Dramatize the dialogue and make up your own conversation on analogy.

The person has just made a decision to become an entrepreneur. He has come to the consultant business law company to clear up all questions he has. Entrepreneur Lots of people are starting up their own businesses, but only a small

number of them seem to succeed. Why is it so? Lawyer Well, there are several reasons.

Entrepreneur I think I can guess. These are because of the difficult times. Lawyer You are absolutely right. There has been a pretty general recession

and the question of labour relations. Entrepreneur True. True. I am used to hearing all kinds of horror stories about the activities of wicked trade unions, about excessive wage demand and about different strikes. Lawyer I am sure there is no doubt that these factors do contribute to the

rapid disappearance of many little businesses. But it is more than

likely in my opinion, that what really accounts for most of the

failures is quite simply bad management. Entrepreneur In which ways may a business be badly managed? And can we

learn some lessons about good management? Lawyer Our first lesson: never attempt to start a new venture if you haven’t

got enough capital to see it through. Entrepreneur I definitely have enough money to start. I doubt of a right place and

suitable premises for my new business. Lawyer The question is quite important. Don’t be too much of a hurry to

settle on premises if you aren’t sure they are right. Some businesses

operate inefficiently because they haven’t got enough room to plan

properly or to expand if they need to.

Entrepreneur How much of my capital can I spend on presenting a company image, on fitting and office furniture. To be successful a glossy image is very important. Am I right?

Lawyer So that’s our third lesson: get your priorities right and don’t spend too much of your capital on non-productive items. Think it over a bit. Next time I’ll teach you the fourth lesson about how to research the market and a lot of other factors to be taken into account.

Entrepreneur It is not difficult to predict knowing the fundamentals of business. The talk will probably be about installing the right equipment, hiring a suitable workforce, controlling production and the storage of stock, keeping a close check on prices and customer credit.

Lawyer You are not so ignorant that it seems to be. But above all remember today’s golden rule. Plan every step of the way before you start… Any other time is too late.

2. Discuss in pairs advantages and disadvantages of being an
entrepreneur.

Questions for discussion

1. Give some reasons why an individual entrepreneur might succeed in bringing a product to the market where the government or a large corporation would fail.

2. What do you think entrepreneurship will mean in the future?

3. Get ready to speak in detail about entrepreneurs and
entrepreneurship.

V. Written Task

Translate into Russian using a dictionary.

DESIRABILITY OF NEW VENTURE CREATION

The perception that starting a new company is desirable results from an individual's culture, subculture, family, teachers, and peers.In a country where an individual who successfully creates a new business is honored and respected –more companies will be created. For example, in the United States there has always been a high value on being one's own boss, having individual opportunity, being a success, and making money – all aspects of entrepreneurship. Therefore, it is not surprising to find a high rate of company creation in the United States. On the other hand, in some countries successfully establishing a new business and making

money are not as highly valued, and failure may be a disgrace. Countries with such cultures (national traditions) do not have as high a business creation rate.

No culture is totally for or against entrepreneurship. Many subcultures (local traditions) shape their own value systems. Even in the United States entrepreneurship is not supported and promoted in the same way. In supportive environments where creating a new company is one of the best occupations, more individuals actively create new enterprises.

In Moscow most of the new companies (about 40 %) operate in trade, 30 % operate in the field of R&D, all the rest operate in building, transport and other fields.

In addition to local traditions, family traditions are very important too. Studies of companies in a variety of industries throughout the world indicate that 50 to 70 percent of the founders of companies had fathers or mothers who had an independent occupation.

Encouragement to create a company is further gained from teachers in schools, who familiarize the students with entrepreneurship as one possible career path. Schools with courses in entrepreneurship and innovation tend to develop entrepreneurs. Taking the entrepreneurship course increases the probability for such students to become entrepreneurs. An area having a strong education base is almost always a prerequisite for entrepreneurial activity and company creation.

Finally, peers are very important in the decision to create a company. More new companies are created in an area with a meeting place where entrepreneurs and potential entrepreneurs can discuss ideas, problems, and solutions.

TYPES OF START-UPS

So, the decision to create a new company is made. What types of companies there exist? While there are many classification systems, one that is most useful divides start-ups into three categories: life-style firms, foundation companies, and high-potential ventures.

A life-style (“home”) firm is a private enterprise. It usually achieves only modest growth due to the nature of the business, the objectives of the entrepreneur, and the limited money devoted to R&D. This type of firm may grow after several years to 30 or 40 employees and have annual revenues of about $2 million. A life-style firm exists primarily to support the owners and usually has little opportunity for significant growth and expansion.

The second type of start-up – the foundation company (innovation enterprise) – is created from R&D and lays the foundation for a new industry. This firm can grow in 5 to 10 years from 40 to 400 employees and from

$10 million to $20 million in annual revenues. Since this type of start-up rarely goes public,it usually draws the interest of private investors only.

The third type of start-up – the high-potential venture – is the one that receives the greatest investment interest and publicity (investors are striving to invest money in it). While the company may start out like a foundation company, its growth is far more rapid. After 5 to 10 years the company could employ around 500 employees with $20 million to $30 million in annual revenues. The company usually shortly becomes a public limited company.

The creation of a new venture must be desirable and possible for an individual to change from a present life-style to a radically new one. It is not surprising that the type and number of new business creations vary greatly throughout any country.

УЧЕБНЫЙ ЭЛЕМЕНТ 2 (УЭ-2) MONEY

I. Improve your wordpower.

Study the following

cheque (n) coin (n) commodity (n) currency (n) demand (n) medium (n) purchasing power (n) rapidity (n) constant store (n) tender (n) legal tender (n) transaction (n) value (n) judge (v) issue (v) maintain (v) measure (v) reckon (v) regard (v) substitute (v)

words and word combinations:

чек

монета

товар, предмет потребления

валюта

спрос

средство

покупательская способность

быстрота

постоянный запас

платежное средство

законное платежное средство

сделка

ценность

судить

выпускать

поддерживать

измерять

считать, полагать

относиться

заменять, использовать вместо

Using a dictionary add as many words as possible into the table.

Verbs Adjectives Nouns

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