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Business idea-business basis. Idea generation
Plan:
1. Entrepreneurial idea, its classification, content.
2. Sources of business idea.
3. Business idea generation.
Under the conditions of deepening reforms, entrepreneurship is an important factor of economic development along with capital, land and labor resources. Therefore, in the years of independence in our country, great attention has always been paid to the development of the entrepreneurial activity of the population. Entrepreneurship plays a key role in ensuring the political, economic and social stability of our country and positively solving the problem of employment. This can be seen in the example of the path taken by developed countries. Foreign economists scientifically analyzed the unique features of entrepreneurship in the economy of countries and created the theoretical foundations of entrepreneurship. According to their theory, entrepreneurship is creativity, it means searching for novelty (innovation), a new idea. An entrepreneur is recognized as a person who creates innovation and thereby provides economic growth and moves society.
Since the beginning of the market economy in our country, legal foundations have been created for the development of entrepreneurship in the economy, including its agrarian sector. A number of decisions and decrees (including "On guarantees of freedom of entrepreneurial activity", etc.) were adopted in this regard. The created legal frameworks and guarantees are aimed at establishing new agrarian relations in rural areas, farmers' sense of ownership of land, means of production and the results of their work.
Entrepreneurship is an integral part of human development that depends on the economy. Since the history of entrepreneurship is closely related to the history of trade, service, consumer goods and services, industrial products and material goods production in general, entrepreneurship and science, technology and great scientists, inventors, constructors, engineers, agronomists, economists working in various fields of economic management have passed away.
Today, entrepreneurship is multifaceted, and its forms and priorities are becoming more objective. It can be noted that the radical development of entrepreneurship was caused by the events that took place on a global scale:
- The Renaissance period in Europe in the XNUMXth-XNUMXth centuries and the scientific and technical revolution that occurred in the middle of the XNUMXth century changed the material, technical and technological basis of production and had a sharp impact on the development of trade and international relations. Science has become the leading force that ensures the development of the whole world, having become a direct production force. According to experts, it was during this period that entrepreneurship and science merged4, a new period of "scientific and technical development" has begun in the activities of large companies and corporations. As a result, an unprecedented level of opportunities to develop and increase the efficiency of production forces has opened up. Entrepreneurship has made a leap towards reaching a new technological level and has gained a strong place in the world scientific and technical development and industrialized economy. Until now, financing of science has been mainly the task of the state, but because scientific and technical development requires huge funds, relations in this regard are not being liberalized. That is why the USA, European countries and Japan are experiencing the period of corporate science development in the conditions of highly developed market economy. That is, large corporations realize the importance of science in the competitive struggle and do not spare their funds in financing scientific research and construction work. Large scientific centers have been established in almost all leading concerns of the world. Unity of entrepreneurship, business and science is becoming a reality.5
The power of entrepreneurship depends on the power and ability of capital. Therefore, the effective operation of the firm, which can be considered as capital, depends on the conditions that enable the rational use of the power of society's capital. This can be called the freedom of the market economy.
Table 4.1.1
Classification of business structures
[1]
ENTREPRENEURSHIP STRUCTURESI |
CLASSIFICATION |
Individual entrepreneur |
The term "individual entrepreneur" refers to individuals who carry out business activities without having a legal status. They may have bank account numbers at will and in some cases by law. They are mainly registered in the state tax inspectorate. |
Private enterprise (firm) |
The owner of a private enterprise is a person who individually owns property, disposes of it, receives income and is fully financially responsible for the results of his business activity. They are registered by the competent authorities of the state. |
Partnership business structure (society and partnerships) |
In such enterprises, two or more persons can pool their capital to conduct business activities in cooperation and participate in the work of the enterprise themselves. Partnerships and societies are distinguished among joint ventures. The founder is not required to personally participate in the company's activities due to the fact that the capital is attached to the company. Another difference is that this society can be created by a single person. |
Joint stock companies |
Joint-stock companies have the form of a limited liability company, the capital of which is formed as a result of combining an unlimited amount of individual capital by issuing and selling shares and bonds. Joint-stock companies can be established not only by issuing shares, but also on the basis of state enterprises. In a joint-stock company, there is a division of labor between its owners - shareholders and managers. |
Firms operating in the community have similar interests, which provides a unique unity between firms and defines the philosophy and behavior of entrepreneurship. These interests include the following: trying to preserve the market economy, private property, and freedom of enterprise. The private interests of firms arising from the demands of the competitive environment are limitless.
Companies form various corporations, associations, alliances, strategic alliances, financial- production groups, combined with state-corporate complexes, create a unique protection environment. But this environment cannot fully ensure the effectiveness of entrepreneurship. Because without the intervention of the state, which is one of the largest and main institutions of the economy, without its support and regulatory mechanisms, it is impossible to create an entrepreneurial environment that provides an opportunity to continuously increase the wealth of the society through the rational use of resources in the economy that is going through a period of transition.
If entrepreneurship is imagined as firms operating in the economy, then it is possible to imagine the unity of institutions that implement the firm, that is, entrepreneurship, household, resources (or resource market) and regulatory mechanisms of the state, as an economy. This view of the economy provides an opportunity to determine the place of entrepreneurship in the country's economic system. Therefore, entrepreneurship, as an important institution of economic management, forms a network of interactions with economic entities and operates within certain conditions (Figure 4.1.1). If the sum of these conditions is considered the environment, then the limits of these conditions are determined under the influence of culture, education, science, politics, etc., which determine the life of society.
If entrepreneurship is so important in the conditions of the market economy, it means that before starting entrepreneurship it is necessary to have the opportunity to have a clear idea of the problems involved. For this, a person who wants to be an entrepreneur needs to have his own idea. An entrepreneur with an idea aimed at providing services, production or trade must overcome any risks and move towards his goal. Unlike other ideas, the idea of entrepreneurship can be defined in different ways. As one of the most widely recognized definitions, the idea of entrepreneurship is classified as a tune.
Тthe idea of entrepreneurship - this is a reaction of a person (several persons) or an organization to the need to solve an identified problem or meet perceived needs around them (in the market, the community in which they live).
Тthe idea of entrepreneurship - this is a set of thoughts leading to a person's goal, that is, it is a set of tactical actions in the implementation of a strategy.
Everyone has a purpose in life. People want to live well, work in good places and be rich. Since wealth is also important in achieving goals, everyone tries to achieve it by doing different activities. Being able to choose the most optimal way for a person to achieve his goal (teacher, engineer, seller) is also a form of entrepreneurship. Because with this, he finds a way to earn the most comfortable income for himself. This can be attributed to the ability of a person to choose his own path in life. That's why entrepreneurship is not just an activity in trade, but it can increase the number of tax payers by reducing the state's tax burden, increase efficiency as a result of materially and morally motivating the head of the enterprise to the employees, and increase the efficiency of the car owner. such as gasification is considered a form of entrepreneurship in the field of their profession. In order for a person to achieve good results no matter how hard he is, he must first have an idea.
A good business idea - this is an important structural part, the core, the first step of establishing a successful enterprise. Good business ideas usually don't come naturally. On the contrary, they are the result of hard work, hard work, and even creativity shown by the entrepreneur in creating ideas, identifying and evaluating opportunities.
Searching for a good idea is the first step in turning an entrepreneur's dreams and creative abilities into a business opportunity and achieving success through its implementation.
However, there are two things to keep in mind:
(a) although the entrepreneurial idea is the initial stage, it is only a tool;
(b) an idea alone, even the best idea, is not enough to achieve success.
In other words, regardless of its importance, an idea is only a tool that needs to be developed and turned into a full-fledged work.
The importance of the entrepreneurial idea can be seen from the above definitions as it guides the entrepreneur towards his goal. Therefore, we will show you the reasons for finding and forming the most optimal business ideas:
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To meet the needs of the market.
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To change the product style and requirements for it.
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To stay competitive.
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To develop technology, to make the product work better.
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To follow the life cycle of the product being released.
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To spread risk and mitigate the consequences of failure.
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To ensure the stability of the economic value.
If entrepreneurial ideas are so important for starting a business, it is required to find out the sources of its formation and its formation. The sources of ideas are primarily a person's own knowledge and skills, life experience, and the existing environment.
Millions of entrepreneurs around the world and their successes show that there are many potential sources of business ideas. Some of the most useful ones are listed below.
Sources of business ideas
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hobbies / personal interests;
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personal skills and experience;
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franchise (the right to produce and sell another company's product);
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mass media (newspapers, magazines, television, internet);
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exhibitions;
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studies;
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complaints;
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brainstorming;
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creativity;
Hobbies / Interests
A hobby is an activity or activity that is done on a whim in free time. Many people get into entrepreneurship as a hobby or hobby. If you enjoy, for example, computer games or cooking with non-traditional recipes, music, travel, sports or performing arts (music, drama, etc.) and many other types of activities , you can often develop them into a full-fledged business. For example, if you enjoy traveling, performing arts, and entertaining guests, you may want to consider a career in tourism, one of the largest sectors of the global economy.
Personal skills and experience
About half of the ideas behind successful businesses come from experience gathered in the workplace; An example is a mechanic who gained experience from working in a large garage and therefore decided to open his own station for the maintenance of cars, or who uses the car in his own business. Thus, the personal characteristics of the entrepreneur (including acquired skills) play a very important role in making a decision to engage in entrepreneurship and in choosing an enterprise network. Your skills and experience, not only in terms of generating ideas, but also in terms of being able to capitalize on them (ideas), are probably your most important resources.
Franchise
The manufacturer or sole distributor (licensee) of a product or service with a well-known trademark may sell this product or service to independent retailers, in return for payment of appropriate compensation to the licensee, and performance standards are consistent with the standards of this enterprise, separately for local distribution. a license agreement on the granting of rights is called a franchise. Franchising can take many forms, but one of the most interesting forms is the form in which the licensee presents its name, image, way of doing business, and its business processes.
In the 80s and early 90s, franchising experienced a period of explosive growth as a very important way to enter business for millions of entrepreneurs in the US and Europe. But there are more than 2000 types of franchises in the US, which account for more than $300 billion in annual sales and one-third of the annual retail sales. In addition to purchasing the franchise itself, an entrepreneur can develop and sell a franchise concept. There are many directories, directories and associations that can provide additional information, including the Halkaro Franchise Association.
Mass media
The mass media is a huge source of information, ideas and, in many cases, direct opportunities for business development. Newspapers, magazines, television, and now the Internet are all examples of mass media. For example, if you look closely at commercial ads in newspapers and magazines, you are almost certain to find information about a business for sale. The answer to such a proposal can be one of the ways to enter into entrepreneurship.
Articles in print publications or websites, or TV documentaries may contain information about fashion trends or consumer preferences. For example, you may read or hear that people are more interested in healthy eating and fitness training these days.
You can also find advertisements for services that require certain professional skills, such as accountants, cooks and waiters, and caretakers. Or, these announcements may present a new concept, such as a franchise, that requires attracting investors.
Exhibitions
Another place where you can find ideas for the development of a private enterprise is exhibitions and trade fairs. Usually their conduct is covered by radio or newspapers.
By regularly attending such exhibitions, you will not only learn about new products and services, but also meet sales representatives, manufacturers, wholesalers, distributors and franchise owners. These are great sources of business ideas, information, and help setting up your own business. Maybe some of them are looking for an enterprising entrepreneur like you.
Тaddictions
When starting a small business, the consumer should be at the center of interest. The needs and desires of the consumer, which is the basis for creating a product or service, can be identified through observation and research. Such research may be informal or formal, interviewing people (using questionnaires or interviews) and/or using surveys.
You can start by talking to your family members or friends and find out what they think they need and want from something that is not currently available in the market. Or, for example, if they are not satisfied with the existing products or services, they would like to see some good changes in those things. Then you can start talking to people who are part of the distribution system, namely manufacturers, wholesalers, distributors, retailers, and agents. Before the interviews, it would be useful to develop a series of questions and prepare them in the form of a questionnaire or use them in interviews. Distribution system representatives who are in close contact with customers know what customers want and what is not on sale. Finally, you should talk to as many current and prospective customers as possible. The more information you collect, the better.
In addition to talking to people, you can also get information from referrals. For example, when deciding to open a store on a certain street, you can count the number of people who pass through it on certain days and compare this figure with such information on other streets. Or, if you are interested in setting up your business in a tourist destination, you can try setting up a craft workshop or a shop selling national handicrafts. Or you may find that there are no good restaurants or hotels on a tourist route or in a tourist town.
The only way to prevent carelessness and neglect in this area is to cultivate readiness to respond at any time to emerging needs or entrepreneurial opportunities. For example, one of the businessmen, at the parties he attended, took turns to ask the guests to talk to each of them if they did not use any item that did not fully fulfill its intended functions. Another was constantly watching his relatives' children playing with toys, looking for ideas to create a new market niche.
Complaints
Consumer complaints and lack of familiarity have led to the emergence of many new goods and services. Every time a customer or consumer complains about the shortcomings of a product or service, or you hear someone say, “I wish it was………” or “If there was a product (service) that would be …………… When you hear the words "if only", you enter into your mind an idea that can be implemented in business. This idea may be to create a firm that competes with the existing enterprise and offers a better product or service, or to create a new product or service and sell it to the enterprise that developed it and (or) to all interested parties.
Brainstorming
Brainstorming is a way to creatively solve problems and generate new ideas. The purpose of brainstorming is to come up with as many ideas as possible.
Brainstorming usually starts with posing a problem or issue. For example, you can ask a question like: "Which products or services that are not currently available in the market do we need in our household right now?" Each idea brings one or more additional ideas, and as a result many new ideas.
When using this method, you must ensure that four rules are followed:
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Do not criticize other people's ideas and do not draw your own conclusions about them.
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Support the free flow of ideas; ideas that seem unusual and implausible at first are welcome.
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An abundance of ideas is a desirable outcome: the more ideas, the better.
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Suggest new ideas by improving and combining other participants' ideas
Along with the above reasons for the birth of entrepreneurial ideas, first of all, the entrepreneur himself should be knowledgeable, well aware of his activity scope, environment, conditions and have the ability to analyze. Because having an idea and bringing it to a standard and implementing it is also a form of entrepreneurship. Among the students, there are those who cannot explain what they have read, who do not want to read even if there is a good speech, who cannot speak in public even if there is a good speech, and those who have a strong ability to remember even if they do not understand. such problems may be encountered. These problems are among the problems that can be solved. Because reading a lot of books on various topics expands a person's range of thinking, and at the same time increases his creativity.
Creativity
To be a creative person, you need to keep your mind and eyes open to the outside world.
What is creativity?
Creativity is understood as the ability to construct, shape, create, or do something else in a non-traditional way that differs from known methods.
The ability to proactively identify needs (problems) and effectively market the results of these solutions is often the difference between a successful and unsuccessful business. Fast-growing and developing companies differ from ordinary medium-sized companies in that they have this ability. A successful entrepreneur is creative in selecting new products and services and identifying emerging business opportunities.
To be a creative person, you need to keep your mind and eyes open to the outside world, and work with the sources of ideas, using logical methods, as described in the song.
After that, all ideas, no matter how illogical or implausible they may seem, should be written down.
Why should you come up with business ideas?
There are many reasons why existing entrepreneurs or potential entrepreneurs should come up with business ideas. Here are some of the reasons:
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To start a business, you need a good idea. As mentioned above (where the importance and necessity of this topic is based), a good business idea is very important for establishing a successful enterprise and subsequently maintaining its competitiveness.
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The need to respond to market needs. Markets are basically made up of consumers with specific needs and wants waiting to be satisfied. People or firms that are able to satisfy needs and wants are rewarded accordingly.
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The need to change the style of the product and the requirements for it allows entrepreneurs to respond to the emerging demand by presenting new ideas, producing new goods and offering new services.
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The need to remain competitive. Remember, if you don't take the time to come up with new ideas, develop new products, and offer new services, your competitors will. Being different from others or being better than others is the main issue for you.
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The need to develop technology to improve the product. In today's markets, where rapid changes require firms to constantly innovate, technology has become the most important means of ensuring competitiveness. There are several companies in the world, including in the field of electronics and sophisticated household appliances, which release dozens of new products on the market every month. For these and many other companies operating in today's global markets, generating business ideas is a very important factor.
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The need to follow the life cycle of the product being released. All products have a limited shelf life. As shown in the product life cycle diagram, even new products eventually become outdated and out of date. Therefore, the need to plan to create new products and increase production is obvious. The development and growth of the enterprise depends on its ability to introduce a new product to the market and increase its production.
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The need to allocate risk and mitigate the consequences of failure. The fact that more than 80% of new products introduced to the market are not competitive (failure) is intrinsically related to the concept of the product life cycle. Therefore, enterprises should try to spread their risks, and by constantly coming up with new ideas, they should use all possibilities to mitigate the consequences of failure that may occur from time to time.
The creative potential of an entrepreneur is an important factor in overcoming the competition. At the same time that the world economy is growing at a rapid pace, the demand, taste, and outlook of consumers are also growing. This situation requires the entrepreneur to be able to quickly adapt to the existing environment. It is not always possible to ensure stability by adapting to the existing environment in time. This requires an entrepreneur to have a deep knowledge of market marketing and to offer his products and services differently from competitors in accordance with the demand. The offer is not just cheaper or better than their competitors, but more appealing because they are innovative, modern-looking, compact, tasteful and non-traditional. For this, the entrepreneur needs real creativity. For this reason, enterprise managers in developed countries try to attract creative young people of different categories, representatives of different nationalities and professions to their surroundings, and pay serious attention to market research. As a result of these actions, that is, if marketing research allows you to identify a new demand, it creates the opportunity to come up with a new style of offer to respond to it accordingly. As an example, if we take mobile phones, which are now widespread, we can see a number of phenomena. The phones offered by Nokia are always the most optimal option for the middle class population. While Vertu, LG and Samsung phones are also available at different prices, the creativity of these phone manufacturers is growing with the times. A year or two ago, the phone was used separately, the flash drive was used separately, and the camera was used separately, but now the phones offered by the companies of the shark countries also have the function of external memory of the computer, the presence of digital cameras, listening to the radio, watching TV and accessing the Internet. including the availability of an exit option.
A good business starts with a good business. Business goya is the KisKa and aniK meaning of the planned business. Before starting your own business, you must be clear about the type of activity you are engaged in; imagination
Make sure you have it.
It is necessary to pay attention to this, a successful business satisfies the needs of customers and at the same time gives the opportunity to realize your personal capabilities and intentions. In other words, your business sells products that make it possible for people to get what they want and need; But it should bring enough income and personal experience to your business.
Therefore, you MUST identify and develop business ideas that are good enough for you and your customers. For this, it is very important that you describe them well and check them step by step. Well-articulated business ideas are the key to good business success.
In order to find and choose the right business ideas, you need to answer the following four main questions:
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What products or services does your business provide?
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To whom are these products sold or to whom are these services provided?
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How do you deliver these products to customers or how do you serve them?
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What kind of customer needs does this business meet?
How?
The first question you need to answer is: What does your business make and sell?
What products, services or services does your business sell? Your business MUST be related to products you are familiar with or related to the services you offer. These are services or products that represent real needs and people are willing to pay for them.
A product is something you make or buy to sell. For example: Confectionery, Building materials, Clothing, furniture, food and household goods.
Service is what you are to people and what they are willing to pay for. For example: room cleaning service, clothes cleaning, delivery of goods, computer and office equipment repair service, internet cafe, jewelry repair, chemical treatment of plants and trees, animal treatment and so on.
To whom?
The second question you need to answer is: Who is your customer?
Who is your service or product intended for? Customers who are interested in your services or products bring you money. Be clear from the beginning, do you sell your product/service to a specific customer group or to the population of the area where your business is located? There MUST be enough people willing and able to pay for your products. This will ensure that your business can generate sufficient income. Before developing something, determine who you are going to sell your product to; You need to specify.
How?
The third question you need to answer is: What are the products/services sold in your business?
How do you market your products/services? If you open a store, everything will be easy, but manufacturers use other different methods of sales. Manufacturers can sell, for example, directly to the customer, or to wholesalers (retailers) or wholesalers.
The advantage of selling through your own store is that you know your customers well, you don't have to worry about selling your goods, because you know them well, and there are no additional costs associated with selling through an intermediary. However, you may not have enough experience and knowledge to organize sales.
In turn, implementation through intermediaries gives you the opportunity to increase your attention to production, improve the quality of the product or service, and spend a lot of time on it.
Which one?
The fourth question you need to answer is: Yours
Does your product/service, your business as a whole, meet the needs of your customers?
Your business idea MUST come from and be based on customer needs. Before you begin to develop your business idea, it is important to determine what your future customers want and what they are struggling with. Contact your local customers; put:
Before you start your own business, remember this: if you try to create a business without demand and demand, you can lose money.
If you are struggling to answer one or more of the above questions, the Chamber of Commerce, Entrepreneurship Promotion
Contact the consultants of the local branches of the information and consultation centers.
Questions for self-examination
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What do you mean by entrepreneurial potential?
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What are the characteristics of entrepreneurial potential?
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What character traits can an entrepreneur have?
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What factors shape the personality of an entrepreneur?
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What are the main signs of entrepreneurial culture?
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What are the characteristics of entrepreneurship?
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What do you mean by leadership?
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What role does the quality of leadership play in entrepreneurship?
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What funds, agencies, funds do you know that support the development of entrepreneurship in the Republic of Uzbekistan?
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What is the role of decision-making in entrepreneurship?