreneurial function».
 The paradigm that was dominant in the early days of A.I. is static in nature. Reaching a solution is done in different steps. First: gathering all necessary information. Second: processing this in - formation. Finally: the outcome of this process, a clear conclusion. Each step in the process is entirely separate. During information gathering no processing is done, and during processing, no new information is added. The conclusion reached is final and cannot change later on. Logical problems are what is mostly dealt with, finding ways in which a computer can perform deductions based on the information that is represented as logical statements. Other applications are optimization problems, and so-called «Expert Systems», developed to perform the work of a judge reaching a verdict, or a medical doctor making a diagnosis based on the symptoms of the patient. This paradigm is also called «top-down», because information flows to a central point where it is processed, or «symbolic processing», referring to deduction in formal logic.1
 In economics there is a similar paradigm, and it is still the do-minant one. This is the part of economics that deals with opti - mization of resources: given costs and given prices, what is the allocation that will lead to the highest profit? Also belonging to this paradigm are the equilibrium models. Demand and supply curves are supposed to be knowable and unchangeable, and the price is a necessary outcome. The culmination is central planning that supposes all necessary information, such as demand and supply curves and available resources to be known. Based on this, the central planner determines prices.

Bank reform demands monetary reform

The complex and technical subject of bank reform has scarcely been more popular. Events in Cyprus have demonstrated banks are a way of investing money for a return, with all the risk that entails. Van and minibus entrepreneur Dave Fishwick has created a documentary —Bank of Dave— which shows banking can be a simple entrepreneurial function providing a safe return to savers at the entrepreneur’s risk. It’s award-winning and a soar-away popular success.
 Of course, thanks to regulators, it’s not actually a bank: it’s a savings and loans firm. Whereas these route savings to borrowers, a bank creates credit. That is, banks lend money into existence. It is that distinction, together with other features of the financial system, which has led the world into crisis. It is both one of the least well-understood economic phenomena of our time and the most central to our present difficulties.
 Yet, astonishingly, Dave Fishwick has struck on a model of ban-king close to a theoretical ideal: he carries his own commercial risks and, even if he could take deposits, he wouldn’t provide cre-dit in excess of savings.
 It is towards this model the world should move.

СТАНОВЛЕННЯ ТА РОЗВИТОК ТЕОРЕТИЧНИХ ПІДХОДІВ ДО ВИЗНАЧЕННЯ ЗМІСТУ КАТЕГОРІЇ «ПІДПРИЄМНИЦТВО»

The article is devoted to a review of modern scientific approaches to the definition of the category “entrepreneurship”. Interrelation between the categories of “entrepreneur”, “entrepreneurial function” and “entrepreneurship” is characterized and determined based on the building of an associative-semantic chain, which clearly demonstrates the historical evolution and role of entrepreneurship. It is justified that in historical terms, before defining the category “entrepreneurship”, the development of the concept was shifted from a fixation on the identification of entrepreneurship with an option to carry a risk to the desire of the entrepreneur to use a new combination of factors of production – innovation. A time continuum of content evolution is built, which clearly demonstrates the continuity of the processes of improving the properties of business on the formation of a specific contribution to all spheres of socio-economic life of society. The research specifies structure-forming factors of the category “entrepreneurship”: independent, system, at one’s own risk activity, targeted, consistency, interdependence, legal and social responsibility, initiative. Based on a critical analysis of the interpretations of the category “entrepreneurship” in the modern scientific literature, as well as the results of the study of holistic knowledge about the genesis and given the practical achievements in the theory of entrepreneurship, the author identifies the main scientific approaches to detail the category of “entrepreneurship”, namely economic, personal, innovative, regional, social and institutional. Particular attention is drawn to the separation of key aspects in the identified approaches. The article argues that in defining the term “entrepreneurship”, scientists, on the one hand, focus on it as the process of searching for new opportunities, implementing new production ways, overcoming previous restrains; on the other hand, scientists focus on the riskiness of actions, creative activity and the availability of entrepreneur’s specific qualities, organization of new potential, profitable business, and creative activity in economy that requires specific personal qualities. It is put forward the author’s approach to interpreting the category “entrepreneurship” under which entrepreneurship is a set of ongoing and active processes operating in conditions of economic freedom, risk and uncertainty due to which the entrepreneur takes full responsibility for commercial success, profit generation and meeting social needs.

Development in construction as an effective form of investment in the real estate market

Importance. A modern form of investment activity in the real estate market isdevelopment. Strengthening the role of the state, external negative pressure (including in the form of sanctions), universal digitalization, a pandemic "shake-up", switching to project financing, changing consumer patterns, reviewing approaches to developing sites and interacting with contractors and creditors, and combining various functions (developer, contractor, service and management companies) within one development company have made significant adjustments to the development of real estate development. It should be noted that we are talking not only about housing stock, industrial (industrial) real estate and commercial sites, but also about public spaces and the entire environment. Objectives. Research focuses on development as an effective form of investment activity in the real estate market. The authors analyzed the problems and prospects for the development of real estate development, determined its place in the investment and construction complex and its role in the socio-economic aspect. Methods. The research used a systematic approach, methods of comparative analysis, synthesis, groupings, observation, abstract-logical and statistical-economic. To achieve the goal of the study, relevant scientific and practical materials and economic literature on the topic were studied, analyzed and summarized. Conclusions and Relevance. It was concluded that the optimization of investment and construction activities can be carried out through development. Being an effective form of real investment in the real estate market, development represents the reaction of the market to emerging needs in society, which cannot be met without changing existing real estate and creating new, including socially significant objects. Developers are a unique figure in the real estate market, since they organically combine entrepreneurial and managerial functions in their activities. Special aspects and problems of development business were identified. When selecting and implementing investment and construction projects, developers should take into account economic, social, environmental and aesthetic aspects.