Entrepreneurial capital and its circulation Annotation: all material means, goods and money that are at the disposal of an entrepreneur and are used for the purpose of profit and are set in motion by hired labor are collectively called entrepreneurial capital. Entrepreneurial capital is constantly in motion in the process of production and circulation, and this goes through a number of stages in the process of movement.
Keywords: capital, additional capital, reserve capital, Retained Earnings, borrowed capital, sources of Finance, Private equity, credit, Grant, leasing, private equity, credit.
Capital has two different properties, the value of which – as is known to many, consists in the socially necessary labor costs spent on the production of this capital. And the rationality of capital is its: A) in the creation of many types and quantities of naflians (goods and services); b) in ensuring the employment of the Labor Force; C) in the organization of partial value, that is, in its formation; g) the most important is manifested through its full participation in the creation and assimilation of additional products.
No matter in which area and in what form Capital is valid, and no matter what components it consists of, it acquires a double character in all its manifestations and is valid as a unit of these properties. These properties of capital come from two different properties in the commodity and a double description of the cause that causes it – Labor embodied in the commodity. Because money is a product of the development of Commodity Exchange and is historically and logically the initial link in capital. The dual property of entrepreneurial capital and its movement can be expressed as follows.
A double property in a commodity, in turn, also goes to entrepreneurial capital. Because it will consist of productive capital in the form of money, means of production and labor, as well as finished goods. Meanwhile, capital goods also show value that has the property of growing.
The process of movement of entrepreneurial capital consists in two aspects, namely – the transition of one type of nafli to another type of nafli qualitatively and an increase in quantity, as well as the process of increasing value.
Additional capital it is created as a result of revaluation of fixed assets at the expense of an increase in the value of property, a share allowance (exceeding the nominal value of the price of selling shares, after deducting the costs of selling them), money received and material assets.
Reserve capital (fund) - is formed from the profit remaining at the disposal of the enterprise after the implementation of all payments. This fund is formed in joint-stock companies and limited liability companies in accordance with the legislation and constituent documents of the Republic of Uzbekistan.
Retained earnings - those that remain at the disposal of the enterprise after the payment of dividends on shares to the founders, are capitalized in the main type of activity (contributing to an increase in the volume of production and sales of products, work, services, updating fixed assets, etc.).
Borrowed capital is attracted by the enterprise under certain terms and conditions under any guarantees in the form of bank loans from the outside, corporate loans, pledged amounts and other external sources.
In the financial statements of the organization, loan capital is presented as liabilities: in the form of "balance sheet" (Section IV of the obligation"long-term liabilities" and Section V of the obligation "short-term liabilities").
One of the most basic rules of business is stability and development. But for this you need to "feed" your work with new investments from time to time. There are not always enough resources for this, so the entrepreneur is confused about where to get them. When it's about large sums, you can rarely hope for friends and relatives. Below we will tell about the sources of formation of fixed capital in business and their types.
Sources of Finance:
Sources of Finance may include:
Private capital is the income that individuals and legal entities receive or accumulate during their activities.
A loan is a cash deposit issued by banks and credit institutions on the condition of a certain period of repayment of interest or on bail in an interest-free manner.
Grant – funds that are issued for social projects or for commercial business development, subject to non-return.
Leasing-cash funds issued for the rental of equipment and technologies for the long term.
Private capital is the part of the assets of an economic entity that remains from the deduction of all obligations, that is, the share of the owners of the enterprise in the assets of this enterprise.
Functions of a private equity account:
- The formation of private capital and the control of economic circulation, which leads to structural and quantitative changes in it, and its correct reflection in accounting;
- Formation of accurate account information on the composition of private capital;
- Correct formalization and reporting of operations related to private capital in preliminary and aggregate documents.
One party under the loan agreement-a bank or other credit organization (debt
the lender undertakes to provide funds (loan) to the other party (borrower) on the amount and conditions provided for by the contract, and the borrower is obliged to return the amount of money received and pay interest on it
Types of loan provision:
Placing property or securities as collateral;
Bank or insurance organization guarantee;
Third party surety;
Insurance policy of the insurance company on the risk that the borrower will not return the loan.
Property in the amount of 80% of the value purchased on a credit account can also serve as the subject of collateral on this loan.
techniques and technologies.
Revolvier credit-first of all, it is worth noting that revolvier, by the way, has nothing to do with it to the pistol that comes before our eyes. The economic dictionaries explain that revolvier credit is the most common and renewable type of credit in the national and world financial markets. It is automatically issued to those who have entered into an agreement with the bank in this regard, without additional negotiations, within the agreed debt limit and for payment periods. That is, the client uses the amount of the loan within the bank limit on the basis of the concluded contract, and with its repayment he receives a new loan in the same amount. The turnover of money in the cost — return — recovery manner can be repeated as desired for a certain period of time agreed.
In recent years, a lot of legislation, president's decisions and programs are being adopted in order to facilitate the expansion of the activities of small businesses and private entrepreneurs in our country. For example, in accordance with the decree of the president of the Republic of Uzbekistan dated April 21, 2021 PQ-5087, in order to further improve the conditions of doing business in our country, the scope of services provided by the state fund to support entrepreneurial activity was expanded, including:
the amount of the percentage of loans granted by business entities for bank loans in the national currency has been increased from 1.5 to 1.75 times the key rate of the central bank; that is, from May 1 of this year, compensation for loans in the national currency issued by commercial banks in the amount of up to 25 percent can be applied. It was noted that compensation and guarantees for bank loans to business entities are issued regardless of the number of the loan agreement.
The main attention is paid to ensuring the implementation of programs for the development of family entrepreneurship, small projects aimed at creating new jobs in the regions, providing services and increasing production volumes, and the formation of permanent sources of income for the population.
In particular, within the framework of these programs in 2021, a total of 3.2 trillion to 135 thousand projects. sums of preferential loan funds are allocated. This figure is almost 4 times more than in the corresponding period last year. The loans allocated in the last 3 years are 19 trillion. reached the sum. As a result, more than 770 thousand families have established their own entrepreneurship. And in the middle account to the coverage of 10% of the total apartments.
Leasing is a long-term lease that allows you to purchase a rented object at the end. On the one hand, this is very similar to a simple rental form. And in fact, the difference between them is clear enough.
Leasing is a service. For example, a farmer who wants to lease a tractor visits a company that provides this type of Service. In turn, the company purchases a tractor at its own expense and transfers it to the client for term use in exchange for a certain amount of payment. And after the expiration of the specified lease period, the right to own the tractor goes directly to the name of the client.
In leasing, the subject of the transaction is chosen by the client. He chooses the seller. And the purchase is made by the leasing company and gives the purchased goods to the client for an agreed period for their temporary use. After the specified amount is paid, the property in the lease goes to the client's disposal.
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