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Collective Entrepreneurship: Definition

Collective entrepreneurship is represented by a variety of cooperatives. Production is very common when several people unite of their own accord in order to continue to carry out certain activities. It can be industrial or economic. Important features - personal participation, the presence of mutual contributions, which are combined.

collective entrepreneurship is carried out by a group of citizens on the basis of

general information

Collective entrepreneurship is carried out by a group of citizens on the basis of the individual interests of each of the participants. At the same time, all concerned are doing business together, joining forces. This imposes considerable restrictions, because the responsibility for entrepreneurship is directly related to property owned by all participants in the case. Responsibility for the fulfillment of their obligations lies with everyone.

When managing such a legal entity performs standard functions that are largely similar to individual entrepreneurship.

Classification

In modern economics, it is customary to divide collective enterprise into subtypes. It:

  • partnerships, societies;
  • production cooperatives;
  • holdings;
  • housekeeping.

First things first: partnerships and business communities

What applies to collective forms of entrepreneurship in this category? A variety of enterprises:

  • insurance business;
  • mediation;
  • sale;
  • production of goods.

Feature: each founder invests his property, which in total forms a joint property. It performs the role of the authorized capital. All products and goods used in the work process, as well as finished products, are in the possession of all members of such a community.

comparative characteristics of individual and collective entrepreneurship

Production cooperative

The comparative characteristics of individual and collective entrepreneurship are most evident when studying this particular subtype. And the thing is that in the case of an individual business, as the name implies, the organizer is just one activist who wants to try his hand. But a production cooperative can be opened only when there are at least five stakeholders who are ready to join forces. As the creators of the PC can act and IP, and individuals, and legal entities.

Considering the signs of collective entrepreneurship, it is first necessary to note the share contribution. So it is customary to designate the property that is contributed by each participant. It can be:

  • money directly;
  • securities;
  • property rights;
  • property.

Each member has an impact on how the company as a whole will work. It is also permissible for members of a cooperative not to participate in labor activities. But not everyone can do this, but only a quarter of the total composition of society.

The asset of a production cooperative is as great as its members have invested in it. Mandatory development of the charter. In the case when the number of members exceeds ten, the creation of a cooperative board is allowed. It is possible to form a supervisory board when there are more than fifty members of the community.

characteristics of individual and collective entrepreneurship

Holding

Under this form, collective entrepreneurship is carried out by a group of citizens on the basis of several previously existing enterprises that have undergone unification. Moreover, the shares must contain securities of various legal entities.

In Russia, holdings are mainly becoming ZAO.At the same time, it is not necessary for the holding to be independent, it may be a subsidiary, for example, of a larger holding.

It is also worth remembering that the holding is not the only possible format for combining enterprises into a single whole. Actual forms of collective entrepreneurship:

  • syndicates
  • cartels;
  • trusts;
  • conglomerates.

Regardless of the specific type, it will be common that the values ​​and capital of all legal entities are combined. In some cases, the phenomenon is temporary, in others it becomes a permanent solution.

collective enterprise

Housekeeping

Analyzing individual and collective entrepreneurship in Russia today, we can safely say that management is the leader in popularity. This is not surprising, because registering a company is simple, it requires little time and money. At the same time, the company will be flexible, without difficulty it will be able to adapt to the ever-changing market realities. Another important positive feature of this form of doing business is the relatively small personal responsibility of each of the members who organized the enterprise.

Partnerships

If we analyze individual and collective forms of entrepreneurship, you will notice that full partnership looks quite attractive. Its members, as the name implies, are full partners.

types of collective business

The specifics of this format is that it all starts with the conclusion between the community members of the contract, which should strictly describe all the business activities planned by the organization.

Such types of collective entrepreneurship as partnership in faith, various societies also attract attention. The first assumes that there are participants who work on behalf of the organization. They will be responsible for all the obligations assumed by the company. In addition, there are several investors who run the risk of losing if something goes wrong. At the same time, the amount of loss cannot be more than the amount invested by the investor in entrepreneurship. Such commandists cannot conduct business directly.

 signs of collective enterprise

Collective Entrepreneurship: Societies

First and foremost, a limited liability company deserves mention. So it is customary to name a form of entrepreneurship in which there is one founder or several. There is also a share capital. Separation is carried out in accordance with the constituent documentation. A distinctive feature of this format is the lack of responsibility for the obligations of a legal entity on each of the participants. There is a certain risk of losing the invested money, but not more than the amount that the participant provided to the “common boiler”.

There is another type of society, it is called "with additional responsibility." On his example, it is clearly visible how the characteristics of individual and collective entrepreneurship differ. An enterprise is established either by one person or by several, however, it is collective. It has a share capital divided by shares. Each of the participants, together with others, is responsible for the obligations of the undertaking. And here the amount is not limited only to the contribution to the authorized capital.

Finally, a joint-stock company is such a form of activity when a group of persons opens their own business and collects the authorized capital for this, dividing it into shares. Shareholders, as it is customary to call all participants in this business, do not bear obligations for the obligations of the enterprise, and they can only lose what they invested in obtaining shares.

In some cases, this form of activity is closed, then only the founders and a strictly limited circle of people have access to the shares.But in the case of an open format, shares can be alienated without asking the consent of other participants in the company.

individual and collective forms of entrepreneurship

The most common

Considering collective entrepreneurship, one cannot but pay special attention to the production cooperative. This form is very common. It occurs when people unite voluntarily. Each of them becomes a member of the formed society in order to conduct together production, economic activities. Each of the members participates through a share contribution and own labor, taking part personally in the work of the company. An enterprise formed in this way must be registered as a legal entity.

As a rule, the main goal of such an enterprise is the production of some goods, the processing of products or their sale, as well as the construction and provision of services. In some cases, companies are created to:

  • extraction of natural resources;
  • work with recyclables;
  • research;
  • design;
  • scientific works;
  • the provision of services.

A very large group of collective entrepreneurship in this category is agricultural organizations, fishing, and also cooperative farms.

Some features

To establish a production cooperative, you must have at least five people interested in this. Each of them must make a contribution. Allowed the participation of persons who do not have citizenship at all, as well as being citizens of other countries. The charter of the enterprise describes the conditions under which the company cooperates with other legal entities. The company may employ employees, but their number may be no more than 30% of the number of persons making up the cooperative.

individual and collective entrepreneurship

The presence of those people who have made their contribution, but does not take part in the activities of the company, is allowed. There can be no more than a quarter of all those who have contributed. If we are talking about agriculture, then here such a membership, when a person does not actually participate in the work, is usually called associate. Most often, this belongs to legal entities. In addition, there are also citizens who:

  • retired;
  • cannot work due to health reasons;
  • were selected for a position outside the collective enterprise;
  • employees in the Armed Forces of the Russian Federation;
  • fall under the points specified in the charter of the enterprise.

The charter is the only constituent document for such an enterprise. It is approved as part of the meeting of all members. In order for the cooperative to receive property at its disposal, its members make contributions, focusing on the requirements of the charter. Additionally, the property is formed by the profitability of the business.

Zero fund - a term applied to a situation when the property is present in a minimum amount sufficient to cover the interests of creditors. Units are those parts into which the joint property of the cooperative is divided.

Company management

If a production cooperative grows and there are at least fifty people in its staff, the creation of a rather complex management structure is allowed. If at first it was only a general meeting of all members, then if you exceed the 50-member mark, you can organize a supervisory board. This is an optional phenomenon, but practice shows that it structures the workflow and also allows you to keep the situation under control.

The executive body is the chairman and the board headed by him.

forms of collective enterprise

The general meeting then can make a decision that affects the work of the organization as a whole, when at least half of the number has appeared on it. If we are talking about agriculture, then the indicators are reduced, a quarter is enough. Special conditions apply to agricultural production cooperatives, the number of which is less than 20 people. Here it is necessary that at least five people participate in the council.

To summarize

Structuring all of the above, we highlight all possible collective activities:

  • partnership, partnership;
  • business community;
  • production cooperative.

There is nothing surprising in the fact that it is the cooperative forms that have become the most powerful in the world of business, because from ancient times it is known that "one is not a warrior in the field." Having brought together their resources, capabilities, and strengths, several activists get the opportunity to achieve much greater success.

At the same time, collective entrepreneurship does not at all preclude private ownership. If you decide to create your own company, then register as a legal entity and join a collective business. In this case, the IP retains its rights, but joins forces with other persons, which gives more opportunities to achieve goals. So that all participants can trust each other, so that everyone can be sure that others are doing things only for the good of the company, it is necessary to create the correct charter and conclude a general agreement.

what relates to collective forms of entrepreneurship

Stock ownership is another great opportunity to join the team, but to preserve individuality. Well, then it is possible to combine into even larger forms. Syndicates and corporations can be organized. In short, the possibilities are endless.


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