taxes

What are the forms of business. Breeding and selling animals

Before you start your own business, it is worth knowing what types of businesses exist, how they differ and how they are interconnected. It is also necessary 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.

By 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 one's own imagination, start-up capital and the demand of the population. Today, there are many opportunities to start a business from scratch, for example, an online business.

The main types of business that are relevant today:

Commerce.
Finance.
Consulting.

Organizational and legal form

To organize a business, you first need to decide on its organizational and legal form. There are three types of them, and each has its own advantages and disadvantages, so the task of a beginner is not only to find out what kind of business it is, but also in what form to organize it:

Individual entrepreneurship is the simplest form for organizing small and medium-sized businesses. Its registration does not take much time. Here is the simplest taxation system, which is the most understandable even for a beginner.
A joint-stock company assumes the presence of not one, but several members of the organization - shareholders, each of which 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 in Russia is not common.

In general, it is easiest for a novice businessman to register an individual entrepreneurship, but only if he is the only 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 manufacture of food, clothing and footwear, medicines, building materials, cars.

It is not necessary that production be a large business - a small enterprise with less than 50 people is quite possible. But, on the other hand, starting your own manufacturing business requires a lot of investment. The main expenses for the enterprise: premises, raw materials, equipment, technologies.

The disadvantage of organizing your own production is that it pays off for a long time. 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 products falls.

Therefore, it is very difficult for a beginner to correctly establish a process in the field of production. It is necessary to draw up a detailed business plan, analyze the market for this production: assess the competitiveness and demand among consumers, and also find out what risks exist. A completely inexperienced entrepreneur is best to start a franchise or choose another direction.

commercial activity

For start-up entrepreneurs, commercial activity has the greatest advantages. This activity involves such types of private business as wholesale and retail trade, 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 the desire to work hard.

A striking example of financial activities are banks, insurance companies and microfinance organizations. Working with finance 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 a small, but a chance to earn good money. It should be noted right away that for most beginners this type of activity is not suitable.

Consulting and counseling

A fairly new direction in business is the provision of consulting services for 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, it is necessary to understand the chosen direction very well. If skills are not enough, then it is better to wait a little with counseling.

Today, earning money on the Internet is gaining momentum. Wikipedia describes these types of business in detail. But still, in order to make money, it is better to think about real ways that have been tested over the years.

It is important not only to invest your money and wait for profit, but also to understand what different types of business 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 energy to it. After all, not so much everything depends on the type of business, but on the person who is engaged in it.

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In order to systematically work on your list of ideas going forward, the first step in this direction is to identify the characteristics of the following main business types:

Production

Provision of services

Retail

Wholesale

Agriculture

Consider the different types of business one by one and see which type suits you best.

Production

Manufacturing business, i.e. a business that is aimed at the production of goods related to the satisfaction of customer needs. The manufacturer produces a sufficient number of goods that customers could buy. Manufacturers use raw materials such as plants, leather, wood, plastic, fabric or metal to

Produce various kinds of goods.

There are various types of manufacturing enterprises, such as the manufacture of shoes, furniture, toys, tailoring, brick production, and many others. Most manufacturers are specialized in the production of their products. They can sell their goods both directly to the client, and through wholesale and retail trade.

An exercise

What products could you produce well enough over time. Are there any among them that cannot yet be found in sufficient quantities in the place where you live or in nearby cities? What do you see as the advantages and disadvantages of starting a manufacturing business in the future? What manufacturing business might be of interest to you to add to your list of ideas?

Provision of services

A service business is focused on providing services to customers. Service businesses produce and sell their goods by providing services to customers. For example, “laundry, transport services”, “provision of software,

Copy services", "services of editors, translators, artists", "repair, cleaning services", etc.

An exercise

You can certainly always identify many services that are hard to find around where you live. What services do your neighbors need, what would they like to have nearby, and what are they willing to pay for? Are there any that you think you could provide? Which of these are you interested in Add to your list of ideas? ______________________________

Retail

Retailers buy ready-made goods from wholesalers or growers (people who make or grow food). They resell the purchased finished products at higher prices in order to make a profit for themselves. The advantage of a retailer over manufacturers is that they are closer to the customer. They can also offer a larger range of products for customers to choose from. For example: a customer can choose to buy either a cheap pencil or a better quality pencil for which he will pay a higher price. At the same time, people can also buy various items they need from the same place. Also, the retailer is better able to inform the customer about various products, something that the manufacturer will not or is unable to do. Examples of retail businesses are grocery stores, appliance stores, clothing stores, kiosks, and office supply stores.

The most important thing in running a retail store is to have a sufficient range of products that customers need. This means that you must find different providers or have different providers contact you.

An exercise

Think about the retail stores around you and the advantages and disadvantages you see in these kinds of businesses. What retail stores are missing that you might be interested in adding to your list of ideas?

The ability to correctly submit your product to Avito will allow you to make good money. You can start by selling your own unwanted items. You can buy goods from those who want to sell them quickly and cheaply, and then resell them at a higher price. An interesting option- sell other people's goods and services for a percentage. To do this, you almost do not need investments, and earnings with active work start from 300-400 dollars per month.

Advertising agency

For a small agency, an office of 10 sq. m, minimal equipment and 2-3 people. It is profitable to open such a business in a big city. Then there will be a great demand for the development of printing materials, and for the creative industry, such as the creation of logos, corporate identity, slogans. You will have to invest from $ 1,000, but the monthly income will be at least $ 700.

In this area income every month it only gets bigger. In the future, you can count on a net profit of 2-3 thousand dollars.

Holiday Agency

This is a very interesting business, and moreover -. A small office, a computer and advertising are the main expenses for its organization. Then your main task will be the selection of performers for customers and the development of holiday programs. And almost all earnings are “clean” money. For a small agency, you will need investments in the region of $ 1,000, and the profit will be from $ 1,500 per month.

Cargo transportation

An excellent company that is very easy to scale, gradually increasing its fleet. Two cars with drivers and one dispatcher are all you need to start. With an initial investment of about 15 thousand dollars, the net profit will reach 1000-2000 dollars per month.

Service "husband for an hour"

No capital investment. Your task is to organize a base of workers of various specializations, coordinate their work and look for customers. With daily, even the smallest, orders, the net profit per month starts from $ 500.

Shoe repair and key making

A room of 5-10 square meters, tools, racks and a good craftsman - and you can start working. If you are qualified, you can do it yourself. To start, you will need 800-900 dollars. And the monthly income of such a business is 600-1500 dollars, depending on the number of orders.

Breeding and selling animals

A successful small business can be built: dogs, cats, chinchillas, rabbits, fish, pigs, nutrias, ducks, bees, quails, pheasants, ferrets, snails, chickens, etc.

Of course, the size of the initial capital for each case is different.(both 500 dollars and 15 thousand - to organize a full-fledged farm). But the net profit in any case starts at $1,000. Thanks to the breeding of expensive and "popular" animals, you can earn 3-5 thousand dollars a month.

Tutoring

On teaching various disciplines, playing the guitar, vocals and a host of other interesting things, you can earn from $ 400 per month. But for good employment, you will need to spend money on minimal advertising on the Internet (50-70 dollars).

Online store of things from China

– a great business that does not require a lot of start-up capital. It will take approximately $ 700 to buy the most "traveling" things and already have them in stock. Even with a small margin (15-25%), monthly sales income can reach $600-1000 net.

Computer service

The organization of a computer repair service requires renting a room with an area of about 15 square meters. m and the purchase of tools. All costs associated with the purchase of components and spare parts are already paid by your customers.

By investing about $500 in this business, you can expect a net profit of around $600 per month. Popular services earn from $900. But for expansion, you will need to hire one or two more repairmen.

Printing on clothes

Despite the great competition, it is very popular. It will take 800-900 dollars to rent a room and buy a thermal press. And you can earn 300-400 dollars "clean" per month on such a business. And this is if you have a really small company with one employee. If you expand and advertise about yourself, you can count on larger amounts.

Private beautician (hairdresser, make-up artist, manicurist)

This work from home is a real business. And you do not need to spend money on rent and arrangement of the salon. Only for their tools and consumables. To purchase high-quality tools and good products (cosmetics, balms, paints, etc.), you will need at least $ 900-1200. And the net profit will be from $ 1,000 per month.

Dining room

To open a small canteen for 20-30 seats, you will need about 24-25 thousand dollars (rent and repair of the premises, documents, equipment, salary, products). The profitability of such an enterprise is 1500-2000 dollars per month.

Carpet cleaning

First you need to spend money on equipment and effective detergents (vacuum cleaner, steamer, stain removers, etc.) and advertising. All this will take approximately 2500-3000 dollars. And your net earnings will be 1500-2000 dollars a month in the first year of work.

Making crafts at home (hand-made)

Making money on goods is not so difficult. What products are especially popular?

Decorations;
Soap;
Cakes and bouquets of sweets;
Wooden utensils;
handmade toys;
Candles;
Various souvenirs.

With small volumes of sales, your net income will start at $150-$200.

Photo and video shooting to order

Weddings, corporate parties and anniversaries are an inexhaustible source of clients. To work, you will need high-quality equipment (from $ 2,000) and advertising, since the competition is quite strong. If you have at least 7-8 orders per month, you can get 2-3 thousand dollars of net profit.

Dance studio

Starting a dance school from scratch is not easy, but dance classes are incredibly popular. Therefore, such an enterprise will pay off quite quickly and will bring you income from 1.5 thousand dollars a month “clean”.

Home web studio

Website development is a very lucrative niche. Especially if you offer full-cycle services: design, programming, content and website promotion. This business does not require any investments, except for intellectual and advertising. Can . A small studio of two or three people can bring in from 2 to 3 thousand dollars a month in net profit.

Daily rental housing

This business is best suited for those who have their own house or apartment that can be rented out. You make small repairs, advertise on the Internet and make a profit. By investing $300-400 in repairs, you can earn about $600 per month.

Distribution of advertising materials

A large company or entrepreneur will prefer to contact a company that distributes advertising than to look for performers themselves. A small company with a staff of 8-10 people (couriers, promoters, stickers) will generate income in the region of $ 1,500 "net".

Creation of a profitable website on the Internet

Cash costs here are minimal - payment for hosting, domain name, advertising. But you will have to work hard, and in the first six months you should not count on profit. But in six months or a year you will receive a source of passive income of $ 200-300 per month. Promoted are able to bring monthly profits of tens of thousands of dollars.

Skype training and consultations

Only your own baggage of knowledge and skills. What can be done?

Teach foreign languages;
Give psychological, legal, business advice;
Make horoscopes, guess.

A stable income of 400-600 dollars a month is provided to you.

Making furniture to order

It is not necessary to make exclusive furniture. Even ordinary tables, chairs, beds will be more profitable for the buyer than the range of most furniture stores.

Don't know where to start? Go shopping, evaluate what is best in demand, analyze prices. The starting capital for home production literally in your garage will be $ 200-300, but the net profit per month is from $ 400.

There are simpler types of entrepreneurial activities that require a minimum set of knowledge and small investments, for example, commercial or consulting. Along with them, there are more complex types of business that operate in a manufacturing, financial or insurance environment. Also, entrepreneurship can be sole and joint, public and private.

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Classification of entrepreneurship by type of activity

The key criterion for classifying the commercial activities of businessmen is the occupation.

It is customary to distinguish the following types of entrepreneurship:

based on production activities;
based on activities related to finance;
based on trading activities;
built on the provision of intermediary services;
based on the provision of advisory assistance;
related to insurance.

This classification is based on the principle that each business is associated to a greater extent with a certain stage of the production cycle. For example, someone produces a product and another distributes it. From the list of classifications presented, there is an item that has appeared in Russia and the world quite recently - this is consulting.

Entrepreneurship and examples of its main types

Manufacturing entrepreneurship

This type of business is the basic and most important for the economy of any country. Here things, values, benefits and many other useful products are created that can be sold or exchanged on the market. The production of material and intellectual goods forms the basis of this type of entrepreneurial activity.

The manufacturing business is:

creation of industrial and agricultural products;
execution of construction operations;
transportation of passengers;
cargo transportation;
provision of communication services;
communal and household services;
production of information;
education;
printing, etc.

Building bussiness Private school Production of agricultural products Dairy production

Stages of industrial entrepreneurship:

Market research and analysis.
Acquisition or lease of fixed assets (premises and equipment).
Purchase of working capital (materials, raw materials and components).
Hiring labor force.
Management organization.
Organization of the production process.

The finished product can be sold to the end user directly by the entrepreneur or through an intermediary. The main task of a businessman is to build a business in such a way that capital investments pay off as quickly as possible and the main commercial goal of the project is achieved.

The brakes on the development of this type of entrepreneurship in Russia are:

the risk of non-sale of the finished product;
high taxes and fees;
inaccessibility of many resources;
high tariffs for energy resources;
availability of alternative and less risky sources of income;
high competition from foreign manufacturers (both in price and quality);
low qualification of future businessmen, etc.

To prevent the risk of non-sale of goods / services, the entrepreneur must establish distribution channels. It is advisable to conclude contracts for the sale of products with regular partners and / or organize your own sales network.

commercial entrepreneurship

Characteristics of commercial entrepreneurship:

field of activity - trading enterprises and commodity exchanges;
based on operations and transactions for the purchase / sale of various products;
for commercial production, not material resources are acquired, which is typical for a production type, but a finished product, for its sale to consumers;
mobility and flexibility in relation to the needs of customers;
For the development of commercial entrepreneurship, two key conditions must be met: a stable demand for the products sold and a low purchase price.

This business area actively attracts individual entrepreneurs. To a greater extent, this is due to the fact that in trading you can count on a quick return. Also in this industry, minimal requirements are imposed on entrepreneurs, they do not require special knowledge and large capital investments.

The video is dedicated to the description of five relevant ideas in the field of trade for 2019 for small businesses. Filmed by the channel: "HelloBoss".

Today, along with small and medium-sized businesses, large trading enterprises are increasingly being established. They are focused primarily on the organization of wholesale and retail sales in branded outlets throughout Russia.

Prominent representatives of large retail chains are:

El Dorado;
M Video;
Media Markt;
Kopek;
Pyaterochka;
Magnet;
Crossroads, etc.

Many owners of such networks were included in the list of the wealthiest people in the Russian Federation. The profitability of a business in trade on average varies from 20 to 30 percent, and in production - 10-15 percent.

A commodity exchange is a kind of wholesale grocery market, where buyers do not provide for a preliminary inspection of samples of consignments of goods. Commercial intermediaries and their representatives work here jointly and on a voluntary basis, where trading operations are carried out according to established rules.

Most often they can be found in the sale of the following products:

grain in assortment;
textile raw materials;
coal;
oil;
metals;
animals and meat;
forest, etc.

Worldwide, these sites account for approximately 20 percent of international trade. There are about 150 trading exchanges in Russia.

The most famous commodity exchanges:

London - sale of non-ferrous metals;
Liverpool - selling cotton;
New York - selling coffee, cocoa and sugar;
Singaporean - sale of rubber.

Key functions of commodity exchanges:

assistance in the conclusion of commercial transactions;
assistance in resolving trade disputes;
regulation and control of commodity trade;
systematization and provision of information on prices and other factors affecting prices.

Stages of organizing commercial activities:

Employment of employees who will perform such trade and intermediary services as the purchase of goods, their transportation, sale, marketing promotion, paperwork.
Selection of premises for the organization of a retail outlet and warehouse, and the conclusion of a lease agreement or execution of a real estate purchase and sale transaction.
Purchase of products for sale.
Raising borrowed funds to finance the transaction.
Obtaining services from third-party organizations that perform intermediary functions, and paying for them.
Search for information for planning, regulation and execution of the transaction.
Selling products to customers.
Getting income.
Paying taxes and making other payments to federal and municipal financial authorities.
Return of borrowed capital and repayment of interest for its use.

In order for a trading business to bring the expected income, it is important to know for sure that there is a demand for the product offered for sale in the local market. To study the needs of consumers, their satisfaction, the level of competition, etc., it is necessary to conduct a professional marketing research.

financial entrepreneurship

The financial component is present both in the production and commercial business, but at the same time it can be completely independent. For example, banking or insurance activities.

Characteristics of financial entrepreneurship:

sphere of activity - circulation and exchange of values;
the average rate of return is 5-10 percent;
the main field of activity is stock exchanges, credit institutions.

In the financial market circulate:

short-term, medium-term and long-term credits/loans;
short-term, medium-term and long-term deposits;
currency;
securities.

Medium-term and long-term products are sold and bought on the capital market, and short-term products - on the money market.

In its own way, financial entrepreneurship is a subspecies of commercial business, since it involves the purchase and sale of money, currency and securities. Here, one money is exchanged for another, either directly or indirectly. The approach to organizing a financial enterprise is similar to that described for a commercial one. The main difference lies in the object of sale. A businessman who wants to operate in this market needs to start by conducting a thorough analysis of the monetary and financial markets and marketing research.

Forms of financial business:

Issuance of securities. These can be stocks or bonds, as well as credit notes.
Acquisition by an entrepreneur of securities for the purpose of their subsequent resale at a favorable rate.
The deal is active. It involves the urgent and indefinite placement of their assets, as well as the return of securities or money for storage.
Commodity versus futures trade. The futures contract is transferred from the buyer to the seller in exchange for ownership of the actual product.
Arbitrage deal. It represents the simultaneous purchase and sale of securities in order to profit from the difference in rates through exchange centers.
Banknote deal. Here, cash is sold for non-cash, while a small commission is charged as a transaction fee.
Other transactions. This form of business includes an exchange transaction, as well as an exchange cash, closing, contact and credit transaction.

Business in the financial and credit environment requires the entrepreneur to have special knowledge and experience. Otherwise, success will be extremely difficult. This is one of the most complex types of entrepreneurship in the world, whose historical roots come from usury.

Entrepreneurial activity of financial market participants is regulated by general and special legislative acts, as well as regulations of the Central Bank of the Russian Federation and the Ministry of Finance of the Russian Federation.

Advisory Entrepreneurship

Consultative entrepreneurship belongs to the tertiary sector of the economy, which has been actively developing throughout the world over the past two decades.

Consulting involves the provision on a commercial basis of professional advice and assistance on narrow business management issues (eg personnel, finance, promotion). In addition to the consultation, the client receives assistance in identifying and assessing the problem, as well as recommendations for solving it.

The services of consulting companies are mainly used by:

small businesses;
medium enterprises;
large enterprises.

The range of consulting services is very diverse, there are 84 types of operations in total.

Small and medium-sized businesses are more often interested in consultations in the field of:

audit;
marketing;
taxation;
accounting;
jurisprudence.

Big business is mainly interested in the following questions:

company development strategies;
optimization of the organizational structure of management;
financial management;
promotions;
application of information technologies.

Counseling methods:

Expert. This is a passive method of consulting, where a specialist independently conducts diagnostics, develops solutions and recommendations for their application. The client will be required to provide the consultant with the necessary information.
Process. Here, consultants interact with the customer at every stage of project development.
Educational. The goal of the consulting firm's specialists is to educate the client, who will later be able to independently develop solutions to emerging problems. Training is carried out with the help of lectures, seminars, manuals.

In the Russian Federation today there are only a few hundred consulting companies. At the same time, for example, in Holland there are more than 2000 of them.

Briefly, the process of implementing a consulting project is as follows:

A request is received from a client.
Contact is established with the customer.
It turns out the input information from the client on the issue of interest.
The situation, tendencies and essence of the problem are determined.
A proposal is being developed to solve the problem.
A work schedule is being formed.
Legal documents are being prepared.
A report, recommendations or a plan of organizational measures are formed.

Intermediary business

Business in the intermediary sphere does not involve the production and sale of products. The entrepreneur acts as a link in the course of the exchange of goods, money or in commodity-money transactions.

An intermediary can be both a legal entity and an individual.

Types of intermediary business:

wholesale supply and marketing companies;
brokers;
dealers;
distributors;
exchanges;
credit organizations.

Insurance business

The essence of insurance business is that the businessman, within the framework of the law and the contract concluded with the client, guarantees the insurer compensation for harm.

This harm can be received under certain circumstances and is associated with loss or damage to:

property;
health;
values;
life and others.

After the conclusion of the insurance contract, the client pays a fee. A businessman receives income, which is the difference between all insurance payments made and all insurance claims for the period.

The main types of risk of insurance companies:

Market risk. It is associated with the probability of possible losses or non-receipt of the planned profit as a result of unfavorable changes in market prices.
Liquidity risk. The danger for the company lies in the lack of market liquidity.
credit risk. Losses due to improper performance of obligations by the other party to a financial transaction.
operational risk. It can be caused by errors in the company's management system during trading operations.

Classification of entrepreneurship by forms

Entrepreneurship can be classified in terms of the number of owners and types of ownership.

Forms of entrepreneurship by number of owners

Depending on how many people own the company, the following forms of entrepreneurial activity are distinguished:

individual;
collective;
corporate.

Individual entrepreneurship

This is the primary and simplest form of any business. Sole proprietorship provides for a situation where the property of the firm belongs to only one person. This form of business does not have the status of a legal entity.

Key benefits of sole proprietorship:

complete independence;
efficiency and freedom in management;
flexibility and sensitivity to demand;
the opportunity to start a business with a small start-up capital;
preferential taxation.

Most often, enterprises of this type are created in the field of trade. A businessman can hire staff, but in a limited number, no more than twenty people.

Collective entrepreneurship

Collective entrepreneurship provides for a situation where the property of the company is owned by two or more people. The share of each participant depends on their material contribution to the common cause. If shares are allocated in the constituent documents, then this property is called shared ownership. Joint ownership occurs when the shares of each participant are not defined.

Collective ownership involves the joint decision-making, ownership, disposal and use of the firm's property.

The established forms of collective business activity in the world:

business companies;
business partnerships;
joint-stock companies.

The Russian Civil Code describes the legal status of each organizational form.

Today, joint ventures are dominant in large and small businesses.

corporate entrepreneurship

In the modern world, enterprises of different organizational forms are increasingly uniting to protect joint commercial interests. They coordinate their work, which leads to an increase in the efficiency of the common cause. At the same time, cooperating firms do not lose their independence and legal status, and relations are built on a contractual basis.

Types of corporate entrepreneurship:

Concerns. This is the interaction of enterprises for joint activities on the basis of voluntary centralization. They can perform scientific, technical, industrial, social, financial, environmental and foreign economic functions. Concerns can be both diversified and diversified, not involving attachment to a particular type of economic activity.
business associations. They are also called foundations or unions. The association is a contractual association of enterprises and organizations for the purpose of jointly carrying out one / several functions of an industrial and economic nature. This format of activity imposes less severe restrictions on the participants than those assumed by the concern.
consortia. They are created for a while until the task for which the enterprises united is solved, and after that the union ceases to function. Often they are created for the implementation of the state program by several companies of different forms of ownership. The consortium also allows joint placement of loans, large financial or commercial transactions, large industrial or other construction.
Intersectoral and regional unions. They are formed on the basis of enterprises of various departments and producing homogeneous products. They are united by cooperative or scientific and technical ties.

Forms of entrepreneurship by type of ownership

Depending on what form of ownership is observed in the company, the following forms of entrepreneurial activity are distinguished:

private;
state;
municipal.

Private enterprise

Private business allows economic activity to be carried out on behalf of:

enterprise (legal entity);
entrepreneur (individual).

The activity of this form of entrepreneurship is aimed at extracting material benefits. Private business is organized at the personal expense of one businessman or a group of them.

State Enterprise

State enterprise allows economic activity to be carried out on behalf of a company established:

State bodies. Special structures manage the property of the country within the framework of the current legislation. Such an enterprise is called a state enterprise.
Local self-government bodies. In this case, the company will be called municipal.

Features of state entrepreneurship:

the property of the enterprise is part of the property of the state or municipality;
the company is liable for its obligations with the property that is in their ownership;
the company is not responsible for the obligations of the country.

In countries with a capitalist system, this type of entrepreneurial activity occupies those niches that have a strategically important role for it. For example, the extraction and processing of minerals, the manufacture of weapons, aircraft, etc. Also, the state is building a business in areas that need serious investment, with a long payback and low profitability.