Types of business Introduction

Types of

business

 

Introduction

1. Types of entrepreneurial business

1.1 Types of business

1.2 Manufacturing entrepreneurship and technology its implementation

1.3 Commercial entrepreneurship

1.4 Financial entrepreneurship

1.5 Mediation

2. Organizational and legal forms of business

2.1 Individual entrepreneurship

2.2 Concept and types of non-profit organizations

2.3 Joint stock company - one of the forms of commercial business

Conclusion

Introduction

In the conditions of a transitional economic period in Uzbekistan, which can now be described as " post-social ", good conditions have been created for entrepreneurial business. This is evidenced by the variety of options for entrepreneurial activities, from private to collective.

The opportunity to engage in private business became generally available after the abolition of progressive taxation and the introduction of a flat tax rate of 15% on profits, which is currently the lowest among European countries. The authorized bodies are obliged to carry out the state registration of entrepreneurs without the formation of a legal entity (unincorporated legal entity) on the day of submission of the specified application and document on payment of the registration fee, or within three days from the date of receipt of documents by mail. At the same time, the applicant must be issued (or sent by mail) a copy of the unlimited certificate of his registration as a legal entity. The meaning of this simplicity lies in the legal consolidation of the principle - if you want to become an entrepreneur, be one. 

For the collective entrepreneurial business, the state is trying to facilitate the path to laying more and more new roads, abolishing bureaucracy, and reducing the number of inspection organizations constantly striving to feed off the entrepreneurial unit.

Those who talk about business, study it and even participate in it often perceive entrepreneurship as a trade, commercial activity, as the sale and purchase of goods. Such an idea suffers from incompleteness and limitations. Entrepreneurship is an extremely multifaceted type of economic activity that extends to almost all sectors of the economy and to all spheres of the economy, and not only to trade, exchange of goods.

Business is more an image, character, method than an industry and sphere of economic activity.

It does not at all follow from this statement that entrepreneurship should not be divided into types on the basis of belonging to certain spheres and branches of the economy. Entrepreneurship in different areas has significant differences in form and especially in the content of operations and methods of their implementation. The nature of the business is significantly influenced by the type of goods and services that the entrepreneur produces, mines, creates, and, to an even greater extent, the way they receive these goods and services.

It is one thing when an entrepreneur himself produces goods and services, acquiring only factors of production, and another thing, when he acquires a finished product, reselling it to the consumer. Finally, the third thing is if the entrepreneur does not produce goods and does not trade in them, but connects producers and consumers, sellers and buyers. Certain types of business also differ in the forms of ownership of the factors used in entrepreneurship.

In Roman law, "entrepreneurship" was considered as an occupation, business, activity, especially commercial. An entrepreneur was understood as a tenant, a person leading public construction. In the Middle Ages, the concept of "entrepreneur" was used in several senses. First of all, they included persons engaged in foreign trade.

One of the earliest examples of such entrepreneurship is provided by Marco Polo, a traveler who pioneered the development of trade between Europe and China. Going on a journey, a merchant (entrepreneur) signed a contract with a merchant (bank) for the sale of goods.

Although during such a trip, the entrepreneur faced various physical and moral tests at the end of it, he was forced to give 75% of his profit to the merchant (bank). The organizers of parades, booths and performances were also referred to as entrepreneurs. In addition, this concept has been used in relation to the leaders of large production and construction projects. The head of such a project did not risk anything - he just supervised all the work on its organization, using the financial, material and trading resources provided to him.

The Frenchman K. Bodo went further than R. Cantillon . He notes that an entrepreneur must have a certain intellect, that is, various information and knowledge. Another French economist, Turgot, believed that an entrepreneur must have not only certain information, but also capital. He noted that capital is the basis of the entire economy, profit is the goal of an entrepreneur's success, the basis for the development of production.

A. Marshall and his followers paid great attention to the organizational function of an entrepreneur and believed that not everyone who wants to can be an entrepreneur, highlighting their entrepreneurial abilities.

Every nation is proud of the fruits of its entrepreneurs. But any nation and each of its individual representatives are proud of their involvement in the implementation of any specific entrepreneurial idea. Entrepreneurship as one of the specific forms of manifestation of social relations contributes not only to an increase in the material and spiritual potential of society, not only creates a fertile ground for the practical implementation of the abilities and talents of each individual, but also leads to the unity of the nation, the preservation of its national spirit and national pride.

Thus, entrepreneurial business, which was briefly described earlier, is growing rapidly, in all its forms, which significantly strengthens the Uzbekistan economy.
1. Types of entrepreneurial business

1.1 Types of business

 

Entrepreneurship as a form of proactive activity aimed at making profit (entrepreneurial income) involves:

1) the implementation of direct productive functions, that is, the production of a product (product) or the provision of a service (for example, an engineering company, a travel company, an engineering company or a design office);

2) the implementation of intermediary functions, that is, the provision of services related to the promotion of a product on the market and its transfer in an appropriate (socially acceptable) form from the direct manufacturer of such a product to its consumer.

The public understanding of the problem boils down to the fact that, on the one hand, the first type of entrepreneurial activity is of priority importance, since public wealth (as a generalized result of the level and quality of life of each member of society) depends on the state of affairs in the sphere of material production, scientific and technical services. On the other hand, such a public attitude towards this type of entrepreneurship is not really a priority in practice - society contributes to the development of the second type of entrepreneurial activity, i.e. , mediation . Why? First of all, because the level and quality of life, the convenience and comfort of each member of society to a large extent depend on the level of development in the society of the intermediary sphere (convenient for the buyer organization of trade, advertising, home delivery of goods, ordering goods by mail, telephone, etc.). etc.); the same applies to consumers of industrial goods.

But this public perception of mediation is not the only and main reason. The main thing is different - intermediary entrepreneurial activity, its presence and complication to reasonable limits leads to:

1) to an increase in labor productivity of direct producers of goods on the basis of deepening specialization;

2) to accelerate the rate of turnover (circulation) of capital;

3) saturation of product markets to the objectively required size and the functioning of direct producers in accordance with the interests of end consumers (since the intermediary specializes mainly in studying consumer demand and ordering or purchasing only those products, consumer interest in which he has already identified; any products manufactured direct producer, he will not purchase).

Depending on the content of entrepreneurial activity and its connection with the main stages of the reproduction process, different types of entrepreneurship are distinguished: industrial, commercial, financial, intermediary, insurance.

Entrepreneurship is called production, if the entrepreneur himself directly, using tools and objects of labor as factors, produces products, goods, services, works, information, spiritual values ​​for subsequent sale to consumers, buyers, trade organizations. Thus, the function of production in this type of entrepreneurship is the main, determining one.

Business activities related to the direct production of goods can be:

1) traditionalist character (traditionalist entrepreneurship),

2) innovative nature (innovative entrepreneurial activity, innovative entrepreneurship).

Entrepreneurship in the direct production of goods can thus focus on the production and supply of traditional or innovative goods to the market. The practice of entrepreneurial activity in any of its forms includes an innovation process. The above division of types of entrepreneurial activity is based on the belief that the production and supply of traditional goods to the market is also carried out using some new methods or techniques associated with the organization of production, technical elements of production or changes in the quality characteristics of the goods produced.

In commercial entrepreneurship, the entrepreneur acts as a merchant, trader, selling finished goods purchased by him from other persons, to the consumer, to the buyer. In such a business, profit is generated by selling a product at a price that exceeds the purchase price. Note that if the goods are purchased legally, then commercial and commercial entrepreneurship should not be called speculation and condemned on this basis. Only when illegal, in violation of the rules of trade, resale is observed, can we talk about forbidden, criminal speculation.

Financial entrepreneurship is a special form of commercial entrepreneurship in which money and securities sold by an entrepreneur to a buyer or lent to him on credit act as the subject of purchase and sale.

Mediation is called entrepreneurship, in which the entrepreneur himself does not produce or sell goods, but acts as an intermediary connecting the nests in the process of commodity exchange, in commodity-money transactions. The main task and subject of entrepreneurial activity of an intermediary is to unite two parties interested in a mutual transaction. So there is reason to believe that mediation is the provision of services to each of these parties. For the provision of such services, the entrepreneur receives income, profit.

Individuals (legal or natural) who represent the interests of a manufacturer or consumer (and often act on their behalf), but are not themselves, are called intermediaries.

Entrepreneurial activity in the field of mediation allows combining the economic interests of the manufacturer and the consumer in the shortest possible time. Mediation, from the point of view of the manufacturer, increases the degree of efficiency of the latter, since it makes it possible to concentrate its activity only on production itself, transferring the functions of promoting the goods to the consumer to the intermediary. In addition, the inclusion of an intermediary in the relationship between the manufacturer and the consumer significantly reduces the period of capital turnover, and therefore increases the profitability of production.

Insurance business is that the entrepreneur guarantees the insured property, value, life for a certain fee compensation for possible damage as a result of an unforeseen disaster. Insurance of property, health, life is a special form of financial and credit entrepreneurship, which means that an entrepreneur receives an insurance premium, paying insurance only under certain circumstances. Since the likelihood of such circumstances occurring is small, the remaining part of the contributions forms business income.

 

1.2. Industrial entrepreneurship and technology for its implementation

Entrepreneurship should be considered industrial, the basis of which is production, including both material and intellectual, spiritual production. Industrial entrepreneurship is one of the most difficult, serious, socially necessary and at the same time difficult types of business. This is partly related to the fact that there is much less attraction to industrial entrepreneurship than to other types of business that make profit faster and easier.

Business is closely related to production. If it were not for the production business, the trade business would have lost its material, material basis, and only the opportunity to trade in imported goods would remain.

At the center of industrial entrepreneurship lies the manufacture, creation of things, values, goods, understood in the broadest sense of the word. The main, defining part of such entrepreneurship is the production of products, goods, works, information, spiritual (intellectual) values, which are subject to subsequent sale to buyers and consumers. In the conditions of industrial and entrepreneurial activity, the businessman carrying out it is called upon to directly establish and carry out production, this is its main function. This does not mean at all that the entrepreneur does everything alone, himself. He may, has the right to involve his relatives, colleagues, and hired workers for production. Schematic diagram of industrial entrepreneurship, resulting from the general scheme of entrepreneurial activity. The implementation of a production business is associated with the need for an entrepreneur to acquire a number of factors of production.

To manufacture products, goods, an entrepreneur needs working capital in the form of materials from which products are made, and energy required to process materials. In addition, semi-finished products may be needed in production, that is, ready-made components that will be used in the manufacture of goods (for example, nails, screws, buttons, handles, soles, electric motors). All these resources are indicated in the figure with the letter M. To obtain the necessary materials, you will have to purchase them from the owners of working capital, paying them money in the amount of DM , depending on the amount of materials and their price.

Further, production requires fixed assets (OS) in the form of working rooms, machinery, equipment, tools, devices. If the entrepreneur does not have such, then they must be purchased or at least rented for a while. For the assets required for the production of fixed assets, their owners will have to pay a sum of money Do , which depends on the type and quantity of fixed assets required for the production and prices for them. When renting fixed assets, payment will also depend on the term of their use.

Of course, the fixed assets acquired by the entrepreneur serve him for a long time, therefore, the cost of their purchase cannot be considered equal to the entrepreneur's expenses for the production of one batch of goods. On the other hand, the entrepreneur's own fixed assets should not be perceived as the absence of expenses related to the use of fixed assets. The expenses of the entrepreneur Do , due to the use of fixed assets, are taken to be equal to the amount of money necessary to compensate for the depreciation of these funds during the time of production of a given batch of goods or conducting a given business transaction. Economists call this value depreciation of fixed assets. Manufacturing requires the employer to hire a labor force (PC). Most often these are hired workers, whose work is payable, depending on the number of employees hired, the amount of wages and the working time during which the entrepreneurial product was produced. The entrepreneur's expenses for wages are indicated by the letter Dr.

These costs should include the wages of the entrepreneur himself. People who are not familiar with economics and business often do not understand why the labor costs of entrepreneurs themselves are payable and should be included in the cash costs spent on the factors of entrepreneurship. Sometimes they are included in the profit as part of it, called the normal profit. Any costs of resources for entrepreneurial activity are included in production costs and must be paid to the owner, the owner of the resources. In this case, the entrepreneur spends his labor and must receive payment for this from the proceeds from the sale of the goods.

Along with the indicated resource consumption in the process of industrial entrepreneurship, there are other costs, in particular, for the acquisition of information, for the storage and transportation of materials and finished products, for the repair of equipment and premises, for communication services and many others. Industrial entrepreneurship ends with the release of goods T, which is sold by the entrepreneur either directly to the consumer or to trade organizations. As a result, the entrepreneur receives proceeds from the sale of goods Dt , depending on the volume of production, sales and the price of the goods at which it is sold.

The task of the entrepreneur is to make the production pay off, that is, the income of Dt exceeds the costs of Dm , Do , Dr , additional costs and taxes.

Industrial entrepreneurship is most often associated with the need to create a legally registered enterprise, firm. It requires the availability of land plots, production areas, premises, all those factors and resources that were mentioned when considering the scheme of industrial entrepreneurship. The need for such diverse factors, conditions, many of which are difficult to access, serves as a deterrent to the implementation of industrial business in Uzbekistan. There are, of course, other circumstances that hinder the growth of industrial entrepreneurship, in particular, the lack of internal incentives and the weak qualification level of novice businessmen, fear of difficulties, low prestige of production activities, and the availability of more affordable and easy sources of income.

Meanwhile, it is industrial entrepreneurship that we all need most today, and tomorrow it can provide stable success, income, profit to a novice businessman. So, one who gravitates not towards instant success, momentary income, but towards a promising, sustainable business should turn his eyes to industrial entrepreneurship.

We remind you once again that the manufacturing business is not only the production of industrial and agricultural products for industrial and technical purposes or consumer goods. This is also construction work, transportation of goods and passengers, communication services, utilities and household services, production of information, knowledge, publication of books, magazines, newspapers. In the broad sense of the word, industrial entrepreneurship is the creation of any useful product that consumers need, with the ability to be sold at a certain price or exchanged for another good.

The manufacturing business is closely related to the business in the sphere of circulation, exchange, and accompanies it. After all, the goods produced must be sold, exchanged for money or other goods. From the history of business development, it is clear that the craft business immediately spawned a merchant business. This inextricable connection has been traced for many centuries. At the same time, production is not always an active party. Business entrepreneurship that identifies the demand for goods stimulates the manufacturing business.
1.3 Commercial entrepreneurship

 

Commercial entrepreneurship is characterized, first of all, by the fact that commodity-money, trade-exchange operations play a decisive role in it. They express the main content of commercial entrepreneurship. The essence of this type of entrepreneurship is represented by operations and transactions for the purchase and sale, that is, the resale of goods and services.

In the minds of many people, a stereotype of negative ideas about private commercial entrepreneurship as an antisocial, unearned, illegal activity has developed and is rooted , which in everyday speech is usually called speculation. This view has historical roots.

For many years, the country was dominated by a state monopoly not only on foreign, but also, to a large extent, on domestic trade. Citizens could freely sell only the products of their own economy and personal belongings, and even then with restrictions, only at collective farm markets and "flea markets". Collective farms, industrial cooperation and consumer cooperation, which, in essence, were semi-state ones, had some trading rights. So any non-state trade, at least, was taken under suspicion, or even simply persecuted. A businessman engaged in buying and selling not on behalf of the state was considered, in fact, a criminal and was branded with the shameful nickname "speculator".

In addition, although economics and statistics formally referred trade to the branches of the production sphere, in the mass consciousness, trade and trade and intermediary activity is in no way associated not only with production, but even with labor activity. This circumstance is manifested in the contemptuous word "huckster", which is still used by many of our fellow citizens as traders. Income from trade is not considered by everyone as "normal," labor income.

The difficulty of overcoming the views on commercial entrepreneurship that have formed in the public consciousness also stems from the fact that in a number of cases it really was and continues to be illegal, socially harmful.

In the conditions of an acute shortage of many goods and services, employees of state trade, either themselves or with the involvement of intermediaries, sold at increased prices goods intended for sale in the state trade network at state prices. In such cases, the merchant received from the buyer's pocket an illegal additional payment for trade and intermediary services, and in essence, a bribe for selling a scarce product. Such "commercial" activities were prosecuted and punished. Alas, the imperfection and even the absence of legislative support, legal norms of commercial entrepreneurship did not allow drawing a clear line between legal and illegal commerce.

Naturally, the elimination of deficits, the privatization of trade, and the development of private entrepreneurship will help overcome conservative attitudes towards commercial business.

The general scheme of commercial and entrepreneurial activity is in many respects similar to the above scheme of industrial and entrepreneurial activity. The difference is that in commercial entrepreneurship there is no need to provide production resources associated with the release of products, the material resources acquired by the entrepreneur are bought by him in the form of a finished product, which is then sold to the consumer. So the production block drops out of the scheme, which is replaced by the goods receipt block. As for the relationship between the entrepreneur and the buyer, they retain a general character for both production and commercial activities, and in either case the entrepreneur needs to sell his goods.

It is clear that in the conditions of commercial entrepreneurship, the labor force and means of production attracted by the entrepreneur have a specific character, since they are intended for the implementation of trade and directly related operations.

Let's outline the content and stages of a commercial transaction using the example of the sale and purchase of a certain product.

First of all, you should choose the type of product (service) for commerce. Naturally, this takes into account two main requirements:

- the selling price of the goods must be significantly higher than the purchase price;

- there must be sufficient demand for this type of product to realize it on the planned scale of the transaction.

Thus, a commercial transaction must be preceded by a marketing analysis of the market, as a result of which the volume of purchases and sales of goods, the purchase price and the sale price of goods are predicted. If the preliminary analysis and forecast in favor of a commercial transaction, the entrepreneur develops a business plan for entrepreneurial activity, including a program of actions for the implementation of the transaction, the calculation of costs and benefits.

In accordance with the general scheme of commercial and entrepreneurial activity, the commercial transaction program includes:

- hiring employees to perform operations of purchase, transportation, sale of goods, advertising work, execution of the necessary documents, the implementation of other trade and intermediary services;

- purchase, purchase of goods for subsequent sale; - hiring of premises, warehouses, bases, retail outlets necessary for the storage and sale of goods;

- receiving and paying for the services of third-party organizations and persons who are not directly involved in a commercial transaction, but provide their paid services for its implementation and perform intermediary functions;

- attraction of funds on credit to finance the transaction and subsequent repayment of the loan with interest;

- obtaining or acquiring the necessary information required for the calculation, planning, execution, regulation of the transaction;

- sale of goods to the buyer and receipt of proceeds; - registration of the transaction, payment of taxes and payments to state and local financial authorities.

The main activities of the commercial program must be coordinated with each other in terms of timing, setting the latter in accordance with the logic and technology of the transaction and providing for the possibility of sequential-parallel operations. It is advisable to bring this part of the preparation of a commercial transaction to the drawing up of a general business plan and an integrated coordination action plan. For large and long-term transactions, the formation of a coordination plan in the form of a work schedule with linking them to deadlines and executors is almost inevitable. For small, short-term transactions, the scheme of execution and coordination of actions must exist, at least mentally, in the mind of the entrepreneur.

In addition to the program of measures and actions for the implementation of a commercial transaction, the development of a business plan should include drawing up an estimate of the expense (costs) for all of the above types of consumed resources and a comparison of costs and benefits in monetary form both by stages of the transaction and by the transaction as a whole. The entrepreneur is obliged, in order to avoid an unsuccessful outcome of the transaction, to carry out at least consolidated balance sheet estimates, on the basis of which he can get an idea of ​​the relationship between the cost of purchasing and selling goods and proceeds from sales in certain time periods.

Cash costs (costs) for a commercial transaction to

At a certain point in time, they are made up of the costs of purchasing goods, hiring employees, renting premises, warehouses, paying for the services of third-party organizations and individuals, acquiring information, paying part of the interest for a loan. In addition, the costs should include, as already noted in the description of industrial entrepreneurship, internal costs due to the involvement of the entrepreneur's own funds in the transaction (depreciation of his own property, consumables and labor).

Cash costs for the purchase of goods ( Dt ) are determined by multiplying the volume of its purchase in physical terms (T) (pieces, kilograms, meters, etc.) by the selling price of a physical unit of goods ( TS ). If the goods are purchased (n) in lots with different prices, then the costs are determined by summing: