УДК 338.28

THE IMPACT OF TECHNOLOGIES ON DOING BUSINESS IN MODERN WORLD ECONOMY

K.M. Dzianishchyk, student of group 10508115 FMME BNTU,Research supervisor N.I. Shumskaya

В статье рассматривается влияние инновационных технологий на ведение бизнеса в современном мире и экономический эффект от их применения. Современные технологии оценены по перспективности их использования для получения экономической выгоды. Приведены примеры оптимизации ведения бизнеса в частности и улучшения состояния экономики в целом. Современные технологии рассматриваются с точки зрения их воздействия на окружающую среду, на повышение общего благосостояния стран, на улучшение качества жизни человека. Представлен прогноз качественного изменения условий ведения бизнеса в результате широкого внедрения представленных технологий.

In the article the impact of innovative technologies upon doing business in the modern world is considered and economic benefits from the implementation of these technologies. The modern technologies are assessed at the prospects of their usage to achieve profitability. Here are presented some samples of optimizing of doing business particularly and improvement of economic climate in whole. The modern technologies are studied from the point of view of their influence on the environment, on the living standards rise in separate countries, on the improvement of the quality of life of a person. The forecast of qualitative changes of business environment is shown as the result of wide implementation of the presented technologies.

Introduction. Now it is impossible to imagine the world without computers, phones and the Internet. Also such technologies as a 3D printing, artificial intelligence, renewable energy, electric cars and others are known to all. As strongly new technologies will affect people’s life, as business and economy in general depends on rather many factors.

At first sight, all new technologies can change considerably our world to the best. However, the implementation of each new technology is followed by a large number of obstacles: a lot of time and millions of dollars go for development of effective and public solutions, also changes in the legislation or issuing new laws quite often are required. You shouldn't forget also that most of people are rather conservative and adopt all changes with doubt.At present time the speed of an idea embodiment strikes greatly. New technologies appear so quickly that we don't manage to monitor the last emergence, at the same time many technologies offer business new opportunities.

Main part. Under the influence of innovations new technologies make business more and more public, flexible, promptly developing, powerful, and easily extend to various spheres of economy. Using new technologies which provide an open entry, handling and storage of information, businessmen adjust more large-scale and effective working productivity, expand a field of activity of the entity and become more competitive.

Technologies have changed not only a business method – they have changed the method of thinking. Nowadays new technologies are applied not only to collection, storage and data processing, but also to generation of the ideas, search of new methods of customer acquisition and profit earning. Special programs help decisive people to make important strategic decisions. Network technologies have reduced the world to the size of the monitor or the screen of your smartphone thanks to that we had an opportunity of simple and prompt access to large volumes of data and instruments of work with them. Being in every spot on the globe, you can hold a meeting or execute the order.

Mobile Internet is the most useful invention of the last years. Quite recently the mobile Internet was a luxury product, and now it is already an integral part of our everyday life. Now we always in touch and in our smartphone or tablet there are a lot of useful mobile applications. More than 200 million users are connected to the mobile Internet every minute. The development of the mobile Internet (which, by the way, now actively works in 4G mode, and to 2025 implementation of 5G mode is expected [3]) exerts a considerable business impact: working efficiency grows, the great number of new useful applications and services appear. The companies try to apply the correct strategy of use of mobile technologies which will attract clients who want to have access to information where and when they want.

Thanks to achievements of scientists in the field of artificial intelligence and robotics, we received good assistants who can cope with many tasks with which only a man could cope earlier. For example, today many programs can answer the questions asked in human language (services like ok-Google or Siri), and the improved analytical functions can replace highly-skilled employees, releasing their time for the solution of more important and difficult tasks. It can absolutely change the process of the organization of intellectual activities [2]. As for robotics, it is possible to expect that in the nearest future they will find broad consumption in the field of services, industrial and medical spheres. In particular, the roboequipment can improve considerably the life of physically disabled people.

Cloud technology has changed our computing greatly. By means of Cloud computing, both regular users, and the companies can use various services without installation special software, with the maximum flexibility and without considerable cash investments [4]. This technology is more important for business as it allows scaling easily computer resources according to requirements of the company, helps with the solution of important tasks and search

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of the area of work. In the modern world Cloud represents quite significant technology. Cloud computing helps business to grow, to develop a large number of necessary services and to create the effective business models meeting modern standards.

3D printing initially was used mainly by designers and in very rare cases. Now possibilities of new advanced 3D printers have grown, the choice of materials has extended (now it is already possible to use such printers for cooking food or for manufacturing necessary parts for cars, and even for constructing houses [6]). Cost of both printers and materials is decreasing, and also the time from the idea to implementation is reduced. It looks likely that in the near future 3D printing will be available to everyone; and production, storage and delivery of goods will become simpler and cheaper.

Autonomous carstoday become a reality. In modern cars a set of new functions appear: machine sight, artificial intelligence, modern devices and sensors. And such transport, from autonomous cars of Google to military equipment, can significantly change many spheres of people’s activities.Autonomous cars will allow improving efficiency in the sphere of a cargo transportation and logistics [1], and thanks to that the implementation of themwill reduce the amounts of harmful vehicle emissions into the atmosphere, and, as a bonus they will help to make driving the car safer.

Storage of energy and renewable energy is a dramatic problem of our world. The scientists and engineers believe that the sun, wind and sea waves are those power sources which will provide us with energy in the future [5]. These so-called renewable energy resources will never end, and they are available practically everywhere, in contrast to oil and gas, and they don't destroy planet ecology.Also technologies for energy storage are developing now rather actively. They include batteries and other means which allow keeping energy for subsequent use. Now the cost of renewable or "clean" energy falls constantly: so, for example, for the last 20 years the cost of a solar energy decreased by 10 times. The improvement of energy storage technology contributes to the popularization of solar and wind power stations, and also allows spending energy more economically. "Clean energy" and the storage of this energy are widely employed in developed countries, for example in the USA and Germany. Many developing countries suffer the lack of energy, and due to renewable energy resources and new technologies of storage of energy people will receive a reliable source of energy.

Conclusion. According to the statement of specialists, these technologies will crucially change our lives up to 2025 of, and up to the same year a potential economic benefit from theimplementations of these technologies can resultabout 35 trillions dollars a year. At the same time it is said that these figures are not a forecast, and they are necessary only to present people the idea of that how stronglythe implementation of these technologies can influence the economy.

REFERENCES1. Autonomous car forecast : Driverless car market watch [Electronic resource]. – Mode of access :

http://www.driverless-future.com/?page_id=384. – Date of access :16.03.2017.2. Benefits and risks of artificial intelligence : Future of life institute [Electronic resource]. – Mode of access :

https://futureoflife.org/background/benefits-risks-of-artificial-intelligence/. – Date of access : 16.03.2017.3. Mobile broadband : Wikipedia. The free encyclopedia [Electronic resource]. – Mode of access :

https://en.wikipedia.org/wiki/Mobile_broadband. – Date of access : 16.03.2017.4. Network and business internet solutions Home : Cloud Technologies Inc [Electronic resource]. – Mode of

access: https://www.cloudtechinc.com/business-internet/. – Date of access : 16.03.2017.5. Practical, cost-effective solutions for a sustainable energy future : Smart energy solutions / Union of

concerned scientists [Electronic resource]. – Mode of access : http://www.ucsusa.org/clean-energy#.WNuRJmclG70. – Date of access : 16.03.2017.

6. What is 3D printing? : 3D Printing.Com [Electronic resource]. – Mode of access : https://3dprinting.com/what-is-3d-printing/. – Date of access : 16.03.2017.

УДК 338.984

EFFECTIVE ESTABLISHMENT OF BUSINESS IN THE MODERN WORLD

S.V. Dorofeev, student of group 10503516 FMME BNTU,Research supervisor the candidate of pedagogical sciences L.V.Solovyova

Большинство людей, которые хотят поднять свой доход выше среднего уровня, начинают заниматься предпринимательской деятельностью. Открыть собственное дело в современном мире может любой человек. Самое главное – найти прибыльную идею и обеспечить грамотный подход. О том, как правильно и эффективно всё спланировать я вам и расскажу в своей научной работе. Так же в этой работе вы узнаете, что является бизнесом и какова его роль и значение в современном мире.

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Most people, who want to raise their income above the average level, begin to engage in entrepreneurial activities. To start one’s own business in the modern world the most important thing is to find a profitable idea and provide a qualified approach. In my scientific work I will explain how to properly and effectively plan everything. You will also learn what business is and what is its role and importance in the modern world.

Introduction. In order to understand how to create or build a business, you first need to understand what business is and what its role is. Business is an entrepreneurial, commercial or other activity which is not against the law and is aimed at making a profit. Business is one of the main occupations in the conditions of market economy, the source of economic and social development of society. It covers production, commercial, consulting, banking and other areas. The number of employees, volume of production, the conditions of the activity is the small, medium and large business. The most popular type of business – small business: as a rule, small companies that produce homogeneous products and occupy a small share in the market. In developed countries there is a system of state support of such business, as it arranges daily small needs of people.

The place and role of business in modern society is determined due to the very significant functions of business in social development.

First of all, it is an economic function: regardless of the social order, the political regime, the dominant religion, each society is able to exist and successfully develop only under the condition of economic activity, providing, as a minimum, at least the reproduction potential of the society. This implies effective business activity management.

No less important is the political function of business and management. The political life of any society, ultimately, expresses the clash, the struggle of particular interests, primarily economic. So the business world (large entrepreneurs, top managers, medium and small businesses, united in sectored or regional unions and associations) has a decisive influence on political decision-making, without their active participation and support, none of the election campaign, the formation of government. Thus, the business appears to be one of the decisive factors in the formation and development of civil society.

To a certain extent, the business world, the world of business performs in relation to the society leadership function - in the sense that its status, objectives, nature and methods of implementation of business activity determine the state of public life: the general mood, life goals, etc. In light of the foregoing, it is evident that in modern society, the business performs a major modernization, or more precisely - an innovative feature providing not only economic conditions for the survival and development of society, but also the implementation of the latest achievements of the world's technical, scientific and humanitarian thoughts. It is impossible not to recognize that the transition of traditional societies and cultures of modern production, science, technology, medicine, civil society, democratic freedoms, international cooperation and integration is carried out precisely through and not based on the actual practice of business.

The socio-political role of business is no less important. Socio-political existence of every community, eventually, expresses conflict, a war of certain interests, primarily in finance. For this reason the official company (large entrepreneurs, top managers, medium and small businesses, regional unions and associations) is concerned about characterizing the impact of the adoption of socio-political opinions; there is no such electoral company which isn’t influenced by the business sphere. Thus, the business was one of the main conditions of formation and development of civil society.

Therefore, to understand the nature of modern business, its role and value it is necessary to remember at least a brief history of its general evolution trends. Without this understanding, the business is doomed to inadequacy, constant ideas and outdated ideological and moral stereotypes.

Just like any living organism, the business passes all stages of development. All of them are necessary, and the result of each of the stages finds its real place in the life of the company. Businesses need a balanced life, the real basis for action, impulse and fullness of ideas to flourish.

The conditions of modern life is dynamic, they change and become faster every day. The fact is that yesterday some product was in trend and was popular, but today it’s not demanded any more. Such a high growth rate definitely leaves a mark on the mentality and concepts of people. We want to do everything, to try everything, to be more successful than our fellow citizens in everything.

Main part. The easiest way to achieve financial freedom is your own business. And the majority of population, especially young people understands it. Especially now when opening a personal small business doesn’t require huge sums of money or building huge factories. The development of technology, particularly the Internet, gives you the opportunity to become an entrepreneur without investing many resources, and without knowledge in economics and finance.

Most people, who want to start to live in the world of entrepreneurship, do not have specific knowledge and the necessary financial means. Therefore, the attempt to organize something serious is fraught with a high risk of loss.

Budding entrepreneurs make the mistake already from the start – they believe that it is easy to achieve success and that money will come to their hand themselves. According to statistics, 90% of cases the causes of failures are the following:

An increased rating of demand for good; Low level of knowledge of the entrepreneur in the chosen field of business. In this case, the person just

doesn't know what, how and when to do;

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Errors in the calculation of the necessary volume of investment needed for the financing activities and reduction of the period of self-sufficiency.

Business planning is the key to success. Even the simplest business must start with the writing and execution of the business plan. Almost every entrepreneur agrees with it, but only 50-60% of the total number of entrepreneurs does it. Many of them are afraid of it, considering it as something abstruse and complicated, with lots of calculations and tables. But it is not necessarily to dig so deep. Basic calculations are enough for the beginning business, such as analysis of the selected market, the forecast of sales, advertising budget and the main activities in advertising. It is not necessary to arrange some documents; one can just to put the necessary information into a notebook or a special journal.

The desire to become an entrepreneur isn’t enough; one must have a clear understanding of the sequence of further actions. To avoid common mistakes, many good businessmen, who have achieved in their business, recommend doing the following.

At first you need to determine the right direction and to find the idea. Interesting and promising idea is already the “half of the traversed path” to success. What should it be? Any. You can take some idea that was already tested and receive small but steady money. Or find yourself a new and special idea, the embodiment of which is associated with a greater risk, but if you succeed it will bring in a decent profit.

Then you should assess your knowledge and your opportunities. One or more of the selected ideas need to be correlated with existing knowledge and capabilities. Business is easier to create if you have at least minimal understanding of your future business. For example, why do repairs of machinery, if you know nothing, but in a different sphere, on the contrary, you’re a professional.

The next phase for business is the gathering of information. Selecting a specific option, you need to gather about it as much information as possible from different sources: Internet portals, any books, from more experienced friends or colleagues. What you need to know is: what conditions are required to create business? Which funds are used? What workers to look for? What documents does it require? What is the profit? Etc.

The next step is planning. Based on the collected data you have to produce a business plan. This is a document which consistently explains all about creating a new enterprise, starting with its description and ending with the data on its expenditures and forecasting future economic development indicators. In most cases, the business plan is doing for additional funding from investors. But even if it opens fully at its own expense, to neglect this document is not necessary. Its existence will allow you to see the process of creating a business and analyze occurring problems in time. The content and peculiarities of the business plan depends on the scale of your project.

And finally, let’s talk about the implementation of the project. The most difficult and grueling stage is the creation of business. In a short period of time will have to solve numerous issues: to register the necessary official and legal documents, to open a bank account, to buy some equipment, to select and hire staff, to rent and equip the space. Young business is still in its infancy. The first months of business existence will completely take its owner’s time, without leaving him a single free minute.

Conclusion. All the above mentioned, let us conclude that the business is an integral part of society because it covers all spheres of activities (industrial, commercial, banking, etc.) and to create a profitable business you need: a good idea, your knowledge, lots of information, and of course a plan to establish your business. Without these you cannot create a profitable business. Of course, there is a risk that you may fail and make matters worse, but that is the most interesting part. As they say “nothing ventured, nothing gains”.

REFERENCES1. Студопедия [Electronic resource]. – Mode of access : http://studopedia.ru/8_3524_rol-biznesa-v-

obshchestve.html. – Date of access : 15.03.2017.2. Финансовыйсловарьтрейдера [Electronicresource]. – Mode of access : https://utmagazine.ru/posts/9284-

sozdanie-biznesa. – Date of access : 18.03.2017.

УДК 332.154

ECONOMIC CONDITIONS IN TERMS OF STIMULATING SMALL AND MEDIUM SIZED BUSINESSES IN THE WORLD ARENA

V. Doroshenko, student of group 10503315 FMMT BNTU,Research supervisor A. Kolyasnev

В статье рассматриваются такие проблемы, с которыми сталкиваются предприниматели при создании своего бизнеса. Здесь перечислены страны, в которых лучше всего вести свой бизнес и описываются экономические условия, характерные для конкретной страны. А также здесь обсуждаются трудности, с которыми бизнесмены могут столкнуться в определенной стране, и перечислены все недостатки экономики определенной территории.

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The article considers problems that businessmen encounter, when establishing their business. Countries where it is best to conduct a business are listed and economic conditions that are specific to a particular country are being described.In this researchdifficulties that businessmen can face in a certain country are taken into account and all the shortcomings of the economy of a certain territory are enlisted.

Introduction. Nowadays a lot of people are thinking of starting their own business. In the analysis, which is carried out, all the characteristics of the market (from the salary to taxes) are taken into consideration. However, not all people think of establishing their business in the country where they were born or live. Perhaps the reason for this is economic or political instability. As a result, they consider doing it abroad. Qualitative analysis helps them to identify a favorable environment for their business. You can do business in any country you want, but some countries are better than others when it comes to starting and running a business. These factors include such things as the decreased economic freedom, expensive regulations in finance and health, high taxes on corporate profits, and more. So it’s not that simple. There is no and there can be no statistic: what country in the world is better to open your business - in each case it depends on the abilities, motivation, business specificity that person is going to do [1].

Main part. Different countries have different rules of business warping. The main disadvantage of doing business abroad – high taxes. However, the positive thing is that in developed countries can hope for a reduced period of establishment of the company (during the week) and minimum requirements for the size of the authorized capital. In them, you can usually buy a business address, if funds for the rental of premises is not enough. In the business documentation, you must specify the exact coordinates of your company.

On the one hand, Europe is considered to meet the criteria the best. But Europe has one major drawback: it is small, but the population is rather big. The total population of the 27 EU member countries is more than 500 million people, the 3rd largest in the world. And the business is well developed there. You have to be prepared for the fact that the West will have to act in the face of fierce competition, high energy prices, and labor, which does not exist in other regions of the world. All developed countries are prosperous. The European Union in the same share of small businesses in GDP meets 57%, in some individual countries – up to 80%. For comparison, in Russia this figure is kept at around 20% – 25%.

There are many ratings by different organizations, which list the best countries for doing business. For example, Forbes or Business Management - a global study and the accompanying ranking countries in terms of the creation of favorable conditions for doing business. Designed according to the World Bank methodology. Of course, the lists are not similar to each other, but similar in general. Consider the countries that are included in these lists as the best countries for doing business in 2017:

Denmark goes first in these rankings. Not only that Denmark is one of the most entrepreneurial countries in the world, the government makes it easy to start a new business. The government is always good to meet foreign investors and businessmen who are already or will conduct its business in the country. Denmark ranks high on this list because of the low risk of the tax burden and corruption. Highly educated workforce in Denmark and the GDP per capita (among the highest in the world) are additional incentives for business investment in the country. Denmark is fully open to international trade and investment, which makes the country's economy one of the most competitive and flexible in the world. Running a business in Denmark requires passing all four procedures, the minimum amount of capital was recently reduced. In addition, the Danish labor market is effective due to the relatively flexible hiring and firing instructions, as well as a very stable monetary system.

Let’s have a look at the second-best territory which is Hong Kong. No single country, and the territory of China, Hong Kong has the lowest tax burden on business with a relatively low government red tape. Open your company in Hong Kong simply and quickly - the registration process will take a couple of minutes, plus preparation of seals and documents - a few days. The tax system in Hong Kong is very clear and simple. The territorial principle of taxation and low tax rates can be added to the list. There are no foreign exchange controls, customs duties, etc. In 2016-2017, the envisaged reduction in income tax rates took place (by 75 per cent in the amount of up to 20,000 Hong Kong dollars). It has grants for small and medium sized businesses. A tax on dividends, royalties, capital gains, interest, value added, etc. are not charged. But there are several disadvantages:

an expensive service company; public access to the register of directors and shareholders; the need to pass the audit and filing of financial statements; the requirement to have a local Hong Kong Secretary [2].New Zealand comes next. Some 20 years of government investment has transformed New Zealand's economy

into one that is nimble, free-market, industrialized - and globally competitive. From the perspective of economic development, New Zealand is very popular among foreign businessmen due to the prestige of jurisdiction, as well as favorable tax policy. Experts note the low level of requirements for the registration of private enterprise, which has a positive effect on the growth of business activity. New Zealand company is in good standing with banks and processing companies (online banking), which creates a comfortable environment for conducting e-commerce. New Zealand is not included in the list of offshore zones, but it has other advantages, including respectability, stability of the economic and political situation, lack of double taxation in practice, the absence of foreign exchange controls. Note that the company, income earned abroad, are not subject to local taxes and the minimum registered capital of

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not legally secured. Most business activities do not require any permits, only the real estate business, construction, catering service, sale of alcohol and medicine have the features of regulation or licensing required.

Ireland ranks at the top for personal freedom, and has a relatively low tax burden on businesses. In Ireland the opportunity to register a company with low taxation is successfully combined with a wide range of various tax incentives provided by industrial and financial companies. Grace 10-percent income tax for companies operating in certain manufacturing industries, international financial institutions, as well as companies operating in the field of engineering and computer services. In addition, Ireland is considered to be the first country in the world for investment in terms of quality and efficiency, and the best country in Western Europe for investment.

A high standard of living coupled with a highly skilled labor force makes Sweden a formidable place for doing business. In Sweden, small business and statesperson movement as a whole is very ambitious. Foreigners here are unlimited to invest in their own business, buying and selling companies, but the contract must be concluded for the implementation of such operations between cooperating countries. The main areas of business, which are being implemented by foreigners, are information technology, transportation, and real estate services, trade and design.

Canada also welcomes foreign entrepreuners. With its transformation from an economy that was largely rural into one that today is mostly urban and industrial - and with great personal freedom and negligible red tape - Canada ranks high. The country actively supports business lending and advice, and its government is willing to cooperate with business organizations and provides them with assistance. The state supports all kinds of business and does not create obstacles for foreign companies. Income tax and income tax, as well as energy prices in Canada is fairly low. At the same time, per capita income - one of the highest in the world. In addition, the cost of starting a business are lower than in the neighboring United States, and the low crime rate is also cause for optimism. Canada can boast of a very low level of bureaucracy, simplicity and accessibility of the base and doing business, investor protection safeguards. The Canadian government creates the conditions for a comfortable business. Sufficient variety of loans and credits are provided in the country [3].

Norway comes next. Norway manages to successfully combine an energetic business base and strong tech sector along with a strong social safety net for its citizens, making it a business force to be reckoned with. Norway is considered to be a safe country to do business. Any foreign company that wants to work in Norway, can register their branch. Special requirements to the legal structure of foreign business is not. Companies with limited and unlimited liability shall be entitled to register as NUF. Norway - is primarily an industrial country, whose economy rests on the extraction of oil and gas, commercial fishing, mineral processing, hydropower, navigation and shipbuilding. The most profitable areas of activity considered fishing and tourism [4].

Conclusion. You can list a lot more countries with excellent conditions for the introduction of business. The difficulty lies in the selection of the country that suits your specifications. Any country has its own nuances. There is no country that completely satisfies all conditions. Important criteria such as economic and political stability, taxes, credits and loans, competition, quality of life, health care, salaries and more are always subjects to consideration. The area you’d like to establish a business in is also of utter importance. If the country is suitable for your criteria, but there is no demand for this particular sphere, then it makes no sense to start a business there. Analysis is the most important guarantor of your future business’ success.

REFERENCES1. Rychla, L. Countries for business Forbes / L. Rychla // Forbes [Electronic resource]. – 2008. – Mode of

access : https://www.forbes.com/best-countries-for-business/list/4/#tab:overall. – Date of access : 21.12.2017.2. Fu, F. How to open a company in Hong Kong / F. Fu // The complete guide [Electronic resource]. – 2006. –

Mode of access : http://www.saporedicina.com/english/how-to-register-a-company-in-hong-kong/. – Date of access : 23.11.2017.

3. Hagan,M. The World’s 10 Most Profitable Countries / M. Hagan //World Money [Electronic resource]. – 2005. – Mode of access : http://www.therichest.com/rich-list/world/the-worlds-10-most-profitable-countries/. – Date of access : 26.07.2014.

4. Economy, Р. The 10 top countries for business in the world / P. Economy // Inc. news [Electronic resource]. – 2005. – Mode of access : http://www.inc.com/peter-economy/these-are-the-10-top-countries-for-business-in-the-world.html. – Date of access : 09.07.2015.

УДК 334.722.2

MODERN PROBLEMS OF DEVELOPMENT OF SMALL BUSINESS

K.J. Dubatouka, student of the group 10503315 FMME BNTU,Research supervisor K. Filonchik

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The article presents the main problems of small business in our country and abroad, that drop up along the way of developed countries. The necessity of creating an affordable system for supporting small business entities is shown.

В статье представлены основные проблемы, стоящие перед малым бизнесом в нашей стране и за рубежом, которые встретились и продолжают встречаться на пути развитых стран. Показананеобходимостьформированиядоступнойсистемыподдержкималогобизнеса.

Introduction. In the modern economy of industrially developed countries, a significant share of the gross domestic product belongs to small and medium-sized businesses.

Main part. As it is known, in our economy small business is still a small place, although there is a steady growth trend. At the beginning of 2010, the number of employees in small enterprises was 21.7% (in 2001 – 12.8%); The turnover of enterprises was 24.5% (in 2001 – 5.9%). The number of small enterprises was 1602491 (in 2001 – 843000). In comparison with 2001, the number of enterprises and the share of those employed in small business have increased almost twofold, and the turnover of enterprises has increased fourfold. Part of this gap in comparison with the developed countries is due to the historical factor: small business in the modern form in Europe was being formed from the beginning to the middle of the 20th century, whilst in our country the process of its formation began only in the late 80s of the last century. However, there is a positive side to this arrangement. Belarusian entrepreneurship is moving along the path that developed countries have followed earlier, and therefore, should use their experience.

Unlike Belarus, the rapid growth of small business in developed countries began in 1970-80. Of course, small business had existed there earlier, but in the middle of the second half of the XX century there was a dramatic upturn: after a period of global crises (energy, raw materials and others) small and middle firms that could quickly adapt to the situation in the market and production. As a result, small business has become an element without which the development of large business and the entire economy would not have happened.

In studies of the mid-1990s, it was clearly demonstrated that financing and financial management problems, such as capital insufficiency and associated financial and related flows, are often characterized by a small amount of business, although not as often as questions of marketing and planning. The problem of making a profit with a deficit-compromise is at the starting level and at a high level of growth, which encourages owners to receive clean government grants and bank financing. Problems with financial flows are characteristic of both start-ups and established in the market, since they can be caused by low sales, management errors, problems with receivables management, and many others.

Currently there are no similar studies on Belarusian small business, however, the economic literature is paying close attention to problems hampering the development of small business. Most of the mentioned problems are in tune with the difficulties that continue to occur on the way of the entrepreneurs of developed countries.

After summarizing the classifications of small business problems offered by different authors they can be divided into two main groups: external and internal. External problems, in their turn, can be divided into institutional ones (related to the imperfection of state activity) and market ones (caused by various specific features of the economy). (Table – 1).

Table 1 – Eternal and internal problems of small businessExternal InternalInstitutional Market

Imperfection of the legislation in all directions associated with small business; unfair competition; poor quality of cadres,

both rank and file;Administrative barriers to the creation and development of small businessesExcessive level of tax burden;

excessively high dependence of the economy on raw materials exports;

Insufficient level of financial management in

the enterprise;Corruption caused by cumbersome and inefficient state bureaucratic apparatus; monopolism in commodity markets; Difficult access to formal

sources of funding is.Instability of the political system, non-obviousness of state priorities and general low level of public administration;

heavier sectoral structure of the economy (difficult access to the

market);

underdeveloped market infrastructure;

insufficiently developed sector of services for business, including

business information;

The crisis of 2008 – 2009 made small and medium-sized enterprises the most mobile and enterprising layer of entrepreneurs, in fact, connecting these enterprises to the process of economic restructuring. In 2009, a sample survey was conducted among the heads of small enterprises of extractive and processing industries, electricity, gas and water production to assess the main factors limiting production growth. About 60% of the interviewed heads of small businesses indicated the following factors as the most important: "uncertainty of the economic situation" and

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"lack of financial resources." In addition, the survey was conducted to identify factors that affect the investment activity of small businesses. The first place was given to the factor of lacking of own financial resources [2].

Having analyzed the list of problems of Belarusian small business it becomes obvious that today it is difficult to talk about the existence of an integral concept of the formation and development of small business in Belarus. Rather, it can be a documentary reproduction of fragments of events that usually work well in industrialized countries, as well as fragments that do not have financial support and are poorly inscribed into the executive structure and the surrounding socio-economic environment.

The heavier sectoral structure of the economy, in which the basic branches of industry play an absolutely dominant role, has a very negative impact and generates an insurmountable investment barrier for the formation of new Business structures.

Underdevelopment of market infrastructure, which can be defined as a set of institutions that ensure normal and continuous functioning of commodity markets, capitals and labor, forming a reproductive system of any economy, has restraining influence on the process of small business formation and development.

The list of the above-mentioned problems, which, in the opinion of most researchers, are the most significant obstacles to the development of a small business, can also be looked at from another perspective: from the point of view of the source of the potential solution of the problem. Looking at the question from this side, one can isolate which of the subjects of civil relations involved in the functioning of small businesses in the country has real opportunities to influence the turn of negative processes. Thus, all problems relating to the block of "institutional" can be settled by the one and only entity that really has the levers to change the situation, and that is the state. It cannot be denied that small business can initiate these changes (through trade union associations, etc.), but only the state has the legitimate right to implement changes of this scale. As for the problems from the "market" category the state alone is not enough to address the challenge adequately. In such matters as combating competition, developing market infrastructure and reducing economy’s dependence on the exports of raw materials active participation of business is vital.

Conclusion. Thus, the problem of adequate estimation of the state of small and medium-sized business is of high relevance and importance. The recent changes in the market, the increase in the financing of the real sector of the economy, the volume gain in investment and the government's SME development program have not only locked attention on estimation procedures of financial state of enterprises, but also raised new demands for them.

REFERENCES1. Huang, X. An Analysis and Classification of Problems in Small Business / X. Huang, A. Brown //

International Small Business Journal. – 1999. – №25. – 57 p.2. Малое и среднее предпринимательство в России : Стат. сб. Росстат – Москва, 2010. – 172 с.3. Широкова, Г.В., Козырева, Т.П. Сравнительный анализ проблем на разных стадиях жизненного

цикла организации / Г.В. Широкова, Т.П. Козырева // Вестник Санкт-Петербургского университета. – 2006. – Вып. 4. –257 c.

4. Поддержка и развитие малого и среднего предпринимательства [Electronicresource] – Modeofaccess : http://www.economy/gov.ru/minec/activity/sections/smallBusiness/support/. – Dateofaccess : 24.03.2017.

5. МалыйбизнесПриморья. [Electronic resource] – Mode of access: http://www.primorsky.ru/departments/branches/?s=2253. – Date of access : 24.03.2017.

УДК 659.123.007(.1.01) (.11)

BELAVIA: NEW MARKETING MOVES

S.A. Dylenok, student of group 10503416 FMME BNTU,Research supervisor M.V. Hramtsova

Данная статься посвящена маркетинговым ходам и усилиям известного белорусского авиа перевозчика Белавиа. В ней приведены сведения о рэбрендинге и создании принципиально новой символики компании с пояснением ее смыслов. Но первоочередное внимание в статье отдано новой рекламной компании, которая позволит завоевать умы и сердца нового поколения пассажиров.

The article dwells uponBelavia marketing efforts to put a firm step onto the market. It also provides information about rebranding and new symbols of the company and their implications. But the focus is given to the new and innovative marketing campaign which tries to tap into the minds of new generations of passengers.

Introduction. Belavia is number one and the most popular Belarusian airline. Everybody knows it even if they have never used it for air traveling. It was set up in 1996 by Belarusian government, and now it has 17 representations all over the world. Belavia is also a member of IATA- International Air Transport Association. So,

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as you see, this company has a strong reputation in our country but unfortunately, as it is not a secret, only in our country.

Main part. There are some weaknesses worth considering and of course some positive moves especially in the sphere of marketing. One of the reasons underlying its limited international popularity is about weakness of the company’s marketing. Despite the fact that Belavia is pretty well-known in Russia and Ukraine, at the same time it has little market share in these countries. The matter is that the company has high fares, but its service leaves much to be desired. The situation became worse when the company lost its rank of national carrier in 2013. The main reason is that Belarusian government decided to sell its stocks in order to find some investors. But, to their great dissapointment, they didn’t find anybody to invest money in this brand.

On October 16, 2003 the first plane of the western production Boeing 737-500 arrived at the National airport Minsk. That plane was acquired by airline in leasing. The second Boeing arrived according to the order made by Belavia in April, 2004. The airline had to buy all foreign planes on the terms of leasing. These were different types of leasing: concerning Boeing it provided expeditious leasing, for instance, for one of planes the term of financial rent was prolonged for 5 years after the expiration of the previous term. At the end of May, 2013, the company acquired the 6-th Boeing 737-300 – it was the plane from the Romanian company Carpatair.

In January, 2017 the air park of the company made 29 planes: seven Boeings 737-300, six Boeings 737-500, five Boeings 737-800, five CRJ-100/200LR, two Embraer 175, two Embraer 195. Nowadays the company stakes on upgrading the plane park as a precondition of safety, comfort and creating a reliable image.

On August, 15 rebranding of Belavia airline started, which was going on for year and a half , and now it has been presented to everyone through various mass media and on line. For passengers Belavia is associated with airlines of the Soviet period that leaves its trace on an image of the Belarusian airline. To create modern image of Belavia, and also to reach the new level of interaction with clients, the decision to carry out rebranding has been made. As the main new element of the Belarusian airline "Belavia" the traditional Belarusian flower (a cornflower) which has been considered a symbol of purity, affability and friendliness for a long time was chosen. The core of graphic "cornflower" means the house, that is Belarus where there is always a wish to come back, and petals of a blue flower transfer feeling of flight and advance. The cornflower is also supported with airline’s slogan “We Connect”. The new corporate style will be presented in external design of corporate elements of air carrier: interiors of planes and offices, of uniforms of crews, templates for documentation, the official site, navigation and advertizing surfaces.

On July 29, 2016 the airline presented the Boeing 737-300 aircraft (board number of EW 254-PA) in a livery of the popular Belarusian Internet game “World of Tanks”. The model of the plane is designed in corporate colors of the World of Tanks brand. The aircraft fuselage became black, wings - orange. In a back part there is huge orange ornament in Belarusian style made in the shape of the T-34 tank, and sideways inscriptions flaunt: "A game from Belarus which the whole world plays ". On its tail there is a huge white cornflower which became a symbol of the airline after carrying out the abovementioned rebranding. Planes in a livery of black color are met infrequently, they look unusual and interesting. The main idea of the brand design is to show that the game known around the world, – is from Belarus. For Belarus it is the first case of commercial branding of the plane.

Today thanks to Belavia company it is possible to make air flight from Belarus to Russia, Sweden, Ukraine, France, Germany and to even more than 20 countries and thus provide international brand awareness.

It is necessary to notice that for all of its existence there have been only 7 accidents. They were connected mainly with return of the plane to the airport in view of the malfunctions connected directly with operation of engines or the flap. No other accidents have been registered so far. There was the only accident on February, 14 in 2008 which happened to passengers of CRJ-100LR, flight B2-1834 Yerevan-Minsk. According to preliminary data interpretations of "black boxes", after an aircraft taking off from the runway there was a problem which the crew of the plane tried to solve. Onboard there were 18 passengers and 3 crew members. Passengers were citizens of the Republic of Belarus, Armenia, Georgia, Russia and Ukraine. All passengers and crew members have survived due to the skilled performance of the crew, as a result there were no victims. It made a positive impact on the media and general public.

One more positive move should be mentioned as a proof of positive changes. From now on the passengers of “Belavia – Belarusian Airlines” can buy plane tickets on the airline’s site booking.belavia.by on credit. The fares for flights today compete successfully with the ones for trains consequently the popularity of air transport is growing. More and more Belarusian people would rather fly than use any other means of transport. Nowadays it is rather good news as in case of emergence or an unplanned business trip, or if a passenger is short of money, they can fly with Belavia on credit terms. The payback period offered is quiet reasonable. Belavia is the first in the touristic business of Belarus to launch such a service we can say proudly referring to Vice General Director of Marketing and Foreign Economic Activities of OJSC “Belavia – Belarusian Airlines” Igor Cherginets. The option “Get a loan” will be available for ticket not only for the company’s own flights. But one should keep in mind that necessary terms of online crediting are: time before the departure not less than 3 days, and Russian or Belarusian language of the web-site. Terms of credit: total cost of tickets should not exceed 50 million rubles, the term is up to 36 months, interest rate – 42% per annum. “Belavia – Belarusian Airlines” receives only the cost of the ticket, and the credit overpay goes to the bank. “Online crediting service provided by the company in course of 8 months was highly appreciated

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by clients of leading online stores, a lot of which ask for this service again. This new marketing move is comes very handy as it is based on careful marketing research and focused on current customer needs.

Conclusion. Eventually it would be desirable to note what in the modern market of post-Soviet space Belavia is one of key players. It carries out flights from Belarus to Ukraine in spite of conflict and disagreements between the Russian and Ukrainian airlines. It is remarkable that thanks to an advantageous geographical location of Belarus the airline has a number of the advantages connected with provision of freights from the European Union on the territory of Russia, Ukraine, Georgia and so on.

REFERENCES1. 16/ 45 Mark 6 // Википедия [Электронный ресурс]. – Режим доступа :

https://ru.m.wikipedia.org/wiki/%D0%91%D0%B5%D0%BB%D0%B0%D0%B2%D0%B8%D0%B0. – Дата доступа 22.03.2017.2. Бронирование [Электронный ресурс]. – Режим доступа: http://marketing.by/novosti-rynka/sn-tstsa-mne-

vas-lkovae-pole-rebrending-belavia-nad-kotorym-rabotala-vsya-strana. – Дата доступа : 22.03.2017.

УДК 65.012.413

MOTIVATION OF PERSONAL AS THE KEY OF SUCCESS IN BUSINESS

E.O. Ermolovich., student of group 10508115 FMME BNTU,Research supervisor N.I. Shumskaya

Данная статья посвящена вопросу внедрения и усовершенствования методов мотивации персонала на предприятии. Основной задачей является рассмотрение наиболее эффективных методов мотивации и способов внедрения их на предприятии. Выявлено, как заинтересовать сотрудника в качественном выполнении своих обязанностей путем материальных и нематериальных поощрений, а также насколько важно создать взаимопонимание и дружественную атмосферу в коллективе.

This article is devoted to the question of introducing and improving the methods of motivating staff in the company.The main task is to consider the most effective methods of motivation and ways of introducing them into the organization. It is revealed how to interest an employee in the quality performance of his duties through material and non-material rewards, and also how important to create mutual understanding and a friendly atmosphere in the team.

Introduction. Nowadays, in the age of rapid development of science and technology and improvement of production processes, the number of companies in the country significantly increases every year, as well as a large number of competing firms appear. In such a situation we see in the first place a crucial question: how to make your company be more successful among the competitors in the market? And a lot of successful managers have understood that the first answer, and sometimes the only one, is accurate and perfect motivation of personnel.

Main part. The level of successful performance of a subordinate or an employee does not only depend upon his qualifications and abilities but it involves also hard work of his or her employer in the field of motivation.As a tool of management it is necessary to understand that motivation is an internal feeling of an employee but the manager should comprehend clearly not only the ways of motivation but, and first of all, the goal of motivation. Motivation depends on the character of the fulfilled work, on the style of management, on the temperament of the employees, on the history of the company. All needs, wishes and desires of all company’s employees, bosses and owners are inter-related and they can becomea driving force to perform. Motivation is a continuous process in any company as every task demands a special driver to act with good progress.

Today the staff plays a key role in any company and so if you want to bring your company to a highly effective performance, you should pay more attention to the motivationof your employees. The most effective way to influence on the quality of the staff is the introduction of a specific incentive system. It is well known that the effective motivation of staff is one of the most important factors of competitiveness of modern organizations. The main task of leadership to motivate employees to life-long learning, to use of their own experience, knowledge, and ideas for the improvement of the production process, as well as direct participation and interest in their work, the study of advanced technology and the desire to develop. The main objective of the process of motivation is to obtain maximum benefit from the use of available human resources. One of the most common methods is to encourage staff motivation, namely the impact on the person by material or immaterial interest.

To consider the most detailed methods of motivation it is necessary to namesome of them such as the promotion of tangible and intangible, as well as tough penalties. Tangible methods are, of course, bonuses, rewards for high labor indicators, additional payments for overtime, payment of transport costs, payment for housing, studying in equity [5, 6]. A lot of companies provide the opportunity to the best employees to improve their skills, sending them to a great variety of training courses, internships and trips abroad. Some big corporations additionally allows different health care programs, programs related to employees leisure arrangements and groups, such as trips to the dispensary or the organization of excursions and sports activities. Also companies offer additional payments to the pension fund.

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Intangible incentive methods play an important role in the motivation of employees, such as provision of additional days off, vacations for a well done job, the opportunity to choose their own vacation time, the organization of flexible working time, provided a wonderful performance of duties, and participation in the management and control of large projects. One of the most important intangible methods is awarded certificates, diplomas, accommodation on the board of honor – itmakes employees try to do their best to keep the bar and meet the honored. Another main factor is intangible maintaining a friendly, positive atmosphere among the staff, managers can achieve it by a benevolent relationship management, recreation areas, conducting various trainings.

However, we should not forget about the harsh measures, which in some cases may be helpful. Managers can influence the lazy employees by introducing a system of penalties, deductions for negligent performance of duties, being late for work, absenteeism, misconduct, poor-quality products, etc. [7].

Employers should remember that each person reacts differently to the various ways to stimulate and if they want to improve the quality of staff should find a special approach to the staff, if possible, without using harsh measures of motivation.Punishment should be thoroughly thought over as it will influence the subsequent work of the punished employee and sometimes the performance of some group of employees and even the whole company.

Choosing the correct praise or punishment it is important to keep in mind the following criteria: the employee’s temperament; the employee’s lifestyle; the previous employee’s performance; the character and difficulty of the fulfilling work; the employee’s loyalty to the company.It is clear that to become a good manager who can motivate his or her personnel it is necessary to be an expert in

psychology [3], in management styles [1], to be a conflict mediator [3] and entertaining agent [2]. To compensate the requirements a manger should pay great attention to communication as it forms the channel forlinks and relations among a team. Also communication inspires the employees loyalty to the company and boosts innovativeness.

Conclusion. As the basic task of management is to make people work together effectively as a team and therefore to maintain the attractiveness of the working places for successful employees. Today, in times of tough competition, every company needs a well thought-out system of labor motivation. Of course, the choice of strategy to stimulate owned companies leaders and directly depends on the financial capabilities of the company. However, according to experts, the most effective strategy for companies to improve staff work is a combination of tangible and intangible methods of stimulation.

REFERENCES1. Беляев, М.К. Управление персоналом на предприятии: Учебное пособие / М.К. Беляев. – Волгоград:

ВолгГАСА, 1999. – 215с.2. Верхоглазенко, В. Система мотивации персонала / В. Верхоглазенко // Корпоративный менеджмент

[Электронный ресурс]. – Режим доступа: http://www.cfin.ru/management/people/most.shtml. – Дата доступа: 16.03.2017.

3. Занковский, А. Организационная психология: Учебное пособие для вузов / А.Занковский. – 2-е изд. – Москва : Флинта, 2002. – 648 с.

4. Ивановская, Л.В. Обеспечение системы управления персоналом на предприятии / Л.В. Ивановская, В.М. Свистунов. – Москва : ГАУ, 2005. – 71 с.

5. Самоукина, Н.В. Что людям надо: персональные мотиваторы в трудовой деятельности / Н.В. Самоукина // Кадровик. – 2007. – №7. – С. 24–31.

6. Система мотивации персонала в компании и её эффективность : Система мотивации персонала в предприятии общественного питания и оценка ее эффективности // Все для общепита России [Электронный ресурс]. – Режим доступа : http://www.pitportal.ru/persona/9056.html. – Дата доступа : 16.03.2017.

7. Совершенствование системы управления персоналом – цели и тенденции // О персонале [Электронный ресурс]. – Режим доступа : http://opersonale.ru/upravlenie-personalom/upravlenie-personalom-upravlenie-personalom/sovershenstvovanie-sistemy-upravleniya-personalom-celi-i-tendencii.html. – Дата доступа : 16.03.2017.

УДК 338

THE ROLE OF INDIVIDUAL ENTREPRENEURSHIP IN THE MODERN WORLD ECONOMY

T.V. Zhuk, student of group 10503315 FMME BNTU,Research supervisor K. Filonchik

В современном мире уровень экономического развития страны все больше влияет на качество жизни людей. Страны с развитым сектором экономики в состоянии предоставить своим людям достойный

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уровень жизни. Для достижения этой цели правительство должно уделять много внимания каждой области сектора экономики, включая индивидуальное предпринимательство. Согласно статистике именно малый бизнес играет ключевую роль в формировании экономически стабильного государства. Это свидетельствует о том, что органы государственной власти должны всячески поддерживать этот вид деятельности, способствовать его успешному развитию и создавать условия для его стабильного функционирования. Стоит отметить, что ни в коем случае нельзя нарушать права индивидуальных предпринимателей, поскольку это может привести к негативным последствиям, а в конечном итоге и к спаду в экономическом развитии страны.

In the modern world, the economic condition of the country increasingly affects the quality of life of people. Countries with a developed sector of the economy are able to provide their people with a decent standard of living. To achieve this, the government should pay much attention to every area in economic development, including individual entrepreneurship. According to statistics, exactly small business plays a key role in the formation of an economically stable state. This shows that the government should support this kind of activity in every possible way, promote its successful development and create high-quality conditions for their existence. It is worth noting by that by no means the rights of individual entrepreneurs can be infringed, because this can lead to negative consequences and eventually to a decline in economic development [1].

Introduction. Nowadays, for the economies of most countries the development of not only large but also small business sector plays an important role. Individual entrepreneurship is an indispensable part of the market system of any country, without it the economy cannot fully function and develop. With its help the economic sector develops, additional jobs are created and tax revenues are raised to budgets of all levels.

Main part. In many progressive countries namely the share of small business is a major part of GDP, for example: in the USA it is 50% of GDP, in Japan – 65% of GDP, in France and Spain – 60% of GDP. Small business provides 2/3 of the growth of new jobs and this fact has significantly reduced unemployment in these countries.

Who is an individual entrepreneur? An entrepreneur is any person who conducts business completely on his own behalf, using his own or borrowed funds and who is responsible for all the consequences of his actions and decisions taken by him. Individual entrepreneurship is an attractive and tempting sphere of business activity. More and more people prefer to open their small business instead of creating a large enterprise and there is a number of good reasons for this [2].

The mass nature of such forms of business organization demonstrates the attractiveness of this form of activity for the widest range of entrepreneurial activities - for the sphere of trade, production of goods and provision of services. So, individual entrepreneurship has a number of advantages in comparison with other forms of running your own business, namely:

full freedom of business, independence and efficiency, confidentiality of activities, i.e. the ability to maintain trade secrets, convenient conditions for both creation and liquidation of business, free use of the proceeds received, use of a simplified taxation system, the ability to quickly master the production of small-scale, unique products, simplified procedure for recording the results of economic activities, etc.Entrepreneurs are a kind of driving force for any modern developed economy. Many scientists, examining the

role of small business, note that exactly entrepreneurship contributes to the growth of economic efficiency. It plays a key role in the commercialization of new products and technologies, effectively solves problems of employment, it is also able to attract unused resources and create new markets. Thanks to these abilities and opportunities, starting from the first steps of the development of business theory, the entrepreneur began to be perceived as the central element of the market economy, which determines its effectiveness and development [3].

Dynamically exploring new types of products and economic niches the small business sector develops in industries that are unattractive for big business and. Its most important feature is the ability to accelerate the development of investments. Another characteristic feature of small enterprises is active innovative activity, contributing to the accelerated development of various sectors of the economy.

Consequently, the success of the process of economic development, stability, sustainability and competitiveness of the national economy depends on people engaged in this activity. Exactly that’s why governments of industrialized countries should assist entrepreneurs in their activities and take various measures to promote their development.

Modern entrepreneurs face a number of problems that prevent them from normally existing and developing further. One of the main problems of individual entrepreneurs is a sharp increase in social taxes, as well as an increase in fiscal and administrative burden. For many entrepreneurs, such taxes prove to be prohibitive and they are forced to fill up the ranks of the unemployed or start doing illegal business. Another problem for entrepreneurs are the laws imposed by public authorities that infringe on their rights. For example, in our country, from July 1, 2014, Decree No. 222 "On the regulation of entrepreneurial activities and the sale of goods by individual entrepreneurs and other individuals" was in force. This document caused a wave of discontent among individual entrepreneurs of the country. Many of them could not work under changed conditions. Rallies and protests to change the current situation were organized in the country [4].

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It is necessary to carry out reforms and various programs of state support for entrepreneurship that can lead to better conditions for their existence. Business needs to be given niches in the market, a share in government purchases, as it is done in developed countries. Then the share of small business in the country is guaranteed to grow. It is also necessary to turn to the foreign experience, which would be useful to apply in our country in practice. For example: a small business in the US is subject to special tax benefits called the "first year bonus", when the tax is paid not with the whole, but with half the taxable amount. In France, new small enterprises are exempted from taxes for joint-stock companies and local taxes for two years. For them, the income tax is reduced.

Conclusion. The state should pay more attention to the development of this particular sector of the economy. If small businesses in the country are active, it will contribute to the development of the national economy as a whole. If no measures are taken to improve the conditions for the existence of IE, new problems may arise in the country, such as unemployment, illegal trade and others [5].

The biggest problem of modern entrepreneurship is that without state budget infusions and support, small entrepreneurs may not survive: they will be swallowed up by collective forms. And the availability of credit resources is limited or high in value – bankers do not want to risk, not having certain long-term guarantees. That is why the state should support the developing small business.

REFERENCES1. Sandra M. Anglund Small Business Policy and the American Creed / Sandra M. Anglund. – Westport, CT

and London : Praeger, 2000. – 176 p.2. How to become an entrepreneur. [Electronic resource], 2005-2017. – Mode of access :

https://www.entrepreneur.com . Date of access : 01.03.2017.3. Smith, A.The essential principles of the wealth of nations / A. Smith. –London: Printed for T. Becket, 1797.

– 814 p.4. Cunningham, J.B. Defining entrepreneurship / J.B. Cunningham, J. Lischeron // Journal of Small Business

Management. – 1991. – № 29.1. – 45 p.5. Entrepreneurship development. [Electronic resource], 2003-2017. – Mode of access :

https://www.slideshare.net. – Date of access : 25.02.2017.

УДК 658.3.07

ELECTRONIC HUMAN RESOURCE MANAGEMENT SYSTEM: THE MAIN ELEMENT IN POTENTIAL OF COMPANIES

D.A. Zhukovets., student of group 105008114 FMME BNTU,Research supervisor: PhD, Associate Professor, A.I. Sorokina

C каждым годом компании меняют свое понимание о ценностях и целях. В настоящее время компании задумываются о важности человеческих ресурсов. Электронный человеческий ресурс необходим для контроля над качеством, навыками и возможностями работников. В последние годы электронный человеческий ресурс используется в большинстве крупных компаний и учреждений и является одним из ведущих организационных систем в управлении человеческими ресурсам, применение которых считается очень эффективным и экономичным.

Необходимо ли внедрять данную концепцию в каждую компанию?Every year companies change their understanding of values and goals. Currently, companies are thinking about

the importance of human resources. An Electronic Human Resource is needed to monitor the quality, skills and capabilities of employees. In recent years electronic human resource management (E-HRM) is being used in most of the big companies and institutions and is among the leading organizational systems in human resource management (HRM) applications of which are considered to be very cost-effective and effective.

Is it necessary to implement this concept in every company?

Introduction. Human potential, the ability of a top-manager to properly set a goal and effectively manage resources become the main factor in the success of any company. Nowadays the HR managershave to respond to increased competition in a market place,changes in the employer relationship and rapid advances in HR technology. Today companies involve high-qualified employees in a working process. Human Resources department finds HR managers who are involved in mentoring, training, coaching. Many HR departments are responsible for company’s development that generates the culture of the company. They build teams implementing policies of empowerment. New kinds and levels of technical knowledge, skills, experiences and abilities require HR managers who are flexible and willing to deal with the changes and difficulties in the global workplace [1].

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According to these, companies introduced web-based applications for HRM purposes, and these are named as E-HRM system. The rapid development of the Internet during the last time has improved the application and implementation of electronic HRM.

So in order to implement and develop the E-HRM system globally, there is a need for interested, expert and professional managers in the area of web and know how to apply this system's tools internationally to take basic steps in potential of companies.

Main part. Technological development, innovations, electronic applications lead to fact that today employees have a greater awareness, capability, opportunities than employees in past. New technologies have created a new generation of employees and the company’s structure has changed too. The new concept of E-HRM has become the part of human resources. This concept is suitable for managers, who keep all departments under control and play an important role for the company. E-HRM is worked by information technologies to help the companies to acquire, develop human capital. It includes all information about business, finance and personal activities in addition to saving resources. It helps to enable faster HR related decisions, to provide support for future planning and policy of empowerment [2].

This definition suggests the integration of next aspects:1. Content of E-HRM: focuses on interconnection between HR-managers and IT [3].2. Implementation of E-HRM: focuses on the process of adoption of E-HRM by employees.3. Targeted Employees and Managers: focuses on all levels of managers and employees that are actively

involved in using E-HRM applications.Levels of E-HRM.1. Operational E-HRM; The first area deals with the basic HR activities in the administrative area, for example,

salary administration, employee personal data.2. Relational E-HRM; The second area deals with basic business processes such as recruiting and the selection

of new personnel, training, mentoring, knowledge management, coaching, motivation and rewards.3. Transformational E-HRM; The third area deals withworkforce to develop in line with the company’s

strategic choices [3].E-HRM provides access to the employee contact information, their skills, award,education,membership,

experience, give information about employee from previous working place. It helps HR-managers to communicate with employees from different departments, with colleagues from different countries. Today the Internet has become a means for employers to search for candidates and for applicants who look for a job. Companies usually hire the candidates using the Internet as a medium.Most employers will recruit their employees from the online job search engines and new selection process are keeping tests online by testing their level of knowledge, behavior and, etc. [4].

Also, companies try to reduce costs. E-HRM allows organizing training inside the company, making it available ”any time”,” anywhere” reducing direct costs, for example, instructors, training facilities, and indirect costs (travel time, lodging and travel expenses). Managers can communicate with employees via the Internet, mainly e-mail, and reduce costs too.It means using the Internet or organization’s Intranet to facilitate the training for the workforce. Getting the online modules of training, a large number of employees can be a part of working process. One of the most critical success factors for implanting an E-HRM system is the support and involvement of top managers in the project during its life cycle. Also an executive sponsor should be appointed to coordinate, communicate, and integrate all aspects of the project between the development team and top management. The executive sponsor should communicate, integrate and approve the shared vision of the organization and the responsibilities and a structure of the new E-HRM system [5].

With the growing awareness for environmental sustainability, many companies are looking for ways to “go green.” Implementing a E-HRM will help reduce almost all of the paperwork associated with HR tasks we can save money and time.

In order to implement and develop the E-HRM system in global setting the following items should be considered:

Try to hire part-time and full-time professional and knowledge-oriented employees, develop computer skills and knowledge, paying attention to new technological environment in companies is one of the necessary functions of the E-HRM, increase the number of managers and experts in utilizing worldwide web in order to save time and costs [6].

Conclusion.E-HRM is a web based tool to automate and support HR processes. It allows using a policy of empowerment. E-HRM is advance business solution which provides a complete online support in the management of all processes, activities, data and information required to manage human resources in a modern company. It is efficient, reliable, and easy for managers to have information about employees, colleagues. Companies and organizations should progress gradually. It means they should go through all operational, communicational and change processes of the E-HRM [7].

Pervious research proposes that E-HRM can improve the efficiency of HR activities, systematize the work of employees and managers, take and use all information about company. But the world around us is changing.

The E-HRM provides an organized structure in order to manage, develop those employees who are skillful in the areaof web and face problems in operational and strategic sections and also those who have the ability to manage

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different cultures. It is very important to consider the cultures of different countries to make the company widespread in the world.

REFERENCES1. Anyim, F.C. Human Resource Management Challenges in Nigeria Under a Globalised Economy / F.C.

Anyim, C.O. Ikemefuna, S.E Mbah // International Journal of Economics and Management Sciences. – 2011. – Vol. 1, №4. – P. 11.

2. Kariznoee, A. The Examine of effect of E-HRM on employee’s job performance / A. Kariznoee, M. Afshani, M.R.H. Moghadam // Advanced Research in Economic and Management Sciences (AREMS). –2012. - Vol.6. – P. 275–282.

3. Bondarouk, T. Electronic Human Resource Management: Challenges in the digital era / T. Bondarouk, H. Ruel // The International Journal of Human Resource Management – 2009. – P. 505–514.

4. Lepak, D.P. Virtual HR: Strategic human resource management in the 21st century / D. P. Lepak, S. A. Snell // Human Resource Management Review. –1998. – P. 210–230.

5. Zafar, J. An Analysis of E-Human Resource Management Practices: A Case Study of State Bank of Pakistan / Zafar, J. // European Journal of Social Sciences. – 2012. –Vol. 15, Number 1. – P. 215–234.

6. Swaroop, K.R. E-HRM and how IT well Reduce the cost in organization / K.R. Swaroop, // Journal of Marketing & Management Review. –2012. – Vol.1 (4). – P. 133–139.

7. Kaur, P. E-HRM: A Boon or Bane? / P. Kaur // ANVESHANAM a National Journal of Management .–2013. –Vol.1. – №.1. – P. 35–36.

8. Fahimeh, B.N. Electronic Human Resource Management System : The Main Element in Capacitating Globalization Paradigm / B.N. Fahimeh [Electronic resource]. – 2014. – Mode of access : http://ijbssnet.com/journals/Vol_5_No_2_February_2014/17.pdf. – Date of access : 13.03.2017.

УДК 336.774

METHODOLOGY FOR ASSESSING THE CREDITWORTHINESS OF THE BORROWER

V.V. Zhukovskaya, student of group 10502214 FMME BNTU,Research supervisоr M.V. Berezоvskaya

Modern world is changing very fast. The reasons for this are the technology and ideas, which demand money, and banks can provide the money. Therefore, the study and the development of methods for the evaluation of the creditworthiness is a hot topic for banks and borrowers. This article is devoted to the types of credit risks, the criteria for assessing the creditworthiness of the borrower, as well as it is conducted a comparative analysis of the methods used by banks to assess the financial situations of a client.

Современный мир меняется с мгновенной скоростью. Причинами этого являются технологии и идеи, для реализации которых компаниям необходимы денежные средства, которые можно получить в банке. Поэтому изучение и разработка методик оценки кредитоспособности является актуальной темой и для банков, и для заёмщиков.В статье рассматриваются виды кредитных рисков, критерии оценки кредитоспособности заемщика, а также проводится сравнительный анализ методик, используемые банками для реальной оценки финансового состояния клиента.

Introduction. The bank is an institution that serves as a guide for the movement and storage of funds, in other words promotes market relations between enterprises, consumers and states. It takes money to deposit from one person and gives them like interest money to others providing quick cash cycles that bring big profits. This system enables to implement the strategies of other companies faster and depositors receive interest on deposits with minimal effort so all parties take benefitthat invests or borrows money from the bank. That is why modern banking industry is diverse and rich in various business units.

Main part. There are 28 banks in Belarusand each of them provides loans with different interest rates (this is related to various asset funds) [1]. But they all have one goal-to get the maximum profit and for this purpose it is necessary to minimize losses.

Banking system includes a large number of risks:• Credit;• financial;• Operating;• Liquid;• Market (currency and interest), etc.Despite the fact that the bank is a holistic system it is impossible to reduce these risks with the same methods.

For example, it should be mathematically calculations (aggregation, probability theory) for financial risks, but the implementation of such measures will not be sufficient for the credit risks. As you known bank loans are carried out on three conditions: urgency, recurrency and payment. And the credit department specialists are examining the

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ability of the borrower to cope with the obligations under the loan before giving the bank means to the borrower. There are loans for business, for real estate, for housing habitation and there are consumer loans.

It is enough to have a good credit reputation and stable salary within 6 months to receive the loan for consumer needs.The loans for enterprises have more complicated structure. Issuing these loans banks ' specialists analyze not only the credit history of the borrower, but depending on the requested amount they determine the timeframe limitations of credit repayment. With positive credit history of the borrower the loan can be annuitant and include a grace period (favorable period ofthe customer credits payments).

Risks when issuing funds to business will significantly increase, therefore it is used more sophisticated techniques to assess your creditworthiness. First of allit is measured the business scale, management level, business opportunities in new market segments, the level and quality of financial reporting, the cash flow at the company is analyzed, own and borrowed capital.

There are different criteria for evaluating creditworthiness of the customer, for example, it is assessed the structure and dynamics of the active and passive reserves, financial activity of the enterprise, it is held the analysis of balance profit and analysis of financial stability of the company.

Financial sustainability is illustrated by the level of competitiveness of products. The study of balance profit is considering the rational use of all kinds of profits, as well as extraordinary benefits of the firm.

Rationality and efficiency in the use of labour, working and fixed arrangements are shown by financial activity of the company.

One of the most important criteria is the structure and dynamics of passive stock, which reflects existing credits, debts and loans.

After we have identified the assessment criteria we turn to the choice of the method of valuation used by banks.Belarusian banks are characterized by such models as scoring model and the model of three coefficients.Scoring is suitable to assess small firms where examines the positive and negative sides of the company. For the

assessment can be used neural networks, the most popular is the creating of a decision tree.The model of three coefficients requires the calculation of the liquidity,own capital and the structure of the

passive reserve. After the calculating of these indicators theborrower getsassigned a class and depending on this class it is set a term and the loan amount.

Two American methods include the rule of "five c", where we investigate customer behavior in the market, its financial and economic capabilities and capacities, and his own and borrowed capital.

The second method is A-method, where it is predicted the possibility of bankruptcy. The firms are divided into 3 groups: firms that will go bankrupt in 5 years, who are successful and firms that are already at the stage of bankruptcy and depending on the group the credit is issued and the time frame for return is established.

In order to correctly pick up the necessary method of reducing credit risk the management of the bank creates a group of specialists, who holds the monitoring, allowing you to select the method of solvency assessment and decides on the terms of the loan to the counteragent. The next step for maximum understanding risk is a contingency sum, which belongs the bank. It gives a guarantee to customers who bring and leave their money in the form of deposits. Another way to reduce credit risks-commercial lending: the right to use the receivables of the borrower, mortgages and the right to use the securities.

There is a method of stress testing, which examines the possible scenarios of development of the banking system in the future, analyzing all risks (financial, operational, currency, etc.). The same scenario can be created to analyze the credit worthiness of the borrower. Possible options are presented in the table 1.

Table 1

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Scenario types

The worst scenarioAll the factors take the worst value.

Subjective scenarioSome risks are considered with high possibility to happen, and others Vice versa.

Hypothetical scenarioThe analysis of historical situations. For example, the growth or decline of demand for products.

Monte – CarloDifferent correlation distribution and risks behavior are used.

Stress testing evaluates the sensitivity of the portfolio at the macroeconomic level, exploring possible financial and economic developments, as well as favorable and unfavorable business conditions.

Credit Committee allocates the scenario of the development of the company by examining historical events, fluctuations in exchange rates, fluctuations in the prices of produced material, evaluates securities prices and interest rates on other debts.

Conclusion. According to the author, credit board should also take into account the impact of innovation, the possibility of their use in the development of business and competitiveness of the products in a few years. Thus, the lending is a complex, requiring specialized knowledge process, from the correctness of thefulfillment of which depends the level of credit risk.

REFERENCES1. Organization of banking supervision [Electronic resource]. – Mode of access : http://www.nbrb.by/. –Date of

access : 11.03.2017.2. Жариков, В.В. Управлениекредитнымирисками/ В.В. Жариков. –Tambov, Publishing house of Tambov

State Technical University, 2009. – 257 с.

УДК 659.446

MOBILE APP AS A PROMOTER OF YOUR BUSINESS

Y. I. Zhukovskaia, student ofgroup 10507116 FMME BNTU,Research supervisor I. M. Sologub

Modern people spend a lot of hours using their cell telephones. Social networks are increasingly dominating in our lives. It's quite beneficial for doing business, because there is a huge platform that can give you an opportunity to earn more money. Creating a mobile application helps you attract customers, therefore, earn more money thanks to their purchases in your store. Now a small number of companies, unfortunately, understand it. However, the important thing is how to use your application properly, so that it can bring the maximum amount of profit. I’m going to show how to make it possible. This article shows the examples of applications, their tasks, how to organize the applications in such a way that they bring the maximum amount of profit.

Современное население проводит много часов, используя свои мобильные телефоны. Социальные сети постепенно заполняют нашу жизнь. Это довольно выгодно для ведения бизнеса, потому что появилась огромная платформа, которая позволяет зарабатывать больше денег. Создание мобильного приложения позволяет привлечь клиентов, следовательно, получить больше денег от их покупки в вашем магазине. Сейчас очень небольшое число компаний, к сожалению, это понимает. Однако важным является то, как правильно использовать приложение, чтобы оно приносило максимальную прибыль. Я хочу показать, как сделать это возможным. Эта работа состоит из следующих элементов: примеры приложений, их задачи, как организовать приложения так, чтобы они приносили максимальную сумму прибыли.

Introduction. It should be understood that you cannot start your business from a mobile application (except mobile startups, etc.), it will only allow your company to gain some momentum. There are many businesses that are already engaged in this development such as coffee house Double B, McDonald’s, Uber, AliExpress, Belarusbank and others. The idea is that they advertise their products, sell, and create the possibility of buying on the Internet. It is easier to work with their help because buyers just need to go into the app and click on the information they need. What kind of help does the application provide?

It is simple.1) Availability: the buyer can find your company any time (even lying in bed). To do this, he simply presses the

“download” button. It is very useful, as the results of the research show that most people use their cell phones several times per hour.

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2) Marketing: you should remember about modern design that will attract a great number of buyers. You can also offer discounts only through mobile applications (as AliExpress does). This will increase downloads.

3) Communication: the buyer can ask his questions at any convenient time for him.4) A new channel for your profit – notifications about sales, special discounts and promotions are sent on your

phone that will encourage your clients to make purchases.5) The desire to be always ahead of your competitors- having your own app, you get a big advantage over

your competitors. Offering your customers a multifunctional and convenient mobile app just for their needs, you will be the most competitive in the market.

6) You can give the client a feeling that he is needed and important to you: the client is given an opportunity to evaluate your product and post a comment, and thus he feels that his opinion is important. He will be more loyal to your company.

These are the main advantages.Main part. Also, many companies have started creating applications that will work within the company and

speed up the working process. The examples of mobile operations aimed at working with documents are collecting employees’ reports, checking certificates and editing them, sending scans, signing documents from the application, optimizing the work of staff (for example, Sony CRM Smartum Pro used a business app for simplifying the work of marketers and increasing their capacity).

With the help of an online store application the user can order various goods by adding them to his online shopping cart, indicating the time of delivery as well as the address directly from the mobile phone. That is very convenient for customers. And the company will be able to attract new customers and increase sales.

The question of developing a mobile business application is especially relevant for the companies which are involved in the sphere of service. For example, for restaurants and cafes, you can create an application that allows customers to reserve tables, browse the menu, order take away food, warn about delays, get information about special offers, see the addresses of the nearest places (for example, if it is a restaurant chain) and directions – and all this can be done directly from your mobile phone.

The biggest problem with today’s business is that sellers do not interact closely with customers. It is necessary to establish the question answer section on the company website, and also to offer a questionnaire where anyone can suggest something that will be interesting for him and answer the questions that interest the company.

Here are the questions which should be answered.1. Are you sure that your application will be used?If you are a small shop, restaurant, manufacturer, online store where the goods are not bought frequently, then

you should assess a real situation. On average, the user has an access to 20 applications per month. Are you sure that it will be your app? Or is it worth investing in other distribution channels?

2. Do you understand the cost-effectiveness of this project? The cost of developing an application shouldn’t exceed expenses. Provide budget for the distribution of the application. Create a budget for maintaining and updating the application.Before developing an app decide how your application will be found and downloaded. If this is a corporate

application for internal use, then everything is clear. But if you want to target it at mass market, you will have to have an advertising budget.

3. Which platform is better to use?How can you improve the sales of your company and make it more profitable? It is necessary to create a high-quality interface (remember that this is your “brand”, and you need to show it to

people the way you see it, you need to ask yourself, “Would I download this app?”) and make it as functional as possible (create an app on Android platform and on IOS). And, of course, advertising! Show the application to a friend of yours, ask what he would change, add and improve in it (do it with many people whose opinion you appreciate and who you trust). You should stand out from the competition.

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But first of all, you should make your app as functional as you can. For example, you need to have a map where all your stores will be displayed, provide a catalog of services, the description of all products, a photo, make a section with various discounts.

In order to download the function, you need to make it of high quality, then go through the beta testing stage, advertise it to all your friends, and then people will know about your app with the help of word-of-mouth advertising.

The main thing is to make the application in the right way, because if you decide to economize on its design or advertising, the client will give preference to another company.

As far as the development of your app is concerned, I recommend including the following items: A calendar where all events will be shown Links to social networks. A map with all the shops of the city ProductCatalog Personal account Bonuses that the client will get if he buys the goods using your application.The main thing is to make the app in the right way.Conclusion. The development of mobile apps for businesses is a very urgent issue, which many companies are

considering if they still do not have them. Some of them, on the contrary, already have 3 applications (or even more): the first one for communicating with clients and increasing sales, the second one for subordinates (to monitor their work), the third one for executives to sign contracts with built-in signatures and to print them in the application).

The opportunities that the development of a business application gives are unlimited. There are so many ideas for creating apps for various company purposes and all the time they are new and interesting. Before you start developing a mobile app for your business, remember that it is very important to determine the goals of creating it as well as its main functions.

REFERENCES1. Mobile apps for business [Electronic resource]: 7 reasons why your business needs a mobile app. – Mode of

access : http://smartum.pro/ru/blog-ru/kak-razrabotka-mobilnogo-prilozheniya-sposobstvuyet-uspekhy-kompanii/. – Date of access : 19.03.2017.

2. 4 Ways Your Business Can Benefit From Having a Mobile App [Electronic resource]: Creating a mobile app for your customers. – Mode of access: https://buildfire.com/ways-business-benefit-having-mobile-app/. – Date of access : 18.03.2017.

3. How To Build A Mobile App In 12 Easy Steps [Electronic resource]: How To Build An App. – Mode of access : https://www.biznessapps.com/blog/how-to-build-a-mobile-app-in-12-easy-steps/ . – Date of access : 19.03.2017.

УДК 334.72.012.32:008

DOING BUSINESS IN THE CONTEXT OF THE CREATIVE INDUSTRIES

A. Ivanova, student of group 10502114 group FMMP BNTU,Research supervisor I. Pavluchenko

Множество креативных людей живет по всему миру и некоторые из них, несомненно, хотели бы построить бизнес на своих талантах, а также предложить свои новаторские идеи другим. Основные вопросы, обсуждаемые здесь, состоят в том, как объединить творчество с коммерцией и какие основные вещи необходимо знать во время создания и ведения бизнеса в креативной индустрии.

Many creative people live all over the world and some of them certainly would love to build a business on their talents and bring some innovative thoughts to others. The main issues discussed here are how to combine creativity with commerce and what main things you need to know while starting and running a business in the creative industry.

Introduction. The creative industries are a young but flourishing sector of economy, which is mostly popular in advanced capitalist countries. These industries grow faster than manufacturing and the service industries, they made 3% of the world’s GDP in 2015 and provided 29,5 million people with jobs [1]. The creative sector employs more young people than any other one. It also helps start-ups and expands innovation. the creative industries as “those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property” [2]. They include advertising and marketing; architecture; museums, galleries and libraries; crafts; design: product, graphic and fashion design; film, TV, video, radio and photography; IT, software and computer services; music, performing and visual arts; publishing.

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Since the creative industries are one of the most rapidly growing sector of the world economy, many investors will give you money for your business instantly if the idea is good enough. If your own capital is small enough to start a business, you can choose public funding, private financing or other financing mechanisms such as well-known global crowdfunding platform Kickstarter or UK’s Crowdfunder.

Main part. The biggest advantage for building a business in the creative industries is that there is no need to limit your passion for creation in favor of high-income works that you do not like. The idea of having a job which is a hobby at the same time is very popular because the more you like the job the more productive and successful you are going to be and more happiness in life you will get from doing what your passion stands for.

One of the things you need to define before starting a business in the creative industry is what the main aim of your business is. It can happen that your company will invite people to take part in any social or ecological problems or maybe you just want to build it only for commercial purposes. Knowing your goals, following your values and having an idea of how you want the business look like in five years will help you to build everything in the right way from the start. The next step is learning of different business techniques and models and choosing the best ones for your company. Doing business in the sphere of creative industries is complicated by such circumstances as wide differentiation of products and services, the need to produce goods that have artistic value (nature), subjective assessment by consumer. While you are a man of creativity, you have to develop a way of business thinking and learn how to use business techniques to build something successful based on your talent.

Knowing your customer’s needs is vital for any business. You create things with the help of your imagination and passion but all people have different tastes. You may like what you have drawn but it does not mean that your customer will like it in the same way. However, it does not say that you need to straightly forget about yourself and draw only the things what people may usually like but it means that you need to listen to your clients and have a conversation with them or you will produce things that no one wants to buy. Being customer focused or just product focused will not make you successful. Both things need to work together in the right proportion.

Create a business plan. Start from the simplest but essential things, for example, why you are planning to do this, who your client is, how much you are going to produce, where and how you are going to sell the product, what the biggest expenses are and how you can reduce them, how soon you will get the surplus. Business plan is a key document you will certainly need to show to your investors and partners if there are any. However, even without this it is going to be a useful document for orienting your business.

The protection of your intellectual property is essential in creative industries. It is also considered to be a barrier for other people to start a similar business into the creative industries, the fewer competitors you have the easier to run the business for you. The authors’ rights give writers, musicians and other creators the exclusive right to control the usage of their literary, artistic, musical and dramatic works by other people and get the deserved income from their ideas [3].

Keep in touch with the entire world because nowadays information is power. Changes come from everywhere - economy, technologies, and politics for example. If you are not able to deal with challenges and new ideas, you will fail. Advertising on internet, exploitation of social media for your business needs, you should learn as many new things about the world as possible. A PEST analysis is a great way to scan the environment. It gives an overview of political, economic, social and technological factors. This is a strategic tool for understanding of how the market changes in time and what your business needs to stay alive.

Observation of the outside world should be combined with analyzing of your own company work. Take you time to find out what your weaknesses and strengths are. SWOT analysis is one of the best planning methods, which helps to understand where abilities of improving your business are and what things are still limiting your company growth. The analysis can be carried out for a company, product, place, or even you can do it for yourself. It directly shows the opportunities which can be possibly used at this moment. The next step will be to compare your business with other companies to find out what your competitive advantage is. If there are any, you need to try to develop them as much as possible even if you do not enjoy doing these things at all.

Finance in business is probably one of the hardest thing for most of creative people. However, it is impossible to run a business without knowing what expenses and incomes you have. For this aim The Income and Expenditure Account exists. It shows the profit your company has made over a particular period. One more document that can help is The Cash Flow Report. It provides you with information about where cash came from and went to in the past, it can also predict where money is likely to come and go in the future. Always pay attention to your costs. Even social enterprises where profit is not the prime concern have to do this, because losses can be the end of all. Profit is the difference between income and expenditure so the control of costs is vital.

Many ideas may come up in your mind during the day. Do not forget to write them down and discuss them with your partners. Brainstorming is a key way to decide whether the idea is valuable or not. Every new project requires money, human and material resources and time. Always get rid of ideas that are not likely to be feasible. It is vital for business to decide whether this or that project is worth your resources, otherwise, there is a risk of losing not only your passion for creativity but also those opportunities, which appeared at that time.

Conclusion. Thereis no need to be afraid of having a little knowledge of how business works. The world is changing so fast that you cannot learn all things at once and use them but you can create your own business strategy from what you have already learned. Mistakes are inevitable and they make you go further in your self-developing. There are many ways to enhance your business thinking: attending different workshops, asking experienced people

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and qualified business advisers for help, analyzing someone else’s success, taking online business courses. The ideas given above are just a small piece of what you need to think about before starting your own business. Your talent and passion to create something unique that inspires you and other people are a good foundation that you must never lose.

REFERENCES1. CCI Fuel Global Economy [Electronic recourse]. – Mode of access : http://www.worldcreative.org/wp-

content/uploads/2015/12/COM15-0908_CCI_Fuel_Global_Economy_FINAL_EN.pdf. – Date of access : 07.03.2017.2. Creative Industries Mapping Documents 2001 [Electronic recourse]. – Mode of access :

https://www.gov.uk/government/publications/creative-industries-mapping-documents-2001. – Date of access : 15.03.2017.

3. Intellectual property and copyright. [Electronic recourse]. – Mode of access : http://www.unesco.org/culture/pdf/creative-economy-report-2013.pdf. – Date of access : 20.03.2017.

УДК 811.111-342

THE ROLE OF MORPHOLOGICAL ASPECTS IN ADVERTISING SLOGANS

E.I. Ivashina, student of group 10508116 FMME BNTU,Research supervisor PhD, Associate Professor, A.I. Sorokina

Рекламные слоганы делают бренд более узнаваемым. Интересный факт: человек может не помнить саму рекламу, не помнить даже название самого товара, но он будет помнить его слоган. Поэтому так важно знать, как составить слоган правильно. Новизна этого исследования заключается в комплексном подходе к изучению лингвистических особенностей рекламных слоганов, что поможет в их составлении в будущем.

Advertising slogans make the brand more recognizable. An interesting fact: a person may not remember the advertisement itself, may not even remember the name of the brand itself, but he will remember its slogan. Therefore, it is so important to know how to make a slogan correctly. The novelty of the research lies in a comprehensive approach to the study of linguistic features of advertising slogans, which will help to create of advertising slogans in the future.

Introduction.Nowadays the modern society is surrounded by purchases. It is hard to imagine a day when you did not buy anything: whether it is milk in a store or a bus ticket. As every day, the number of companies increases, then the competition between them is growing rapidly. Therefore, people came up with advertising – audio or visual form of marketing communication that employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea. Advertising has become an important component of mass culture. Newspapers, magazines, TV, radio, the Internet – everywhere we could find examples of advertisements.

Advertising at its core – is primarily economic phenomenon, so it is always necessary to understand its impact on the market subjects. It affects both manufacturers and consumers of goods and services. Undoubtedly, advertising is the engine of progress, especially at the present stage of market economy conditions. The range of goods is now replete with all sorts of suggestions, so to highlight their products among thousands of peers, it is necessary to resort to PR.

For a long time companies have been using slogans in their advertisements. Both huge and small business use slogans to tell the world what makes them unique. If it is well done, a slogan can become the centerpiece of a company’s image.

Main part. A slogan is the important part of the advertising text, as it reflects the basic idea of the whole brand and can perform as an independent advertising text. The slogan is a short phrase that serves as a very brief representation of a product or company.

There are three types of advertising slogans: descriptive, emotive and creative.Descriptive slogans are very constructive when the name of a company does not give any information about the

type of products and/or services it sells. The example of a descriptive slogan is the slogan of Playtex “Lifts and separates”.

We could easily identify creative slogan by presence in it various literary devices that are used in order to make the slogan more interesting, memorable and clever.

The following literary devices can be used: Alliteration. Alliteration is when words in a sentence start with the same letter –Intel “Intel inside”. Puns. A pun is word that can have a double meaning – US airways “Fly with US” (US – united states and us

–pronoun); Sharp “Sharp Minds, Sharp Products” (Sharp – the name of brand and sharp – adjective). Rhyme. Rhyming words sound the same and can make a slogan more memorable – Heinz “Beanz meanz

Heinz.

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Word play and letter play. This is where you become so creative that you invent new words or new ways of spelling words - Heinz “Beanz meanz Heinz”; Mentos “The freshmaker!”

Sentence structure. Many great slogans contain just a few words. When experimenting with sentence length and structure, you can convey a powerful message in just one, two or three punchy words – IBM ”Think”; HP “Invent”.

Emotive slogans are used to convey a ‘feeling’, but it does not give us information about the product brand sells. One of the most popular examples of such slogans is Nike’s slogan “Just do it”, that do not tell us about the product Nike sells but it evokes emotions and feelings such as: power, passion, drive and determination.

Slogans do not have to stick to one ‘type’. They can be descriptive and creative, emotive and descriptive, creative and emotive, and all of the other combinations. The slogan of Mountain Dew “Do the Dew” is emotive and creative at the same time: it gives us power and intention to do something therefore it is emotive and it is creative as contains pun because “Dew” means the brand name and the verb “to moist”.

How to form an advertising slogan properly? Firstly, remember a few rules: Conciseness. The shorter the slogan is, the more chances that the client will memorize it. Originality. Be unique. Otherwise, what's good, your client's successful slogan identifies with a foreign

brand. Clarity. In pursuit of originality, do not forget: behind the trees there must be a forest. Sometimes seeing ads,

I just get lost: they do not sell ice cream, or ENT doctor services. Attractiveness. The slogan should not be about how wonderful you are. Say instead what your client will

receive. An example of an incorrect slogan is "A new store of our network ..." Well, so what? But the "summer collection is already waiting for you ..." is better.

Remember, the slogan is a special genre. You have three or four words. You have a second or two to attract attention, interest and be remembered. Do not try to fit into the slogan a lot of information – it will not be read. Do not explain the profound and profitable meaning of your proposal – it will not be appreciated.

The question “How to create an ideal advertising slogan” is very common. The structure of advertising slogans needs a lot of time to study. It consists of several aspects such as phonetic, syntactic, grammar, semantic, pragmatic and morphological. If we try to analyze a world-famous slogan of McDonald’s “I’m loving it”, we will see that it consists of personal pronouns “I” and “it” and of a stative verb “love” ( nevertheless it is used as a dynamic one) that is used in present progressive form. If we try to analyze one also very famous Nike slogans “Just do it”, we will notice the presence of an adverb “just”, a dynamic verb “do” and of a personal pronoun “it” By analyzing the most popular advertising slogans that were noted on various advertising festivals and competitions, we can better understand the ideal structure of advertising slogan. The aim of analysis was to identify the unit of speech, which is the most suitable for usage in slogans and to find out, which types of word classes are better to use in advertising slogans. The results of analysis were following:

1. 25% of all words in advertising slogans are nouns (120/469), 23% – verbs, 13% – pronouns, 10% – articles, 10% – adjectives, 8% – prepositions, 6% – adverbs, , 2% – conjunctions, 2% – interjections and less than 1% – numerals.

2. 45% of all verbs are dynamic (48/107) 41% – stative, 7% auxiliary, 4% – phrasal, 3% – modal.3. 97% of all verbs are used in Present simple, 2% – in present progressive, 1% – past simple.4. 84% of all nouns are in singular, 16% – plural.5. 73% of all pronouns are personal, 12% – indefinite, 7% – relative, 7% – possessive and 1% – demonstrative.6. 70% of all adjectives are used in positive form, 21% – in comparative and 9% – in superlative one.7. 72% of all articles are definite and 28% – indefinite.We could notice the presence of a brand name in some advertising slogans. The idea is that people would

certainly associate a slogan with the brand and it is easily remembered. For example, we all know such slogans as “hungry? Grab snickers” and “maybe she’s born with it. Maybe it’s Maybelline”. In lexical analysis we could notice, that proper nouns (brand names) make up 21% of all nouns (25/120).

In the research the implication of the morphological components of different brands was examined and analyzed. The relevance of the chosen topic was proved with the help of a blog “The language of advertising slogans” that

was created specifically. The purpose of the blog is to convey as much information about advertising slogans as possible. To see if the blog is actual, the counter was placed on the blog page. The information about the usage of different parts of speech is presented in the blog as well as the information about all analyses that were conducted during the research.The site: www.adslogans.blogspot.com

Conclusion. Slogans - advertising phrases that are associated with the advertised goods. In contrast, product names, slogans, carry energy and they are designed to create a first impression. The more this impression is, the more successful will be the advertising campaign. The importance of a successful slogan is enormous. Advertising slogan forms the image of the company, positions the brand in the mind of consumers. It can give us information about what the product sells. The structure of advertising slogans was analyzed and all the results are listed above.

I hope that this research will contribute to the present knowledge about advertising language and will introduce new facts, findings and observations on such creative and extremely interesting discourse. I believe that it will be useful and contributing for all who are interested in the English language.

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REFERENCES1. William, J. Stanton. Fundamentals of Marketing / J. William // McGraw-Hill. – 1984. – 465 p.

УДК 658.8

CROSS-CULTURAL MANAGEMENT

K.I. Kaledina, student of group10503214 FMMP BNTU,Research supervisor PhD, Associate Professor, A.I. Sorokina

Когда предприятие решает расширять свою коммерческую деятельность за пределы национального рынка, оно, прежде всего, проводит анализ спроса на продукт, включая нужды и требования покупателей к нему. Таким образом, в статье рассмотрены факторы, влияющие на спрос потребителей в разных странах.

When an expanding organization analyzes the demand for the product, it takes into account the needs of buyers and their requirements to the goods. Thus, factors affecting the demand of buyers from different countries are consideredin this article.

Introduction. Globalization is an inevitable process in the 21st Century. On the one hand, the world is becoming more similar, and dissimilarities between national markets are not only disappearing but, for some products, will withdraw altogether. However, on the other hand, the differences among nations, regions, and ethnic groups in terms of cultural factors are far from distinguishing but become more obvious. «Everymodern organizationwants to expand its business, to sell products and services outside its home market. In order to meet the demand of customers from different countries, the organization needs to adapt the product to their specific needs.But needs and preferences of people from different countries vary because of cultural factors. That’s why it is important to consider cross-cultural differences of customers while doing business abroad.

The main part. Culture is a learned pattern of people’s behavior [1]. It means that we are not born with culture. During our life we learn something new. During first years of our life we are under influence of our parent’s beliefs and values. When children become older and more self-sustained they start using their own head to think and to make important decisions. Here comes the moment when due to their own life experience people and under impact of external factors acquire their own principles,traditions,attitude to particular things,beliefs,values and interests. External factors include family, friends and acquaintances, the most spread religion in a country, political system, economic situation, education etc.So cultureis a huge part of people’s everyday life, which includes many spheres as we can see on the picture below:

Picture 1 – the structure of people’s culture

Thus, if company doesn’t have enough knowledge in this sphere, it is likely to fail its business abroad. One of the popular examples of such failure was in 2004, when China banned a Nike television commercial showing U.S. basketball star LeBron James in a battle with animated cartoon kung for masters and two dragons, because it was argued that the ad insults Chinese national dignity.The company could avoid this situation if it had known more about local values and traditions.In Italy, far example, no one comes to mind to use in advertising the image of God's mother. Similarly, in the United States , which are a very puritanical country, advertising using a nude body is banned.That’s why it is very importantto considerculture and language differences, which havea great impact on customer’s attitude to the productin international marketing.

Language is another important concern in the sphere of culture. Language differences cause problems when it comes to creating an advertising campaign for a product, its name and label. The situation is even more difficult whenpeople in a country usemore than one language in their everyday life. Sometimes organizations need to invent

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clothing styles

art

music

since

jewelry

Cultureetiquette

different types of communication

beliefs

values and traditions

national cuisine

a new brand name in order to avoid language and translation difficulties. But there are problems even here. Firms should be especially careful which letters they use. For example, the sounds for R and L can be difficult for Asian customers to pronounce and it might deter them from asking the product of a company. Also it is important to translate slogans and the whole marketing campaign correctly. While translation organizations shouldn’t only consider the meaning of the words, but also the why people read them. For example, in Japan and in Arabian countries people read from right to left. So when cosmetic company uses advertisement which shows the effect of a cream on customers’’ skin places two different images showing skin in poor condition before use of a cream and flawless skin after applying the product, it should place the pictures in appropriate order: from right to left. Otherwise, people will think that this products on the contrary spoils the skin.

Another example of failure in international market was when one Italian company, which produced mineral water 'Traficant' decided to enterSpanish market, they realized the importance of cross-cultural marketing. In Spanish, the word translates as 'drug dealer.'

Colors are also very important [2]. Each color can have different meanings in different countries. For example, in Japan, black and white are considered to be the colors of sables and can’t be used on a product's packaging. In Egypt, green color is prohibitedfor packaging because of religious beliefs. The same situation is with purple, which is forbidden in Hispanic nations because it is associated with death.

A religious belief is another important factor, which organizations should consider while promoting a product abroad. For example for Christian nationsChristmas time is the main sales period. At the same time for other religions it’s not the most popular time for trade [3].

Advertising media also needs to be adapted for each specific market, since the availability of a particular media varies from country to country.

For example, advertising time on European television is very limited (from 4 hours a day in France to its complete absence in the Scandinavian countries, where print advertising is preferred). Advertisers must buy advertising time for months ahead, and they have almost no control over the airtime.

The effectiveness of print advertising is also fluctuating a lot. In Italy, for example, magazines are the main media, and in Austria they are not so popular with customers.

Also while promoting its’ product abroad the organization should consider differences between approaches of nationalities in evaluating products and services. For example, in in poor countries people first of all pay attention to the price of a product. Such type of consumers will prefer, for example, old model of mobile phoneat a reasonable price rather than an iPhone, which is popular among the youth in European well-developed countries and in the USA.

Even the form of the same product varies in different countries. For example,In the UK and the Netherlands, people prefer medications in tablets. In France, candles are preferred, and in Germany, an injection is preferable. In various countriesdifferent organsare consideredthe causes of the disease. The Germans are tending to see the causes of diseases in destruction of cardiac activity (cardiac circulation) - they in Europe consume cardiac medicines the most. Southern Europeans pay more attention to the liver. In the US and Britain, doctors tend to believe, that the reason of viruses are attacking p bodies, and they attribute antibiotics for treatment.

So if you say that you are tired (you are unwell), the Germans will say that this is a heart failure, in England it will be considered as a depression, in the US it will be a virus.

Languages, colors, religious beliefs – all this factors influence the way of expanding production abroad. In order to adapt the product to the needs of people in different countries organizations can:1) change the language, product name and color;2) use a specially adapted advertising message scenariofor every country;3) adapt media which is used for promotion;4) adapt product to local methods of promotion of goods and services [4]. There are many examples of companies’ strategies of adaptation products to needs of customers in different

countries, but the most interesting is McDonald’s strategy. They have adapted their menu to different tastes and local traditions for every country in which theyserve food. For example, McDonald's restaurants in India are the only restaurants in the world where people can’t buy beef. But there customers can purchase an all-lamb version of the Big Mac called the "Maharaja Mac." InGermany and Spainbeer is offered in these famous restaurants.In the Philippinesclients can order spaghetti. In Hong Kong McDonald’sserves rice burgers.

Conclusion. Before insertion the product to foreign markets the organization should gather particular information about key audience, which includes:

Financial status; Political system in a country; The most common interests and hobbies; The structure of population:the proportion of elderly, young and children, the proportion of men and

women; Needs of customers; Consumer’s behavior; Their culture [5].

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It will help to implement market segmentation, find potential buyers and identify an approach to a particular buyer

According to this list, culture is one of the most important factors which influence people’s attitude to a product.So for each multinational company it is important to find its own unique way of promoting its production abroad, the way of adapting its products to culture differences, but , what is more important, not to lose the individuality of a firm.

REFERENCES1. Newman, D. Do It! Marketing: 77 Instant-Action Ideas to Boost Sales, Maximize Profits, and Crush Your

Competition / D. Newman. –Spain, 2010. – 303 p.1. Miller, J. Sticky Branding: 12.5 Principles to Stand Out, Attract Customers, and Grow an Incredible

Brand / J. Miller. – New York, 2013. – 246 p.2. Neumeier, M. The Brand Gap: Expanded Edition / M. Neumeier. – New York, 2012. – 150 p.3. Borges, M. Marketing Analysis / M. Borges – Prezi,2012. – 250 p.4. Booms, B.H. Marketing strategies and organizational structures for service firms’, in Donnelly, J. H and

George, W. R (eds) Marketing of Sciences / B.H. Booms, M. J. Bitner. – American Marketing Association : Chicago. – 2012. – 291 p.

УДК 364.04

THE ROLE OF EVENT VOLUNTEERING FOR PEOPLE AND ORGANISATIONS

J. Kalenchak, student of group 10503315 FMME BNTU,Research supervisor A. Kolyasnev

В статье обращается внимание на проблемы, которые решает волонтерство, а также на его виды. Кроме того, рассматриваются преимущества волонтерства как для организаций, так и для самих добровольцев. Предлагаются возможности использования этого опыта для дополнения резюме и получения оплачиваемой работы.

The article considers the problems that the volunteer movement solves, types of volunteering. The benefits of volunteering for both organizations and volunteers themselves are also considered. The possibilities of using this experience to supplement the resume and obtain paid work are suggested.

Introduction. When someone volunteers, the first thing that comes to mind is people who spend their free time in hospitals, helping the sick and dying, collecting clothes and products to deal with natural disasters and the homeless, in poor African countries to fight the poor in the population And to teach children Literacy. And this is certainly true, but very few people know about all the growing event volunteering. Many of the biggest and most successful events depend upon event volunteers, as do numerous awareness-raising and fundraising activities conducted by nonprofit groups. Event volunteers also get involved with public events like festivals, forums, seminars, street fairs, ticker tape parades, and all sorts of sporting, cultural and art events. What can be more pleasant than attending a concert of your favorite band, change to your forum or sports event and all this is absolutely free. What is the benefit for the organizers and what can they get from such activities of volunteers - that is why the main attention is paid in this article [1].

Main part. Volunteering is a conscious effort to transform social reality. Volunteers are voluntary assistants who sacrifice their intangible values (their time, forces) to help others.

Translated from French, volontaire means a volunteer; a man who does good works of his own free will.Volunteer work is not paid. Volunteers are not only altruists, they work for the acquisition of experience, special

skills and knowledge, personal contacts. Often volunteer activity is the way to paid work, there is always an opportunity to prove oneself and prove oneself from the good side, try yourself in different spheres of activity and decide on the life path.

Problems that are solved by voluntary movements:Firstly, it helps with a lack of hands and brains in the social sphere. Public organizations, orphanages, hospitals

and similar institutions regularly lack human resources to carry out their daily work. As a result, actions to protect the rights of people with disabilities are canceled, many people still do not get enough money to cure a serious illness, etc. Providing such an organization with the necessary number of volunteers can increase the efficiency of these organizations at times.

Secondly, the lack of the organizations of the social sphere of knowledge in a certain narrow field. Most employees of social organizations are doctors, psychologists, social educators or people who themselves belong to vulnerable groups of the population (for example, members of the association of disabled people). Often they do not have enough knowledge in law to protect the rights of their wards, programming skills for creating their own organizations' websites, PR knowledge for effective fundraising, etc. Hiring paid experts from outside to perform

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these jobs is not possible due to the limited resources available. The only way out in this situation is to help volunteers with knowledge in a certain field.

Thirdly, volunteering also makes people more responsible for their actions. Anyone who has worked for at least a few months as a volunteer is unlikely to contaminate the forest or surrender his child to an orphanage [2].

There are two types of volunteering: short-term and long-term. Short-term is projected length from a day to two weeks. This type is more comfortable for those who haven’t much free time or want to volunteer in one determination project. Even if you have only a few hours a month to spare, you can make a significant difference for a person or even an entire organization by offering your time and energy to causes that need help but can't pay for it. And best of all, you can boost your career at the same time.

Long-term volunteering means participations in projects when a person doing something weekly or every day or something else but constantly. The most organization offer this type

So, why are organizations looking for volunteers? Volunteering for an organization is, first of all, the opportunity to reduce costs. Volunteers make it possible to expand the information coverage by spreading the information among friends and acquaintances, remove part of the task by delegating them to volunteers. New people - new ideas. Sometimes a person from outside can suggest new ways of development or help with any problem. In addition, volunteers are new contacts and connections, which are dealing with not only by students, but also by professionals. It is much more profitable to take volunteers of an experienced photographer or an interpreter than to hire. Sometimes, the organizers are looking for people on specific parameters: knowledge of the language, the right to drive, etc., But for many, only enthusiasm and free time are required. Many companies are grateful to the volunteers who allow free attendance at events, get discounts for their services, feed or give small gifts - all this also attracts volunteers and makes cooperation pleasant for both parties. The role of volunteers at an event can also be as follows: spectator services, marshalling, drink station attendants, logistics, registration and many more [3]. But what can volunteering give to a person?

Opportunity to visit entertainments free.Often organizations search volunteers for preparing an entertainment: work with guests, helping with technics, organization moments and other. You may see famous people, to take a unique experience and visit entertainment which couldn’t at another time and all of this without paid.

Learn New Skills. Want to become more comfortable with public speaking? Does sales intrigue you? Or you interest by marketing? Volunteering may help with all these questions – nowadays many companies use volunteers for helping in different fields so you always may search interesting task for you.

Language skills in a Real-World Setting.Knowing of foreign language is very important in the modern world. You may improve your level with such noncommercial organization as AIESEC or the project as Work and Travel.

Explore Career Options Without a Long-Term Commitment. You want to work in the healthcare sphere but don’t know anything besides doctor. By volunteering at a nearby hospital or nursing home you can give you a knowledge of many other career options in healthcare or you may understand that you want done anything else. Such experience is vital for pupils and students.

Make Key Professional Contacts.Like organizations search professional-volunteer and often connect with them in a long period after entertainment such a volunteer may work with it in future.It can be internship and paid work in the future. Or a person can recommend to other companies. In addition, there are activities where volunteers are invited to get acquainted and work experience [4].

What else can volunteers get at such events? The first thing a person learns is teamwork. Often, everything is working in groups and very quickly and not uncommon for situations when from one job a person abruptly move to another. The development of leadership qualities is also a weighty argument. After several activities a person is not afraid to take responsibility anymore, and the organizers are happy to form teams under the guidance of more experienced volunteers. In addition, any such event is an opportunity to find people with the same interests and make new acquaintances [5]. So how can you use your volunteer experience on your resume?

Volunteer work, whether in addition to a current job or an activity in between jobs, shows an employer that you are willing to try new experiences, be involved in your community and generally demonstrates a willingness to take initiative and make things happen.

Entry-level workers with minimal or no work experience (such as students) should focus their volunteering – even make it a central part of the resume. Many recent graduates do not have that much work experience, so emphasizing – in a skills-oriented way – their volunteer experiences is a great way to go, they can highlight communication, leadership and planning skills while showing that they are adaptable and self-motivated.

Volunteering is one of the best ways to develop and demonstrate new career skills. Just because your work was unpaid doesn't mean that you don't have a talent for or any skills, mentioning volunteering in connection with the professional world is one of the best ways to position yourself for a new career field.

Conclusion. Thus, volunteering is not only a way to help other people, but also an opportunity to gain benefits for themselves. It provides great opportunities for students without work experience and helps in acquiring new skills and their development. Event volunteering is gaining popularity every year in the modern world and more and more organizations are turning to volunteers for help. Such cooperation brings benefits to both parties in the form of reducing the costs and new people on the part of the organizer and the possibility of free attendance of events and getting an additional line in the resume for volunteers.

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Volunteering demonstrates to potential employers that you are proactive and motivated, as well as your personal values and interests, can help you to discover new ways of doing things that you can use to improve your current working processes, give you experience working with different groups of people, for instance children and young people, the elderly, or those with disabilities, increase your self-confidence and inspire you to push yourself out of your comfort zone, refine and improve your existing skills in a new environment.

REFERENCES1. What is an event volunteer? // The center for volunteering [Electronic resource]. – 2015 – Mode of access :

http://www.volunteering.com.au/for-volunteers/event-volunteering/what-is-an-event-volunteer/. – Date of access : 14.03.2017.

2. Все о волонтерстве // OOO “РАИК” [Электронный ресурс]. – 2015 – Режим доступа : http://raik.by/volontyoram/vsyo-o-volonterstve/. – Дата доступа : 18.03.2017.

3. Gaskin K. What volunteers want from organisation and managemen / K. Gaskin // The Institute for Volunteering Research [Electronic resource]. – Mode of access : https://www.monster.com/career-advice/article/volunteer-to-full-time-employment. – Date of access : 14.03.2017.

4. Villano, M. Tips for Turning a Volunteer Job into a Full-Time Position / M. Villano // Monster Worldwide [Electronic resource]. – 2017 – Mode of access : https://www.monster.com/career-advice/article/volunteer-to-full-time-employment. – Date of access : 16.03.2017.

5. Ram A. Cnaan Motivations and Benefits of Student Volunteering : Comparing Regular, Occasional, and NonVolunteers in Five Countries / Ram A. Cnaan, Karen A. Smith, Kirsten Holmes, Debbie Haski-Leventhal, Femida Handy, and Jeffrey L. Brudney // Penn libraries university of Pennsylvania [Electronic resource]. –2005-2017. – Mode of access : http://repository.upenn.edu/spp_papers/153/. – Date of access : 17.03.2017.

УДК 332.146.2

THE ROLE OF BUSINESS INCUBATORS IN THE DEVELOPMENT OF SMALL-SCALE BUSINESSES

V. Kireev, student of group 10503116 FMME BNTU,Research supervisor A. Kolyasnev

В данной статье рассматривается понятие бизнес-инкубатора, а также выявляются основные преимущества использования данного способа поддержки малого бизнеса в развитии предпринимательства и экономики в целом.

In this article the concept of a business incubator is being considered and the main advantages of using these small-scale businesses support in the development of entrepreneurship in particular and economy as a whole are identified.

Introduction. Business is a person's activity that allows to realize your own ideas and produce income. However, many problems can arise, when creating a business. In this paper, we will examine the activities of business incubators, which are used to create favorable conditions for the development of new and innovative enterprises, regardless of the form of ownership. They are to strengthen them, increase competitiveness and adapting to the conditions of the external economic environment.

Main part. At the present stage of development of the world economic system, the advantage in global competition is determined not only by the level of reserves of natural resources and the size of the country, but, first of all, by the rate of development and introduction of new knowledge and achievements into the most advanced technologies and products. In the upcoming years, the leading positions will be taken by countries that will be able to fully develop and use the professional abilities and talents of their citizens. It is necessary to introduce market-based mechanisms that ensure the rapid updating and wide dissemination of new technologies, and an increase in the production of products competitiveness in the world market.

Small-scale business is one of the leading sectors, which determines the rate of economic growth of the country, the employment status of the population, the structure and quality of the gross national product. The benefits of small-scale businesses in terms of country’s economy:

- the necessary saturation and mobility of the market;- the tendency to price stability and increase in the quality of products due to price and non-price competition;- acceleration of the process of introduction of new technologies and innovations;- deep specialization and cooperation;- new workplaces, etc.Creating a business is a responsible complex process that includes writing a business plan, working with

documents, searching for investors, assessing profitability, launching a marketing program, searching for employees etc. Starting a small business can be a very difficult task. Perhaps that's why most of us will never try to start

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anything. It can be a big problem for a beginner. Even having an innovative idea and enough money for its implementation, you may face problems that will not allow you to move further.

According to statistics of National statistical committee of the Republic of Belarus, there were 105047 small businesses in Belarus at the end of 2015. The average number of employees – 762793, the share in GDP – 14.2% [1, p.258].

The greatest benefit to entrepreneurs in business incubators is the full concentration on entrepreneurial tasks, a reduction in the cost of renting premises and a management apparatus. In a business incubator, employees of small enterprises, individual entrepreneurs and members of scientific and innovative groups work side by side, communicate, approve new approaches to organizing their own business, adopt experience and share original thoughts. Thus, a peculiar microclimate arises in the business incubator, favorable for the disclosure of creative potential and the formation of civilized entrepreneurship. Thus, the main goal of the business incubator is to create "greenhouse" conditions for the rapid and effective development of small companies and their entry into the market [2, p.74].

Business incubation is one of the most effective measures to support small-scale businesses at early stage. It provides a flexible and affordable infrastructure for new entrepreneurs and develop their ideas. Business incubators exist at the expense of local governments, government subsidies, from the rent of entrepreneurs, on the percentage of sales of independently functioning small businesses that came from "incubators", at the expense of educational institutions that provide educational and methodological support to small businesses at the expense of Venture capital.

The first incubators began to appear in Europe and the United States in the middle of the last century due to high unemployment. In 1985, there were only 70, in 1992 - 470, and after another three years – already 1110. Today, most of the business incubators operate in the US, and the main direction of their development is high technologies. Among the most famous and largest incubators of America there is AngelPad, which has attracted more than $ 550 million since its inception. Their most famous graduate is Periscope Data. Another organization – Techstars – raised $ 2.75 billion for its residents. Also, Uber appeared due to this incubator.

There are 20 business incubators in Belarus as for 03.03.2017, which are the part of the supporting infrastructure of small and medium-scale businesses [3].

The goals of this infrastructure are:- selection of projects based on the system of objective examination; - creation of favorable starting conditions for the development of small innovative technology-oriented firms;- support mechanisms for interaction with major centers;- formation of the material and technical base for the creation and development of small innovative firms;- creation of information networks that support the development of small firms, the possibility of their

connection to international networks;- training entrepreneurship in the scientific and technical sphere, and so on. The subjects of this infrastructure operate in all regions of the republic. In order to assist the implementation of

tasks to support small and medium-sized businesses, infrastructure entities received financial support totaling 1040000 BYN.

Small business incubators are the best option for beginning businesspersons who need development assistance, which can considerably save time and energy in the initial stages of organizing and running their own business.

Business incubator provides entrepreneurs with [4, p. 96]:- office space and industrial premises;- postal and secretarial service;- business consulting;- attraction of investments;- advertising support.Unlike many business assistance programs, the main feature of business incubators is the careful selection of

participants. They are assisted in the development of business plans and searching for seed capital, trained on the basics of business. On the other hand, the business incubator itself is an object. Nevertheless, state, local and city authorities very often support it at the initial stage, for example, in the form of low rent and maintenance costs.

The main tools used by business incubators in supporting small business:- free provision of necessary information;- consulting services;- assistance in training of staff;- financial support;- tax privileges;- protection against absorption by large enterprises;- stimulation of growth of own capital.According to statistics, companies, which work in the business incubator, create in average 32% more work

places and their turnover on average 62% higher than that of companies, running without the support of a business incubator.

The development in a business incubator include the following steps [4, p. 99]:

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- pre-seed stage (transition from business idea to business project, making up a business plan that can be presented to the investor);

- seed stage (presentation of the project to investor, searching of investments);- creating of a prototype;- startup;- output stage. The main industrial sectors, which often receive support from business incubators, are presented in “Table 1”.

Table 1. – Main industry sectors supported by business incubatorsIndustrial sectors %

Hi-tech sector 18,6IT sector 18,2Biotechnology, pharmaceutical sector 14,2Research and development 12,2Knowledge oriented services 11,5Combination of more activities 9,5Services/Professional 8,8Creative industries 6,1Business and financial services 0,6Retail, marketing and distribution 0,4

The socio-economic result of business incubators is the number of jobs created directly and indirectly, the amount of value added, the degree of improvement of scientific developments, the growth of business activity in the region, certain activities in the field of social protection of the population and the creation of charitable foundations.

Conclusion. Small business provides the necessary mobility in the market, creates a deep specialization and cooperation, without which its high efficiency is unthinkable. It is able not only to quickly fill the niches that are formed in the consumer sphere, but also to pay off relatively quickly. Also, it creates competition in the business sphere, which the market economy is impossible without.

Today, business incubators are one of the most effective methods of supporting small business. This structure provides support for a number of areas, and provides consulting services. The importance of developing this type of supporting for small businesses is obvious. With their help, young companies will be able to overcome a period of early stages of development, characterized by a lack of financial resources and necessary entrepreneurial experience. The need for extra-budgetary investment is constantly growing. Money isn’t an endless resource. Continuation of business operation without an investorbecomes rather doubtful if there’s financial insufficiency.

A special role is played by business incubators in regions that do not have a developed scientific, technical or innovative potential. There are obvious advantages that allow them to develop intensively and to increase the level of innovative activity.

REFERENCES1. Медведева, И.В. Статистический ежегодник Республики Беларусь 2016 / И.В. Медведева [и др.];

Национальный статистический комитет Республики Беларусь. – Минск: НСК РБ, 2016. – 519 с.2. Асаула, А.Н. Организация предпринимательской деятельности: Учебник / Под ред. д. э. н.,

проф. А.Н. Асаула. – СПб. : «Гуманистика», 2004. – 448 с.3. Перечень инкубаторов малого предпринимательства Республики Беларусь // Министерство

экономики Республики Беларусь [Электронный ресурс]. – Минск, 2017. – Режим доступа : http://economy.gov.by. – Дата доступа : 03.03.2017.

4. Барышевой, А.В. Инновационный менеджмент: Учебное пособие / Под ред. д. э. н., проф. А.В. Барышевой. – 3-е изд. – М. : Издательско-торговая корпорация «Дашков и К», 2012. – 384 с.

УДК 330.131.7

COMPANY’S COMPLIANCE RISK MANAGEMENT

H.V. Kisel., student of 10503114 FMME BNTU,Research supervisor: PhD, Associate Professor Sorokina A.I.

Резюме - данная статьяосвещает проблему отсутствия комплаенс менеджмента на предприятиях. Освещаются минусы отсутствия комплаенс менеджмента на предприятии, какие проблемы могут быть вызваны отсутствием, преимущества, которые может получить предприятия используя комплаенс менеджмент. Также в статье предложены методы для эффективного функционирования комплаенс менеджмента на предприятии.

Resume- this article highlights the problem of lack of compliance management in enterprises. The shortcomings of the absence of compliance management at the enterprise, what problems can be caused by this absence, the

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benefits that enterprises can receive using compliance management are highlighted. Also, the article suggests methods for effective functioning of compliance management at the enterprise.

Introduction. The activity of any organization or structure is anyway connected with risks, as practice shows. Particularly, this refers to actions in accordance with the request, rules, legislation, regulations and standards. This issue also highlights compliance, which is becoming increasingly relevant in our time.

This sphere includes the following areas: combating illegal incomes; financing of terrorism; protection of information flows; countering fraud and corruption; establishing ethical standards of behavior of employees; development of procedures that provide the compliance of companies' activities with the current legislation,

etc. [1]This direction is mainly related to the financial and banking sphere, but is not limited to it. Compliance is a

mandatory part of the management system and internal oversight. It is a type of control established for observance of regulatory standards and requirements, refers to personnel, technical means and documents.

However, quite often the companies, pursuing the goal of obtaining the maximum profit turn a blind eye on regulations of compliance. Most often this refers to innovations in the requirements that can complicate the established functioning of manufacture, also it impede the implementation of certain activities of the organization. This discrepancy can cause following troubles:

application legal sanctions for actions against the company; criminal liability of managers; improved communication with stakeholders; financial losses; reducing risks, which can lead to loss of market share and a decrease in the share of organizations in their

sector of the economy and even the liquidation of company.Main part. A study by the Ponemon Institute, “The True Cost of Compliance,” examined average compliance

costs across 46 organizations with compliance budgets ranging from $446,000 to over $16 million. Averaged by organizational headcount, the per capita compliance cost came out as $222 per employee. When non-compliance costs resulting from fines and penalties, policy enforcement, data protection, staff training, and system improvements were calculated across the same organizational headcount, the average cost was $820 per employee. [2]

All of the above problems undesirable for every successful company and these problems must be solved. Therefore, we need units that will be responsible for creating technology that will work all time of relevance of the document or rule that will give opportunity for the business to exist and develop without violating the established laws.

Organizations that directly control in this area are called compliance controllers. Their responsibilities are to manage risks and reduce them. Activities of these managers can give opportunity to raise costs of services of the company, because of effective and successful compliance function earlier than competitors.

This function has the following tasks: compliance with the requirements for the implementation of a new product; ensuring the reliability of the company's reporting; prevention of participation in unlawful activities. [3]Their implementation requires compliance with such principles as: the official status of compliance functions the presence of its manager the non-involvement of employees in conflict of interest access to the information that is needed by these managers [4]The time and resources are freed up by a simpler, streamlined approach, that is, compliance with experts, can

focus on enhancing shareholder value through improved analysis, more thoughtful reporting, and working directly with the business.

Questions to determine your level of compliance management need include: How much time and money does my organization spend tracking regulatory changes and implementing these

changes? Has my organization let an important regulatory change event slip through the cracks? What were the

associated costs? Does my business understand the impact of regulatory change? How can our ability to be tackled? How does my organization provide evidence of regulatory change management success to key stakeholders,

senior management, and regulators?For effective functioning of compliance at the enterprise I offer a number of methods: identification, analysis, accounting, monitoring of risks and regular assessment of their level, reporting;

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providing guidance on compliance with laws and regulations; provision of resources for effective discharge of duties; development of methods and documentation for the level of risk level; analysis of complaints from clients and their dynamics; analysis of products and services sold; training staff to follow the legislative rules, advising the executive bodies, informing about changes in their

activities; maintaining communication with external regulatory bodies; development of documents preventing bribery and corruption; the formation of rules and norms of corporate conduct, as well as professional ethics. creation of departments for compliance control, contain groups to prevent conflicts of interest, combat money

laundering, provide information control, analyze and prevent customer complaints.Conclusion. Thus, we come to the conclusion that compliance risk management has no shortcomings, but so

close to them as increasing customer loyalty, interest in investment and investment, trust in suppliers and employees; Absences. Since in the conditions of modern competition there is a question and quality, compliance control is a means of attracting customers, and also becomes an integral part of corporate governance and ensuring the attainability of strategic and tactical goals.

REFERENCES1. Methodological bases of counteraction to money laundering legalization / V.M. Aliev, D.I. Aminov, P.V.

Fedotov // Publisher: Unity-Dan. – 2007. – Р. 160.2. Cost of non-compliance [Electronic resource]. – 2009. – Mode of access:

http://www.convergepoint.com/compliance-software-sharepoint/compliance-software-healthcare/healthcare-organizations-and-hipaa-the-cost-of-non-compliance/. – Date of access: 02.03.2017.

3. Transformation of compliance and risk management in the internal control system [Electronic resource]. – 2009. – Mode of access: http://www.reglament.net/bank/control/2011_1_article_3.htm. – Date of access: 02.03.2017.

4. Financial and economic research in ensuring economic security. / A.E. Gorodetsky // Audit and financial analysis. – 2007. – №1. – Р. 135.

УДК347.77

VENTURE CAPITAL METHOD FOR COMPETITIVENESS ASSESSMENT OF INTELLECTUAL PROPERTY

D.S. Klinova, student of group 10507114 FMME BNTU,Research supervisor N.I. Shumskaya

В данной статье рассмотрен новый альтернативный метод оценки конкурентоспособности объектов интеллектуальной собственности – метод венчурного капитала. Доработана формула вычисления до инвестиционной стоимости компании для того, чтобы можно было обойти вопрос негативных денежных потоков на начальном этапе развития компании. А также произведен расчет себестоимости объекта интеллектуальной собственности на примере IT-компании.

In this article, a new alternative method for assessing the competitiveness of intellectual property objects is considered - the venture capital method. The formula for calculating the company's pre-investment value is improved so that the issue of negative cash flows can be bypassed at the initial stage of the company's development. And also the calculation of the prime cost of an object of intellectual property on the example of an IT company.

Introduction. The urgency of the problem of the methodology for assessing the competitiveness of intellectual property is due to the need for the development of innovative companies in our country. However, due to the lack of an optimal evaluation methodology, their expertise can last too long, what has a very negative effect on companies in the early stages of development.

Thus, when considering the problem of valuing a firm by a venture investor, it is understood that this business idea, regardless of the stage of its development, is innovative. Therefore, we will consider an innovative business idea as an object of intellectual property possessing the following characteristics (one or several):

Manufacturing products with new properties; Creation of a new method or improvement of the mode of production; Development of new markets; Use of new sources of raw materials.

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Recently, such a direction as venture investment has been actively developed in Belarus. The Public Association "Community of Business Angels and Venture Investors" BAVIN "was created - this is the first formalized association of business angels, various events of innovative projects are being held (for example, Minsk StartUpWeekend). As for venture funds, there have not been any of them yet in Belarus. However, their creation is only a matter of time [1].

Main part. Historically, there are three approaches to assessing the value of an enterprise: profitable, cost, comparative [2]. However, to evaluate the cost of high-tech enterprises, the use of these methods is very problematic due to the large number of shortcomings. Recently, other alternative approaches have become widespread, among which a special interest has the venture capital method actively used by venture investors.

The essence of this method is simple enough: first, the post-investment value is calculated after the investment, and then the estimated investments are deducted from this cost. Thus, pre-investment value is determined. When assessing the value of a business using the venture capital method, the terms "pre-investment value" and "post-investment value" are used. Pre-investment cost is the value of a business before the injection of venture investments. Post-investment value is a pre-investment value together with the value of the received investments.

This method allows us to circumvent the issue of negative cash flows at the initial stage of the company's development. Another distinguishing feature of the venture capital method is the determination of the cost taking into account the projected dilution of the share in the capital in subsequent rounds of financing.

Estimating the cost of start-up companies as an IP object by the venture capital method is five steps.The first stage: calculation of the forward value of the planned investment. At this stage, the forward value is

calculated by the formula (1):

FV = PV (1 + r)N, (1)

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