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The concept and signs of business activities

Having a desire to do business, it does not hurt to know what is an entrepreneur and entrepreneurial activity.
According to the generally accepted definition, entrepreneurial activity is an activity that is aimed at regular profit from the following operations: use of property, production and / or sale of goods, performance of work, provision of services. Consequently, an entrepreneur is one who engages in this activity and has registered himself in the manner prescribed by law. Business activities are carried out independently and at your own risk.Another definition of entrepreneurial activity can be formed as follows: entrepreneurial activity is an intellectual activity that is inherent in an initiative and enterprising person who has any resources to carry out this activity. The entrepreneur acts in his own financial interests (making a profit), but at the same time he benefits the society (job creation, product manufacturing, etc.)
The content of the article
Signs of entrepreneurship
1. Independence
2. Systematic
3. Property Responsibility
4. Formality
5. Orientation to regular profit
6. Risk
7. Professionalism
8. Continuous search of business resources
1. Independence
It can be property and organizational. The first implies that the entrepreneur owns and disposes of his property, which he uses in the course of his entrepreneurial activity.
The second means that the entrepreneur independently makes decisions concerning his business. Independence of an entrepreneur is manifested at all stages of entrepreneurial activity – from the moment a decision is made to carry out a certain activity and ending with the extraction of profit from it. The entrepreneur always acts on his own initiative, and does not obey anyone’s orders or instructions. This is primarily the difference between entrepreneurial activity and labor activity, where the employee fulfills the requirements and instructions of his superiors.
2. Systematic
Entrepreneurial activity is not an action, but a process. And it is carried out over a period. Systematicity is one of the main features of entrepreneurship, and the main criterion of systematicity is the regularity of profits for a certain reporting period. With this, you can distinguish business from any other.
3. Property Responsibility
An entrepreneur always risks his property – corporate or / and own, depending on the legal form in which the company operates.
4. Formality
It is possible to carry out business activities only after passing through the special procedures for registering an individual as an entrepreneur and registering the company itself. Any activity aimed at making a profit without proper registration is illegal.
5. Orientation to regular profit
Any business has as its main objective the systematic profit (profit = income – expenses). If entrepreneurial activity does not bring profit (due to the crisis situation at the enterprise or in the state), but still aims at it, then it can also be called entrepreneurial. If the activity does not set itself the goal of making a profit, then it is not of a commercial nature and therefore cannot be considered entrepreneurial.
6. Risk
Entrepreneurial activities are always associated with various types of risks – organizational, economic, financial, etc. Moreover, some types of risks are dependent on the entrepreneur, and some are not dependent (for example, certain changes in the legislation of the country, which adversely affected the activities of the company). In order to protect himself from unforeseen risks associated with risks, an entrepreneur can insure his entrepreneurial activity, that is, his own business. Any kinds of risks motivate an entrepreneur to more thoughtful and successful work.
7. Professionalism
This sign means that a person engaged in entrepreneurial activities must have theoretical and practical skills in this field and relevant specialized education. However, professionalism is a prerequisite not for all types of business activities, but rather for those that can be carried out only after obtaining the appropriate license (for example, notary services).
8. Continuous search of business resources
The entrepreneur is constantly looking for new resources that can provide him with successful business activities. It can be cash, technology, equipment, raw materials, materials, premises, as well as labor, customers and partners. It is unacceptable for an entrepreneur to stand still in the development of his business.

 

 

 

 

 

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