The businessman and his role in economy

Market conditions of a trading activity and involvement in the sphere of trade of a considerable part of the population caused the necessity of training of commercial workers of new type.

A century ago commerce was considered as the activities which aren’t requiring deep studying and a research. Now the sphere of knowledge in a business activity at all not already, and is in certain cases much wider, than in any other specialty. Knowledge of commerce is literally inexhaustible.

businessman and his role in economy

Role of the businessman in market economy

The range of work of the businessman in modern conditions is extremely wide — in commercial, sales and marketing services of the entities of different patterns of ownership, at the retail and wholesale entities, firms, joint-stock companies and limited liability companies, etc.

The businessman in market economy becomes the central figure of trade business as conducts commercial negotiations with partners, performs functions on a management of trade process, regulation of economic communications on purchase and sales of goods with suppliers and buyers. He creates an optimum range of goods, exercises quality control of products, will organize advertising of goods and servicing of buyers. This is the universal specialist of trade case on which productive work the overall performance of the entity (firm) in general depends.

Requirements to the businessman

The specialist businessman needs to know well laws and other regulations which regulate a business activity. He shall be able to make the decisions making profit to show an initiative, to keep a trade secret, to possess a capability to take the risk.

The business activity shall be under construction on the basis of observance of requirements of business ethics. The businessman shall believe in trade business, regarding it as attractive creativity. Recognizing need of the competition, he shall understand also need of a cooperation, to trust itself (himself) and others, to respect professionalism and competence.

The businessman shall possess such personality characteristics as:

  • honesty, reliability, fidelity to the word;
  • persistence and commitment;
  • determination, speed and accuracy;
  • initiative, resourcefulness, sharpness;
  • leadership, responsibility, managers ability;
  • friendly attitude towards people, manner;
  • high spiritual qualities;
  • ability to risk, i.e. capability to expect and count all possible options of consequences of the made decisions.

Forming of image of the businessman guaranteeing success is influenced by «Ethical code» and etiquette of the businessman. Any businessman shall own skills of professional behavior, nobility and follow rules of representation and acquaintances, conducting business conversations, business correspondence and telephone negotiations; requirements to appearance, manners, business clothes, to the speech, etc.

The businessman shall possess professional knowledge and skills of spheres:

  • purchases and sales of goods;
  • marketing;
  • financial accounting;
  • financing and taxation;
  • managements and rights;
  • merchandising food and nonfood’s.

He shall monitor constantly information on innovations (innovations) in production of goods, trade and commerce, an entrepreneurship, advertizing and management, to generalize, analyze and apply it during a business activity.

The businessman shall know and observe the principles of a business activity:

  • observance of the current legislation;
  • profitability, profitability;
  • optimality of commercial decisions;
  • service and high culture of servicing of buyers.

In case of market economy the quality of a business activity depends mainly on ability of businessmen of a message active search and to find goods at various suppliers, including producers of goods. And goods need to be bought on bottom prices, taking into account the sales demand. It is important to sell quickly delivered goods, using progressive, modern sales methods, persuasive advertising; if necessary to take the reasonable, justified risk.

At the head of trade enterprises, commercial services there shall be skilled businessmen organizers, businessmen-commodity researchers, businessmen managers who are well knowing commercial work. On distribution centers, in trade organizations and at the entities it is necessary to create the commercial services or departments headed by first deputy directors of the entities or as it is accepted to call them, commercial directors.

Commercial services trade or commodity departments, departments of studying of demand or an environment of trade, commercial pavilions of distribution centers, halls of commodity samples and other trade divisions of the entities (organizations) are included.

Commercial services

Relevant task of commercial employees of trade organizations and the entities is involvement in a goods turnover of products of domestic manufacturers.

With respect thereto it is necessary to broaden the sphere of contractual relations with suppliers and manufacturers of goods, to increase efficiency and effectiveness of delivery agreements. Delivery agreements shall influence actively national production for every possible increase in release of consumer goods, their production from cheap alternative raw materials, forming of an optimum range of goods for the population.

In case of market economy the quality of commercial work depends, first of all, on ability to actively find the goods realized as free sale, to interest industrial or agricultural enterprises, cooperatives, the persons which are engaged in an individual labor activity in production of goods necessary to the population.

For accomplishment of these tasks commercial workers need to know well the economic region, its natural wealth, to really estimate a condition of the industry, agricultural industry, production capabilities and the range of the products developed by the entities of the region.

For studying of suppliers and their opportunities employees of commercial services shall take part in work of commodity exchanges, wholesale fairs, exhibitions sales and exhibitions — viewings of samples of the best and new products, to monitor advertisements in media, bulletins of demand and offers, handouts, catalogs.

It is reasonable to visit production enterprises (suppliers) for acquaintance with their production capabilities, amount and quality of products, to participate in meetings with workers of the industry.

It is necessary to adopt the experience of foreign countries in marketing use allowing to organize successfully a business activity of the entities in market conditions.