Industrial entrepreneurship is one of the most difficult types of activities and is aimed at creating the most necessary products, goods, values, things and services for consumers. Production results can be exchanged for any other product or sold at a certain cost. The basis of this business can be both intellectual, spiritual, and material production.
Industrial enterprise is the manufacture of goods, construction work, the production of printed materials, training, passenger transportation and cargo transportation, as well as various types of services (domestic, utilities, communications).
The technology of this type of activity is that the entrepreneur first prepares the basis for his future business: rents or acquires fixed assets (buildings, equipment), makes the purchase of working capital (materials and components), acts as a tenant of the workforce and takes care of the acquisition of information resource.
Manufacturing entrepreneurship implies that after a cycle of certain activities, the goods received must be sold by the business owner to either a reseller or directly to the consumer. The main task of all business people is that, after deduction of taxes, their incomes significantly exceed expenses, and production as a whole pays off. In addition, entrepreneurs should be interested in accelerating the cash flow process, since in the conditions of fierce competition, with the appearance on the market of new similar goods and services, it is especially important that sales of products are established and funds are invested in a timely manner.
Being one of the forms of economic activity, industrial entrepreneurship is based on independent initiative activities of citizens or associations formed by them. Moreover, engaging in any type of activity not prohibited by law , an entrepreneur can only, at his own risk, relying solely on his own risk and risk, expect profit from the business.
With a planned development, a novice entrepreneur has the opportunity to determine the direction of activity for the period in the long term (short and long) of his future business, evaluate the staffing, anticipate financial and material support, etc. In addition, relying on a business plan, one can most fully imagine the expected project effectiveness of a particular business sector.
Types of Entrepreneurs
Commercial entrepreneurship is one of the most common activities in modern Russia. The basis of this type - transactions and operations for the sale of goods and various services. Due to the fact that the commercial entrepreneur is not a manufacturer of goods, but only acts as its distributor, this type of activity is easy to adapt to the most popular consumer needs. Profit generated due to the difference between costs and revenues is often from 20-30% profitability (and sometimes even higher).
Farming - a form of individual entrepreneurship, which should be based on the principle of kinship (according to the Federal Law "On Farm (Peasant) Farming"). In the event of a shortage of labor, hiring non-related citizens is permitted, but their total number should not exceed five.
Innovative entrepreneurship is a process of innovative creation and commercial application of advanced technological innovations. Colossal costs are required for design and scientific research, which creates a certain risk in entrepreneurship. In the economy, there are three main types of such entrepreneurship:
- product innovation;
- technology innovation;
- social innovation.