Text 9.

Read the text and do the assignments. While reading, find words and expressions in the text that mean: возлагать надежды на; дух предпринимательства; возрастающее число; сбережения; расширять; ослаблять налоговое бремя; безработица; торговая компания; упадок/спад; зарабатывать на жизнь; обеспечивать; предприятие; кредитор.

Desperate hope

Can small business save the economy?

In Bulgaria most observers are pinning their hopes on small firms. Poland-like entrepreneurial spirit has already allowed many Bulgarians to survive their country’s decline. The question now is whether these small companies will provide enough of a base for future growth.

“This is the only sector that can provide economic growth, because the big enterprises have huge problems,” says Irena Petrunova, head of the government’s agency for small and medium- sized enterprises (SMEs). In 1989 there were just 640 small companies in Bulgaria. Now there are 64,000 officially registered, though no-one quite knows how many are actually operating.

No-one knows how profitable either, though the increasing number paying taxes bodes well. Many Bulgarians decided to set up alone simply because they had to make a living. Others did it so they could siphon off assets from state companies.

But SMEs provide an uncertain basis for Bulgarian growth. For a start most are tiny, employing fewer than ten people. And most are trading or service-sector companies, set up with the owners’ savings. The number of companies actually producing anything is tiny. As a result, SMEs have been better at mopping up unemployment than providing growth. Besides taxes are high enough to push up to 40% of small companies into black economy.

However the government has a lot of plans to help SMEs. It is going to reduce the tax burden for all companies, gradually. At the moment companies pay up to 38% tax. The EU, IFC and foreign banks are all establishing credit lines for SMEs, mainly through local banks. The SMEs agency itself has set up a DM10 million “SME encouragement bank” to channel long-term credits their way.

But all this will take time. Meanwhile, a few small companies are succeeding against the odds. Ms. Petrunova singles out a company producing vitamin pills and drinks, which is expanding into Turkey and Greece, and a textile company that started with two sewing machines and now employs 150 people doing contract work for Western designers.

SMEs lenders say that their best clients are those selling tobacco and alcohol to the local market. Entrepreneurial to be sure. But hardly enough to dig the economy out of the pit.

Exercise 9-1. Decide if these statements are true or false according to the text. Change any which are false.

1. Most observers hope that small business is able to provide economic growth.

2. Nobody knows how much money small companies make.

3. Only 40% of small companies pay up to 60% tax.

4. The government is going to decrease the tax-rate for SMEs.

5. Most Bulgarian small companies manufacture vitamin pills and drinks.

6. Trading and service-sector companies are better at reducing the rate of unemployment than stimulating economic growth.

Exercise 9-2. Answer the questions.

1. Why did many Bulgarians decide to set up their own businesses?

2. Is the number of small companies increasing in Bulgaria? Give an example.

3. Why are most observers pinning their hopes on small firms?

4. What is the government doing to help SMEs?

5. How many companies that actually produce something are there in Bulgaria? Give examples.

Exercise 9-3. Translate these sentences from Russian into English paying attention to the words and phrases underlined.

1. Правительство возлагает надежды на возрастающее число торговых компаний и частных малых предприятий.

2. Министр финансов полагает, что в данной ситуации нет смысла ослаблять налоговое бремя.

3. Очередной спад экономики в стране не позволил снизить уровень безработицы.

4. Если это предприятие продолжит расширяться в ближайшем будущем, то оно будет не в состоянии заплатить кредиторам.

5. Вы полагаете, что нет необходимости зарабатывать себе на жизнь, если у вас есть крупные сбережения?

6. Большая часть российских малых предприятий функционирует в сфере торговли.

7. Многим кажется, что правительство игнорирует проблемы безработицы.

8. Избиратели возлагали надежды на нового депутата, но он их не оправдал.

Exercise 9-4. In your own your words.

1. Can small business save Russian economy? Is it important to develop small business? Why / why not?

2. What kind of small business is flourishing in Russia now?

3. You would like to create your own company or firm. What company would you create? Give proof of your choice.

4. Do you agree with №5 in Exercise 9-3? Why/why not?

Text 10.

Read the text and do the assignments. While reading, find words and phrases in the text that mean: производитель; прибыль до налогообложения; доля рынка; перегнать; конкурент (2); делать акцент на; цель; совместно разрабатывать (продукцию); отнимать; заключить сделку; высокоскоростная передача данных; доступ в Интернет; запускать (товар на рынок); уменьшить время «раскрутки» товара.

Nokia Posts Rise in Profit And Wireless Phone Sales

Nokia is strengthening its position as the world’s №1 mobile-phone maker. The company reported a continued sharp rise in phone sales and a 52% jump in fourth-quarter pretax profit. Its share of the global market for mobile phones grew to 29% last year from 24% a year earlier, with the sale of 79 million units.

Nokia’s President Mr. Ollila is very optimistic. He said in a telephone interview, “We expect to see continued strong growth this year. We are in a strong position to stay ahead of the market, use our strong brand name and high sales to continue growing fast.”

Driven by rapidly growing mobile-phone subscriptions around the globe, Nokia has seen its mobile-phone sales rise for three consecutive years. During that time, the company outpaced its competitors such as Ericsson (31 million units a year) or Motorola (50 units a year) because it managed to launch new models continuously, reducing the run-up time for its products to less than half that for certain rivals’ offerings.

Nokia also emphasized marketing, positioning its phones as consumer products and stylish accessories with a wide range of colours and shapes. Nokia’s next target is wireless Internet.

However, it may be difficult for Nokia to defend its leading position because competitors develop more-fashionable phones and accessories to take away market share. As the Internet goes wireless, they are finding new ways to reach the mobile-phone market. For example, Ericsson recently landed a deal with Microsoft Corp. of the USA to jointly develop e-mail applications for the Swedish company’s mobile phones. Ericsson, moreover, developed its own mobile portal for Internet-enabled phones.

Nokia is still ahead of the game, though. It has agreements with Cable News Network to show news headlines on its phones.

Later this year, Nokia will present a series of new phones, including General Packet Radio Service phone (GPRS), which can transmit 150 kilobits per second and allow rapid data transfer and Internet access. GRPS will give its owner automatic links to local taxi companies, the closest restaurants or police stations.

Exercise 10-1. Decide if these statements are true or false according to the text. Change any which are false.

1. According to the text, Nokia ranks first in the global market for mobile phones.

2. Nokia’s pretax profit was $79 million.

3. The number of mobile-phone subscriptions around the globe is reducing.

4. Nokia has managed to outpace its competitors because its products are cheaper.

5. Nokia makes products of different colours and shapes.

6. Nokia’s competitors are trying to find new ways to take away the market share.

7. Internet access is only possible with Ericsson’s mobile phones.

Exercise 10-2. Answer the questions.

1. Is Nokia’s position in the mobile-phone market changing?

2. Why is Nokia’s president optimistic?

3. What companies are Nokia’s main competitors? Are their operations more or less successful?

4. Why is it difficult for Nokia to defend its leading position?

5. What may help Nokia to stay ahead of the market?

Exercise 10-3. Translate the sentences into English paying attention to the words and phrases underlined.

1. Компания N. – один из ведущих производителей автомобилей в мире.

2. Прошлогодняя прибыль до налогообложения составила N тыс. долларов. Такие показатели объясняются резким ростом продаж в четвертом квартале.

3. Что помогло вашей компании не только выжить после кризиса 1998 года, но и обогнать многих более успешных конкурентов?

4. Каковы цели компании на следующий год?

5. Компании Microsoft и Siemens заключили сделку об установке игры «Сапер» на некоторые модели мобильных телефонов Siemens.

6. Некоторые модели модемов обеспечивают не только доступ в Интернет, но и высокоскоростную передачу данных.

7. Во время презентации менеджер сделал акцент на более современном дизайне товара. Для этого он использовал буклеты, слайды, плакаты.

8. Мы стараемся запускать новые товары каждый квартал и при этом уменьшать время их “раскрутки”.

Exercise 10-4. In your own words.

Tell the class about any company operating on the Tver market. Use as many words and phrases from Text 10 as possible.