Freedom of enterprise - is it a reality or a myth?

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

On the one hand, the state provides its citizens with the opportunity to freely engage in entrepreneurial activities, but how much is it really? Is free enterprise a reality or a myth?

What is in the law?

The Constitution states that the possibility of free enterprise is one of the freedoms that a democratic state provides for a person.

Translated from bureaucratic into ordinary language, this means that each of us has every right to use our capabilities, abilities, financial and property resources in order to engage in entrepreneurial activities and make a profit. It is only important that this activity is within the law. Also, each person has the full right to dispose at will of the profit that was received as a result of entrepreneurship.

For its part, the state undertakes to protect this freedom by preventing the creation of monopolies, as well as unfair competition. In other words, the freedom of private enterprise is underprotection of the Constitution.

Government support in 2015

The whole history of the existence of small business in Russia has led to the creation of a number of stereotypes about this. One of the most popular is the idea that SMEs are struggling, especially from a financial point of view. This is due to the fact that people who start to make their own way in the field of business are left only to themselves and no one else is interested in them.

It seems like nothing has changed in the past two decades, but it hasn't. Not only the economy has changed, but also the policy of the state. Support for entrepreneurs has been made one of the key areas in the economic policy of the Russian Federation. After all, freedom of enterprise is the key to economic development and prosperity. Several programs have been launched for this purpose.

Before embarking on the implementation of plans, it makes sense for a young entrepreneur to carefully read them, as they can ensure not only a good start for the project, but also its continued successful existence.

Support for small businesses: system

The document that regulates the issues related to state support is the Federal Law No. 209. In addition to it, other regulatory documents have been developed both at the regional and local levels.

Each of the programs differs in budget, duration and specific features.

Also in the systemincludes other institutions that can be called contractors. These are public organizations and banks, business schools, investment and venture funds. The task of these organizations is to play the role of intermediaries between the state and representatives of the business environment. Work is underway to ensure that the interaction process becomes as simple and transparent as possible. All this gives hope that support will become more and more available.

What can small and medium enterprises count on?

Any registered enterprise, both in the form of an individual entrepreneur and in the form of an LLC, is eligible to apply for a subsidy. An important condition is that the enterprise at the time of application must exist for at least two years. The amount of assistance depends on many factors, including the region. The maximum for the region is 300,000 rubles, for the capital of our Motherland - 500,000 rubles.

The next condition is co-financing. This means that the entrepreneur's own funds must also be invested in his enterprise, and not just state funds.

Also, material assistance is targeted, all expenses will have to be accounted for. After all, freedom of enterprise is not only freedom, but also responsibility. The peculiarities of providing assistance in each region are different, so you need to carefully study the conditions of regional programs.

Can the employment service help?

Maybe. For persons who have passed the registration procedure at the labor exchange, there is an opportunityreceiving financial assistance on gratuitous terms so that a person can open his own business. Of course, for this you will have to go through a series of procedures. One of the most important actions is to write and defend your business plan. The amount will, of course, be small, but it is quite suitable for a start.

The exchange will require a report on the funds spent, and will also set conditions for hiring personnel from among those who are also registered as unemployed.

Guarantee funds and education

In most cases, starting a business requires borrowing money. It is logical that loans for such projects are difficult to obtain, since the risk is too great. Guarantee funds, managed by the Ministry of Economic Development, come to the rescue here.

In addition to money, a future entrepreneur needs knowledge. And the cost of education is also extremely high. The state also took care of this, you can get the necessary information and study for free.

Enterprise freedom is not a myth. The state gives opportunities and provides support to start-up businessmen.