Entrepreneurial activity: general concepts and features. Entrepreneurial activity
The concept and features of entrepreneurial activity are those criteria that allow one to isolate entrepreneurship from other forms of economic activity. In this article we will talk about the importance of these theoretical concepts for law enforcement practice.
What activities are considered entrepreneurial?
Entrepreneurial activity in the constitutional and legal sense is free, and the limits of freedom can only be established by law. A form of such restriction is a ban on certain types activities or the introduction of permits, accreditation, licensing, etc. for certain types of business activities.
Entrepreneurial activity can be carried out in any economic area specified in OKVED2 OK 029-2014 (NACE, rev. 2), taking into account the restrictions established by law.
However, some activities that resemble entrepreneurship are not. For example, notary activities (Fundamentals of the legislation of the Russian Federation on notaries, approved by the Supreme Court of the Russian Federation on February 11, 1993 No. 4462-1), the activities of arbitration managers (Law "On Insolvency (Bankruptcy)" dated October 26, 2002 No. 127-FZ). In addition, carried out in accordance with the law "On Advocacy and Advocacy in Russian Federation» dated May 31, 2002 No. 63-FZ, advocacy is not entrepreneurial.
Definition of entrepreneurial activity contained in the legislation
Art. 34 of the Constitution of the Russian Federation indicates the right of everyone to invest their property and abilities in entrepreneurial activity, that is, it guarantees the right of an individual to engage in business.
In order for entrepreneurial activity to be distinguished from other economic activity, it must have a number of specific features. With the presence (absence) in a particular activity of signs of entrepreneurship, the emergence (termination) of legal relations regulated by various industries legislation (see clause 1 of the resolution of the Plenum of the Supreme Court of the Russian Federation of November 18, 2004 No. 23). For example, the leasing of temporarily unnecessary housing is not considered entrepreneurship (Resolution of the Supreme Court of the Russian Federation dated 10.01.2012 No. 51-AD11-7).
The legal definition of the concept of entrepreneurial activity is contained in Art. 2 of the Civil Code of the Russian Federation. This is an activity related to the use of property, the sale of goods, etc. It is characterized by the following features:
- independence;
- associated with risk;
- focus on systematic profit.
Persons engaged in entrepreneurial activity must be registered in in due course. With regard to certain types of activities similar to entrepreneurial, it is possible to carry out such activities without registration as individual entrepreneur(Clause 70, Article 217 of the Tax Code of the Russian Federation).
Signs of entrepreneurial activity
Self-employment can be divided into:
- on the organizational level - the possibility of independent decision-making, the choice of the type of activity, the form of its implementation;
- property - the presence of own property for doing business.
Entrepreneurial risk - the risk of loss in the form of losses or less profit than expected. Among the risks are:
- external - due to changes in the economic situation, market position, regulatory framework, etc.;
- internal - depending on the organization of activities, business management, personnel, etc.
An essential feature of entrepreneurship is the focus on systematic profit. Moreover, it is not the fact of making a profit that is important, but the goal of the entrepreneur (Decree of the FAS PO of December 14, 2012 in case No. A49-1675/2012). Clause 13 of the Decree of the Plenum of the Armed Forces of the Russian Federation “On Certain Issues...” dated October 24, 2006 No. 18 indicates what evidence can confirm the fact of doing business.
State registration as a business entity - necessary condition to legalize such activity. Lack of registration does not mean that a person carrying out activities corresponding to the listed characteristics is not an entrepreneur. However, in this case, his activity is recognized as illegal (Article 14.1 of the Code of Administrative Offenses of the Russian Federation, Article 171 of the Criminal Code of the Russian Federation).
Thus, the legislation defines the concept of entrepreneurial activity, establishes requirements for its implementation (registration, obtaining licenses, etc.). All this is necessary to know for the competent application of the substantive norms of civil law, procedural norms and norms of responsibility.
Entrepreneurship is an independent economic activity carried out at one's own risk, aimed at the systematic receipt of profit from the use of property and / or intangible assets, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law. Simply put, entrepreneurial activity- this is, first of all, the intellectual activity of an energetic and enterprising person who, owning any material values, uses them to organize a business. By deriving benefit for himself, the entrepreneur acts for the benefit of society.
Business entities can be private individuals (with or without the formation of a legal entity). The activities of such entrepreneurs are carried out both on the basis of their own labor and with the involvement of hired workers. Entrepreneurial activity can also be carried out by a group of persons linked by contractual relations and economic interests. The subjects of collective entrepreneurship are partnerships, societies, cooperatives. Business entities can also be state and municipal enterprises.
For the Russian economy, entrepreneurship is a relatively new phenomenon, since it could not exist under the conditions of a command-and-control system. In the process of transition to a market economy, since the early 1990s, a number of measures have been taken in the country to provide a real basis (legal, economic, social) for the emergence of entrepreneurship. The most important of these include the adoption of relevant legislation and large-scale privatization, which was designed to revive private property as the basis for entrepreneurship, competition and economic freedom.
Small business is recognized as one of the main directions of entrepreneurship development in our country. Small enterprises are necessary to create normal competitive market relations in the economy, a new social structure society; to intensify structural adjustment (development of the production of consumer goods, services, trade and Catering); to accelerate scientific and technological progress; to create new jobs and self-employment of the population. The advantages of small businesses include flexibility, mobility, quick adaptability to changing market requirements, etc.
Types of entrepreneurship depend on the direction of entrepreneurial activity, the object of capital investment and the receipt of specific results. There are several types of entrepreneurship: industrial, commercial and trade, financial and credit, insurance and intermediary.
Industrial entrepreneurship is the process of producing specific goods, performing work and providing services for their sale to consumers. Industrial entrepreneurship is carried out in the material sphere. Accordingly, entrepreneurship is divided into sub-sectors (for example, in industry, entrepreneurial activity is organized in mechanical engineering, machine tool building, etc.). From the economic point of view, industrial entrepreneurship is the most important and defining type of entrepreneurship, since in production organizations production of products and consumer goods is carried out. All types of goods, works and services for specific consumers (the population, business firms, the state) are produced by the subjects of industrial entrepreneurship. Manufacturing business in Russia is the most risky occupation. The risk of non-sale of manufactured products, chronic non-payments, numerous taxes, fees and duties hinder the development of entrepreneurship in the manufacturing sector.
Commercial and trade entrepreneurship is the main type of Russian entrepreneurship. The entrepreneur here acts as a direct trader, bringing finished goods to specific consumers. To successfully engage in this type of business, it is necessary to thoroughly know the unsatisfied demand of consumers, quickly respond to changes in demand by offering appropriate products or their analogues. Commercial entrepreneurship is more mobile, as it is directly connected with specific consumers. For its development, at least two conditions are necessary: a relatively stable demand for traded goods (hence good market knowledge is necessary) and a lower purchase price of goods from producers, which allows merchants to recover trade costs and receive the necessary profit. Trade entrepreneurship is associated with a relatively high level of risk (especially when organizing trade in manufactured durable goods).
In financial and credit business, the subject of sale and purchase are securities (stocks, bonds, etc.), currency and national money. This type of business is carried out through commercial banks, financial and credit companies, currency exchanges and other specialized organizations. Entrepreneurial activity of banks and other financial and credit organizations in Russia is regulated by both general legislative acts and special laws and regulations. regulations Central Bank and Ministry of Finance of the Russian Federation.
In the insurance business, insurance companies, in accordance with the law and the insurance contract, guarantee insurers compensation for damage from loss of property, loss of health, life and other types of losses. When concluding an insurance contract, insurance companies receive an appropriate fee, that is, they compensate for their costs, the likelihood of risk and profit. Insurance business is one of the most risky activities. At the same time, the insurance company gives a certain guarantee to policyholders (organizations, enterprises, individuals) for them to receive compensation in the event of an occurrence in their activities insured event which is one of the conditions for the development of civilized entrepreneurship in the country.
Intermediary entrepreneurial activity is a type of entrepreneurial activity in which subjects economic activity do not directly produce or sell goods, but act as intermediaries between producers and consumers. An intermediary is a person (legal or natural) representing the interests of a producer or consumer, but not being one himself. Intermediaries can conduct entrepreneurial activities independently or act on the market on behalf (on behalf of) producers or consumers. As an intermediary business organizations wholesale supply and sales organizations, brokers, dealers, distributors, stock exchanges, and to some extent commercial banks and other credit organizations act on the market. Intermediary business activities are highly risky, so the intermediary entrepreneur must always take into account the degree of risk in the implementation of intermediary operations.
Depending on the subject of activity, such types of entrepreneurship as consulting, educational activities, provision of banking services, etc.
As we mentioned earlier, business entities include legal entities, as well as individuals engaged in entrepreneurial activities without forming a legal entity. All legal entities in accordance with the Civil Code of the Russian Federation are divided into two types: commercial and non-commercial. commercial organizations. Organizations that pursue profit as the main goal of their activities (commercial organizations) and do not have profit as such a goal and do not distribute the profits among participants (non-profit organizations).
Commercial organizations can be created in various organizational and legal forms, namely: business partnerships, business companies, production cooperatives, state and municipal unitary enterprises.
Non-profit organizations can be created in the form of consumer cooperatives, public or religious organizations(associations), charitable and other foundations, as well as in other forms provided by law. Non-profit organizations can carry out entrepreneurial activities only insofar as it serves the achievement of the goals for which they were created, and corresponding to these goals. It is allowed to create associations of commercial and (or) non-profit organizations in the form of associations and unions. Individual entrepreneurs and peasant (farm) enterprises are individuals engaged in entrepreneurial activities without forming a legal entity.
What does this term mean? If we turn to the information prescribed in the civil code, and more precisely, in, then we can find a detailed definition: “Entrepreneurial is an independent activity carried out at one’s own risk, aimed at systematically making a profit from the use of property, the sale of goods, the performance of work or the provision services by persons registered in this capacity in accordance with the procedure established by law.
This definition implies a continuous activity aimed at generating income. Moreover, the phrase "receiving income" does not mean a one-time profit, but a systematic one (which is received more than 2 times).
In order not to create problems for yourself with the current law, you should not engage in entrepreneurial activity without registration. Otherwise, it may happen that you will have to prove your rights already in court.
Note :
There are criminal, administrative, tax liability. Moreover, each of these types of liability implies its own rules for fixing a violation.
Keep in mind that the facts that can prove your involvement in entrepreneurial activities are:
- Exhibiting examples and samples of products.
- Purchase of goods in bulk, that is, not in a single quantity.
- Conclusion of lease agreements for non-residential premises.
- Testimony of people who have purchased products from you
- Receipts for receiving funds.
- Advertising your products.
- Statements from your bank account.
The letters of the Ministry of Finance indicate the signs characterizing entrepreneurial activity:
- Accounting for transactions related to the implementation of transactions.
- Communication of all completed transactions for a certain time.
- Constant communication with contractors.
- Acquisition of property, which will later be used for profit.
And some more information on the topic
What is entrepreneurial activity?
If the goal of your activity is to make a profit (even if it has not yet been achieved), then given fact indicates that you are still engaged in entrepreneurial activity.As you know, an individual entrepreneur carries out activities under his own responsibility and at his own risk. And if you carry out the instruction of the management, then this activity cannot be called entrepreneurial.
| ADDITIONAL RELATED LINKS |
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In tabular form, it is shown that IP or LLC is better. This was done in order to correctly assess all the pros, cons and financial risks, advantages and disadvantages of registering an individual entrepreneur and LLC. -
Organizing new business, the entrepreneur, first of all, has to decide on the choice in favor of an individual entrepreneur or LLC. So, it is worthwhile to figure out what IP and LLC are. -
When registering, an individual entrepreneur must choose one of the taxation regimes. The general mode (OSNO) is used by default, but it is also possible to select a patent, USN, UTII or ESHN.
There are more simple views entrepreneurial activities that require a minimum set of knowledge and small investments, for example, commercial or consulting. Along with them, there are more complex types of business that operate in a manufacturing, financial or insurance environment. Also, entrepreneurship can be sole and joint, public and private.
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Classification of entrepreneurship by type of activity
The key criterion for classification commercial activities businessmen is an occupation.
It is customary to distinguish the following types of entrepreneurship:
- based on production activities;
- based on activities related to finance;
- based on trading activity;
- built on the provision of intermediary services;
- based on the provision of advisory assistance;
- related to insurance.
This classification is based on the principle that each business is associated to a greater extent with a certain stage of the production cycle. For example, someone produces a product and another distributes it. From the list of classifications presented, there is an item that has appeared in Russia and the world quite recently - this is consulting.
Entrepreneurship and examples of its main types
Manufacturing entrepreneurship
This type of business is the basic and most important for the economy of any country. Things, values, benefits and many others are created here. useful products, which can be sold or exchanged on the market. The production of material and intellectual goods forms the basis of this type of entrepreneurial activity.
The manufacturing business is:
- creation of industrial and agricultural products;
- execution of construction operations;
- transportation of passengers;
- cargo transportation;
- provision of communication services;
- communal and household services;
- production of information;
- education;
- printing, etc.
Building bussiness Private school Production of agricultural products Dairy production
Stages of industrial entrepreneurship:
- Market research and analysis.
- Acquisition or lease of fixed assets (premises and equipment).
- Purchase working capital(materials, raw materials and components).
- Hiring labor force.
- Management organization.
- Organization of the production process.
The finished product can be sold end user directly by the entrepreneur or through an intermediary. The main task of a businessman is to build a business in such a way that capital investments pay off as quickly as possible and the main commercial goal of the project is achieved.
The brakes on the development of this type of entrepreneurship in Russia are:
- the risk of non-sale of the finished product;
- high taxes and fees;
- inaccessibility of many resources;
- high tariffs for energy resources;
- availability of alternative and less risky sources of income;
- high competition from foreign manufacturers(both in terms of price and quality)
- low qualification of future businessmen, etc.
To prevent the risk of non-sale of goods / services, the entrepreneur must establish distribution channels. It is advisable to conclude contracts for the sale of products with regular partners and / or organize your own sales network.
commercial entrepreneurship
Characteristics of commercial entrepreneurship:
- field of work - trade enterprises and commodity exchanges;
- based on operations and transactions for the purchase / sale of various products;
- for commercial production, non-material resources are acquired, which is typical for production type, and the finished product, for its sale to consumers;
- mobility and flexibility in relation to the needs of customers;
- For the development of commercial entrepreneurship, two key conditions must be met: a stable demand for the products sold and a low purchase price.
This business area actively attracts individual entrepreneurs. To a greater extent, this is due to the fact that in trading you can count on a quick return. Also in this industry, minimal requirements are imposed on entrepreneurs, they do not require special knowledge and large capital investments.
The video is dedicated to the description of five actual ideas in trade for 2019 for small businesses. Filmed by the channel: "HelloBoss".
Today, along with small and medium-sized businesses, large trading enterprises are increasingly being established. They are focused mainly on the organization of wholesale and retail sales in branded outlets throughout Russia.
Outstanding representatives of large retail chains are:
- El Dorado;
- M Video;
- Media Markt;
- Kopek;
- Pyaterochka;
- Magnet;
- Crossroads, etc.
Many owners of such networks were included in the list of the wealthiest people in the Russian Federation. The profitability of a business in trade on average varies from 20 to 30 percent, and in production - 10-15 percent.
A commodity exchange is a kind of wholesale grocery market, where buyers do not provide for a preliminary inspection of samples of consignments of goods. Commercial intermediaries and their representatives work here jointly and on a voluntary basis, where trading operations are carried out according to established rules.
Most often they can be found in the sale of the following products:
- grain in assortment;
- textile raw materials;
- coal;
- oil;
- metals;
- animals and meat;
- forest, etc.
Worldwide, these sites account for approximately 20 percent of international trade. There are about 150 trading exchanges in Russia.
The most famous commodity exchanges:
- London - sale of non-ferrous metals;
- Liverpool - selling cotton;
- New York - selling coffee, cocoa and sugar;
- Singaporean - sale of rubber.
Key functions of commodity exchanges:
- assistance in the conclusion of commercial transactions;
- assistance in resolving trade disputes;
- regulation and control of commodity trade;
- systematization and provision of information on prices and other factors affecting prices.
Stages of organizing commercial activities:
- Employment of employees who will perform such trade and intermediary services as the purchase of goods, their transportation, sale, marketing promotion, paperwork.
- Selection of premises for the organization outlet and warehouse, and the conclusion of a lease agreement or execution of a transaction for the sale of a property.
- Purchase of products for sale.
- Borrowing Money to finance the deal.
- Obtaining services from third-party organizations that perform intermediary functions, and paying for them.
- Search for information for planning, regulation and execution of the transaction.
- Selling products to customers.
- Getting income.
- Paying taxes and making other payments to federal and municipal financial authorities.
- Return of borrowed capital and repayment of interest for its use.
In order for a trading business to bring the expected income, it is important to know for sure that there is a demand for the product offered for sale in the local market. To study the needs of consumers, their satisfaction, the level of competition, etc., it is necessary to conduct a professional marketing research.
financial entrepreneurship
The financial component is present both in production and in commercial business but at the same time it can be completely independent. For example, banking or insurance activities.
Characteristics of financial entrepreneurship:
- sphere of activity - circulation and exchange of values;
- the average rate of return is 5-10 percent;
- the main field of activity is stock exchanges, credit institutions.
In the financial market circulate:
- short-term, medium-term and long-term credits/loans;
- short-term, medium-term and long-term deposits;
- currency;
- securities.
Medium-term and long-term products are sold and bought on the capital market, and short-term products - on the money market.
In its own way, financial entrepreneurship is a subspecies of commercial business, since it involves the purchase and sale of money, currency and valuable papers. Here, one money is exchanged for another, either directly or indirectly. Organization Approach financial enterprise similar to the one described for the commercial one. The main difference lies in the object of sale. A businessman who wants to operate in this market needs to start by conducting a thorough analysis of the monetary and financial markets and marketing research.
Forms of financial business:
- Issuance of securities. These can be stocks or bonds, as well as credit notes.
- Acquisition by an entrepreneur of securities for the purpose of their subsequent resale at a favorable rate.
- The deal is active. It involves the urgent and indefinite placement of their assets, as well as the return of securities or money for storage.
- Commodity versus futures trade. The futures contract is transferred from the buyer to the seller in exchange for ownership of the actual product.
- Arbitrage deal. It represents the simultaneous purchase and sale of securities in order to profit from the difference in rates through exchange centers.
- Banknote deal. Here, cash is sold for non-cash, while a small commission is charged as a transaction fee.
- Other transactions. This form of business includes an exchange transaction, as well as an exchange cash, closing, contact and credit transaction.
Business in the financial and credit environment requires the entrepreneur to have special knowledge and experience. Otherwise, success will be extremely difficult. This is one of the most complex types entrepreneurship in the world, whose historical roots come from usury.
Entrepreneurial activity of financial market participants is regulated by general and special legislative acts, as well as regulations of the Central Bank of the Russian Federation and the Ministry of Finance of the Russian Federation.
Advisory Entrepreneurship
Consultative entrepreneurship belongs to the tertiary sector of the economy, which has been actively developing throughout the world over the past two decades.
Consulting involves the provision, on a commercial basis, of professional advice and assistance on narrow business management issues (eg personnel, finance, promotion). In addition to the consultation, the client receives assistance in identifying and assessing the problem, as well as recommendations for solving it.
The services of consulting companies are mainly used by:
- small businesses;
- medium enterprises;
- large enterprises.
The range of consulting services is very diverse, there are 84 types of operations in total.
Small and medium business more interested in consultations in the field of:
- audit;
- marketing;
- taxation;
- accounting;
- jurisprudence.
Big business is mainly interested in the following questions:
- company development strategies;
- optimization organizational structure management;
- financial management;
- promotions;
- application of information technologies.
Counseling methods:
- Expert. This is a passive method of consulting, where a specialist independently conducts diagnostics, develops solutions and recommendations for their application. The client will be required to provide the consultant with the necessary information.
- Process. Here, consultants interact with the customer at every stage of project development.
- Educational. The goal of the consulting firm's specialists is to educate the client, who will later be able to independently develop solutions to emerging problems. Training is carried out with the help of lectures, seminars, manuals.
In the Russian Federation today there are only a few hundred consulting companies. At the same time, for example, in Holland there are more than 2000 of them.
Briefly, the process of implementing a consulting project is as follows:
- A request is received from a client.
- Contact is established with the customer.
- It turns out input information from the client on the issue of interest.
- The situation, tendencies and essence of the problem are determined.
- A proposal is being developed to solve the problem.
- A work schedule is being formed.
- Legal documents are being prepared.
- A report, recommendations or a plan of organizational measures are formed.
Intermediary business
Business in the intermediary sphere does not involve the production and sale of products. The entrepreneur acts as a link in the course of the exchange of goods, money or in commodity-money transactions.
An intermediary can be entity, and physical.
Types of intermediary business:
- wholesale supply and marketing companies;
- brokers;
- dealers;
- distributors;
- exchanges;
- credit organizations.
Insurance business
The essence of insurance business is that the businessman, within the framework of the law and the contract concluded with the client, guarantees the insurer compensation for harm.
This harm can be received under certain circumstances and is associated with loss or damage to:
- property;
- health;
- values;
- life and others.
After the conclusion of the insurance contract, the client pays a fee. A businessman receives income, which is the difference between all insurance payments made and all insurance claims for the period.
The main types of risk of insurance companies:
- Market risk. It is associated with the probability of possible losses or non-receipt of the planned profit as a result of unfavorable changes in market prices.
- Liquidity risk. The danger for the company lies in the lack of market liquidity.
- credit risk. Losses due to improper performance of obligations by the other party to a financial transaction.
- operational risk. It can be caused by errors in the company's management system during trading operations.
Classification of entrepreneurship by forms
Entrepreneurship can be classified in terms of the number of owners and types of ownership.
Forms of entrepreneurship by number of owners
Depending on how many people own the company, there are the following forms entrepreneurial activity:
- individual;
- collective;
- corporate.
Individual entrepreneurship
This is the primary and most simple form any business. Individual entrepreneurship provides for a situation where the property of the company belongs to only one person. This form of business does not have the status of a legal entity.
Key benefits of sole proprietorship:
- complete independence;
- efficiency and freedom in management;
- flexibility and sensitivity to demand;
- the opportunity to start a business with a small start-up capital;
- preferential taxation.
Most often, businesses of this type created in the field of trade. A businessman can hire staff, but in a limited number, no more than twenty people.
Collective entrepreneurship
Collective entrepreneurship provides for a situation where the property of the company is owned by two or more people. The share of each participant depends on their material contribution to the common cause. If in founding documents shares are allocated, then this property is called shared ownership. Joint ownership occurs when the shares of each participant are not defined.
Collective ownership involves the joint decision-making, ownership, disposal and use of the firm's property.
The established forms of collective business activity in the world:
- business companies;
- business partnerships;
- joint-stock companies.
The Russian Civil Code describes legal status each organizational form.
Today, joint ventures are dominant in large and small businesses.
corporate entrepreneurship
IN modern world Increasingly, enterprises of different organizational forms are united to protect joint commercial interests. They coordinate their work, which leads to an increase in the efficiency of the common cause. At the same time, cooperating firms do not lose their independence and legal status and relationships are built on a contractual basis.
Types of corporate entrepreneurship:
- Concerns. This is the interaction of enterprises for joint activities on the basis of voluntary centralization. They can perform scientific, technical, industrial, social, financial, environmental and foreign economic functions. Concerns can be both diversified and diversified, not involving attachment to a particular type of economic activity.
- business associations. They are also called foundations or unions. The association is a contractual union of enterprises and organizations for the purpose of jointly carrying out one / several functions of an industrial and economic nature. This format of activity imposes less severe restrictions on the participants than those assumed by the concern.
- consortia. They are created for a while until the task for which the enterprises united is solved, and after that the union ceases to function. Often they are created for the implementation of the state program by several companies. different forms property. The consortium also allows joint placement of loans, large financial or commercial transactions, large industrial or other construction.
- Intersectoral and regional unions. They are formed on the basis of enterprises of various departments and producing homogeneous products. They are united by cooperative or scientific and technical ties.
Forms of entrepreneurship by type of ownership
Depending on what form of ownership is observed in the company, the following forms of entrepreneurial activity are distinguished:
- private;
- state;
- municipal.
Private enterprise
Private business allows you to carry out economic activity on behalf of:
- enterprise (legal entity);
- entrepreneur (individual).
The activity of this form of entrepreneurship is aimed at extracting material benefits. Private business is organized at the personal expense of one businessman or a group of them.
State Enterprise
State enterprise allows economic activity to be carried out on behalf of a company established:
- State bodies. Special structures manage the property of the country within the framework of the current legislation. Such an enterprise is called a state enterprise.
- Local self-government bodies. In this case, the company will be called municipal.
Features of state entrepreneurship:
- the property of the enterprise is part of the property of the state or municipality;
- the company is liable for its obligations with the property that is in their ownership;
- the company is not responsible for the obligations of the country.
In capitalist countries this species entrepreneurial activity occupies those niches that have a strategically important role for it. For example, the extraction and processing of minerals, the manufacture of weapons, aircraft, etc. Also, the state is building a business in areas that need serious investment, with a long payback and low profitability.
It's no secret that only entrepreneurial activity can bring the greatest profit to a person. This is associated with a high level of risk, because, as a rule, it is carried out exclusively at the expense of own funds. The main task such an enterprise is considered to extract the maximum benefit from the investments made.
Of course, entrepreneurial activity is a process that involves the provision of services or the performance of work, as well as the release of any goods. However, the current legislation provides for the procedure for registering any enterprise in specialized bodies state power. To do this, you must submit an application indicating a specific one. It is allowed to select several areas so that in the future, when expanding the business, you do not have to collect documents to make the appropriate changes. In order to make it easier for the manager to make a choice, a all-Russian classifier, dividing production into types on an economic basis.
Entrepreneurial activity is work aimed at increasing one's own investments in the process of selling goods or certain services. It can be performed by both an individual citizen and a legal entity. In the first case, an individual entrepreneur is registered, and in the second, a specific organizational and legal form is noted. The owner of the organization assumes full responsibility for possible losses, because high level risk factor determines the probability of non-fulfillment of one's obligations to counterparties. Then the manager can lose not only the amount of funds invested by him in the business, but also part of his personal property.
Exist different kinds and forms of entrepreneurial activity, which must be indicated upon receipt of the enterprise in public service. The government actively regulates the activities of certain organizations, adopting new legislative acts and introducing certain amendments to existing laws. The most obvious way to visualize the influence of the state on the business sphere is through the tax system. Indeed, when certain objects of business activity require development and improvement, the government reduces this industry, which greatly simplifies the life of organizations operating in the area under consideration.
Entrepreneurial activity is an activity that obeys certain characteristics and principles. First of all, for the start of any organization, it is necessary to have property independence, that is, buildings and equipment owned or rented. At the same time, the principle of independence is manifested in the possibility of independent decision-making regarding business development. And, of course, such activities are characterized by riskiness. Moreover, it should be understood that the higher the level of risk, the greater the profit you can get in the future.
