business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, must be registered in the manner prescribed by law.

Currently in Russia there is a special list of types of economic activity (OKVED). Thus, all the activities, which the entrepreneur can be carried out in the framework of any economic activity. 

One very important point – business activities may be carried out only in case of successful passing of the state registration, the result of which will be the certificate of incorporation. Only this certificate gives permission to conduct business activities in Russia and abroad.

It should also be note that many types of business activities require certification or licensing.

Another significant point is that entrepreneurial activity can only be done alone physical entity to obtain the registration of an individual entrepreneur and have the appropriate certificate, as well as a legal entity, member who may be a citizen (physical person). All decisions about how activities are performed, how expenses profit as clients are involved and aligned business processes, are received directly by individual entrepreneur or all members of the community. It is this circle of people is solely responsible for the decisions taken.

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Making decisions in the process of implementation of entrepreneurial activity, the owner is not always able to see the whole picture and not stressing the different influencing factors. In this regard, a solution that can cause some damage to the activities of the so-called risks in the business. Among the risks highlighted in external that are associated with the external economic environment, market processes and state decisions, and internal, appears from the actions of the individual entrepreneur, quality business processes, staff performance, and more.

In a market economy, business activities will perform several functions: resource, economic, innovation, social and organizational.

 Functions of business.

The General Economic function is determined by the conduct of most business activities aimed at the production of goods and services, which is the basis of manifestation of this function.

The Resource function is realized through efficient use of both renewable and finite resources. The entrepreneur can achieve good results if you can effectively combine the use of “capital”, “earth”, “labour” and “entrepreneurial talent”.

An Innovative feature means the opportunity for entrepreneurs to use in its activities, not only new ideas, but also to develop new means of reaching these objectives.

The Social function derives from the ability of every citizen to own my own business. It manifests itself in the formation of people able to lead an independent economic activity capable of overcoming the resistance of the external factors and to achieve effective results.

Managerial function is exercised through the acceptance by owners of independent decisions on the organization of management of a business, formation control, the change of strategy of firm behavior and economic structures.

Thus, entrepreneurial activity and its nature objectively appears in a combination of all the above functions.