What is an entrepreneur definition. Sole proprietorship: everything about individual entrepreneurs, in plain language. Love for knowledge

An entrepreneur is a person who deals own business for profit. He can sell goods or provide services, while doing all this at his own peril and risk, within the limits of applicable law.
Boring, dry and incomprehensible, but this is the concentrate of describing who an entrepreneur is. Let's try to decipher this concept in more detail and more accessible.

Who is that?

Back in 1986, on November 19, there was a breakthrough - the USSR Law “On Individual labor activity”, which marked the beginning of entrepreneurship in a country where everything was built on socialist stereotypes and collectivism. Back when they didn't really know how to do it.

Entrepreneurs did not have a special name, but the people called them "cooperators", because they organized cooperatives, in which they carried out their activities.

To do this, it was necessary to obtain a registration certificate from the executive committee, or to issue a patent, which was issued for a period of not more than 5 years.

April 2, 1991 in the USSR comes into force new law“On the General Principles of Entrepreneurship of Citizens in the USSR”, where, in fact, the first abbreviations appeared, as people engaged in entrepreneurship were called.

The most popular was the form of entrepreneurship, when it did not provide for the creation legal entity, and where the most convenient conditions at that time were declared.

This is how the name PBOYuL or "Entrepreneur without forming a legal entity" appeared.

It is this name that has historically topped the list of business names.

It should be noted that at that time it was possible to apply the following forms of entrepreneurship: with the formation of a legal entity; without formation of a legal entity; using wage labor; without the use of hired labor.

In 1994, in connection with the adoption of the Civil Code, Article 23 of the Code established the name of entrepreneurship as PBOYuL, which came from the moment state registration.

So entrepreneurs were called until 2003, while in the federal law on the state registration of legal entities and individual entrepreneurs, chapter VII.1 was not introduced, where PBOYULs were called individual entrepreneurs.

Recall how the names of Soviet and Russian entrepreneurship evolved:

ETC – individual labor activity. This concept was first introduced in the USSR and existed from 1986 to 1991. At its core, it fully declared only the opportunity to work "for oneself." Many did not quite understand this, but the process was started.

PBOYUL - in fact the most difficult, long and difficult term to understand, stands for " Entrepreneur without formation of a legal entity". Many of the first entrepreneurs assumed this newfangled status, becoming cooperators, manufacturers, in general, the first Soviet and then Russian businessmen. In this name, entrepreneurs existed from 1991 to 2003. With warmth, and at the same time with apprehension, I recall the time when everything was new, and the mentality that had developed in the country of the Soviets began to change in the direction of getting out of the crowd in order to form an independent entrepreneurial unit.

PE - Self employed. Strange as it may seem, this name has never had an officially fixed status, but nevertheless it was exactly that on everyone's lips. Few people called entrepreneurs a long and uncomfortable name.

IP - individual entrepreneur. Perhaps, comparing with previous names, this is the most accurate and correct, reflects the very essence, and at the same time is easy to understand. This legal term was introduced in 2003 and is relevant to the present.

IP was also given a clear definition from the point of view of legislation: individual, which is registered by the authorized state body to carry out entrepreneurial activities in a private manner without an organizational and legal form - a legal entity.

Whatever name the entrepreneurs would have, but the essence itself does not change, although comparing the capabilities of a businessman from the times of the USSR or early Russia and the current one, it can be easily noted that at present there are certainly more opportunities. And names are an integral part of life that we are used to, living in a world of abbreviations, abbreviations and terms.

Conventionally, entrepreneurs are divided into the following categories:

Forced, who began to do business due to a combination of unfavorable circumstances.
Voluntary, which are guided by independence and maximum income.

It is believed that it is better for the second representatives to create a sustainable enterprise with a good profit. Their expectations are initially higher, and are not designed to promptly receive at least some income. Volunteer entrepreneurs include:

Owners of enterprises with small profits that set themselves non-economic goals. They are characterized by a high level of satisfaction.
Initially optimistic individuals who tuned in for high profits. They remain in the initial mood and are satisfied with a lower than expected profit.
Entrepreneurs who considered starting a new project as a platform for gaining new business experience. It was the pursuit of this goal that represented a significant result for them, and not the amount of income.

What does it take to become?

From a legal point of view, becoming an entrepreneur is not difficult. It will take only a week to get your hands on a document confirming the acquisition of IP status - the EGRIP record sheet (), which gives the right to be called a subject economic activity. Everything is carried out in three stages:

This document was issued until December 31, 2016. From January 01, 2017, the document confirming the status of an individual entrepreneur is the Record Sheet of the Unified state register individual entrepreneurs.

You can learn in more detail and thoroughly about all the stages of preparing documents, as well as passing registration actions. by this link.

This is true if we are talking about an individual entrepreneur as an organizational and legal form.

But do not forget that an individual entrepreneur is still an individual, but no one interferes with registering an enterprise as a legal entity, namely:

Society with limited liability- OOO.
public joint-stock company- PAO.
Non-public joint-stock company - JSC.

Before you still decide for yourself which is still better: physical or legal status, look at this comparative table, which shows the pros and cons of each of the forms.

The registration procedure is different from the IP, but, in fact, nothing complicated. For relatively sane money, any lawyer will take over this procedure completely, saving the newly-minted businessman from unnecessary bureaucratic troubles.

It is important at this stage to decide on the taxation system: general, simplified, patent (only for individual entrepreneurs - individuals), UTII or UAT.

Please pay attention, we talked about all the systems of taxation of individual entrepreneurs on .

By default, the state inclines business entities to common system taxation. It is more beneficial for fiscal authorities and less for entrepreneurs. When choosing a system, it is best to consult with specialists. Law firms who provide services to businesses, own up-to-date information on tax optimization issues. It allows you to reduce costs and increase profits of the enterprise. It is best to deal with it at the stage of business planning.

There is a form, but is there a content?

The received registration documents do not yet provide a profit. How many self-proud entrepreneurs celebrated this event as something outstanding, and how many of them went to close the business entity after six months or a year? The statistics here are inexorable: almost 4 out of 5 businessmen curtail their activities in the first year.

The reason for the sad trend is that there is a form, but no content. An entrepreneur is a person whose direct boss is the need to achieve a specific goal:

Earn money.
To buy a house.
Create financial independence.
Make the world a better place.
Buy a plot on the moon.
And so on.

The initial goal can be anything. A little later, faced with the reality of business, the entrepreneur is freed from rose-colored glasses and adjusts his original plans. It turns out that even on the Moon this section is not particularly needed, and the world will somehow become better without it.

But the main thing has changed - he himself is responsible for everything that happens around and with the entrepreneur! There is no boss to complain about that he pays little, makes you work hard and his attitude towards people is disgusting. Now you can not work for days at all, but that's where to get money from after that.

Registration of an enterprise imposes the obligation to regularly pay:

taxes;
social contributions;
rental of premises - if any;
wages of hired workers.

And here it will not be possible to come to the only employee who is on the phone, to tell him that there is no income this month, he worked poorly, and he will not receive any money. Labor law forbids to fine personnel with a ruble, limiting penalties to reprimand or dismissal. So close and be in the line of sight of employees State Inspectorate labor.

For reference: in 2016, according to the results of the activities of the State Inspectorate (134.5 thousand inspections), 98 persons were prosecuted, and the total amount of fines is about 4 billion rubles. The numbers may not be impressive, if you do not consider that twice as many people received sentences as in 2015, and the amount of fines increased by half a billion with a decrease in the number of checks. This trend is worth considering.

After a few months of such activity, thoughts involuntarily appear that the boss from the last place of work was not so bad, and if so much effort was put into the last position, it would have long been possible to get into top managers.

Marketing is everything!

Becoming an entrepreneur, you will have to learn not only (or not so much) about new terms, but about their content. “Ah, that’s what the boss meant when he talked about poor lead conversion,” now many boring concepts take on a different meaning.

Attracting customers is the first thing you will have to pay close attention to. You need to think about it even before collecting documents and filling out an application for registering an enterprise. This activity is called marketing. It is on him that the entrepreneur should pay the closest attention.

Establish the production of goods, ensure the provision of services - all this can be done by thousands of employees. Even if these goods or services are of very high quality, they still need to be able to sell. By themselves, they are not for sale.

The mistake novice entrepreneurs make is that they are loaded production process. This is a necessary matter, but it is better to entrust it to hired personnel. An effective entrepreneur invests his own forces not in production itself, but above it - sales, negotiations, optimization. All this relates to creativity, for this it is better to hire a director of business development.

It's important to know! There is no clear and only correct algorithm, following which you can create an effective, highly profitable business. We can only talk about the probable sequence of events.

Outsourcing and more outsourcing!

Starting your own business requires you to do a lot and quickly. Where do you get the skills for this? The answer is to outsource.

Don't know how to organize security? A large number of reserve officers will readily provide reliable physical protection for any enterprise. Need a website (we have a separate pro "personal website for SP") but don't understand anything about the code? Freelancer Ivanov will make and set up a high-quality website for a few thousand rubles, freelancer Petrov will create a semantic core for the same money, and freelancer Sidorov will fill it with a dozen articles.

An entrepreneur's time is very expensive to set up sewing machines, discussed wallpapering with the builders, or discussed with the trainer the training programs in the fitness room next week.

Summing up, we can summarize: an entrepreneur is a creative person, which implements ideas at your own peril and risk in order to make a profit. Do you want to tile yourself? Please, and this approach is allowed. But isn't it more efficient to search for new customers and negotiate with them? Have you decided to engage in sales without registering an individual entrepreneur or LLC? Well, try. Is it just necessary to risk breaking the law?

Entrepreneurship provides great opportunities for personal development, especially if it is combined with what you love. Therefore, businessmen who have achieved success on their own can hardly be called limited people. The main thing is that the entrepreneur is responsible for everything that happens to him. Learn it!

Entrepreneurial activity

Actions and profits of the entrepreneur

Section 1. The concept of an entrepreneur.

Section 2. Statements about entrepreneurship.

Entrepreneur- a person engaged in his own business, having his own business for the purpose of making a profit or other benefit.

The concept of entrepreneur and entrepreneurship

Definition of an entrepreneur by Howard H. Stevenson, a professor at Harvard University. In 1983, in the article “A View of Entrepreneurship,” he wrote: “Entrepreneurship is a science of management, the essence of which we can formulate as follows: the pursuit of opportunities without regard to resources that are in this moment are under our control."

In the modern sense, an entrepreneur is a person who carries out entrepreneurial activity.

Each entrepreneur can run their own business or help other entrepreneurs create businesses.

The right to entrepreneurial activity is one of the fundamental human rights and is protected by Art. 34 of the Constitution of Russia. This constitutional right is in fact inseparable from the right to freely dispose of one's property and carry out economic activity.

Therefore, entrepreneurs also call themselves citizens engaged in commerce occasionally, without any documents giving them the right to engage in this activity, for example, persons reselling goods.

Entrepreneurial activity carried out by a person who is not registered as an entrepreneur or does not have the right to engage in the type of activity he has chosen by virtue of the law is illegal entrepreneurship and is prosecuted.

Russian pre-revolutionary trade legislation called the entrepreneur a merchant. A merchant, from the point of view of commercial law, was recognized as one who was engaged in the production of commercial transactions in the form of fishing on his own behalf.

The legislation of other states knows the figure of a businessman. The status of a merchant is recognized for a person who carries out transactions and other business operations in the form of entrepreneurship on his own behalf.

In the former USSR, the figure of an entrepreneur first acquired legal recognition after the entry into force on November 19, 1986 of the USSR Law “On Individual Labor Activity”.

This Law allowed individual labor activity in the field of handicrafts, consumer services for the population, as well as other types of activity based solely on the personal labor of citizens and their families. Documents certifying the right of citizens to engage in individual labor activity were registration certificates or patents issued for a certain period.

The Russian Law “On Enterprises and Entrepreneurial Activity” of 1991 secured the right of citizens to conduct entrepreneurial activities both individually, without employing hired labor, and creating enterprises with the involvement of hired workers. Such citizens were registered as individuals engaged in entrepreneurial activities without forming a legal entity.

Entrepreneurship is an independent economic activity carried out at one's own risk, aimed at the systematic receipt of profit from the use of property and / or intangible assets, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law. Entrepreneurship, business is the most important attribute of a market economy, penetrating all its institutions.

It can be carried out by a legal entity or directly by an individual. In many countries, in order to conduct business, an individual is required to register as an individual entrepreneur.

Entrepreneurship can be done in different areas. In addition to general entrepreneurship, social and technological entrepreneurship are distinguished.

The effectiveness of entrepreneurial activity can be assessed not only by the amount of profit received, but also by the change in the value of the business (the market value of the enterprise).

Forms of entrepreneurship

Individual

Collective:

General partnership

Faith partnership

Limited Liability Company

Additional Liability Company

Closed Joint Stock Company

Public corporation

State

Illegal business is highlighted.

By the nature of the activity, there are production, trade and commercial, credit and financial, service (services), etc.

In order to protect their interests, the business community, in accordance with the law “On non-profit organizations» can form various associations.

Sources start-up capital to start a business can be:

Own funds.

For an individual entrepreneur - his personal funds and savings, own property(room, equipment, machine).

For a legal entity - its authorized capital, formed by the founders. Most often this is equity financing. Venture funds and business angels are active participants in new projects.

Loans from a bank or from individuals (debt financing).

Free assistance (grants or subsidies).

In addition, to help start-up entrepreneurs, there are government and public organizations, technology parks and business incubators.

Much has been done to understand the nature of entrepreneurship by Ludwig von Mises, Friedrich August von Hayek and other representatives of the Austrian school of economists. They considered entrepreneurship as one of the main resources (factors) of the economy along with land, labor, capital, information and time. Entrepreneurship usually aims to save time by reducing transaction costs.

The American economist Joseph Schumpeter defined an entrepreneur as a person who tries to transform new idea or an invention into a successful innovation. In particular, entrepreneurship is a force of creative destruction operating in markets and manufacturing, while creating new products and business models. Creative destruction provides a dynamic and long-term the economic growth.

Frank Knight, Peter Drucker, considering risk as an integral attribute of entrepreneurship, identified the following types:

statistical risk.

Knight's uncertainty or true uncertainty, which not only cannot be calculated, but also impossible to foresee.

For example, before the advent of the Internet, it was impossible to estimate the market for existing successful projects, such as Google or YouTube.

William Baumol studied the position of the entrepreneur who brings disharmony and rejection in the traditional market.

Business law is a complex integrated branch of law, a set legal regulations regulating, on the basis of a combination of private and public interests, relations in the field of organizing, carrying out entrepreneurial activities and managing it.

Supporters of the concept argue that the independence of this industry is due to at least three factors.

First, entrepreneurial activity as a subject of regulation has a number of specific features that distinguish it from other areas of human activity.

Secondly, in addition to the private sphere, there will be entrepreneurial activity in the public sector of the economy. State enterprise requires special legal regulation beyond the traditional boundaries of private law.

Thirdly, in modern conditions a specific form of relationship between the state and the market has been formed, in which the regulation of entrepreneurial activity requires special methods, often alien to private law due to the fact that they are based on public law, power principles.

Modern concept business law as a branch of law, a branch of legislation, science and academic discipline proceeds from the fact that the market in the classical sense and the state-regulated and socially oriented market in modern conditions (namely, this is the task of forming a market economy) is not one and Same.

Proponents of the concept argue that in addition to private business, there is and will continue to be entrepreneurial activity in the public sector of the economy. However, the matter is not only in the presence of a special form of entrepreneurial activity - state entrepreneurship, which requires special legal regulation that goes beyond the traditional framework of private law. In modern conditions, a specific form of the relationship between the state and the market has been formed, in which the regulation of entrepreneurial activity by the methods of private law (traditionally, therefore, within the framework of civil law) is simply impossible.

The notion that such relations can be settled within the framework of traditional private (civil) law will inevitably lead in legislative practice to one of two consequences: to the inclusion in the civil code of elements of a state, public legal nature that are alien to it, or to the idea of regulating state entrepreneurship on off-market basis.

From this, it can be concluded that since civil law, as well as trade as a private one, organically does not accept the institution of a market-state economy, a state-regulated and socially oriented market, then, therefore, there is an objective need for the emergence of business law.

The variety of points of view on entrepreneurship determines its many definitions. In the encyclopedic dictionary of the entrepreneur, entrepreneurship is defined as a special type of activity aimed at increasing personal and social wealth. The essential essential features of entrepreneurship are:

freedom in choosing directions and methods of activity;

independence in decision-making;

a responsibility;

focus on commercial effect and probable profit.

An American scientist, Professor Robert Hisrich defines entrepreneurship as the process of creating something new that has value, and an entrepreneur as a person who spends everything on it. required time and strength, takes all the financial, psychological and social risk, receiving money and satisfaction as a reward.

English professor Alan Hosking states: “A sole trader is a person who conducts business at his own expense, personally manages the business and is personally responsible for providing necessary funds, independently makes decisions His reward is the profit received as a result of entrepreneurial activity and the feeling of satisfaction that he experiences from engaging in free enterprise. But along with this, he must assume the entire risk of losses in the event of bankruptcy of his enterprise.

In a professional sense, entrepreneurship is seen as the ability to organize own business and quite successfully carry out the functions associated with running their own business.

Currently, the process of forming the theory of entrepreneurship is ongoing, which has already gone through three stages. The first stage, which arose in the 18th century, was associated with a focus on the risk taking by the entrepreneur. The French economist of Scottish origin R. Cantillon in the 18th century for the first time put forward the position of risk as the main functional characteristic of entrepreneurship.

The second stage in the scientific understanding of entrepreneurship is associated with the identification of innovation as its main distinguishing feature. The founder of this trend is one of the largest representatives of world economic thought, Joseph Schumpeter (1883-1950).

In his pioneering works, I. Schumpeter considered the entrepreneur as the central element of the mechanism economic development. In his opinion, the basis of economic development is a special function of the entrepreneur, manifested in the desire to use a "new combination" of factors of production, which results in innovation, innovation. I. Schumpeter identifies three target motives in the activities of an entrepreneur:

the need for domination, power, influence;

the will to win, the desire for success achieved in the fight against rivals and with oneself ("the need for achievements" - this is how the American psychologist D. McClelland later described it);

the joy of creativity that comes from doing things on your own.

The third stage is characterized by a focus on specific personal qualities entrepreneur (the ability to respond to changes in the economic and social situation, independence in choosing and making decisions, the availability of managerial abilities) and the role of entrepreneurship as a regulatory principle in balancing economic system.

The ideas of L. Mises and F. Hayek were developed by the American economist I. Kirzner, who sees the main role of the entrepreneur in achieving such regulation of the system, in adjusting it in such a way that would ensure the movement of markets to a state of equilibrium, i.e., the entrepreneur is "balancing" force.

The current stage in the development of the theory of the entrepreneurial function can be attributed to the "fourth wave", the emergence of which is associated with a shift in emphasis to the managerial aspects of the analysis of the entrepreneur's actions, and, consequently, with the transition to an interdisciplinary level of analysis of entrepreneurial problems.

Currently, in theoretical studies, attention is paid not only to entrepreneurship as a way of doing business on an independent, independent basis, but also to intra-company entrepreneurship.

Entrepreneurship is a special kind of economic activity (by which we mean expedient activity aimed at making a profit), which is based on independent initiative, responsibility and an innovative entrepreneurial idea. Economic activity is a form of participation of an individual in social production and a way to obtain financial resources to ensure the livelihoods of himself and his family members. This form of participation of the individual in social production is one social functional duty or a combination of them, when he acts as the owner of any objects, real estate, etc., bringing him a constant and guaranteed income.

Entrepreneurship acts as a special type of economic activity, because its initial stage is associated, as a rule, only with an idea - the result of mental activity, which subsequently takes a materialized form.

Entrepreneurship is characterized obligatory presence an innovative moment - whether it is the production of a new product, a change in the profile of activity or the foundation of a new enterprise, new system production quality management, the introduction of new methods of organizing production or new technologies.

Entrepreneurship as a special form of economic activity can be carried out both in the public and in the private sector of the economy. Accordingly, there are:

state entrepreneurship;

private enterprise.

State entrepreneurship is a form of economic activity on behalf of an enterprise established:

government bodies management who are authorized (according to current legislation) manage state property ( state enterprise);

authorities local government (municipal enterprise). The ownership of such enterprises is a form of separation of a part of the state or municipal property, parts of budgetary funds, other sources.

An important characteristic Such enterprises are supported by the fact that they are liable for their obligations only with the property they own (neither the state is liable for their obligations, nor they themselves are liable for the obligations of the state).

Private entrepreneurship is a form of economic activity on behalf of an enterprise (if it is registered as such) or an entrepreneur (if such activity is carried out without hiring work force, in the form of individual labor activity).

Of course, each of these types - state and private entrepreneurship - has its own distinctive features, but the basic principles of their implementation are largely the same. In both cases, the implementation of such activities involves initiative, responsibility, an innovative approach, and the desire to maximize profits. The typology of both types of entrepreneurship is similar.

Entrepreneurship as a form of initiative activity aimed at making profit (entrepreneurial income) involves:

the implementation of intermediary functions, i.e. the provision of services related to the promotion of goods on the market and its transfer in the proper (publicly acceptable) form from the direct producer of such goods to its consumer.

Sayings about entrepreneurship

For the first time the concept of "entrepreneur" (entrepreneur) was introduced by the French economist Jean-Baptiste Say around 1800. J.-B. Say defined it this way: “The entrepreneur shifts economic resources from the sphere of low productivity to the sphere of great productivity and reap the rewards."

According to Vladimir Dal, "an entrepreneur is an enterprising merchant, capable of enterprises, large turnovers, a brave, resolute, courageous person of this kind." The entrepreneurial function is a private matter business man.

In the Economic Dictionary of F. A. Brockhaus and I. A. Efron, an enterprise means “such an economy, the management of which is designed to generate income by selling products, in the form of sale or exchange. In this feature, the enterprise differs from natural forms of economy, in which production is designed directly to meet the needs of the members of the economy. In its pure form, natural forms of farming are found less and less frequently, as farms are gradually drawn more and more into the system of exchange.

In the "Popular Dictionary" (1991) edited by G. Ya. Kiperman: "entrepreneurship is one of the most effective means that help maintain incentives for highly productive work, master's motivation. The real owner is always an entrepreneur, whether it is an individual citizen or a work collective. Entrepreneurship includes any type of economic activity, unless they are prohibited. legislative acts RF and republics.

The textbook "Psychology of Entrepreneurship and Business" defines an entrepreneur as "a person of a certain personality type who, in his desire for profit, independently chooses a way economic activity, bears property responsibility for its results and at the first stage of its activity combines the functions of the owner of the capital, the hired manager and the employee.

The Big Economic Dictionary (under the general editorship of A. N. Azriliyan) indicates that “an entrepreneur is a person who is engaged in entrepreneurial activity, seeks funds for organizing an enterprise and thereby takes on entrepreneurial risk. Entrepreneurial initiative is a form of production and marketing management, including the development of new competitive ideas as a permanent process, the prompt implementation of the most fruitful ideas and the organization of a system of measures for the fastest and most efficient marketing of new products obtained by new technology».

S. I. Ozhegov in the "Dictionary of the Russian Language" wrote: "an entrepreneur is a capitalist, the owner of an enterprise, a major figure, an enterprising and practical person."

In "The Book of a Businessman" edited by T. A. Krayukhin and E. S. Minaev " scientific entrepreneurship- a form of activity in the field of creating scientific and technical products and providing services in order to obtain the greatest possible profit.

Howard H. Stevenson, a professor at Harvard University, in his article “A Perspective on Entrepreneurship” wrote: “Entrepreneurship is a science of management, the essence of which we can formulate as follows: the pursuit of opportunities without regard to the resources that are currently under our control ".

The current Civil Code Russian Federation calls such citizens individual entrepreneurs.

Sources

Wikipedia - The Free Encyclopedia, WikiPedia

scheme.rf - Schemes

bestreferat.ru – Abstracts

Businessman and entrepreneur. Some use these terms as synonyms, while others share them. Let's find out if there is a difference between a businessman and an entrepreneur, or are these concepts identical?

If you ask your friends and acquaintances, most likely, most of them will answer you that an entrepreneur and a businessman are synonymous words that denote a person engaged in various activities aimed at extracting their own material benefit.

Many in our country believe that the word "businessman" appeared in our vocabulary due to the influence of foreign languages, and that a businessman is just an entrepreneur in English. Yes, on the one hand it is. Both businessmen and entrepreneurs are engaged in their own business, and work for themselves. However, something in their activities still remains different, for example, the approach to business, the beginning of the activity and its organization.

Perhaps our population does not quite distinguish between these concepts due to the fact that the legislation simply does not have such a thing as a "businessman". Only the concept of "individual entrepreneur" is used. In accordance with the code, an entrepreneur is a person who has gone through the procedure for registering entrepreneurial activities and is registered with the relevant authorities, but without forming a legal entity.

Entrepreneurial activity may include the provision of various kinds of services, the manufacture and sale of goods, the use of property. To be fully qualified as an entrepreneur, this activity should be systematic, not isolated. When doing business, there is a risk of deprivation of all your property.

Approximately such a description of the concept of "entrepreneur" can be found in legislative documents, and the concept of "businessman" is most likely regarded as a synonym for the first. But there is also business literature that tells us that these concepts have some differences.

Businessman and Entrepreneur - What's the difference?

Referring to the business literature, you can find several basic differences between a businessman and an entrepreneur, and here is the main one: an entrepreneur is a person who implements new ideas, uses new methods of earning money, and creates new goods and services. Significant modernization of already existing goods and services can also be attributed to the activities of the entrepreneur.

An example of an entrepreneur is who founded a unique website, a completely new platform for entertainment, communication, and even earnings. Zuckerberg is a true entrepreneur.

In turn, the businessman will be called the one who has already bought ready business or in its activities it uses an already known business model. A person who has acquired or opened (of which there are thousands) is a businessman. Pavel Durov, who successfully adopted the idea of Zuckerberg and opened his own social network is a real businessman. Saw -> copied -> made a profit. This is the formula of a true businessman.

If you are a creative person, have a rich imagination and are able to constantly generate new ideas, you are more likely to become an entrepreneur. You can't learn to be an entrepreneur. The vein of entrepreneurship is either given or not given at birth. But a businessman is just a profession, like many others. You can learn how to be an entrepreneur. This is taught by many educational establishments, special schools and courses. The most famous business school is the MBA (Master of Business Administration) at Harvard University.

Another clear difference between the activities of entrepreneurs and businessmen is the niche they seek to occupy.

Entrepreneurs mostly work in new, undersaturated niches, or even create their own

Entrepreneurs mostly work in new, undersaturated niches, or even create their own. There they either have no competitors at all, or reduce their number to a minimum. Businessmen are more inclined to work in already long-existing, researched and saturated niches of activity. Yes, there is quite a lot of competition there, and profitability is generally low. However, business turnover is high, from which businessmen have a good income.

Based on the foregoing, the conclusion is the following. Entrepreneurs are driving force progress. They support the implementation of new ideas, the creation and implementation of new technologies. However, not only entrepreneurs are part of the economic world, but also businessmen. After all, they, like entrepreneurs, provide people with the opportunity to get jobs, and bring significant amounts to the country's budget.

Individual entrepreneur is an individual who leads commercial activity independently after state registration with the tax service. Consider what rights a citizen has in this status, what duties are assigned to him, as well as the advantages and disadvantages of registering an individual entrepreneur.

Permitted activities

The concept of "entrepreneurial activity" in the case of an individual entrepreneur, according to the law, involves working with a profit for himself personally.

An entrepreneur with this status can organize almost any type of business, excluding those that are allowed to be implemented only by organizations, namely:

create, supply, repair special equipment for the Armed Forces and weapons;
engage in security activities;
manufacture and sell alcohol;
be an insurer;
provide banking services and many others related to finance (pawnshops, private pension funds, investment funds);
produce drugs, chemicals.

There are other types of businesses that are inaccessible to individual entrepreneurs due to their scale: space development, nuclear power. Any commercial activity should not be subject to the Criminal Code of the Russian Federation.

If an individual entrepreneur decides to work with goods for children, food, provide cosmetic or hairdressing services, permits will be required from supervisory services - fire, educational, consumer, environmental. Sometimes a permit is not enough, a license is also needed. This applies to pharmaceutical, educational, medical activities, transportation areas various types transport.

We register IP

Who can become an IP

According to the Civil Code of the Russian Federation, almost every capable citizen can be an individual entrepreneur when he reaches 18 years of age.

A minor will be able to register an IP with the official guarantee of parents or guardians (from the age of 14) or after marriage (from the age of 16).

In addition to age, there are other restrictions in obtaining the status of an individual entrepreneur. Military, state and municipal employees cannot register their enterprise. Specialists public sector without special powers (teachers, health workers, psychologists, etc.) are allowed to open individual entrepreneurs.

Who else can not become an individual entrepreneur:

citizens deprived of the right to conduct commercial activities, by a court decision;
merchants declared bankrupt;
persons with an open criminal record or under investigation.

A person who has been forced to close a business by a court verdict can open a new business only a year after that. It is possible to create an individual entrepreneur after the bankruptcy procedure in five years. It is also not forbidden to register if the conviction is extinguished. But a merchant with a criminal record will not be able to start a business that is related to education, sports, as well as cultural, socially significant activities.

Another important point. If you have already registered an IP, you cannot open another one until you close the first one. If you wish to engage in other activities, you can make changes to the Unified State Register (EGRIP) by indicating new codes from the OKVED list.

Rights and obligations of IP

The definition of an individual entrepreneur includes an officially registered natural person providing services without education commercial structure. An individual entrepreneur has rights and obligations. These include:

Rights	Responsibilities
The right to choose the type of activity within the framework of the law.	The duty of regular payments of taxes, deductions for pension, medical, social insurance.
The right to hire staff with an independent choice of remuneration for their work. The number of employees depends on the chosen tax regime. In order to increase the staff, merchants may unite in partnerships without forming a legal entity.	The obligation to register employees in accordance with the Labor Code.
The right to choose a product and a niche for business development.	Obligation to comply with sanitary, environmental requirements and standards.
The right to freely dispose of income, independently determine the price of the goods and services offered (without serious dumping in the chosen area).	The obligation to respect the rights of the buyer, to comply with the provisions of the law on the protection of consumer rights.
The right to transfer the management of the IP to another person by a notarized power of attorney. But if the manager fails to do the job or violates the law, the businessman himself will have to answer.	Obligation to submit reports in a timely manner, in particular income declarations. If there was no profit during the tax period, “zero” declarations are sent to the FTS inspection.

If an individual entrepreneur has changed data (name, address, type of activity), he must report this to the tax service, off-budget funds and other supervisory authorities.

Advantages and disadvantages of IP

Five pluses and five minuses of IP

Before opening an individual entrepreneur, it is worth evaluating all the advantages and disadvantages of this form of business.

The main advantages of IP are:

The ability to change the type of activity without closing the enterprise.
Fast and hassle-free registration with a small state duty (800 rubles).
Ease of reporting, relatively low tax burden.
Rare, in comparison with legal entities, inspections by supervisory authorities, much lower fines.
Receipt of benefits (“tax holidays”, reduction of tax rates for certain taxation regimes), state subsidies.

For beginners, independent swimming in the ocean of business, open an IP - the best option. Then you can expand and acquire the status of a legal entity.

The main disadvantages of such entrepreneurship include:

Conducting activities without forming a legal entity, at your own peril and risk. The entrepreneur is liable with personal property, even that which is not used in commerce.
Mandatory payment of contributions to off-budget funds, regardless of income.
The inability to sell or re-register the IP, as well as come up with a beautiful, memorable name. The company is named after the owner.
The complexity of working with large partners - mega-corporations do not consider such partnerships to be very prestigious.
Certain restrictions on business scaling, income, number of employees, and opportunities for obtaining loans.

If a merchant makes a profit without state registration, he is threatened with penalties, administrative, tax or even criminal liability.

Definition of an entrepreneur by Howard H. Stevenson, a professor at Harvard University. In 1983, in the article “A View of Entrepreneurship,” he wrote: “Entrepreneurship is the science of management, the essence of which we can formulate as follows: chasing opportunities without regard to the resources we currently have under our control».

In the modern sense, an entrepreneur is a person engaged in entrepreneurial activity.

Each entrepreneur can run their own business or help other entrepreneurs create businesses.

The right to entrepreneurial activity

Therefore, citizens who engage in commerce occasionally, without any documents giving them the right to engage in this activity, call themselves entrepreneurs, for example, persons reselling goods.

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