State enterprise: definition, types, examples

What does a unitary enterprise mean?

This is a specific company or other object, and the owner does not have the right to dispose of the property of the enterprise. These objects have a number of distinctive features that elevate them to a number of such formations.

These signs include the following:

• its participants can be created by the state of the Russian Federation, subjects of the state, as well as municipal entities;
• the existence of documents such as the charter and the owner’s decision;
• existing authorized capital;
• indivisible property, which can be divided only according to deposits, shares and other criteria;
• such objects can only be the municipality and the state;
• all issues are regulated by local or state authorities.

Please note: these objects are formed depending on their type and characteristics, but in any type, management is carried out on an individual basis.

State enterprises and their features

STATE ENTERPRISES AND THEIR FEATURES

Course work

CONTENT

INTRODUCTION

In modern market relations, the state plays an important role, both in regulating relations between market participants and as a direct participant. The latter is carried out not by the authorities themselves, but by state-owned enterprises. So what is the significance of these very enterprises? Everyone knows that the existence of modern society is impossible without the intervention of government agencies - without teachers, firefighters and power engineers, but state enterprises are a much broader topic than urban transport or sewerage. In addition to direct intervention in the market - price regulation, quality supervision and resolution of emerging disputes, the state also takes part in market relations as a seller and buyer of services and goods.

In particular, it is important to note those areas where there will be no immediate benefit for the entrepreneur, those areas that cannot survive without government subsidies. A good example would be education. Secondary education in Russia is free, and it cannot exist without state support.

Next, it is worth considering areas where a monopoly is required, this may include the defense of the country - the production and sale of weapons cannot be left without close supervision. This also includes drugs.

But there are also areas where state-owned enterprises face competition from private enterprises. In this case, the state promotes its policies through these enterprises. So it can create enterprises in those market sectors that at a given period of time are priorities in the country’s domestic or foreign policy.

It is also worth remembering about areas that may not be attractive to private entrepreneurs due to long-term profits, implicit benefits for the entrepreneur, or resource intensity. This primarily includes science and research.

Also included in state property are joint-stock companies and enterprises where the state is only a founder or a shareholder. In these cases, the state does not directly manage or own them, but appoints a manager and controls key aspects of the enterprise's behavior. So it can provide certain benefits, or priority in the provision of government contracts, or appoint a manager who, from the point of view of political considerations (domestic and even foreign policy), will make the right decisions, and remove a person acting contrary to state policy. Naturally, we should not forget about dividends, which replenish the state budget.

When considering state-owned enterprises, it is worth remembering that the state exercises special control over its enterprises and imposes special requirements. All this must be expressed legislatively. Joint-stock companies, where one of the shareholders is the state, are subject to legal acts relating to joint-stock companies, whatever they may be, but everything related to state-owned enterprises wholly owned by the state is regulated by special rules for unitary enterprises, which are also worth paying attention to when studying this topic.

The object of study of this course work is state-owned enterprises, the subject of study is the types of state-owned enterprises, their significance, features and legal status.

The purpose of this work is to determine the importance of state-owned enterprises in the modern market, to analyze the functionality and functioning of state-owned enterprises.

Based on this, the following tasks were set in this work:

— define the concept of state enterprises and their types;;

— outline the role of state-owned enterprises in the modern economy;

— study the features of state-owned enterprises and how they differ from other types of enterprises;

— explore the development and current situation of legal regulation of the activities of unitary enterprises.

CHAPTER I. Concept and features of state-owned enterprises

1.1. Concept and types of state enterprises

The very concept of state-owned enterprises often varies depending on the area of ​​government activity in question. Many textbooks and dictionaries define it as follows: “a state-owned enterprise is an enterprise whose fixed assets are state-owned, and whose managers are appointed or hired under contract by government agencies. If a state enterprise is budgetary, then it is financed from the state budget.”[1]. In this definition, it is possible to accidentally forget about that part of state-owned enterprises that are not directly controlled by the state, for example, those where the share of participation is not a controlling one. Other articles consider state-owned enterprises as enterprises that receive the bulk of their income from the sale of goods and services, rather than from the state budget. This view reduces the concept of state-owned enterprises, in fact, excluding non-profit and budgetary enterprises from it. But in both definitions it is important to see state property and ways of managing it. Thus, we will see under state-owned enterprises both state-subsidized enterprises that independently focus on market demand and pursue the goal of maximizing profits, as well as enterprises whose activities are completely determined by the government and are not aimed at profitability, as well as their intermediate forms.[2]

In countries with developed market economies, there are several types of state-owned enterprises. First of all, these are state-owned enterprises themselves, which are under the direct control of government authorities. The top management of such enterprises is appointed by the government, and their income and expenses are directly included in the state budget. In the economies of developed countries, the public sector accounts for up to 2% of the number of economic entities, while state-owned enterprises have neither legal nor entrepreneurial independence, 100% of their income is transferred to the state budget.[3] In Russia, federal and municipal unitary organizations whose property belongs to the state or municipality operate under the same conditions. The state and the municipality represented by the ministry (department) or municipal self-government body can be the sole owners of only a unitary organization. Unitary organizations are divided into enterprises and institutions, incl. non-profit (research institutes, educational institutions, health care, etc.).

Unitary enterprises are created in the form of a state-owned enterprise, the property of which is in state ownership, and a subsidiary enterprise, to which state property is transferred for economic management.[4] Russia also regulates types of activities that only state-owned enterprises have the right to engage in, such as the production of weapons, ammunition, drugs, the production and processing of nuclear substances and precious metals.

Mixed private-state enterprises are becoming widespread, where the state owns part of the company's shares or a controlling stake. In addition, the state, by concluding contractual relations with private sector enterprises, binds these enterprises with corresponding obligations and thereby establishes a relationship of formal subordination with the non-state sector of the economy. The most common form of public entrepreneurship in market countries is public corporations or joint stock companies with mixed capital. In Russia, their analogues are a state corporation and a state joint-stock enterprise. A state corporation is established by the federal government and receives a property contribution from the state. An example of a public corporation is the Public Investment Corporation.

In a state-owned joint-stock enterprise, the state owns a controlling stake. Such enterprises are natural monopolies, such as the Gazprom concern, the former RAO UES and others. The state can act as a majority shareholder, not owning a controlling stake (example: AvtoVAZ JSC), but having the right to appoint the head of the JSC.

The state can unite unitary enterprises and other state business entities into various forms of associations (associations, concerns and others). Large associations are created to implement strategic government programs and develop priority sectors of the economy. Such associations are, for example, natural state monopolies. Unitary enterprises may also be part of financial and industrial groups.[3]

1.2. The role of state-owned enterprises in the economy

A developed market economy is based on a fairly well-functioning system of interaction between various forms of ownership, among which state ownership occupies a special place.

The state, on the one hand, acts as the owner of property and as an entrepreneur, and on the other, as a regulator of socio-economic processes. State ownership is the most important instrument for implementing state policy. Therefore, the problem of effective management of all forms of state property is of paramount importance. The list of possible forms of ownership in the Constitution begins with private and state ownership, which, as world practice has shown, are the most significant in the economy. Contrary to the assertion of liberals that the state is an ineffective owner, there are significant sectors, the management of which by the state is still considered the most appropriate (national defense, government media, environmental protection, basic science, space exploration, creation of state reserves). The impact of crises and natural disasters force subjects of various forms of ownership to transfer part of their property to the state in order to avoid bankruptcy. Government support helps insolvent owners restore their solvency.

The size of the public sector in each country is different and is determined by a number of interrelated factors: the historical conditions of the country, the current stage of its development, its place in world economic relations, the competitiveness of the national economy, socio-economic, historical, cultural and other features. In most countries, the sphere of state ownership to one degree or another at different periods included land, industrial enterprises, military facilities, subsoil resources, electricity, transport (roads, railways, airlines), communications (telegraph and telephone, post office), etc. . P.

The scale of state ownership has expanded significantly in a number of countries as a result of government measures to rescue from bankruptcy enterprises that are of interest to the state from the point of view of long-term goals, but do not have the ability to quickly return on invested capital and, therefore, are of no interest to private investors. These are also many large-scale projects that are of great socio-economic and strategic importance for the country, but require the accumulation of significant funds. The boundaries of state ownership in different countries are constantly changing and depend on both historical conditions and emerging modern challenges. Accordingly, methods of managing state property differ and change.

State-owned enterprises are an instrument for implementing state policy. Through the creation of certain enterprises, the state can exert a regulatory influence on the market in such areas as increasing employment, implementing projects with a high degree of risk, anti-inflationary measures (including lowering prices and refusing profits during periods of rising inflation), promoting local commodity producers and suppliers of raw materials and components to public sector enterprises, equalizing the levels of economic development of regions, subsidizing certain categories of consumers. At the same time, state-owned enterprises, due to the national tasks assigned to them, enjoy certain state guarantees - these are various types of subsidies, guarantees against bankruptcy, exemption from import obligations, advantages in government procurement, etc.[3]

1.3.Features and differences of state-owned enterprises

As already discussed above, a market economy is forced, depending on the economic situation in the country, to maintain a number of enterprises in state ownership.

Types of unitary enterprises

Such objects are divided into subtypes:

• on the right of economic management (in this case, the property belongs to the state);
• in the form of operational management , when the property belongs to the state, but is agreed with the owner. This type is called official.

Also, such objects are divided into types according to ownership rights:

• municipal - abbreviation (MUP);
• state-owned (SUE);
• FSUE - stands for Federal.

At the same time, depending on the ownership of the property, such an enterprise is endowed with a certain status, and the owner receives his rights and bears responsibility for the object.

What are state-owned enterprises?

A state enterprise is an economic entity whose property is owned by authorities - at the federal or regional level. An institution quite close to it in legal status is a municipal enterprise. It, in turn, has assets owned by local authorities.

State and municipal enterprises most often belong to the category of unitary, that is, their property cannot be distributed into shares. From the point of view of the type of activity, both of them may not differ from private businesses. The work of state and municipal enterprises can be completely commercialized.

Reasons for the formation of unitary enterprises

There are a number of main reasons why this type of object is formed.

These include:

• certain activity;
• solving some social problems;
• sale of industrial goods and services at the lowest prices.

Thus, a number of reasons for the formation of such objects make it possible to determine their essence.

Reasons for creating a federal state unitary enterprise

The company is formed for several reasons:

• the importance of property that cannot be privatized;
• conducting activities to solve various social problems, including the sale of products and the provision of services at a reduced cost, organizing the purchase of essential products;
• conducting production that is in the process of bankruptcy or is unprofitable;
• maintaining activities that are subsidized.

The purpose of the formation and operation of a unitary enterprise is the implementation of state tasks on a commercial basis.

Charter capital

When establishing a unitary enterprise, a fund must be formed. It has a certain set of characteristics.

The minimum size may be 5,000 minimum wages if we are talking about a government facility. If a municipal organization is meant, then its amount should be at least one thousand minimum wages.

In this case, the period for its formation should be no more than three months after registration.

General definition

Before considering examples of unitary enterprises, it is worth understanding what kind of business form this is. It is organized strictly in accordance with legal norms. A unitary organization is a commercial organization that does not have its own right to property. It has a specific owner. This owner owns the property of the unitary enterprise.

This form of ownership is typical exclusively for state or municipal organizations. The property of a unitary commercial enterprise cannot be divided into shares, stocks, shares, etc. It belongs to only one owner. Two or more property owners cannot exist in such an enterprise.

What are state and municipal unitary enterprises? This is a special form of economic activity in which a number of legal requirements must be met. The name of such a company must indicate who is the owner of its property. This information is stated in the charter. For example, ownership may belong to:

• Russian Federation;
• a specific subject of the Russian Federation;
• a specific local government body;
• other.

In other words, property owned by the state or municipal government body is transferred to the enterprise with the rights to manage and conduct business activities. It takes part in the production process, generating income.

How is the property of a unitary enterprise formed?

The basis for its use is a certain type of guidance.

With the option of economic management, enterprises can dispose of objects and products that they produce, while independently designating the boundaries and cost of these types, but always in accordance with the Federal Law.

With the operational type of management, a state-owned enterprise is obliged to take into account the interests of the owner when disposing of anything.

Finance of state-owned enterprises

The FSUE form implies a peculiarity of financial management. There are several methods for creating sources of income.

The finances of unitary enterprises differ significantly in the creation of authorized capital, generation and use of profits. They are also distinguished by their methods of attracting borrowed resources.

Authorized capital is funds formed with the help of fixed and working resources. The amount of capital is recorded in the balance sheet of the unitary enterprise as of the date of signing the charter.

The size of the authorized capital of the enterprise must be at least 5 thousand minimum wages, which is in effect at the time of state registration of the organization.

The functions of the authorized capital of a unitary enterprise coincide with the functions of commercial companies. In addition, the authorized capital acts as the financial foundation for carrying out economic activities, being an indicator of its feasibility.

A significant source of FSUE funds creation is profit. It is generated similar to the income of commercial enterprises. But the Budget Code of the Russian Federation states that the profit of a federal state unitary enterprise is a source of non-tax revenues that go to the budget.

Unitary enterprises have the right to use targeted budget sources of financing. Funds coming from budgets are used to implement some social programs. This financing is carried out under the guise of subventions, grants and subsidies.

Subventions are budget resources that go to FSUEs free of charge.

Subsidies are resources from the budget allocated on the basis of shared financing of the costs of implementing various programs to improve the work of federal state unitary enterprises.

Organizations that are unitary can also attract borrowed resources. However, a feature of their legal form is that obtaining borrowed funds is a complex process. A unitary enterprise cannot simply get a loan against its real estate. The management of a federal state unitary enterprise can receive loans from the budget from the owner, which will need to be repaid.

Advantages and disadvantages of a unitary enterprise

One of the main advantages is the focus on achieving socially and corporate goals and objectives. In addition, there is a high degree of security for such production.

Also a clear advantage is the degree of responsibility of the private owner. He is responsible only for his own management, but is not responsible for his obligations.

The disadvantages of its activities are the need to combine management, innovation and running public utilities and other types of economy. And also the emergence of certain difficulties with financing.

Such companies are formed in accordance with state legislation. The legal status of such an object is regulated by the Civil Code of the Russian Federation and Federal Law.

It has a single owner, whose interests are necessarily combined with the interests of the state. The many advantages of such industries make it possible to manage certain types of services, goods and other activities.

Ways to form the property of a federal state unitary enterprise

These are the following sources:

• property allocated by the owner of the enterprise as payment for the authorized capital;
• other property transferred to the enterprise with the approval of the owner;
• profit made during commercial work;
• borrowed resources, including loans from banking and other credit institutions;
• depreciation;
• assistance coming from budgets at various levels;
• dividends received from other companies where the Federal State Unitary Enterprise owns a stake;
• voluntary donations;
• profit from renting out part of the property;
• other receipts that do not contradict the legislation of the Russian Federation.

A unitary enterprise can do whatever it wants with its property. But it can sell it only with the approval of the owner.

Reasons and purposes of creation

Not all economic activities, the results of which are necessary for the state, can be profitable.

It is obvious that it is not profitable for entrepreneurs to produce unprofitable products.

Therefore, the role of organizer of such enterprises is forced to be taken on by the state or municipalities.

Another reason for the creation of the UE is to solve social problems, to provide the country's population with various services and socially significant goods at affordable prices.

For example, municipal clinics, hospitals, schools, etc. have the status of unitary enterprises.

And the third reason is the need to meet the needs of the state (for example, the Mint of the Russian Federation - for printing banknotes).

Unitarity Characteristics

There are certain features of a unitary enterprise. They are determined by law. Unitarity has certain characteristics. They determine the features of the functional quality of the enterprise. The main ones:

• The creation of a company (legal entity) occurs after the allocation of the necessary capital by the owner, and not during the merger of several participants.
• The founder retains ownership of the property.
• The property is assigned to the law firm with limited rights. Managers and other officials have the right to dispose of the owner’s funds only in the course of business activities, in the process of operational management.
• The property remains indivisible.
• There is no membership in the authorized capital.
• The governing body is represented by one person.