Theme 11. The risks of innovation entrepreneurship

1. The essence of entrepreneurial risk

2. Classification of entrepreneurial risk

3. Ways to reduce the risk

Risk invariably accompanies the adoption of any economic decision due to the fact that uncertainty - an essential condition for economic management. Entrepreneurship is always fraught with risk, the impact of which on the results of operations can not be clearly established. And innovation to a greater extent than other areas of business, poses a risk because guarantee successful results in innovative business is virtually nonexistent.

In general, the risk in innovative entrepreneurship can be defined as a probability of losses arising from the investing company funds in the production of new goods and services, the development of new techniques and technologies that could not find the expected demand in the market, as well as investing in the development of managerial innovations that will not bring the desired effect.

All risks are divided into two large groups:

Pure risks.

Speculative risks.

Under the management of risk in innovation is understood as a set of practical measures to reduce the uncertainty of the results of innovation, enhance the usefulness of implementing innovations to reduce the price to achieve the goal of innovation.

Completely avoid the risk of innovative business impossible, because it is very difficult to predict how the innovation will be a success in the market, and what will not be in demand. However, the risk can be reduced.

Theme 10. Business ethics and corporate culture

1. Business ethics and principles of etiquette

2. The role of corporate culture in the functioning of the organization

Ethics is an integral part of a functioning society, but many people struggle to define ethics and put it into practice in a business setting. Owners and managers set the bar for ethics in an organization, but they aren't the only participants. Employees and other business players also influence and perpetuate ethics. In the case of small businesses, managers need to know how to carry out ethical policies in addition to knowing the virtues.

Companies with strong ethics programs have found that these efforts can reduce potential costly fines, decrease vulnerability, improve reputation, provide access to capital, favorably influence their bottom line, positively affect their employees' commitment to work and enhance customer loyalty.

Theme 11. State innovation policy

1. The need for innovative economic development

2. Program of Innovative Development of Kazakhstan: aims and tools

3. The experience of foreign countries in the field of innovation development

The State Program on Forced Industrial-Innovative Development of Kazakhstan for 2010-2014 (hereinafter - the Program) is designed to implement the order of the President given on May 15, 2009 at the extraordinary XII Congress of People's Democratic Party "Nur Otan", the President's Address to the Nation "New decade - new economic growth - new opportunities for Kazakhstan", and also in accordance with the key areas of the Strategic plan for the Development of Kazakhstan till 2020, which is the second stage of the development strategy until 2030.

The program is aimed at ensuring sustainable and balanced economic growth through diversification and increase of its competitiveness.

The program is a logical continuation of the policy of economic diversification, and integrated basic approaches of the Strategy of Industrial and Innovation Development for 2003-2015, the Program "30 corporate leaders of Kazakhstan", as well as other policy documents in the field of industrialization.

Until 2015, the main priority of the forced industrialization will be the implementation of major investment projects in traditional export sectors of the economy, with multiplication of new business opportunities for small and medium-sized businesses through targeted development of local content and subsequent redistribution and processing.

Initiators of large projects promotion will include JSC "National Welfare Fund" Samruk-Kazyna" JSC (hereinafter - NWF "Samruk-Kazyna" JSC), the backbone companies of the fuel and energy and metallurgical sectors, as well as strategic foreign investors.

Formation and / or strengthening of industries not related to the commodity sector and focused on domestic and subsequently to the regional markets (countries of the Customs Union, Central Asia) will be carried out in parallel. The state will support the initiative of Kazakhstan's small and medium businesses, aimed at the transfer of advanced technologies to attract foreign investors, to build modern import-substituting industries, with the prospect of the development of their export orientation.

In order to form the foundations of the post-industrial economy a national innovation infrastructure and support for scientific and technological experience acquired with the prospects of commercialization will continue to develop. In general, public support of diversification of the economy will be conducted through the implementation of the system of economic policies at the macro- and sector levels, as well as selective measures to support specific sectors and projects.

System policy measures will concentrate on creating a favourable macro environment and investment climate, measures to increase the productivity and competitiveness of the national economy. Selective measures will be based on the combined package of financial and non-financial support to priority sectors and projects.

The state will build its systemic interaction with the business through the development of effective institutions for cooperation at the national and regional levels.

Adequate to objective condition of the economy trajectory of the policy of industrialization by 2015 will have internal consistency with the resource, infrastructure, institutional and technological constraints. Systemic character of the built in the Program mechanisms that encourage diversification and technological modernization of the economy, will provide:

• creation of favourable macroeconomic conditions;

• improving the business climate and encouraging investments;

• massive technological upgrading and development of the national innovation system;

• improving the quality of human capital.

Concentration of resources of the state and business on development of priority sectors of the economy will be accompanied by an interactive process of harmonization of government and business solutions, using modern information systems for monitoring and implementation of specific tools.