Entrepreneurship associations. What is a syndicate? Description, distinctive features

From the end of XIX to the beginning of the twentieth century in Russia, syndicates acquired more, in comparison with other types of associations, distribution. In the world, especially, many of these unions were in France.

What is a syndicate?

This term is rather meaningful. In general, these associations were alliances within which a community of material interests was formed. The syndicates did not apply to ordinary industrial and civil societies. In different countries they explain in different ways what a syndicate is. So, for example, this definition was used to designate, mainly, only one type of entrepreneurial union. And the goal of such an association was the achievement for participants of a relatively profitable (in terms of stability or height) level of profit. The ways of obtaining it were production, purchase of items needed for production, as well as joint sale regulation. With this interpretation, the concept has acquired an international character. Russian legislation, as, indeed, the countries of Europe and the United States, did not explain what a syndicate is.

Features

Distinguish the type of business unions can be compared by comparing them with other types. For example, the union of commodity producers is a trust or a cartel. A syndicate is a union of entrepreneurs or enterprises operating in one industry as sellers. In the first case, intracorporate activity presupposed a greater degree of regulation of production volumes and sales, a reduction in costs. Thus, the goal of forming cartel unions is to prevent overproduction of the profitability of the merged enterprises. What is a syndicate in this case and what are its objectives? This association used a negotiated settlement of product prices. As a result, the main goal of the unions was to obtain a stable and high level of entrepreneurial income. Syndicates more than trusts or cartels, sought to absolute monopolization of the relevant industries and markets.

Classification

In Russia, there were different groups of syndicates. Among the industrial associations, commodity-trade unions were the most popular. They combined the sale and production of various types of products. In accordance with the degree of consolidation, the associations were conventionally divided into agreements of entrepreneurs (enterprises) that were concluded for the achievement of certain (limited) purposes, trusts and, in fact, syndicates. Depending on the territorial scope of activities, unions could be national and local. The first covered all the most important enterprises that worked in one industry, and the latter - only a limited number in one or another area. There were also international syndicates. Russian enterprises also participated in them. For example, in 1903, an association was formed to sell beet, dung and hay fork. This union was attended by Austrian and German enterprises for the production of metal products, three Russian companies, which by that time concentrated in their hands almost all the production of domestic forks.

Organizational structure

As it was said above, the legislation lacked concepts that recognized and explained the formation of business associations. In this connection, organizational issues were not regulated in any way. This, in turn, precluded the mandatory provisions in the charters of associations. There was no legal basis for the very process of forming syndicates. Their organizational structure, therefore, was rather imperfect. The congress of factory owners and manufacturers was a management organ. At the meetings, multilateral agreements were concluded and the results of their implementation were monitored and evaluated, and charters were adopted.