Types and forms of business. Entrepreneurial activity

All types and forms of business represent the relationship between all market participants regarding their joint activities aimed at extracting profits from the use of own capital. The business in itself is an initiative economic activity, which is provided by own or borrowed funds and at the same time is realized at one's own risk and risk, setting itself, in the form of the main goals, profit and further development of the business.

Characteristics

Considering the forms of business as capitalist relations, one can distinguish several of their characteristic features:

• The presence of seed capital, which is invested in a particular case;
• The presence of a targeted nature of the investment of seed capital in the form of receiving income on invested funds;
• Formation of certain relationships with other market participants regarding the use of invested capital, including both initial and subsequent.

Various economic relations affecting several individuals engaged in business are so complex and multifaceted that it is almost impossible to determine any clear boundaries in this industry. It is for this reason that entrepreneurship, which includes various forms of business, is today regarded as a legal concept. It is always a legally designed form of human activity, carried out within one of the forms of management defined by law.

Structure and objects

As the main business objects are completely free in their market actions, sole proprietors of capital, which are individuals, as well as owners and owners of entire enterprises, called legal entities. To date, in countries where there is a developed market economy, there are hundreds of thousands of people who independently or groups risk their own capital, regularly opening more and more new enterprises. It should be noted that quite often you can see how wrongly different forms of business are mixed with the concepts of "commerce" and "entrepreneurship".

Any family business or other form represents a certain type of activity in the field of social production, which brings its owner income or any other personal benefits. However, not everyone understands that economic activity can be carried out in the sphere of both material and non-material production, as a result of which it will be more correctly divided into:

• Entrepreneurship, which is an economic activity in the field of material production;
• Commerce, which is an activity in some non-material sphere.

As a result of entrepreneurial activity, various material goods are considered, while commercial activity is the provision of various services.

Forms

Group, independent and family business can be carried out in three basic forms:

• Partnership;
• Private or individual entrepreneurship ;
• Corporations.

Private enterprise

In the majority of cases, business in Russia and many other countries of the world refers to this form, in which only a certain person who simultaneously performs the functional tasks of the manager is considered as the owner. At the moment this is the most common form, which is typical for companies in the field of services, farms, small shops, as well as professional medical, legal and many other activities.

Partnership

Partnership is a business in which more than one owner is present. The main advantages of such interaction is that such a business in Russia and many other countries is much easier to implement, since the unification of several people provides a fusion of capital and joint ideas. If we talk about shortcomings, it is worth highlighting a few basic ones:

• Ambiguous understanding of the main goals of the company's work by all its participants;
• Limited availability of available financial resources;
• The difficulty of determining the exact share of each participant in the loss or income of the enterprise, as well as in the possible division of property.

Corporation

The corporation is a certain set of persons who have decided to unite to conduct joint business activities as a single legal entity. Large and medium-sized businesses include a huge number of such forms, and the right to property is divided according to the availability of shares. It is for this reason that owners of such organizations are called "shareholders", while they themselves are called a joint-stock company. It is worth noting the fact that the owners in this case have limited liability for debts, which is determined by their own contribution.

Among the advantages of this form is the availability of almost unlimited possibilities in terms of attracting money capital by selling bonds and shares, as well as dividing the rights of all holders of shares into personal and property shares. However, there are a number of shortcomings:

• Presence of double taxation of that part of the income of the organization that is accepted to be paid as dividends to each owner of shares: the first is calculated as part of the company's profit, while the second is a part of the owner's personal income;
• Quite favorable opportunities for committing various economic crimes, which is most often expressed in the possibility of issuing and further selling shares, which in fact have no real price.

Among other things, the downside of this form of business is the separation of control and property functions. Large and medium-sized business of this form provides for the dispersal of shares among a sufficiently large number of owners, as a result of which the functions of ownership and control are separated from each other. Each owner in this case is interested in obtaining the maximum possible dividends, while managers try to minimize them for further use in circulation.

There are a lot of other shortcomings of corporations, but somehow their advantages greatly prevail over all these disadvantages, and therefore this form of business does not cease to be used quite widely to this day.

Main types of business

The activities of the majority of business entrepreneurs have a fairly large number of similar features, but there are many more differences, and this is due to the fact that different situations arise in different types of business, associated with certain risks and competitive advantages. In the process of implementing all of the above, entrepreneurs are trying to create their own mechanisms for the successful work of a particular case. In other words, in each individual case a unique business project and special methods of its implementation are used.

It is also possible to find a sufficiently large number of differences in the mechanisms of legal regulation of modern entrepreneurship used. It should be noted that different business projects are also taken into account here, and to better understand them, business is divided into several types depending on the form of ownership, size and specific industry.

Industrial

This type of business is considered to be leading today and differs in its main function in the form of organization of production of certain products. This includes various companies involved in the production of clothing, cosmetics, perfumes, pharmaceuticals, as well as a host of other organizations. Today, production is the most common, but at the same time, the most complex kind. However, such a business in Moscow and other cities of Russia is a platform that forms the modern market economy of the country. Within the bounds of such a case, raw materials are converted into products ready for later realization.

Doing such a thing is impossible without buying by the entrepreneur a certain number of production factors. To produce the goods you need to use certain working capital in the form of a working room, the necessary materials, as well as various instruments and other equipment. Also, do not forget that such a business in Moscow, as in any other city, can not be conducted without knowledge of the relevant technologies, and the basic means purchased by the entrepreneur are almost always distinguished by a sufficiently long service life, so there is no reason to hope for that , That their cost will already be transferred to the finished products for one cycle. All this causes a fairly long freezing of the owner's financial assets.

In addition to raw materials, an entrepreneur who has decided to open a new business of this kind must spend money to attract labor, deliver all necessary materials, and rent or purchase storage facilities in which they will be stored. Also, do not forget about warehouses for finished products, carrying out all kinds of repair work, regular upgrading of employees and many other things, most of which can not initially be calculated and designated.

The main disadvantage of this business is that every business enterprise pays off long enough and real profit brings much later compared to other types. That is why this type of activity is often supported by the state.

Commercial

At the heart of the commercial business are operations for the purchase and sale of various products. In this case, entrepreneurs open a new business as traders or traders, selling goods purchased in one or another production by wholesale lots. Pharmacy chains, online stores, retail outlets in the city, refueling - these and many other organizations are commercial activities.

At the same time, it is necessary to understand correctly that in the process of passing the path from the producer to the consumer, the goods do not change in any way. Thus, consumers often do not think about how best to deliver the desired product from the manufacturer, and the business store presents all products with the maximum comfort. It should be noted that the share of the businessman falls not only that he can earn on the difference between the initial price of the producer and retail sales, but also the risk of risks associated with price fluctuations or changes in demand.

This type of business is the most simple and clear, if you compare it with production and many others, and its main advantage is the ability to create and promote as quickly as possible. With the availability of access to the Internet today the issue of advertising and attracting consumers is solved almost instantly. The originally created "local" business can be developed without any problems to the regional or state level, and the goods of general consumption can be realized all over the world. That is why such business ideas with investments at the minimum level are used so widely.

Also, one can not help saying that commercial activity is characterized by a fairly high profitability. Across the world, approximately 10% of the profitability of the business depends on production, while the commercial side of the issue affects 30% or more. The risks of such a business are manifested only in a high dependence on market conditions. The efficiency of doing business presupposes the presence of certain knowledge of the subtleties of marketing, oratorical talent and other important qualities.

Financial representation

Financial business is considered to be a special kind of entrepreneurship, since here, as a sphere of activity , loans and cash flows act. Such a case is completely based on banking, insurance and venture capital, and it is often possible to find transactions with foreign currencies and securities in the competence of financiers. This sphere is completely occupied by brokers and dealers. Entrepreneurs financiers earn due to the implementation of various financial transactions, as well as when receiving dividends and interest. Examples of business of this kind are known to everyone: banks, brokerage offices, etc.

In the modern world, it is considered to be the most risky business, and it is for this reason that there is such a strong state regulation here that only units can survive. In the majority of cases, firms working in a financial environment are large players with significant competitive advantages:

• flexibility;
• The possibility of rapid accumulation of resources;
• Sufficiently high mobility of resources;
• Interaction with international financial markets.

Thus, today almost every person can open his own business if he is confident in his own abilities and has a certain starting capital. At the same time, we do not have to worry much about the latter, as with a full-fledged business plan, it is now possible without any difficulty to get a loan from any bank in order to open a small online business or even a small business.