An entrepreneurial activity of a citizen is an independent activity carried out at his own risk and peril, the purpose of which is the systematic receipt of profit through the sale of works, goods, services, use of property. In this case, a citizen carrying out such activities must be registered in the manner prescribed by law.
At present, Russia has a special list of types of economic activity (OKVED). Thus, all types of activities conducted by an entrepreneur can be carried out within the framework of any type of economic activity.
One very important point is that entrepreneurial activity can be carried out only if the state registration is successfully completed, the result of which will be the receipt of a registration certificate. Only such a certificate gives permission to conduct business on the territory of the Russian Federation and beyond.
It should also be noted that many types of entrepreneurial activities require mandatory certification or licensing.
Another significant point is that entrepreneurial activity can only be carried out independently by an individual who has received the registration of an individual entrepreneur and has a corresponding certificate, as well as a legal entity to which a citizen (individual) can participate. All decisions made about how activities are conducted, how profits are spent, how customers are attracted and business processes are built are made directly by the individual entrepreneur or all community members. It is this circle of persons that bears full responsibility for the decisions made.
Making decisions in the process of implementing entrepreneurial activity, the owner does not always have the opportunity to see the whole picture and does not attach importance to one or another influencing factor. In this regard, there are solutions that can cause some damage to the activity, the so-called risks in business. Among the risks, external ones are identified, which are associated with the external economic environment, market processes and government decisions, and internal, arising from the actions of the individual entrepreneur, the quality of business processes, the work of staff and much more.
In a market economy, entrepreneurial activity will perform a number of functions: resource, general economic, innovative, social and organizational.
The functions of entrepreneurship.
The overall economic function is determined by the conduct of business itself, aimed at the production of goods, services, which is the basis for the manifestation of this function.
The resource function is realized through the efficient use of both renewable and limited resources. An entrepreneur can achieve high results if he can effectively combine the use of “capital”, “land”, “labor” and “entrepreneurial talent”.
An innovative function means the opportunity for entrepreneurs to use in the process of their activities not only new ideas, but also to develop new means of achieving their goals.
The social function stems from the ability of each citizen to conduct their own business. It manifests itself in the formation of people who are able to conduct independent economic activities, who are able to overcome the resistance of external factors and achieve effective results.
The organizational function is carried out through the adoption by the owners of independent decisions on the organization of their own business, the formation of management, changes in the company's behavior strategy and the creation of economic structures.
Thus, entrepreneurial activity and its essence objectively appears in a combination of all these functions.