Entrepreneurship is one of the most popular types of human activities. Based on the principle of generating income through the use of own resources and equity, it is conducted by such business entities as entrepreneurs (individuals and legal entities). As a rule, an individual can conduct activities only as an individual entrepreneur. A huge number of existing organizational forms gives the legal entity the opportunity to choose the most suitable.
Entrepreneurship is classified based on various signs. So, according to the size of their activity, large, medium and small enterprises are distinguished. State and private entrepreneurship is the main classification of this type of activity by ownership. In addition, activity of this kind can be classified on the basis of legality: legal, illegal and false business. If the second type differs from the first in the absence of the necessary documents and licenses, then the third sets itself the goal of making a profit or other interest without conducting business as such.
Entrepreneurship is a type of activity that can be classified by scale: local, regional, national, international and global. The composition of the founders is also a sign of classification: at the present stage, female and youth economic activity is distinguished.
Entrepreneurship is a type of economic activity, the classification of which can be based on profitability growth rates (highly profitable and low profitable), the size of economic risks (high-risk, medium-risk and low-risk) and growth rate (rapidly growing and gradually increasing growth rate).
Today, one should classify this business activity also in terms of introducing innovations into the process of creating a product or service. Based on this feature, we can distinguish traditional and innovative entrepreneurship.
The number of people participating in the activities can also serve as a classification factor. So, according to the number of participants, individual and collective entrepreneurship are distinguished. The creation mechanism and established organization management processes are the basis for the classification of business organizations into simple and complex.
Entrepreneurship is an exclusively independent activity, providing for the possibility of working in various directions. Economic risks related to this economic activity also fall entirely on the shoulders of the entrepreneur. It is this factor that entails responsibility. Based on this concept, distinguish between companies that bear full, joint and several liability or subsidiary liability.
Moreover, any company, any organization or individual directs all efforts in one single direction, which includes two basic principles:
- receipt of the planned income;
- efficient use of all available resources (labor, financial, material and technical, etc.).
