Phil Libin said: “There are many bad reasons to start a company. But there is only one good, right reason, and I think you know that reason is the desire to change the world. ”
What is entrepreneurial activity: concept, types, goals, legal regulation
Financial freedom, position in society, influence, the ability to manage your own time attract many. However, the start of one’s business and further development requires tremendous intangible and material investments from a person. But if he feels moral readiness, then any door in front of him can be opened. True, knowledge and determination are needed to be able to pick up the key to any door.
The interests of business intersect with many aspects of public life. Therefore, the question of what entrepreneurial activity can be answered in different ways, depending on one or another point of view. But in fact, this phenomenon means a responsible step aimed at creating benefits that in the future will help meet the needs of consumers. Also, this concept is considered inextricably linked with other terms: risks and profits.
Legal interpretation
The status of an entrepreneur is defined in Article 2 of Part 3 of the Civil Code of the Russian Federation. According to her, entrepreneurial activity is the process of producing goods or providing services for profit, accompanied by risks. The status of an entrepreneur is assigned after registration with state bodies.
Both individuals and legal entities have the right to entrepreneurial activity. Stateless persons also have a right. The order of their work is separately considered by law.
Also, the right to conduct business is delegated by the Constitution of the Russian Federation. Article 34 regulates the ability of each citizen to freely realize their potential, to use their capital and their property in the process, without resorting to prohibited activities. Entrepreneurial activity of legal entities and individual entrepreneurs, as a separate subject of law, may relate to any applicable laws.
In some other countries, business matters are governed by commercial and business laws. In the Russian Federation, this obligation is assigned to the Civil Code. Within its framework it is indicated that citizens have the right to conduct business as an individual entrepreneur or as a legal entity, forming a separate enterprise.
But entrepreneurial activity in the Russian Federation is not limited to these laws. Certain aspects require the participation of other laws. For example, questions about the company's position on the market are regulated by the law “On Competition and Monopoly Restriction,” and at the time of liquidation, the provisions of the Law “On Bankruptcy of Enterprises” come into force. When attracting labor, an entrepreneur should be guided by the requirements of the Labor Code. Obligations to the state, such as tax payments, social security contributions and the provision of declarations, are regulated by the Tax Code.
Terms of business
When asked about what entrepreneurial activity is, the law mentions risks. Risks accompany the business in all internal processes, such as the introduction of technology, the development of new niches, and even in the application of marketing strategies.
The role of external risks should also be noted. An inevitable factor is the political and social conditions in the country. The stable political environment and the level of compliance with the law increase the country's attractiveness for investment. Investments inherently mean new enterprises, technologies and industry development.
In conditions when there is no stability in the state, and the laws do not work, the volume of investments from both external and internal sources is significantly reduced. This leads to passivity of entrepreneurs, which will be reflected in the economic indicators of the country. In such conditions, support from the state becomes relevant. Legal regulation of entrepreneurial activity in the Russian Federation provides for comfortable business development not only for domestic businessmen, but also for investors from other countries.
The risks
Risks are also associated with environmental instability and uncertainty. This does not imply the personal competence of legal entities, but market conditions. From a macroeconomic point of view, these conditions are expressed in limited resources, the need to protect the environment and issues of access to international markets. Within the framework of the enterprise, such factors as the cyclical nature of any product, the change in demand depending on the season and other reasons are implied. Entrepreneurs are required to take decisions that take into account all these factors.
Signs
By default, the term “entrepreneurial activity” is used as the equivalent of the word business. There is much in common between these phenomena. For example, the implementation of activities aimed at making a profit. But entrepreneurial activity differs from business in that the first category is closely associated with risks, initiatives and innovations in a particular industry.
Legislation clearly defines the characteristics of entrepreneurial activity. This approach is practical from a practical point of view, since the presence or absence of certain elements in business activity gives rise to rights and obligations before the law.
In order to accurately understand what entrepreneurial activity is, it is necessary to take into account its certain signs. They should be considered in detail:
1. The right to independence in action. It applies to all aspects of activity: a citizen decides to become an entrepreneur voluntarily, risks his own means, has complete freedom in making legal and economic decisions. To achieve entrepreneurial goals, a labor force is involved, the legitimate interests of the company are protected. Profits are distributed based on their own decisions. Of course, everything happens within the framework of the law.
The creation of obstacles to the realization of the right to independence of subjects of law on illegal grounds is punishable by the Criminal Code.
2. Risks. They are examined in detail in the Civil Code of the Russian Federation. In particular, in article 929. At the risk of his property and capital, the entrepreneur understands that he may not receive the expected profit, and may even incur losses. The reasons may be related to circumstances that are completely independent of him. For example, changes in the conditions of cooperation with partners, administrative decisions or even natural disasters. At the risk of profit, the entrepreneur threatens the achievement of the goals of another entrepreneur.
3. Systematic actions. Five or eight transactions completed cannot be considered a system. There can be much more - dozens, or even hundreds, but this is not a system. Consistency assumes the presence of certain properties that are not quantifiable. The essence of entrepreneurial activity is expressed in the continuous production of goods, sales stability and, as a consequence, the receipt of systematic profits.
4. Entities of business.There are two of them: individual entrepreneurs and legal entities registered with state bodies. The registration procedure is key from a legal point of view. From this moment, the subject is vested with new rights and obligations. In particular, the right arises to use hired labor, to participate in state tenders and other competitive events. Obligations are expressed in regular financial and accounting statements to the state.
Legal regulation of entrepreneurial activity in the Russian Federation is reflected in all laws and regulatory legal acts.
Some activities require a license along with state registration. Such types of activities and the procedure for their licensing are considered in the corresponding Federal Law “On the licensing of certain types of activities”.
Forms
The answer to the question of what entrepreneurial activity is, affects its form and types. Form is a way of classifying. The division is based on the number of entrepreneurs and the origin of the enterprise.
The first type of classification distinguishes two types of activity: as an individual entrepreneur (IP) and with the formation of a company - a legal entity.
The origin also has two types of status of founders: enterprises formed by the state (municipal), and formed by other companies or individual entrepreneurs.
Kinds
Types of entrepreneurial activity are of fundamental importance. Based on this factor, the types and sizes of taxes are determined and the norms of the law are applied. There are three classic types:
- Production of goods, raw materials, equipment, machinery, medicines, etc.
- Financial activities: IWC, banks.
- Mediation: real estate services, brokerage, dealership, distribution, etc.
Also, in textbooks, consulting entrepreneurship is highlighted - consulting services in practical terms.
Another species that, perhaps due to its youth, did not make it into textbooks is Internet entrepreneurship. Despite the growing volume of cash turnover in this area, there is no legislative framework. The existing rules and regulations that now guide online business owners are borrowed from the general provisions of the law.
Information on business entities is collected in a special registry - OKVED. Each new entity is assigned business activity codes, according to which it is easy to understand its legal status, form of ownership, information about the tax situation, etc.
Practice
After legal and administrative issues are resolved, the question arises: "Where to start entrepreneurial activity?" If we consider the whole process in a general manner, then a set of measures includes the following:
- Identify a free niche, type of product or service for which there is a demand.
- If we are talking about the production of a new type of product, then you need to think in advance of marketing. How does the consumer know about it? How to stimulate demand? In what form and in what ways should information be conveyed?
- Draw up a business plan. It will clearly show the business prospects. It should take into account all risks, establish a budget for primary production, determine distribution channels, calculate expenses, estimated income for a specific period of time.
- Identify sources of funding. The launch process itself implies certain current costs, which must be closed before profit.
- Selection of premises: office or industrial.
- Registration with state bodies as an individual entrepreneur or legal entity.
- The choice of tax systems and types of tax.
- Registration at the local branch of the Federal Tax Service.
- Recruitment staff.
- Development and execution of contracts for internal use (labor contract) and for interaction with contractors: lease, supply, procurement, etc.
- Launch marketing activities.
Please note that there is no standard sequence of measures, with the exception of the registration and registration procedures. Some measures require implementation in parallel with other aspects. For example, you can do an office search and selection of employees and at the same time registration procedures.
Development directions
Creating an enterprise from scratch and promotion require solid investments and hard work for a long time. The company's strategy has four main areas:
- Sustainability in the current period is the need for continuous production.
- The desire to expand - coverage of new areas.
- Profit is the main goal of entrepreneurship.
- Social value is a benefit to society.
All these factors are closely interconnected and require constant business activity from the entrepreneur.
Alternative for beginners
Novice entrepreneurs are not always able to meet the harsh conditions of the business. There is an alternative for them - buying a franchise. This is a ready-made technology, a business model and a promoted brand sold by its creator. Work on a franchise eliminates the many difficulties and stages that a businessman faces at the very beginning of the journey. Often franchise owners provide comprehensive support in the form of advertising campaigns and free employee training.
Option to reduce costs in a crisis
Another alternative is outsourcing the company's internal processes. Outsourcing is the delegation of part of the internal processes to outside companies. The outsourcing company employs specialists from various fields - from lawyers and accountants to movers.
In small companies, the work of a legal or accounting plan can be small. And the constant maintenance of specialists in the state is costly. In cooperation with an outsourcing company, an entrepreneur can only pay for the amount of work done or charge a nominal monthly fee. There is no need to pay social contributions, because the performers are not employees of the company. In the West, up to 80% of the internal affairs of an enterprise is performed through outsourcing.
Conclusion
Features of doing business are that they require all types of investments: material, psychological, creative and spiritual (social benefits).
Entrepreneurs have a special mentality and character that allows them not to retreat in front of difficulties. A new trend in entrepreneurship is to start a business with minimal investment. There are even successful examples. If for some reason it was not possible to achieve success in this field, then the idea should not be discarded. The best option is to learn, gain knowledge, think through all the steps and test your potential again.