Entrepreneurship is a risky activity in order to generate income

Entrepreneurship is a risky activity in order to generate income
Entrepreneurship is a risky activity in order to generate income

Video: Entrepreneurship is a risky activity in order to generate income

Video: Entrepreneurship is a risky activity in order to generate income
Video: Risk & Reward of Enterprise & Entrepreneurship 2024, November
Anonim

Entrepreneurship is one of the most popular types of human economic activity. Based on the principle of generating income through the use of own resources and equity, it is conducted by such business entities as entrepreneurs (individuals and legal entities). As a rule, an individual can operate only as an individual entrepreneur. A huge number of existing organizational forms gives a legal entity the opportunity to choose the most suitable one.

entrepreneurship is
entrepreneurship is

Entrepreneurship is classified based on various features. So, according to the size of activity, large, medium and small businesses are distinguished. State and private entrepreneurship - this is the main classification of this type of activity by form of ownership. In addition, this kind of activity can be classified on the basis of legality: legal, illegal and pseudo-entrepreneurship. If the second type differs from the first in the absence of the necessary documents andlicenses, the third sets itself the goal of making a profit or other interest without doing business as such.

small business
small business

Entrepreneurship is a type of activity that can be classified by scale: local, regional, national, international and global. The composition of the founders is also a sign of classification: at the present stage, women's and youth economic activity is distinguished.

Entrepreneurship is a type of economic activity, the classification of which can be based on the growth rate of profitability (highly profitable and low-profitable), the size of economic risks (high-risk, medium-risk and low-risk) and the growth rate (fast-growing and gradually increasing the growth rate).

Today, this economic activity should also be classified from the point of view of introducing innovations in the process of creating a product or service. Based on this feature, one can distinguish between traditional and innovative entrepreneurship.

The number of people involved can also serve as a classification factor. So, according to the number of participants, individual and collective entrepreneurship is distinguished. The mechanism of creation and established processes for managing an organization underlie the classification of entrepreneurial organizations into simple and complex.

innovative entrepreneurship
innovative entrepreneurship

Entrepreneurship is an exclusively independent activity, providing the opportunity to work in a variety ofdirections. The economic risks associated with this economic activity also fall entirely on the shoulders of the entrepreneur. It is this factor that entails responsibility. Based on this concept, there are companies that bear full, joint and several or subsidiary liability.

At the same time, any company, any organization or individual directs all efforts in one direction, including two main principles:

- receiving the planned income;

- efficient use of all available resources (human, financial, logistical, etc.).

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