BASICS OF BUSINESS MANAGEMENT OF DOMESTIC ENTERPRISES

Abstract

Modern business mainly uses outdated methods of command-administrative business management, and in some cases there is a combined management model (a combination of several methods). As for home-based businesses and start-ups, lack of a clear understanding of management activities or management is the nature of chaotic attempts to “set something up”. Therefore, analyzing the theoretical and practical developments of scholars in the field of economics, we can say that today there is no clear understanding of which management method is the most effective for managing the business of small businesses. In today's economy, the key to effective business management of business entities is the construction of high-quality flexible and mobile business processes, both in terms of internal interaction between entities and management entities, as well as in cooperation with the external market. Therefore, it is important to properly understand the essence of business management principles and methods. The purpose of the study is to substantiate the theoretical and methodological foundations of managing the entrepreneurial activity of domestic economic entities in the modern economy. The essence and the pyramid of groups of key principles of modern business management are investigated in accordance with the conditions of the modern economy and depending on their influence on business development: effective development group, sustainable development group and latent development group. The essence of administrative, economic, social and psychological methods of business management is substantiated. The identified positive and negative features of the application of these management methods for business. It is proposed to distinguish a separate category of innovative development methods, which should include foreign experience of agile business management Agile, Scrum, Kanban, XP and the concept of Lean management. It is concluded that the methods of flexible business management are effective both in managing enterprises and entrepreneurial activity of an individual entrepreneur with employees, sole proprietor, self-employed person, as well as home-based household business. It is advisable for business entities to choose one basic method of business management, but with the permissible combination of managing individual areas of activity by using another related method, approach, concept.