Финансовая среда предпринимательства, предпринимательские риски. Учебное пособие

Dear students!

We are beginning to study the course

Financial environment of business [FEB]

Our course will consist of

-Lectures

-Classes

-Term paper

-Final examination Here, in this lecture hall

I will introduce to you theoretical part of the course. The main parts of course are presented on figure 1.1.

On figure 1.1 we can see the definition of FEB and structure

of the course-or it’s main components.

Financial environment of entrepreneurship can be defined as a set of economic agents and forces operating outside the limits of the enterprise (firm) and affecting the ability of the financial manager to invest money and earn income.

This definition is given to us by the science called riskology. As we can see:

FEB consists of two parts-Microenvironment and Macroenvironment.

In turn, each of the components, also falls into several parts.

In the beginning of our lecture, let’s turn our attention to Microenvironment…

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We see that such factors as

-Suppliers

-Buyers (customers)

-Competitors

-Contact audience

-Intermediaries

Have significant impact on Microenvironment of business (Fig 1.2)

Microenvironment of business

Intermediaries

Fig. 1.2

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Let’s consider the influence of suppliers in more detail.

Firstly – the definition of suppliers:

Suppliers are legal entities and individuals who provide market players and their competitors with inventory necessary for the future production of finished goods.

Let’s see how changes in the supplier environment affect the financial activities of business. We see the whole chains of influence.

So, price increases for suppliers cause price increases for finished products, which in turn lead to negative consequences for suppliers.

Then, shortage in stock and irregularities in supply and strikes cause disruption of schedule of shipment of finished products from enterprise, which in turn also lead to negative consequences for suppliers.

As for the negative consequences, they can be Short-term consequences and Long-term consequences

Short-term consequences – lead to decrease or loss of opportunities of finished products sales

Long-term consequences - lead to lack of consumer confidence

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We have discussed in more detail influence of suppliers for business –risks, and further we will pay our attention to the next part of Microenvironment, namely – intermediaries. Riskology gives the following definition of this factor:

The agents are the organizations which help the firm in promoting, distributing and marketing finished products among customers, thus affecting the amount of revenue generated by the firm.

There are four groups of Intermediaries: Dealers (resellers), logistics brokers, Marketing intermediaries, financial intermediaries. Let’s give a description of each group:

1.Dealers (resellers)- They are organizations which help enterprises to find customers and sell finished products directly to them

2.Logistics brokers can be - Warehouse organizations and Transport organizations

2.1 Warehouse organizations - They provide consolidation and safe keeping of finished products on the way to the destination

2.2 Transport organizations - They move stocks of finished products from one place to another

3.Marketing intermediaries - Market research firms, consulting firms, various advertising agencies

4.Financial intermediaries - Banks, credit institutions, insurance companies

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The next significant group of Microenvironment of business is buyers or customers

The difference between them can be seen on the slide. Riskology highlights:

-Buyers of consumer market - Individuals purchasing goods or services for personal consumptions

-Buyers of the manufacturers market - Companies which purchase goods or services for further use in the production process in order to create a different end product

-Buyers of international market - All buyers outside of country producing goods or services

-Intermediate market buyers - Individuals and legal entities which purchase goods or services for future resale in order to get their own profit in the field of circulation

-Buyers of government market - Government organizations which purchase goods or services for their own consumption or for future use in public utilities, as well as for charit.

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