Ecofar wp5 module 3.5 english

1. Development of managerial andentrepreneurial skills of young eco-farmersviajoint VET curricula, enhanced
qualificationprofile, assessmentstandardandsustainable cooperationsynergies (ecoFAR)
597256-EPP-1-2018-1-BG-EPPKA3-VET-JQ
Level: Entrepreneurial and managerial challenges in
eco-farming
Module: 3
Unit 5 Promoting group entrepreneurship

2. Table of content
• 3.5.1. Definition of group entrepreneurship and co-operative
entrepreneurship
• 3.5.2. Types of cooperative entrepreneurship
• 3.5.3. Main characteristics of a cooperative company
• 3.5.4. Legal environment
– 3.5.4.1. Legal forms used
– 3.5.4.2. Organizational forms

3. 3.5.1. Definition of group entrepreneurship and co-
operative entrepreneurship
The origin of the term entrepreneurship and entrepreneur must be searched
for in the French word “entrepreneur”, which means intermediary or
opportunity finder.
• The basic elements of the entrepreneurial process are: idea (innovation),
beginning of the process, realization of intentions, growth.
• The factors that influence the entrepreneurial process are: personal
characteristics, social characteristics and organizational characteristics.
• The development of entrepreneurship in a country is closely dependent on
the so-called business environment.
• Economic, political, socio-cultural, technological, environmental and
geographical conditions are preconditions for the development of
entrepreneurship.

4. 3.5.1. Definition of group entrepreneurship and co-
operative entrepreneurship
• Entrepreneurial activity is the independent activity of citizens or civil
associations operating on their own risk and responsibility for profit.
• From a socio-psychological point of view, entrepreneurial activity is a
means of realizing one's personality, achieving independence, striving for
wealth and prestige.
• Depending on the place they occupy, the functions they perform and the
behaviour they have in an enterprise, the business entities are divided into
sole proprietors, internal contractors, co-entrepreneurs, entrepreneurial
associates and simply hired workers.
• Depending on the participants in the entrepreneurial process,
entrepreneurshipis individual and collective / group.

5. 3.5.2. Types of cooperative entrepreneurship
• Group entrepreneurship is carried out by a collective - two or more
persons or organizations.
• As a rule, group entrepreneurship is a concentration of capital and
responsibility. Disadvantages can be cited as disagreements between
participants, profit distribution among them.
• The cooperative is managed by a General Assembly, which elects the
Management Board and the Chairperson, as well as the Control Board. The
elected bodies of the General Assembly manage between the reporting
and election meetings. The General Meetings are attended by co-operative
members and the Management Board, together with the Chairperson, are
obliged to perform.

6. 3.5.2. Types of cooperative entrepreneurship
There are several types of cooperative entrepreneurship.
According to the property owners and the goals set:
• Collective ownership and collective purpose
• Collective ownership and individual goals
• Individual property and individual goals
• Individual ownership and collective goals

7. 3.5.2. Types of cooperative entrepreneurship
According to the property:
• Traditional cooperative
• Private equity co-operation
• Cooperation with other subsidiaries Proportional
• Shares Co-operation
• Cooperative Joint Stock Company

8. 3.5.3. Main characteristics of a cooperative
company
Cooperation as a means of stimulating the entrepreneurial process in
agriculture.
The world agrarian cooperative science offers models of cooperation that
stimulate the entrepreneurial process in agriculture.
Cooperation is a means of stimulating the entrepreneurial process in
agriculture. It is a community that is democratically governed and a way of
mutual assistance. Cooperation is a means of satisfying the individual
interests of the entrepreneur. Entrepreneurs can choose partners, resources,
market and production structure independently.
The advantages of cooperation are:
- business is organized - economic role,
- improves the social, cultural and economic status of its members.

9. 3.5.3. Main characteristics of a cooperative
company
Cooperation has several functions:
a) economic functions - associated with market success and
economic success
b) Community - related social functions and individual
realization.
The result of cooperation is an improvement in the standard of
living.

10. 3.5.4. Legal environment
In economic theory and business practice different classifications
are made according to certain criteria and characteristics. The
essential ones are related to the participants, the form of
ownership, the industry, the size of the enterprise, the way of
incorporation and more.

11. 3.5.4.1. Legal forms used
Depending on the form of ownership, the following differ:
• state
• private
• cooperative
• municipal or public enterprises and organizations
• private trader, individual
• limited liability companies Ltd.- is formed by two or more
partners with capital formed by their company contributions.

12. 3.5.4.1. Legal forms used
The formation of limited liability companies is accomplished by signing a
company agreement, which describes the rights and obligations of the
partners and the main activity they will carry out.
• Joint Stock Company - for attracting and operating a large amount of
capital. It limits the economic risk of participants in carrying out an activity.
The joint stock company is widespread in all market economy countries.
• Limited Liability Company - hybrid capital company. Affiliates may be
natural or legal persons who, through mutual assistance and cooperation,
carry on business activities to satisfy their economic, social and cultural
interests.
• Public enterprises - state and municipal.

13. 3.5.4.2. Organizational forms
• The organizational structure shows how farm management is
organized. Traditional organizational form refers to linear and
functional.
– linear is such a management structure in which all management
activities are performed by one person.
– functional structure. This type of organizational structure consists of
specialists or functional units.

14. 3.5.4.2. Organizational forms
The dynamics there are of external and internal factors are
increasing, types of adaptation to changing two conditions:
1. By reorganization
2. Through flexible organizational forms

15. 3.5.4.2. Organizational forms
There are several types of real-life organization structures that can be classified into
the following:
1. Functional Oriented Structure - A functional structure divides the organization
into departments based on their function. Each is headed by a functional
manager and employees are grouped as per their role.
2. Territorially-oriented structure - A territorially-oriented structure divides the
organization into a specific area of work activities of the employees
3. Production-oriented structure - a framework in which a business is organized in
separate divisions, each focusing on a different product or service and
functioning as an individual unit within the company.
4. Client-oriented structure - emphasizes the increasing importance of customer
satisfaction and loyalty, which have stimulated companies / farms to search for
organizational ways to better serve their customers

16. Disclaimer
For further information, relatedto the ECOFAR project, please visit the project’s website at www.ecofarm-
manager.eu or visit us at https://www.facebook.com/Ecofar2018/.
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use which may be made of the information containedtherein.