Business and Entrepreneurship
Entrepreneurship is one of the most important components of the modern economy.
In the countries of market economy, entrepreneurship has become widespread and constitutes the overwhelming part of all forms of organizations.
Over the past ten years, millions of entrepreneurs and property owners have appeared in United States. In connection with the privatization, only a part of organizations and enterprises remained with the state, and the rest passed into private ownership.
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The bulk of United States entrepreneurship is small and medium-sized businesses. The main task of the entrepreneur is the management of the enterprise, which includes the rational use of resources, the organization of the process on an innovative basis and economic risk, as well as responsibility for the final results of their activities. We recommend to read The Essential Managers Handbook for details. The social nature of entrepreneurship means not only the activities of the agents participating in it, but also the presence in the public economy of certain conditions that allow the implementation of the functional characteristics inherent in entrepreneurship. The totality of such conditions constitutes an entrepreneurial environment, the most important elements of which are economic freedom and personal interest.
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The transition to a market economic system is a transition to an entrepreneurial economy. The creation of conditions for the development of entrepreneurship is the most important component of the transformational changes in the transition economy. In this regard, the identification of essential features and patterns of entrepreneurship development is extremely important. Just like the article considering Business model generation book PDF free download states, business and entrepreneurship are one of the main elements of a market economy, without which the state cannot develop intensively. Entrepreneurship and business affect the rate of economic growth of the state, the volume, structure and quality of the gross national product.
Recently, these concepts began to mix and lose their original meaning. One of the most common definitions today says that a business is any activity that is aimed at making a profit and is carried out by selling goods and services in demand. However, there are other concepts of business, for example: business is an entrepreneurial activity that is carried out by subjects of a market economy and government agencies at the expense of their own or borrowed funds under their own responsibility and the main goals of which are the development of their own enterprise and making a profit. Entrepreneurship or entrepreneurial activity is an independent activity of citizens and their cooperatives, which is associated with risk and is carried out under their own responsibility, aimed at generating income from the sale of goods, the use of property, the performance of work or the provision of services by persons, in accordance with the law - see Business books PDF for reference.
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Since these concepts are equivalent, it is difficult to separate them, however, of course, there are differences. According to the size of its implementation, business, as well as entrepreneurial activity, is divided into large, medium and small. They differ significantly in the size of fixed assets, and in production volumes, and in financial and labor resources. Big business is one of the foundations of the modern economy, and small and medium-sized businesses are an important indicator of its development and condition. Entrepreneurship presupposes your own business, since it is the basis of business. In turn, own business is associated with the danger of losing it and losing the spen
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The main difference between the position of a legal entity and the position of the founder of a legal entity - a business company - is the scope of responsibility. An individual entrepreneur is liable for his obligations with all property belonging to him, that is, by a court decision, foreclosure can be levied on all property, except for the property on which, in accordance with the law, foreclosure cannot be levied. The founder of a legal entity (LLC and JSC) bears property responsibility only within the limits of the contribution made to the authorized capital of the company. What then attracts in this form of doing business? The main advantage at the moment is a simplified procedure for registering and terminating the activities of an unincorporated business. In second place is the simplified system of accounting and tax accounting.
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Accounting is carried out in the ledger of income and expenses by the boiler method, that is, in fact, no special accounting education is required. In second place - because a legal entity can switch to a simplified taxation and reporting system if it is a small business entity. The tax burden for an individual entrepreneur is relatively light compared to the traditional taxation system for legal entities. An individual entrepreneur has the right to use the labor of other citizens in his activities, but only by involving them on the basis of civil contracts (work contracts, paid services, etc.).