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Journal number 3 ∘ Vladimer Basaria
Property and entrepreneurship

Expanded Summary

For almost three decades, Georgia has been in a difficult process of moving from one economic formation to another. Along with the social and political outcomes achieved in this transition period, the situation in the pure economic sense (human welfare) is so severe, which causes many reasons. Among them is one of the main causes of the decline of the economic development of the society (its economic structures) - the lack of private property and the lack of ownership in the use of incompatibility.

Property, as an economic category, expresses the relationship between people and their behavior. But there is no property without entrepreneurship. If the property is not involved in the enterprise, property does not grow, it remains unchainged and usually decreases.

From the day of creation privet property relationships was changed. Even those changes, which occurred during the development of capitalism, were so impressive and serious, that got a special term, in which they came to the economic theory under the title "equity economy".

The essence of private capitalist property has been substantially changed in equity societies - owners do not provide joint stocks even more, but hired professional managers do; more and more positive role is in improving the relations of a democratic state (state property).

These and other processes related to property relations, allowed western economic theorists to make the right conclusion that modern capitalist property serves the interests of the whole community (society).

In fact, capitalist private property, as individual property, has lost the role of the determinant of economic relations. That's why it would be incorrect to determine, that the business based on capitalist relations as a whole private capitalist. It can be said that today the organizational structure of free entrepreneurship principle is characterized by a considerable characteristic of private property, group (corporate) and state ownership.

The idea, which was dominated by Soviet economic theory, according to which public property could only be the state and collective property of the socialist camp, is wrong - the ownership of the shareholder society is public; equity capital, based on retairement capital, is public capital. This is a kind of collective, corporate and individual property merger, and not a clean type of private property.

In addition, in the democratic states the individual: is free to choose how, in what way make business; will unite its equity with others or independently start business; decides,  what form of organizing the product will be more profitable and more profitable for him. This proprietary charge, protected by democratic countries, determines in free countries that the following forms of ownership are: individual private property; collective (cooperative) property; state ownership and mixed property. In addition, there are also ranks of ownership rights: for example, a higher right of ownership (disposal) may have one owner, the right to use and own – the other one.

Generally the poroperty relationships are very difficult in the reality of today's production organization, and these difficulties are especially characteristic to joint-stock companies. The real capital of the joint stock company is operating as corporate capital; a solid part of the outcome of its activities is owned and used by the working members of the joint stock company and its hired workers. At the same time, each shareholder receives incomes in the form of dividends. Therefore the shareholder's property is the result of transfer of private individual property into collective (public) ownership – and, as you know, the shareholding form of ownership will be the most important place in all developed countries.

Ownership of the property, the right to dispose it - spurs   the owner to maintain – increase property. And this increase is possible only through business. Involvement in property ownership means that the owner is involved in a competitive struggle. Therefore, private ownership (capital) will be the productive force of the novelty.

That’s why the society, state should do everything to develop and dissolve entrepreneurial (ownership) spirit (the charge).

The two forms of human ownership - private property and public ownership - had historically always coexistenced, and it’s still the essence of socio-economic order, of the result of economic activity. In addition, the private property as the entrepreneurial determinant of people's entrepreneurial motivation is always in the dominant position. In this respect, we have to understand that their best combination and use should be the main means of improving the economic development of our country, of raising the welfare of the population.

Keywords: Property, property relations, entrepreneurship, business, motivation, welfare, rivalry, socially oriented economic system.