Journal of Economics

1. The essence of entrepreneurship

The subjects of entrepreneurial activity in Russia may be:
1) Citizens of the Russian Federation;
2) Foreign nationals;
3) citizens’ association (collective enterprises).

All variety of business can be a lassifitsirovano by various characteristics: type of activity, ownership, number of owners, organizational, legal, organizational and economic forms, the degree of wage-earners and others consider some of them.

2. ENTERPRISE: CHARACTERISTICS, FUNCTIONS AND ORGANIZATION OF ACTIVITIES.

Enterprise as an economic concept is an entrepreneurial production units are functioning in different spheres of activity and the object of the property as separate property of the complex.

Enterprise as a legal entity – an organization, company, concern that meets certain criteria established by the laws of the country.

The purpose of the enterprise – to satisfy public needs and generate profits. Civilized market relations requires a reasonable combination of both.
German economist G. Schmal identifies the following principles: efficiency, financial stability, profit.

3. ORGANIZATIONAL-LEGAL FORMS OF ENTERPRISES.

Organizational – legal form of a great variety and have significant differences in different countries. In Russia, commercial organizations can be created only in those legal forms which are provided by applicable law. ”Russian Civil Code permits the existence of the following organizational and legal forms of companies:

1. business partnerships – the commercial organizations with a split on shares (deposits) of the founders (participants) of registered capital;
2. production cooperatives (collective farm) – a voluntary association of citizens on the basis of membership for the joint production activities (production, processing and marketing of industrial, agricultural and other products, works, commerce, consumer services, other services), based on their personal labor and other participation and union members of their ownership of shares;
3. State and municipal unitary enterprises – are commercial organizations that are not vested ownership of the property assigned to them;
4. non-profit enterprise (consumer cooperative, community and religious organizations, foundations, institutions, associations and unions).

4. THE LIFE CYCLE OF THE ENTERPRISE.

The first stage – the creation of an enterprise and its emergence. On the occurrence of a business entity evidenced by the fact of its registration in the relevant bodies of executive power.
At this stage, the clarification of the scope of the enterprise, the definition of objectives and choice of business strategy, development of industrial and organizational structure, recruitment of necessary staff, purchase equipment, raw materials, organization of production (services) and enterprise management.
At the stage of growth and expansion of the company is positioning its products on the market, finding the best partner, win market share, cost of the enterprise.
Stage of maturity or optimal functioning is characterized by a highly successful work of the enterprise based on proven technology and production organization, advanced forms and methods of enterprise management, aggressive marketing activities.
If the company is able to change, flexibly responding to the dynamics of the environment, quickly adapts to the needs of the market, it can operate successfully for many years without fear of falling profitability and bankruptcy.
If the company fails to respond to the demands of different life stages, the case will steadily approach the downturn, and bankruptcy.