Free enterprise is associated with the private sector in the economy. It so happened that work in the Russian (then temporarily Soviet) state was always divided into private and public (state and state).
The short-term but difficult period of the planned Soviet economy made its significant contribution to the process of private production of works, goods and services by eliminating the weak and incapable of adaptation.
General idea of freedom in the economy
The right to free labor is practically impossible to “close” either by law or with a club, but to resist the will the state sometimes very difficult. The Soviet period in the domestic economy showed how society can suppress the desire of people to do work, goods and services, but it also became an example of how an individual can achieve a significant economic effect in the most complex conditions.
Legislation largely defines the concept of "freedom of enterprise." It does it awkwardly, but a clear idea has emerged in society: freedom and entrepreneurship is the realization by citizens of self-selected activities, which, using some resources, leads to economic benefits.
It is believed that the purpose of making a profit is the motive to take on the burdens of private business, to accept obligations, financial and moral risks.
The concept of freedom and independence through personal income begins in the family and ends in society. In the first case, the child may have the goal of getting rid of money dependence in order to follow his own goals, and not the will of the parents. In the second case, a person creates a company, manages material and intellectual resources at his discretion in order to achieve independence from the monopoly of public consciousness on what to do and how to do it. Here the goal is not only to make a profit, but also to show its significance.
Private view of entrepreneurship
Free enterprise in Russia and speculation are synonyms. It was only in this century that they began to forget how the state and ideologically savvy public consciousness struggled with the desire of their own citizens for freedom in their personal business in general and in making independent decisions in particular.
Currently, the business world has changed a lot. State-owned enterprises and organizations peacefully exist with private banks, large private companies. There are public organizations, joint funds, etc.
But freedom of entrepreneurship is more associated with small and medium-sized businesses, with the start of business. Probably, it is very objective and reasonable to assess the level of freedom by the degree of possibility of an individual citizen with elementary initial capital and equipment or to create his own business without anything at all.
If it is possible for a person to rise from scratch, then there is freedom. But if the state contributes to this, then freedom of enterprise has support, that is, private business is not only legalized, but also supported.
From the point of view of the current legislation it is. From the point of view of objective reality, everything is very ghostly. Without money, without initial capital and resources (including connections), it is almost impossible to raise your own business.
A good criterion is the growth and development dynamics of offshore economic zones.This is the best evidence that business is not allowed to develop effectively at home, but the registration of an offshore company requires money, that is, this stage can be passed only by accumulating noticeable free capital to gain more freedom.
Legal support of private freedom
Only one option is possible when private enterprise can be free, and then in a limited implementation "without registration". You can grow tomatoes or cucumbers, raise bees, make barrels and sell products to friends or through acquaintances.
For a while you can keep the desired state of things, but this is not a business as such.
All other options are sole proprietorship, private enterprise, joint-stock company, limited liability company and other legal forms - require proper registration, printing, reporting, accounting and the execution of all procedures provided for by law.
Even if, in fact, the activity does not go on, all the procedures provided for by law must be performed.
Thus, the desire to create a private enterprise is, first of all, an understanding of the responsibility and obligations in which you have to work.
Competition, Monopolists and Survival
The freedom of entrepreneurship in a market economy in the full sense of the word is a survival procedure in a “friendly” and well-established socio-economic environment.
It is home to stable enterprises that keep afloat or confidently go up. There are those who are more confidently moving down to collapse, there are state monopolists and private monopolists who are confident in the indisputability of their own significance and the correctness of the chosen path.
New private enterprise in good conscience and complete freedom forced maneuver in this stormy ocean of socio-economic relations. The only thing that limits this complete freedom is the obligation to comply with the requirements of the current legislation, take into account relations with tax and extra-budgetary funds, observe financial discipline, and diligently keep accounting records.
There will be no help from anyone. Well, except perhaps some opportunity, an occasional business relationship or an unexpected order. But in any case, the execution of single orders always forces you to make the price of a product or service unprofitable in order to intercept an order from a competitor in the same state of affairs.
Beginning private enterprise cannot consider monopolists and confidently working enterprises to be competitors. Stable enterprises differ from those who start their work both in capital and in a certain margin of safety. They can wait time, they can give a chance, or they can buy a too annoying young company, its directors or buy up all the employees.
Myths and realities of private business
Today, there really is freedom of enterprise, but it is determined entirely by the head and hands of the creator. It’s rare when someone alone decides to create a company. Even becoming an individual entrepreneur, a citizen coordinates his actions and makes plans with partners, friends, and future employees.
Thus, the very beginning links the start-up company with a bunch of contractual obligations in addition to those stipulated by law. This is reality. The following is the real process of organizing the production of goods and services, searching for customers. Possible change of orientation, throwing between different fields of activity. The beginning will always be difficult and energy intensive.
Saving on everything is the only source of profit. This is the reality of free enterprise. Everything that does not fit into such a classic formula of survival is myths.
Striving for a new
An attempt to start a new business to implement a new idea is not always justified. The simplest and most famous example.Today, home delivery of goods is an absolutely natural type of business, and large stores independently organize their delivery services, but just a few years ago it was not possible to create such a business.
The consumer was completely unprepared to order goods with delivery. He used to go to the store. Only when the stores turned into huge trading floors, and the abundance of goods became difficult to navigate, did a new need arise. Immediately, its proper implementation arose in the form of convenient and beneficial delivery services to all. I went to the site, chose, ordered - and brought it.
Characteristically, hypermarkets and hypermols have also created a new type of business - discount sites. It is characteristic that the discount itself is a fiction. Not a single seller will sell the goods below the purchase price, but the buyer’s mind bites the discount factor well.
New horizons in business - this is the only freedom available to everyone that really makes it possible to create your own business from scratch. Even if initial investments are required, for starters you can simply sell an effective idea to someone and start your own business with someone who bought it.