Business is an entrepreneurial activity aimed at regularly generating income.
A business can be profitable or unprofitable, allows you to use hired labor or do business yourself, be carried out using your own or borrowed funds, but it is necessarily based on the goal of making a profit (or other forms of income).
At its core, it is a “business” within the framework of various organizational and legal forms, which covers production, sales, services and other types of activities. According to business conditions, the following are distinguished:
- small;
- average;
- big business.
Small business
The most popular type of business aimed at the average person is small business (small entrepreneurship). It is the most widespread, but with a small share on the market. Small business covers certain types of production, scientific, technical and agricultural enterprises, construction, consumer services, and trade. Each country has individual indicators of the limited number of employees and the legislative framework for business. Examples of small businesses include hairdressers, shops, legal agencies and others. In the field of lending, entrepreneurs can count on certain amounts limited by a specific program. Regarding property, a small business does not have a liquid investment, so selling it is quite difficult.Advantages
Small business is a structural element of the economy. With its help, from the perspective of the state, the following is carried out:- weakening the monopoly of large corporations;
- promptly filling the market with goods and services;
- creation of a significant number of jobs;
- development of healthy competition that creates motivation for the use of scientific knowledge and the introduction of advanced technologies;
- creating prerequisites for accelerating the economic growth of the region (country);
- filling local (state) budgets.
Medium business
This type of business, like small business, most often does not have access to international markets and operates on the domestic market. He is the link between large businesses, small businesses and consumers.The niche of this segment is characterized by:
- significant share in the country's economy;
- the introduction of innovations that ensure a qualitative increase in the effectiveness of processes demanded by the market;
- scale;
- flexibility;
- healthy competition, providing potential for development, efficiency and sustainability of the country's economy.
In a medium-sized business, management is included in the management process, which allows, using a set of methods, means and methods of management, to achieve positive development of the company (enterprise). Increased attention is paid to the quality of the product or service. When lending to a business, an individual approach is used.
Big business
These are companies operating in international markets. They locate their enterprises in various countries, taking advantage of the potential of the global economy. Large businesses are large enterprises that:- produce the bulk of the product;
- employ a huge workforce;
- export goods, make a financial injection into the country’s economy;
- invest money in business development;
- conduct development of new technologies;
- are the main payers to the state budget.
Before starting your own business, it is worth finding out what types of businesses exist, how they differ and how they are interconnected. You also need to find out which field of activity is the most in demand and profitable. The next step in choosing a direction for your business is personal preferences and skills.
Classification of types of entrepreneurship
All types of business can be divided into three areas:
- Trade.
- Services.
According to organizational and legal form:
- Individual entrepreneurship.
- Joint-Stock Company.
- State enterprise.
Business types by size:
- Small.
- Average.
- Large.
As for the activity itself, everything depends only on your own imagination, start-up capital and public demand. Today there are many opportunities to open your own business practically from scratch, for example, an online business.
The main types of business relevant today:
- Commerce.
- Finance.
- Consulting.
Organizational and legal form
To organize a business, you must first decide on its organizational and legal form. There are three types of them, and each has its own advantages and disadvantages, so the beginner’s task is not only to find out what kind of business there is, but also in what form to organize it:
- Individual entrepreneurship is the simplest form for organizing a small and medium-sized business. Its registration does not take much time. Here is the simplest taxation system, which is most understandable even for a beginner.
- A joint stock company presupposes the presence of not one, but several members of the organization - shareholders, each of whom is responsible for the activities of the enterprise and receives profit from its income. This form is more suitable for corporate and large businesses with several co-founders.
- The state form of ownership implies complete dependence on the state. Accordingly, the enterprise is owned by the state and operates with its full support. But today this form of registration is not common in Russia.
In general, the easiest way for a novice businessman is to register an individual entrepreneurship, but only if he is the sole organizer of the enterprise. If there are several of them, then a joint stock company is more suitable. Now you should think about what types of business there are, and which one is more suitable for each individual.
The manufacturing business involves the release of a product for further sale. This type of business includes the production of food, clothing and footwear, medicines, building materials, and cars.
It is not necessary for the production to be a large business - a small enterprise employing less than 50 people is quite possible. But, on the other hand, opening your own manufacturing business requires a large investment. The main expenses for the enterprise: premises, raw materials, equipment, technology.
The disadvantage of organizing your own production is that it takes a long time to pay off. The main mistake that novice businessmen make is that in order to obtain the greatest profit from the production of products, they sacrifice their quality, which is why the demand for the product falls.
Therefore, it is very difficult for a beginner to competently set up a process in the production sector. It is necessary to draw up a detailed business plan, conduct a market analysis for this production: assess competitiveness and demand among consumers, and also find out what risks exist. It is best for a completely inexperienced entrepreneur to start production as a franchise or choose another direction.
commercial activity
For budding entrepreneurs, commercial activity has the greatest advantages. This activity involves such types of private business as wholesale and retail trade, and the provision of services. What is attractive about commercial activity is that you can start it almost from scratch. This is especially true for the service sector; for example, a cleaning company will require little initial investment. Some areas, on the contrary, require large investments, for example, a beauty salon or a fitness club.
The disadvantages of this type of business include high competition. Therefore, planning should begin with studying the market and demand for a particular product or service. The success of such an organization largely depends on one’s own imagination and desire to work hard.
A striking example of financial activities are banks, insurance companies and microfinance organizations. Working with finances is always associated with great risk. In the financial sector, not everyone is able to build a profitable enterprise.
It requires large investments, but at the same time there is, although small, a chance to earn good money. It’s worth noting right away that this type of activity is not suitable for most beginners.
Consulting and consulting
A fairly new direction in business is the provision of consulting services to individuals and legal entities. As a consulting type of business, examples can be given in the following industries: jurisprudence, business diagnostics, audit.
But when planning such a business, it is important not to overestimate your own abilities. Before providing such services, you need to have a very good understanding of the chosen direction. If the skills are not enough, then it is better to hold off on consulting.
Today, earning money on the Internet is gaining momentum. Wikipedia describes these types of businesses in detail. But still, in order to make money, it is better to think about real ways that have been proven over the years.
It is important not just to invest your money and wait for profit, but also to understand what different types of businesses there are and how they are interconnected. Because your own business must grow and develop. And an entrepreneur who really wants to organize a profitable enterprise must devote all his time and effort to it. After all, everything depends not so much on the type of business, but on the person who runs it.
What business areas are promising for a startup: Video
In various concepts and branches of psychology there are various classifications and typologies of thinking. It is believed that there are as many types of thinking as there are people. It is in a person’s thinking that the main feature of his personality and individuality is manifested. However, any variety can be classified in a certain way. In psychology, the following classification of types of thinking is most accepted and widespread:
Visual-effective thinking- the most elementary type of thinking that arises in practical activity and is the basis for the formation of more complex types of thinking. Relies on the direct perception of objects in the process of acting with them.
Visual-figurative thinking-a type of thinking characterized by reliance on ideas and images. Mastering visual-figurative ideas expands the scope of practical thinking. In its simplest form, visual-figurative thinking occurs in preschoolers, i.e. at the age of 4-7 years. Preschoolers think only in visual images and do not yet master concepts (in the strict sense).
Verbal and logical thinking - a type of thinking carried out using logical operations with concepts. The development of verbal and logical thinking rebuilds and organizes the world of figurative ideas and practical actions.
Abstract-logical (abstract) thinking- a type of thinking based on identifying the essential properties and connections of an object and abstracting from other, unimportant ones.
Visual-effective, visual-figurative, verbal-logical and abstract-logical thinking are successive stages in the development of thinking in phylogenesis and ontogenesis. Currently, psychology has convincingly shown that these four types of thinking coexist in an adult and function when solving various problems. All types of thinking are closely interconnected.
Based on the nature of the problems being solved, they are distinguished :
Theoretical thinking- thinking based on theoretical reasoning and conclusions. Theoretical thinking is the knowledge of laws and rules.
Practical thinking- based on judgments and conclusions based on solving practical problems. The main task of P.M. is setting a goal, creating a plan, project, scheme. P.M. was studied by B.M. Teplov. He established that the feature of P.M. is that in practical situations the possibilities for testing hypotheses are very limited. All this is done by P.M. more complex than theoretical thinking.
According to the degree of development of thinking over time, they are distinguished:
Discursive (analytical) thinking- thinking mediated by the logic of reasoning rather than perception. Analytical thinking unfolds in time, has clearly defined stages, and is represented in the consciousness of the thinking person himself.
Intuitive Thinking- thinking based on sensory perceptions and reflection of the influences of objects and phenomena of the objective world. It is characterized by rapidity, the absence of clearly defined stages, and is minimally conscious.
According to the degree of novelty and originality they distinguish:.
Reproductive thinking- thinking based on images and ideas drawn from certain sources.
Productive thinking- thinking based on creative imagination.
By type of cognition there are:
Theoretical thinking– thinking aimed at understanding the internal content and essence of complex system objects. The main mental action is analysis.
Empirical thinking– thinking aimed at understanding the external manifestations of the objects and phenomena under consideration. The main operations of empirical thinking are comparison and classification.
According to their functional purpose they are distinguished:
Critical thinking- aimed at identifying shortcomings in the judgments of other people.
Creative thinking associated with the discovery of fundamentally new knowledge, and not with the evaluation of other people's thoughts.
By type of content of the means of thinking used:
Visual Thinking– thinking based on images and representations of objects.
Verbal thinking–operating with abstract sign structures.
Also in psychological science, the following logical forms are distinguished:
Concept- this is a reflection in the human mind of the general properties of an object or phenomenon. The concept acts both as a form of thinking and as a special mental action. Behind each concept there is a special objective action hidden. Concepts can be general and individual, concrete and abstract, empirical and theoretical
Judgment- the main form of thinking, during which connections between objects and phenomena of reality are affirmed or reflected. For example, when we say: “The Earth revolves around the Sun,” we thereby affirm the existence of a certain objective connection in space between two celestial bodies. Judgments can be true and false, general, particular and individual
Inference- is the derivation of a new judgment from one or more judgments. There are inferences: inductive, deductive, and by analogy.
Name the different types of insurance services. Agree, such a request can take you by surprise. How many such services do you know? Many people know that they need to try to protect their car and their lives. Modern insurance services, the types of which are constantly increasing in number, are represented by a larger list of subtypes than the volume that is familiar to most people.
In addition, a considerable number of organizations in this industry promote the integration of such services into all service areas. What does this give? Various types of insurance services are becoming closer to the end buyer.
Let's consider the most popular of them, having previously divided all types into groups.
Personal insurance
The first group includes:
Life insurance. A person can enter into an agreement for a certain amount. With this type, the most popular is accumulative insurance. Using this principle, the policyholder makes monthly contributions. Gradually, a good amount accumulates in this way. If provided for in the contract, then the company can also charge interest on this amount, that is, this is a kind of deposit that will be paid to the family of the insured person in the event of his death.
From diseases. If asked, name the different types of insurance that you know. And don’t forget about insurance, which is used by all large organizations, trying to reduce the risk of suffering a loss due to a worker’s absence. This type is popular both for personal needs and for commercial purposes. People try to protect themselves in the event that, due to circumstances beyond their control, they cease to be capable and earn money. There are those when it will be difficult for a person to protect himself from accidents and illnesses: miners, aircraft pilots, military personnel and others. The most important thing is that before signing the contract, undergo an examination by a doctor and indicate its results in the questionnaire. Otherwise, if an insured event occurs, the company may simply refuse to pay you, citing the fact that you hid your illnesses from it.
Health insurance. Considering the types of insurance services in Russia, we can conclude that this particular type is not popular in the Russian Federation. Moreover, it is mandatory in some foreign countries. Monthly deductions in the form of insurance payments are implied.
Accumulation system
When, for example, you need to go to the dentist, the company you choose will pay for the treatment for you. This is very convenient, besides, good treatment is quite expensive, and not many people can pay for it right away. Gradually in the Russian Federation, the number of policyholders who have signed an agreement for medical financial protection is increasing, but these are mainly people with above-average incomes.
Property insurance
In the second group, the following types are distinguished:
Answers:
The activities of entrepreneurs vary in content. The following types of business can be distinguished: manufacturing, trading, financial, insurance, intermediary. Let's look at the most common of them. The basis of industrial entrepreneurship is the production of various economic products needed by consumers. A manufacturer needs to know and be able to do a lot of things in order to organize efficient production. As a rule, he needs to spend a lot of effort to achieve success. But, despite all the difficulties, this type of entrepreneurship is very important for the economy and society as a whole. The history of the development of entrepreneurship testifies to the connection between manufacturing and trading business. For example, from time immemorial, products made by artisans were sold. The basis of trade entrepreneurship is the purchase and sale of goods. Profit is formed according to the scheme already familiar to you as the difference between revenue and costs. Costs include wages for sellers, delivery and storage of goods, maintenance of retail premises, etc. The merchant acts according to the rule: bought cheaper, sold more expensive. A special type of business is financial entrepreneurship. An example would be an entrepreneur lending money for a certain fee. This activity has deep historical roots (remember the activity of moneylenders, known since the times of Ancient Greece). All types of business are closely related: manufacturing is followed by trading entrepreneurship, both require funds and are thus related to financial entrepreneurship. Often one entrepreneur is a participant in all three types of business, which undoubtedly affects the results of his activities.
