Types and forms of business. Entrepreneurial activity

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

All types and forms of business represent the relationship between all market participants regarding their joint activities aimed at generating profit from the use of equity capital. By itself, business is an initiative economic activity, which is provided with own or borrowed funds and at the same time is implemented at your own peril and risk, setting itself the main goals of making a profit and further developing the business.

Features

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

• presence of start-up capital that is invested in a certain business;
• presence of a purposeful nature of the investment of start-up capital in the form of income on invested funds;
• formation of certain relationships with other market participants regarding the use of invested capital, including both initial and subsequent ones.

Different economic relationships involving several individuals doing business are so complex and multifaceted that it is almost impossible to define any clear boundaries in this industry. Precisely according toFor this reason, entrepreneurial activity, which includes various forms of business, is today considered as a legal concept. This is always a legally formalized type of human activity, carried out within one of the forms of management defined by law.

Structure and objects

The main objects of business are completely free in their market actions sole owners of capital, which are individuals, as well as owners and owners of entire enterprises, referred to as legal entities. Today, in countries where there is a developed market economy, there are hundreds of thousands of people who, individually or in groups, risk their own capital, regularly opening more and more new enterprises. At the same time, it is worth noting that quite often one can notice how unduly various forms of business are mixed with the concepts of "commerce" and "entrepreneurship".

Any family business or other forms is a certain type of activity in the field of social production, which brings its owner income or some other personal benefit. However, not everyone understands that economic activity can be carried out in the field of both material and non-material production, as a result of which it will be more correct to divide this concept into:

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

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

Shapes

Group, self-employed and family businesses can take three main forms:

• partnership;
• private or sole proprietorship;
• corporations.

Private Enterprise

In the overwhelming majority of cases, business in Russia and many other countries of the world refers to this particular form, in which only a certain person who simultaneously performs the functional tasks of a manager is considered as the owner. This is by far the most common form, and is common in service businesses, farms, small shops, professional medical, legal, and many other industries.

Partnership

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

• ambiguous understanding of the main goals of the company by all its participants;
• limited financial resources available;
• difficulty in 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

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 here depending on the availability of shares. It is for this reason that the owners of such organizations are usually 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 depending on their own contribution.

Among the advantages of this form, it is worth highlighting the presence of almost unlimited opportunities in terms of raising money capital by selling bonds and shares, as well as the separation of the rights of all shareholders into personal and property. However, there are a number of disadvantages:

• the presence of double taxation of that part of the organization's income, which is usually paid as dividends to each shareholder: the first is calculated as part of the company's profit, while the second is a part of the owner's personal income;
• rather favorable opportunities for committing a variety of economic crimes, which is most often expressed in the possibility of issuing andfurther sale of shares that actually have no real value.

Among other things, the disadvantage of this form of business is the separation of control and ownership functions. Large and medium-sized businesses of this form provide for the dispersion 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 receiving the maximum possible dividends, while managers try to minimize them for further use in circulation.

There are also a lot of other shortcomings of corporations, but, one way or another, their advantages greatly prevail over all these disadvantages, and therefore this form of business does not cease to be quite widespread to this day.

Main Businesses

The activities of the overwhelming majority of business entrepreneurs have a fairly large number of similar features, but there are still many more differences, and this is due to the fact that different types of business have different situations 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 operation of a particular business. In other words, in each case, a unique business project and special methods for its implementation are used.

You can also find a fairly large number of differences in the mechanisms usedlegal regulation of modern business. It is worth noting that different business projects are also taken into account here, and in order to better study them, businesses are divided into several types depending on the form of ownership, size and specific industry.

Production

This type of business today is considered the leading one and is distinguished by its main function in the form of organizing the production of certain products. This includes various companies involved in the production of clothing, cosmetics, perfumes, pharmaceutical products, as well as a host of other organizations. To date, production is the most common, but at the same time the most complex type. However, such business in Moscow and other cities of Russia is a platform that forms the modern market economy of the country. Within the boundaries of such a business, the transformation of raw materials into products ready for subsequent sale is carried out.

Doing such a business is impossible without the purchase by the entrepreneur of a certain number of production factors. For the manufacture of goods, it is necessary 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, like in any other city, cannot be carried out without knowledge of the relevant technologies, and the fixed assets acquired by an entrepreneur almost always have a fairly long service life, as a result of which one should not hope for that their value will already be transferred tofinished product in one cycle. All this leads to a rather long freeze of the owner's financial resources.

In addition to raw materials, an entrepreneur who decides to open a new business of this kind must spend money on attracting labor, delivering all the necessary materials, as well as renting or purchasing storage facilities in which they will be stored. Also, do not forget about warehouses for finished products, carrying out all kinds of repairs, regular professional development of employees and many other things, most of which initially cannot be calculated and designated.

The main disadvantage of such a business can be called the fact that each business enterprise pays off for a long time and brings real profit much later compared to other types. That is why this type of activity is quite often supported by the state.

Commercial

The commercial business is based on the sale and purchase of various products. In this case, entrepreneurs open a new business as merchants or traders, selling goods purchased in a particular production in bulk. Pharmacy chains, online stores, retail outlets in the city, gas stations - 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 way from the producer to the consumer, the goods do not change in any way. Thus, consumersquite often they do not think about how best to deliver the desired product from the manufacturer, and the business store presents all the products with maximum convenience. At the same time, it should be noted that not only the fact that he can earn on the difference between the original producer price and retail sale falls to the share of the merchant, but also the risk of risks associated with price fluctuations or changes in demand.

This type of business is the simplest and clearest, when compared with production and many others, and its main advantage is the ability to create and promote as quickly as possible. With the availability of Internet access today, the issue of advertising and attracting consumers is solved almost instantly. The “local” business created initially can be further developed to the regional or state level without any problems, and general consumer goods can even be sold all over the world. That is why these low investment business ideas are so popular.

It is also impossible not to say that commercial activity is characterized by a fairly high profitability. Around the world, approximately 10% of the profitability of a 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 high dependence on market conditions. The effectiveness of doing business requires certain knowledge of the intricacies of marketing, public speaking and other important skills.quality.

Financial representation

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

In the modern world, it is customary to consider such a business as the most risky, and it is for this reason that there is such a strong state regulation here that only a few manage to “survive”. In the overwhelming majority of cases, firms operating in the financial environment are major players with significant competitive advantages:

• flexibility;
• the ability to quickly accumulate resources;
• high enough resource mobility;
• interaction with international financial markets.

Thus, today almost every person can start his own business if he is confident enough in his abilities and has a certain start-up capital. At the same time, there is no need to worry much about the latter lately, since in the presence ofWith a complete business plan, today you can easily get a loan from any bank in order to open a small business online or even a small enterprise.