What are the forms of entrepreneurship?

Entrepreneurship is a form of economic activity. This is an independent individual activity of a person and his association, the purpose of which is to make a profit. An entrepreneur can engage in completely different activities, unless of course this is contrary to the law. There are also forms of entrepreneurship that are classified into public and private. Corporate forms include corporations, and private entrepreneurs.

Individual entrepreneurship as forms of entrepreneurship are persons who carry out commercial activity on the basis of property that is owned by entrepreneurship. Also for this commercial activity, the IP is fully responsible.

IP makes an overwhelming share among the whole form of entrepreneurship. But the share of money turnover of this type is not very significant. The prevalence of individual entrepreneurship is determined by strong motivation, simple organization, flexibility and speed. If an individual entrepreneur is sole proprietor, then he receives absolutely all income, which in turn is a reliable incentive for progress in life. In general, IP is close to market demand. Such forms of entrepreneurship work directly with suppliers and consumers. Individual entrepreneurs carry out their production on a small scale, but they quickly focus on producing products that are in high demand. But the IP has its drawbacks. Large-scale production of a sole proprietor can not be organized, relying on the financial side. And the price that is set in the procurement is too large, and the entrepreneur is forced to follow such a price factor. In addition, IP is a person who decides several functions at once. It performs both the function of a manager and management, and deals with a financial plan, recruiting staff and making a marketing plan, which in turn can reduce the effectiveness of management.

Corporations, as forms of entrepreneurship in Russia, are based on equity participation, where capital, legal obligations and rights of participants are united. This form was formed at the end of the 19th century, it was aimed at making a positive shift in production. Corporations, as forms of entrepreneurship in Russia, play the most important role. But when a corporation emerges, there are some difficulties, for example, when registering and registering a corporation. It will take a lot of money and time. The order of formation of such formations is very rigidly regulated and limited. Another disadvantage of corporations is that they pay double taxation. First, the tax is calculated from the profit of the organization, then it is paid out based on the dividends of the shareholders.

Corporations, as organizational forms of entrepreneurship, can carry the complexity in the relationship between managers and shareholders. If you follow legal laws, then the corporation is the activities of shareholders, but they are very rarely engaged in this activity. To do this, a leader who takes part in all the strategies is chosen specifically. Holders of shares are able to contribute to the change of the head, but they do not know enough information and adhere to the proposals of the leadership.

Thus, the forms of entrepreneurship can differ from each other. But at the core is always a person who at his own risk and fear carries out this activity. Based on his intuition, energy and real thinking, the entrepreneur promotes the prosperity of his business.