Types of business and their brief characteristics table. Business Basics

Any kind of activity is primarily aimed at making a profit. If the work will bring only pleasure, then it will be a hobby. In today's world, more and more people are trying to start their own business. But what type of business is better to choose, they still doubt for a long time. This article will talk about the various directions and forms of entrepreneurial activity in order to show which of them are the most profitable.

Main types of business

Depending on the type of activity, business can be divided into several categories. To open each of them, you will need start-up capital. As a rule, the more the business brings in income, the more you need to invest in it at the initial stage.

So, there are the following directions:

Mining.
Trade.
Production.
Services.
Nutrition.
Real estate.
Investment.
Finance.
Internet.

Each direction can be either a large concern or belong to the category of "small business".

Forms

As you can see, there are many directions. And each of them has its own subspecies. In addition to the above areas, business is usually divided into forms. For example, there are only individual entrepreneurs who can independently run their own business, without even recruiting a staff of workers. There is a larger form of business - a partnership. A partnership can be created by two or more people who contribute equal shares of financial resources or property to the opening of a business. Participants are jointly and severally liable for the activities of the enterprise.

An even larger form of business is the joint-stock company. In the course of its work, it issues shares, the holders of which act as owners of the enterprise. JSC is a form of activity that is complex in its structure, but the profit received from it has great prospects.

What is a profitable business

Having decided what the types and forms of business are, as well as what they are, you can proceed to determine the profitability of your business. Who does not dream of receiving fabulous money with minimal deposits? This is what makes a profitable business. In fact, many people are used to presenting entrepreneurs as endlessly busy people, working from early morning until late at night. However, even if, with such a manager’s schedule, the business will bring large incomes, it cannot be called completely profitable. The thing is that by dividing the income received by the number of working hours, you can see that in the end it may not be so big. First of all, the business should bring pleasure, and not just material wealth. Therefore, the most profitable types of business are those that generate income and do not take up absolutely all your free time. But what type of entrepreneurial activity gives the maximum income, will be discussed below.

How to decide on the type of activity

First of all, you need to proceed from your financial capabilities. Naturally, everyone wants to profit from oil and gas companies, but only a few have the opportunity to start this type of business. Therefore, the main assistant in choosing your own business will be your own wallet.

There must also be an idea and certain abilities. Of course, you should have the skills of a leader and leader. Without such qualities, there will be little opportunity to survive in a tough competitive environment. New types of business are not always able to bring more profit than those that have been tested by time. This is explained by the fact that at the initial stage, the consumer must get used to innovations and understand them, and then demand appears.

When talking about an idea, you can't miss out on what you have a talent for in general. Perhaps it will be the manufacture of furniture or jewelry, perhaps from birth you are a seller. Then you should open a store or a production workshop. In general, in order to decide which type of business to choose, you need to listen to your inner desires. After the idea is defined, it is necessary to start its implementation.

How to start your own profitable business

Some manage to conduct entrepreneurial activities without registering it legally. However, such a business cannot be called profitable. Of course, maybe somewhere the owner saved on taxes and other obligatory payments to the budget, but the profit he receives is clearly not enough to expand his business to a high level. This can be explained by the fact that once an underground type of business starts to bring good income, it becomes difficult to hide it. Thus, those who want to start their own profitable business must first of all formalize everything legally.

Next, you should take care of renting or buying a room where the company will be located. Depending on what type of business is being opened, it is necessary to calculate all costs in advance, including wages for workers. It is possible that in the first months your business will not bring large incomes, but if broad development prospects are predicted ahead, then it is better to first develop a reputation and face of the company. Thus, having registered a company and found a suitable premises, you can start looking for your first customers. To do this, it would be best to advertise in the media.

How to turn a hobby into a business

We all have different hobbies, and some of us think about how you can profit from your favorite activity. In fact, if everything is well thought out, then you can build a great business, while completely surrendering to both passion and work. It is enough to register a company, as mentioned above, to find partners and clients. If you have already managed to sell your product to someone and liked it, then there is every chance to increase the distribution channel and expand it. Thus, from a favorite hobby, you can also create a small business.

New types of entrepreneurial activity

In fact, the types and forms of business simply continue to evolve, evolving in the quality of products and services provided. But their foundation and core remain the same. That is, new technologies, materials, and so on may appear in the construction sector, but it remains construction. Depending on the field of activity, various additions are formed. For example, in the field of information services, the use of 3D technologies has become popular, which greatly simplifies the work and quality of service.

New types of business, as a rule, appear depending on demand. Such enterprises are created on the basis of the needs of extraordinary people (space flights, underwater diving) or because there is low competition.

With the acceleration of the pace of life of ordinary citizens, catering places will also be improved. To save time, large companies buy fast food vending machines. Vending has become very popular, especially in the developed countries of the world, where more and more time needs to be devoted to working moments.

Thus, we can conclude that there is no single direction that gives a constant income. Since the economy is cyclical and subject to both rise and fall, any type of business can be either profitable or unprofitable.

There are simpler types of entrepreneurial activities that require a minimum set of knowledge and small investments, such as commercial or consulting. Along with them, there are more complex types of business that operate in a manufacturing, financial or insurance environment. Also, entrepreneurship can be sole and joint, public and private.

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Classification of entrepreneurship by type of activity

The key criterion for classifying the commercial activities of businessmen is the occupation.

It is customary to distinguish the following types of entrepreneurship:

based on production activities;
based on activities related to finance;
based on trading activity;
built on the provision of intermediary services;
based on the provision of advisory assistance;
related to insurance.

This classification is based on the principle that each business is associated to a greater extent with a certain stage of the production cycle. For example, someone produces a product and another distributes it. From the list of classifications presented, there is an item that has appeared in Russia and the world quite recently - this is consulting.

Entrepreneurship and examples of its main types

Manufacturing entrepreneurship

This type of business is the basic and most important for the economy of any country. Here things, values, benefits and many other useful products are created that can be sold or exchanged on the market. The production of material and intellectual goods forms the basis of this type of entrepreneurial activity.

The manufacturing business is:

creation of industrial and agricultural products;
execution of construction operations;
transportation of passengers;
cargo transportation;
provision of communication services;
communal and household services;
production of information;
education;
printing, etc.

Building bussiness Private school Production of agricultural products Dairy production

Stages of industrial entrepreneurship:

Market research and analysis.
Acquisition or lease of fixed assets (premises and equipment).
Purchase of working capital (materials, raw materials and components).
Hiring labor force.
Management organization.
Organization of the production process.

The finished product can be sold to the end user directly by the entrepreneur or through an intermediary. The main task of a businessman is to build a business in such a way that capital investments pay off as quickly as possible and the main commercial goal of the project is achieved.

The brakes on the development of this type of entrepreneurship in Russia are:

the risk of non-sale of the finished product;
high taxes and fees;
inaccessibility of many resources;
high tariffs for energy resources;
availability of alternative and less risky sources of income;
high competition from foreign manufacturers (both in price and quality);
low qualification of future businessmen, etc.

To prevent the risk of non-sale of goods / services, the entrepreneur must establish distribution channels. It is advisable to conclude contracts for the sale of products with regular partners and / or organize your own sales network.

commercial entrepreneurship

Characteristics of commercial entrepreneurship:

field of activity - trading enterprises and commodity exchanges;
based on operations and transactions for the purchase / sale of various products;
for commercial production, not material resources are acquired, which is typical for a production type, but a finished product, for its sale to consumers;
mobility and flexibility in relation to the needs of customers;
For the development of commercial entrepreneurship, two key conditions must be met: a stable demand for the products sold and a low purchase price.

This business area actively attracts individual entrepreneurs. To a greater extent, this is due to the fact that in trading you can count on a quick return. Also in this industry, minimal requirements are imposed on entrepreneurs, they do not require special knowledge and large capital investments.

The video is dedicated to the description of five relevant ideas in the field of trade for 2019 for small businesses. Filmed by the channel: "HelloBoss".

Today, along with small and medium-sized businesses, large trading enterprises are increasingly being established. They are focused primarily on the organization of wholesale and retail sales in branded outlets throughout Russia.

Prominent representatives of large retail chains are:

El Dorado;
M Video;
Media Markt;
Kopek;
Pyaterochka;
Magnet;
Crossroads, etc.

Many owners of such networks were included in the list of the wealthiest people in the Russian Federation. The profitability of a business in trade on average varies from 20 to 30 percent, and in production - 10-15 percent.

A commodity exchange is a kind of wholesale grocery market, where buyers do not provide for a preliminary inspection of samples of consignments of goods. Commercial intermediaries and their representatives work here jointly and on a voluntary basis, where trading operations are carried out according to established rules.

Most often they can be found in the sale of the following products:

grain in assortment;
textile raw materials;
coal;
oil;
metals;
animals and meat;
forest, etc.

Worldwide, these sites account for approximately 20 percent of international trade. There are about 150 trading exchanges in Russia.

The most famous commodity exchanges:

London - sale of non-ferrous metals;
Liverpool - selling cotton;
New York - selling coffee, cocoa and sugar;
Singaporean - sale of rubber.

Key functions of commodity exchanges:

assistance in the conclusion of commercial transactions;
assistance in resolving trade disputes;
regulation and control of commodity trade;
systematization and provision of information on prices and other factors affecting prices.

Stages of organizing commercial activities:

Employment of employees who will perform such trade and intermediary services as the purchase of goods, their transportation, sale, marketing promotion, paperwork.
Selection of premises for the organization of a retail outlet and warehouse, and the conclusion of a lease agreement or execution of a real estate purchase and sale transaction.
Purchase of products for sale.
Raising borrowed funds to finance the transaction.
Obtaining services from third-party organizations that perform intermediary functions, and paying for them.
Search for information for planning, regulation and execution of the transaction.
Selling products to customers.
Getting income.
Paying taxes and making other payments to federal and municipal financial authorities.
Return of borrowed capital and repayment of interest for its use.

In order for a trading business to bring the expected income, it is important to know for sure that there is a demand for the product offered for sale in the local market. To study the needs of consumers, their satisfaction, the level of competition, etc., it is necessary to conduct a professional marketing research.

financial entrepreneurship

The financial component is present both in the production and commercial business, but at the same time it can be completely independent. For example, banking or insurance activities.

Characteristics of financial entrepreneurship:

sphere of activity - circulation and exchange of values;
the average rate of return is 5-10 percent;
the main field of activity is stock exchanges, credit institutions.

In the financial market circulate:

short-term, medium-term and long-term credits/loans;
short-term, medium-term and long-term deposits;
currency;
securities.

Medium-term and long-term products are sold and bought on the capital market, and short-term products - on the money market.

In its own way, financial entrepreneurship is a subspecies of commercial business, since it involves the purchase and sale of money, currency and securities. Here, one money is exchanged for another, either directly or indirectly. The approach to organizing a financial enterprise is similar to that described for a commercial one. The main difference lies in the object of sale. A businessman who wants to operate in this market needs to start by conducting a thorough analysis of the monetary and financial markets and marketing research.

Forms of financial business:

Issuance of securities. These can be stocks or bonds, as well as credit notes.
Acquisition by an entrepreneur of securities for the purpose of their subsequent resale at a favorable rate.
The deal is active. It involves the urgent and indefinite placement of their assets, as well as the return of securities or money for storage.
Commodity versus futures trade. The futures contract is transferred from the buyer to the seller in exchange for ownership of the actual product.
Arbitrage deal. It represents the simultaneous purchase and sale of securities in order to profit from the difference in rates through exchange centers.
Banknote deal. Here, cash is sold for non-cash, while a small commission is charged as a transaction fee.
Other transactions. This form of business includes an exchange transaction, as well as an exchange cash, closing, contact and credit transaction.

Business in the financial and credit environment requires the entrepreneur to have special knowledge and experience. Otherwise, success will be extremely difficult. This is one of the most complex types of entrepreneurship in the world, whose historical roots come from usury.

Entrepreneurial activity of financial market participants is regulated by general and special legislative acts, as well as regulations of the Central Bank of the Russian Federation and the Ministry of Finance of the Russian Federation.

Advisory Entrepreneurship

Consultative entrepreneurship belongs to the tertiary sector of the economy, which has been actively developing throughout the world over the past two decades.

Consulting involves the provision, on a commercial basis, of professional advice and assistance on narrow business management issues (eg personnel, finance, promotion). In addition to the consultation, the client receives assistance in identifying and assessing the problem, as well as recommendations for solving it.

The services of consulting companies are mainly used by:

small businesses;
medium enterprises;
large enterprises.

The range of consulting services is very diverse, there are 84 types of operations in total.

Small and medium-sized businesses are more often interested in consultations in the field of:

audit;
marketing;
taxation;
accounting;
jurisprudence.

Big business is mainly interested in the following questions:

company development strategies;
optimization of the organizational structure of management;
financial management;
promotions;
application of information technologies.

Counseling methods:

Expert. This is a passive method of consulting, where a specialist independently conducts diagnostics, develops solutions and recommendations for their application. The client will be required to provide the consultant with the necessary information.
Process. Here, consultants interact with the customer at every stage of project development.
Educational. The goal of the consulting firm's specialists is to educate the client, who will later be able to independently develop solutions to emerging problems. Training is carried out with the help of lectures, seminars, manuals.

In the Russian Federation today there are only a few hundred consulting companies. At the same time, for example, in Holland there are more than 2000 of them.

Briefly, the process of implementing a consulting project is as follows:

A request is received from a client.
Contact is established with the customer.
It turns out the input information from the client on the issue of interest.
The situation, tendencies and essence of the problem are determined.
A proposal is being developed to solve the problem.
A work schedule is being formed.
Legal documents are being prepared.
A report, recommendations or a plan of organizational measures are formed.

Intermediary business

Business in the intermediary sphere does not involve the production and sale of products. The entrepreneur acts as a link in the course of the exchange of goods, money or in commodity-money transactions.

An intermediary can be both a legal entity and an individual.

Types of intermediary business:

wholesale supply and marketing companies;
brokers;
dealers;
distributors;
exchanges;
credit organizations.

Insurance business

The essence of insurance business is that the businessman, within the framework of the law and the contract concluded with the client, guarantees the insurer compensation for harm.

This harm can be received under certain circumstances and is associated with loss or damage to:

property;
health;
values;
life and others.

After the conclusion of the insurance contract, the client pays a fee. A businessman receives income, which is the difference between all insurance payments made and all insurance claims for the period.

The main types of risk of insurance companies:

Market risk. It is associated with the probability of possible losses or non-receipt of the planned profit as a result of unfavorable changes in market prices.
Liquidity risk. The danger for the company lies in the lack of market liquidity.
credit risk. Losses due to improper performance of obligations by the other party to a financial transaction.
operational risk. It can be caused by errors in the company's management system during trading operations.

Classification of entrepreneurship by forms

Entrepreneurship can be classified in terms of the number of owners and types of ownership.

Forms of entrepreneurship by number of owners

Depending on how many people own the company, the following forms of entrepreneurial activity are distinguished:

individual;
collective;
corporate.

Individual entrepreneurship

This is the primary and simplest form of any business. Sole proprietorship provides for a situation where the property of the firm belongs to only one person. This form of business does not have the status of a legal entity.

Key benefits of sole proprietorship:

complete independence;
efficiency and freedom in management;
flexibility and sensitivity to demand;
the opportunity to start a business with a small start-up capital;
preferential taxation.

Most often, enterprises of this type are created in the field of trade. A businessman can hire staff, but in a limited number, no more than twenty people.

Collective entrepreneurship

Collective entrepreneurship provides for a situation where the property of the company is owned by two or more people. The share of each participant depends on their material contribution to the common cause. If shares are allocated in the constituent documents, then this property is called shared ownership. Joint ownership occurs when the shares of each participant are not defined.

Collective ownership involves the joint decision-making, ownership, disposal and use of the firm's property.

The established forms of collective business activity in the world:

business companies;
business partnerships;
joint-stock companies.

The Russian Civil Code describes the legal status of each organizational form.

Today, joint ventures are dominant in large and small businesses.

corporate entrepreneurship

In the modern world, enterprises of different organizational forms are increasingly uniting to protect joint commercial interests. They coordinate their work, which leads to an increase in the efficiency of the common cause. At the same time, cooperating firms do not lose their independence and legal status, and relations are built on a contractual basis.

Types of corporate entrepreneurship:

Concerns. This is the interaction of enterprises for joint activities on the basis of voluntary centralization. They can perform scientific, technical, industrial, social, financial, environmental and foreign economic functions. Concerns can be both diversified and diversified, not involving attachment to a particular type of economic activity.
business associations. They are also called foundations or unions. The association is a contractual union of enterprises and organizations for the purpose of jointly carrying out one / several functions of an industrial and economic nature. This format of activity imposes less severe restrictions on the participants than those assumed by the concern.
consortia. They are created for a while until the task for which the enterprises united is solved, and after that the union ceases to function. Often they are created for the implementation of the state program by several companies of different forms of ownership. The consortium also allows joint placement of loans, large financial or commercial transactions, large industrial or other construction.
Intersectoral and regional unions. They are formed on the basis of enterprises of various departments and producing homogeneous products. They are united by cooperative or scientific and technical ties.

Forms of entrepreneurship by type of ownership

Depending on what form of ownership is observed in the company, the following forms of entrepreneurial activity are distinguished:

private;
state;
municipal.

Private enterprise

Private business allows economic activity to be carried out on behalf of:

enterprise (legal entity);
entrepreneur (individual).

The activity of this form of entrepreneurship is aimed at extracting material benefits. Private business is organized at the personal expense of one businessman or a group of them.

State Enterprise

State enterprise allows economic activity to be carried out on behalf of a company established:

State bodies. Special structures manage the property of the country within the framework of the current legislation. Such an enterprise is called a state enterprise.
Local self-government bodies. In this case, the company will be called municipal.

Features of state entrepreneurship:

the property of the enterprise is part of the property of the state or municipality;
the company is liable for its obligations with the property that is in their ownership;
the company is not responsible for the obligations of the country.

In countries with a capitalist system, this type of entrepreneurial activity occupies those niches that have a strategically important role for it. For example, the extraction and processing of minerals, the manufacture of weapons, aircraft, etc. Also, the state is building a business in areas that need serious investment, with a long payback and low profitability.

Many people aspire to start their own business. However, they do not know what exactly is worth doing, what types of business there are. It is very important, before starting to engage in entrepreneurial activity, to understand in which area you are ready and able to work, because the presence of initial capital does not guarantee success.

Main types of business

By the nature of entrepreneurial activity, business is divided into types. Here are some of the most common types of business:

Industrial. This is a type of business aimed at creating an end product or service. For example, the production of food, clothing, cars, and other benefits of society.
Trade and commercial. This is a business aimed at the sale of goods and services, both to the end consumer and to intermediaries. This type of business is quite easy to organize, compared to production, it is simpler. It includes both various trading networks of distributors and trading exchanges.
Financial. This type of activity is aimed at creating and exaggerating financial assets. Banks are good examples of financial institutions.
Consulting or advisory. This type of business is aimed at providing consulting services to private clients and entire organizations. Often, many organizations cannot afford to have a legal, financial service, and it does not make sense, but there is a need to use their services, and here consulting organizations come to the rescue. Examples are: audit companies, legal organizations and others.

These are far from all types of business, in addition, it is necessary to understand that in reality all these types of business are closely interconnected and intertwined. So, for example, a manufacturing enterprise is also a commercial organization, since it sells the goods it produces.

Business Forms

There are the following organizational and legal forms of business:

Individual form, or individual entrepreneur. A fairly simple form of business to organize and register, but it is more suitable for businesses with low financial turnover and low risks.
Collective. Along with all known forms of joint-stock companies (open, closed), limited or additional liability companies, there are also: cooperatives, partnerships, partnerships. Each of the collective forms of entrepreneurship has its pros and cons, and in connection with them it is more suitable for some types of business and less for others. The most common form is a Limited Liability Company.
State. With this form of business, the fixed assets of the enterprise are state property.

Before choosing a legal form for your business, you need to carefully study the issue, and weigh all the pros and cons of various forms of business.

Now you know the types and forms of business, and before you start doing your own business, frankly answer yourself the question: are you ready to devote yourself entirely to the business? Otherwise, there is no point in doing it.

All types and forms of business represent the relationship between all market participants regarding their profit-making from the use of equity capital. By itself, business is an initiative economic activity, which is provided with own or borrowed funds and at the same time is implemented at your own peril and risk, setting itself the main goals of making a profit and further developing the business.

Characteristics

Considering the forms of business as capitalist relations, we can distinguish several of their characteristic features:

the presence of start-up capital that is invested in a particular business;
the presence of a purposeful nature of the investment of start-up capital in the form of obtaining income on invested funds;
formation of certain relationships with other market participants regarding the use of invested capital, including both initial and subsequent ones.

Various economic relationships involving several individuals doing business are so complex and multifaceted that it is almost impossible to define any clear boundaries in this industry. It is for this reason that including various forms of business, today it is considered as a legal concept. This is always a legally formalized type of human activity, carried out within one of the forms of management defined by law.

Structure and objects

The main objects of business are the sole owners of capital, who are individuals, who are completely free in their market actions, as well as owners and owners of entire enterprises, called legal entities. Today, in countries where there is a developed market economy, there are hundreds of thousands of people who, individually or in groups, risk their own capital, regularly opening more and more new enterprises. At the same time, it should be noted that quite often one can notice how unduly different forms of business are mixed with the concepts of "commerce" and "entrepreneurship".

Any family business or other forms is a certain type of activity in the field of social production, which brings its owner income or some other personal benefit. However, not everyone understands that economic activity can be carried out in the field of both material and non-material production, as a result of which it will be more correct to divide this concept into:

entrepreneurship, which is economic activity in the field of material production;
commerce, which is an activity in any non-material sphere.

As a result, various material goods are considered, while it represents the provision of various services.

Forms

Group, independent and family business can be carried out in three main forms:

partnership;
private or individual entrepreneurship;
corporations.

Private enterprise

In the overwhelming majority of cases, business in Russia and many other countries of the world belongs to this form, in which only a certain person is considered as the owner, who simultaneously performs the functional tasks of a manager. At the moment, this is the most common form, which is typical for enterprises in the field of services, farms, small shops, as well as professional medical, legal and many other types of activities.

partnership

A partnership is a business in which there is more than one owner. The main advantages of such interaction is that such a business in Russia and many other countries is much easier to implement, since the union of several people ensures the fusion of capital and joint ideas. If we talk about the shortcomings, then it is worth highlighting a few main ones:

ambiguous understanding of the main goals of the company by all its participants;
limited available financial resources;
the difficulty of determining the exact share of each participant in the loss or income of the enterprise, as well as in the possible division of property.

Corporation

The corporation is a certain set of persons who have decided to unite to conduct joint business activities as a single legal entity. Large and medium-sized businesses include a huge number of such forms, and the right to property is divided here depending on the availability of shares. It is for this reason that the owners of such organizations are usually called "shareholders", while they themselves are called a joint-stock company. It is worth noting the fact that the owners in this case have limited liability for debts, which is determined depending on their own contribution.

Among the advantages of this form, it is worth highlighting the presence of practically unlimited opportunities in terms of raising money capital through the sale of bonds and shares, as well as the separation of the rights of all shareholders into personal and property. However, there are also a number of disadvantages:

the presence of double taxation of that part of the income of the organization, which is usually paid as dividends to each owner of shares: the first is calculated as part of the company's profit, while the second is part of the personal income of the owner himself;
rather favorable opportunities for committing various economic crimes, which is most often expressed in the possibility of issuing and further selling shares, which in fact have no real value.

Among other things, the disadvantage of this form of business is the separation of the functions of control and ownership. Large and medium-sized businesses of this form provide for the dispersion of shares among a sufficiently large number of owners, as a result of which control is separated from each other. Each owner in this case is interested in receiving the maximum possible dividends, while managers try to minimize them for further use in circulation.

There are also a lot of other shortcomings of corporations, but, one way or another, their advantages significantly prevail over all these disadvantages, and therefore this form of business does not cease to be quite widespread to this day.

Main types of business

The activities of the overwhelming majority of business entrepreneurs have a fairly large number of similar features, but there are still many more differences, and this is due to the fact that different types of businesses have different situations associated with certain risks and competitive advantages. In the process of implementing all of the above, entrepreneurs are trying to create their own mechanisms for the successful operation of a particular business. In other words, in each individual case, a unique business project and special methods for its implementation are used.

You can also find a fairly large number of differences in the mechanisms used for the legal regulation of modern entrepreneurship. It is worth noting that different business projects are also taken into account here, and in order to better study them, the business is divided into several types depending on the size and specific industry.

Industrial

This type of business is today considered the leading one and is distinguished by its main function in the form of organizing the production of certain products. This includes various companies involved in the production of clothing, cosmetics, perfumes, pharmaceutical products, as well as a host of other organizations. To date, production is the most common, but at the same time the most complex type. However, such business in Moscow and other cities of Russia is a platform that forms the modern market economy of the country. Within the boundaries of such a business, the transformation of raw materials into products ready for subsequent sale is carried out.

Doing such a business is impossible without the purchase by the entrepreneur of a certain number of factors of production. For the manufacture of goods, it is necessary to use certain working capital in the form of a working room, the necessary materials, as well as various instruments and other equipment. Also, do not forget that such a business in Moscow, as in any other city, cannot be carried out without knowledge of the relevant technologies, and the fixed assets acquired by an entrepreneur almost always have a fairly long service life, as a result of which one should not hope for that their cost will already be transferred to the finished product during one cycle. All this leads to a rather long freezing of the owner's financial resources.

In addition to raw materials, an entrepreneur who decides to open a new business of this kind must spend money on attracting labor, delivering all the necessary materials, as well as renting or acquiring storage facilities in which they will be stored. Also, do not forget about warehouses for finished products, carrying out all kinds of repairs, regular professional development of employees and many other things, most of which initially cannot be calculated and designated.

The main disadvantage of such a business can be called the fact that each business enterprise pays off for a long time and brings real profit much later compared to other types. That is why this type of activity is quite often supported by the state.

Commercial

At the heart of commercial business are operations for the purchase and sale of various products. In this case, entrepreneurs open a new business as merchants or traders, selling goods purchased in a particular production in bulk. Pharmacy chains, online stores, retail outlets in the city, gas stations - these and many other organizations are commercial activities.

At the same time, it is necessary to correctly understand that in the process of passing the path from the producer to the consumer, the product does not change in any way. Thus, consumers quite often do not think about how best to deliver the desired product from the manufacturer, and the business store presents all products with maximum convenience. At the same time, it should be noted that not only the fact that he can earn on the difference between the original producer price and retail sales falls to the share of the merchant, but also the risk of risks associated with price fluctuations or changes in demand.

This type of business is the simplest and clearest, when compared with production and many others, and its main advantage is the ability to create and promote as quickly as possible. With the availability of Internet access today, the issue of advertising and attracting consumers is solved almost instantly. The initially created “local” business can be further developed without any problems to the regional or state level, and general consumer goods can even be sold all over the world. That is why such business ideas with investments at a minimum level are so widespread.

It is also impossible not to say that commercial activity is characterized by a fairly high profitability. Around the world, approximately 10% of the profitability of a business depends on production, while the commercial side of the issue affects 30% or more. The risks of such a business are manifested only in a high dependence on market conditions. The effectiveness of doing business requires the presence of certain knowledge of the intricacies of marketing, oratory talent and other important qualities.

Financial representation

Financial business is considered to be a special type of entrepreneurship, since here loans and cash flows act as a sphere of activity. Such a business is completely based on banking, insurance and venture capital, and in the competence of financiers one can often find transactions with foreign currencies and securities. This area is fully occupied by brokers and dealers. Entrepreneurs-financiers earn through the implementation of various financial transactions, as well as by receiving dividends and interest. Examples of this kind of business are known to everyone: banks, brokerage houses, etc.

In the modern world, it is customary to consider such a business as the most risky, and it is for this reason that there is such a strong state regulation here that only a few manage to “survive”. In the overwhelming majority of cases, firms operating in the financial environment are major players with significant competitive advantages:

flexibility;
the ability to quickly accumulate resources;
sufficiently high mobility of resources;
interaction with international financial markets.

Thus, today almost every person can open his own business if he is confident enough in his abilities and has a certain start-up capital. At the same time, you don’t have to worry much about the latter lately, because if you have a full-fledged business plan, today you can easily get a loan from a bank in order to open a small online business or even a small enterprise.