What is entrepreneurship
To understand what entrepreneurship is, you need to know what social and economic conditions are needed for its development.
Thus, the key pillar for its successful existence in the country is the recognition of private property. Also, the state is obliged to support small and medium-sized businesses so that its economy develops and funds received by representatives of these structures regularly enter the treasury.
Entrepreneurship is its own business, a private enterprise that produces certain goods and provides certain services to the population. It is the key to the successful development of a market economy, in particular its small and medium form, as all the business management books pdf state.
Entrepreneurship, regardless of its form, is a certain activity of the subject (entrepreneur) and in one way or another is associated with economic risks for him. The main task of an entrepreneur is not only to be able to produce a product or provide a particular service, but also to understand whether there is a demand for them, and to ensure supply. From this point of view, entrepreneurship is always a certain risk.
This type of activity is universal, it can be carried out in different areas that are closer to the owner. Among them:
- industrial sector;
- service and others.
It should be understood that entrepreneurship is a concept entirely dependent on the state system. At the same time, the most successful system for the normal development of entrepreneurial activity on the territory of the state is capitalism, where, first of all, private property dominates and there is no state hegemony, as it was in the Soviet Union.
As you know, in Soviet times, in our country, private property and own business were not only discouraged, but also criminalized, as a result of which business went into the shadows, and the economy still fell into decline. Successful entrepreneurship is impossible without worthy competition, as well as without the recognition of private property as its basis.
Other conditions that are necessary for the normal development of entrepreneurial activity in the state include the following:
- stability of the economic situation in the country;
- preferential treatment for taxes;
- developed support for entrepreneurship from the state;
- an effective system to protect intellectual property;
- access to foreign markets for entrepreneurs;
- affordable lending to small and medium-sized businesses.
What is small business
A small business is an enterprise that does not claim to be a leader in its field and is limited to a small staff and a sole leader. However, in some cases, there may be two owners, or the business is family-owned at all, where the manager is nominal.
Small business does not provide for significant financial investments, technical equipment and other needs are minimized, but the ability to create demand for their products and regularly pay taxes to the state treasury makes small businesses key in shaping the state's economy.
Many small companies have social significance and allow to unite socially vulnerable groups of citizens, providing them with jobs, which is very important both for unemployment rates and for social protection of citizens.
Features of medium-sized businesses and their importance for the country's economy
Medium business differs from small business, first of all, in that its owner is not part-time the main investor, but is under the control of investors-shareholders of companies, performing exclusively managerial functions. In addition, the manager can simultaneously be one of the shareholders of the company. Detailed ebooks like CBAP book free download are the source for detailed stats. Naturally, in a medium-sized business we are talking about larger investments than in a small one, therefore efforts are combined and a joint-stock company is created.
Enterprises of this type are very important for the successful development of the country, because the economy and entrepreneurship are always interconnected, regardless of what features of its conduct exist on the territory of a particular state.
Naturally, the development of small and medium-sized businesses in different countries has its own mental characteristics and forms, and they are also influenced by the industrial level of the state, social conditions and other factors. We also encourage you to have a close look at The essential managers handbook PDF free download available at E-book.business store.The choice of a field of activity depends on many factors, in particular on the place, on the social and economic characteristics of the region, the standard of living, infrastructure and other factors.