Business

Perfection Regarding the Proper Steps Regarding the Business Now

Small business is a synonym for private enterprise. In the special economic literature, the definition of this concept is as follows:

Small business is a combination of legal structures and individuals engaged in business and not part of monopolies and large corporations.Small businesses are characterized by limited production volumes and a small number of full-time employees.

Sometimes you can find such a definition:Small business is an entrepreneurial activity carried out by a limited group of persons or a company managed by one owner.Experts in economics classify small businesses as highly risky financial and commercial activities.The ultimate goal of entrepreneurship is the receipt of a constant profit from the production or sale of goods (services). Now about Business you can get great many information.

The efficiency of a small enterprise is determined by the growth of income for a certain period. Profitability of business (economic benefit) is the ratio of costs for the organization of entrepreneurial activity to the profit.

Practical example

For clarity, I will cite an example of calculating the profitability of an apartment that is leased. To do this, you need to divide the income from renting an apartment into its cost and multiply it by 100%.Suppose that you rent an apartment worth 3,000,000 rubles for 20,000 rubles a month.Then the profitability per month will be: 20 000/3 000 000 X 100% = 0.6% per month or 8% per year.The amount of initial cash investments in the company is calculated on an individual basis: small costs on the background of solid profits indicate the success of the enterprise and the effectiveness of the business idea.

According to the law passed by the State Duma in 2007, micro-enterprises and small businesses are organizations with a staff of up to 100 people. If there are more staff units, such companies are classified as medium-sized businesses. Owners of enterprises can be legal entities and private entrepreneurs.

History of the emergence of small business

Small business is the creative power of economic relations. It was the small business enterprises that were the first commercial structures in the history of mankind. At the end of the last century, small business acquired a second birth: such organizations began to play a crucial role in the emergence of new goods and services and the creation of jobs.

In those days, the legislative framework governing the activities of small businesses was absent. Representatives of commercial structures were forced to unite their efforts, seeking legality and recognition by the state.The beginning of the 90’s is considered the time of the “shadow” economy and the complete reorientation of the state to private capital. The main activity of the enterprises of that time was trade – with the bulk of the goods being supplied from abroad.In the mid-1990s, a slight rise in production activity among small businesses began.

Search
Archives