Lessons 1 · 1 lessons · U. G‘afurov, Q. Sharipov. Basics of Entrepreneurship: textbook for Grade 11 of general secondary schools and for secondary specialised and vocational institutions. 1st edition. “O‘zbekiston” publishing house, Tashkent, 2018
1
The essence and importance of entrepreneurship
Textbook: pp. 3–8
GoalExplain the concepts of entrepreneurship, entrepreneur and entrepreneurial ability, describe the four main aspects of entrepreneurship and its importance for the individual, society and the state, and know who may become an entrepreneur.
New words
entrepreneurial activity: initiative work done at one’s own risk and property liability to earn income · Tadbirkorlik faoliyatirisk-taking: acting although success is not guaranteed · Tavakkalchilikresponsibility: readiness to answer for one’s actions with one’s property and resources · Mas’uliyatlegal capacity: the ability to acquire rights and take on duties by one’s own actions · Muomala layoqati
Explanation
Entrepreneurial activity means initiative work carried out within the law, at one’s own risk and under one’s own property liability, aimed at earning income. The entrepreneur brings resources such as land, capital and labour together and creates a new good or service from them; for this he or she needs knowledge, skills and experience, that is, entrepreneurial ability. There are four main aspects: initiative (putting one’s own idea forward), risk-taking (acting knowing that success is not guaranteed), responsibility (answering for mistakes with one’s property) and the drive for novelty. An entrepreneur does not only feed a family but also creates jobs and fills the state budget through taxes, and the budget is spent on roads, hospitals and schools. By law a citizen must be 18, that is, fully legally capable, to become an entrepreneur; a 16-year-old who works under an employment contract or, with the consent of the parents (adoptive parents or guardian), engages in entrepreneurship may be declared fully capable (by decision of the guardianship authority or by a court). State bodies and their officials may not engage in entrepreneurship.
Worked examples
Risk-taking: Gulnora wants to open a small sewing workshop on the edge of town. Even with good planning, orders may be few or fabric prices may rise. Knowing this, she starts after careful calculation — this shows risk-taking and responsibility together.
Drive for novelty: Sardor’s bakery used to bake only the usual daily bread. Following customers’ requests he began to bake a low-sugar grain loaf as well, and sales grew. This is improving results by introducing something new into existing activity.
Class activity
“Do I look like an entrepreneur?” — In groups of four, each person says which of the four aspects (initiative, risk-taking, responsibility, drive for novelty) is strongest in them, with one real example from school or family. The group members agree or object; at the end each group writes in one sentence how the weakest aspect could be developed.
Practice
1
Why is the phrase “under one’s own property liability” important in the definition of entrepreneurship?
Because if there is a loss, the entrepreneur bears it from his or her own property; this pushes him or her to calculate and be careful.
2
A new sewing workshop opened in a district, hired 12 people and began paying taxes. How does this benefit the workers, the district’s residents and the state? Give one benefit for each.
Workers get a steady income; residents find clothes and services nearby; the state receives tax revenue and unemployment falls.
3
Can 17-year-old Jasur register on his own as an individual entrepreneur without his parents’ consent? Explain.
Normally no: full legal capacity begins at 18. After 16 he may be declared fully capable (if he works under an employment contract or engages in business with his parents’ consent); if the parents do not agree, a court decides the matter.
4
Farrukh has 20 000 000 so‘m of savings and an empty room he could rent in his neighbourhood, but he does not yet know what he will sell or how he will organise the work. Which of the four conditions for starting a business are missing?
The business idea and the plan for carrying it out (business plan) are missing; the starting capital and the material conditions (the room) are there.