Big business

Business is an entrepreneurial activity. It is led by the subjects of the market economy, state bodies with the help of borrowed funds under their own responsibility or their means. The main objective of the above activities is to make a profit for the further development of their enterprise.

Big business is today one of the foundations of the economy. Large firms at the expense of their resources depend on market conditions to a lesser extent. In other words, large business has a reserve of resources, which can be used in case of unfavorable market conditions. In addition, many large firms, due to their high share, influence the market (for example, price changes). This, in turn, leads to attempts at monopolization, as it weakens competition. In this regard, the antimonopoly policy is conducted in relation to the largest companies.

Large business - the definition is quite large. This concept is characterized by the association of several enterprises around a certain technological chain, commodity group or a common group of senior managers and owners. The main quantitative indicator of a large association is the volume of sales of services and goods (turnover), as the size of market capitalization and profit largely depends on the accepted behavior of players in the stock market or accounting system.

It should be noted that large firms make a significant contribution to the development of many industries, in particular, knowledge-intensive (complex) and capital-intensive (capital-intensive). Often, evaluating the production of certain products, it can be seen that the greatest progress was achieved by a large business. Large concerns are able to develop the development and mass production of ships, cars, power equipment, agricultural machines, semi-finished products and materials (plastics, aluminum, steel). In addition, large enterprises can organize mass extraction of ore, oil, gas and other raw materials. All this causes a certain ambivalent attitude of the state towards large enterprises. On the one hand, they are trying to limit them through antimonopoly policy. And on the other hand, large business is supported as a basis for capital-intensive and knowledge-intensive spheres.

In many developed countries, large-scale enterprises occupy a leading place in the economy. Usually, large business accounts for between 50 and 60% of GDP (gross domestic product). Undoubtedly, large enterprises dominate in many engineering industries (instrument making, electrotechnical industry, transport engineering), chemical industry, fuel and energy complex, non-ferrous and ferrous metallurgy, extractive industries.

Large business contributes to an increase in the concentration of production in a number of service industries. In particular, this concerns higher education, software production, finance, health, trade and other areas. For example, in America, large enterprises account for about 47% of the workforce and 60% of GDP.

In Russia, large forms are considered more effective than the bulk of small and medium-sized companies, and in terms of growth rates, productivity, and profitability. The special position of Russian large business allowed for the period of reforms to concentrate the main financial flows. As a result, large firms were able to organize sufficiently strong teams of highly qualified and highly paid managers. Along with this, the size of large enterprises in Russia is noticeably smaller than in other developed countries.