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The Classification of Entrepreneurial Activity as The Purpose Or Scope of Activity

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Under the typology of entrepreneurship is understood the theory of various types, spheres of entrepreneurial activity, determined by essential characteristics, allowing to classify this particular economic activity to a particular type (kind).

In the literature, there is no uniform grouping of the main types of entrepreneurial activity. Its data show that in the theory of entrepreneurship there are different approaches both in establishing the criteria that allow classifying entrepreneurship and in determining the qualitative and quantitative characteristics of these characteristics.

Thus, most authors agree on the need to distinguish such a sign of the classification of entrepreneurial activity, as the purpose or scope of activity.

Commercial activities

Trade activity means the immediate sale of finished products to end-users or intermediaries (dealers). This type of business is ideal for people with a commercial vein. Its main attraction is that apart from how to be able to sell well, the entrepreneur has nothing more to do and does not need.

At the same time, commercial activities have their disadvantages. For example, it will not be possible to satisfy a buyer who needs “just the same horse, only without wings” or “the same robe, but with green buttons.” In the product range, the leading tone is set by the manufacturer, and the seller obediently sells its products and applies the art of persuasion to its potential buyers.

Provision of services

If a person does not have a commercial vein, then he can try his hand at providing services. Here it is more important not to be able to sell yourself but to be able to perform work qualitatively. To a right shoe maintenance specialist, people are lining up. Moreover, I want to note; they do not need to be persuaded in anything and persuade to apply for this master – people themselves want to become his clients. In fact, the hands of the master are his sales manager. In this business, there are many directions in which a person can get in with a small starting capital. Naturally, there are also financial-intensive varieties of services, for example, the opening of a car wash.

Among the shortcomings, I want to note the exactingness of some of the topics for the qualification of personnel. If the director of a trading company can recruit sellers into his stores, focusing solely on their external data and forms, the sewing studio director looks at the professional qualities of the applicants. However, it is not easy to find a good specialist, and it is expensive to train young people.

Production

Production is an exciting and in some ways a troublesome topic. On the one hand, the manufacturer has in its arsenal all the tools that can satisfy the demand of even the most refined buyer. On the other hand, the opening of production requires significant financial investments in equipment, raw materials, as well as in the life-support of all sections of the production process. In general, this topic is troublesome, but with a competent approach, it can be very profitable (Richards, 2014).

Also viral in theory is the classification of business into small medium and large. In this paper, the study is devoted to small business in Russia, so we need to understand the essence and distinguishing characteristics of these three types of business. Small business differs from the average, and the average business from a large one – on the same set of characteristics. The most critical parameter that distinguishes them is the amount of profit. It is entirely logical that the profits of the large business are times higher than the average profit and many times higher than the profits of small businesses. Of course, in any business, there are ups and downs. Moreover, at one point the incomes of small businesses can exceed the inflow of capital of an average company. However, in this case, perhaps, it is time to transfer this business to the rank of the middle. Of course, such an indicator as profit is not the only distinguishing feature. Small, medium and large businesses also differ in the volume of production or sales of goods and services, regarding the number of jobs created, the number of representative offices. An important factor is the presence of branches in other cities, regions and even countries. All this in the aggregate determines the size of a particular business.

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The Classification of Entrepreneurial Activity as the Purpose Or Scope of Activity. (2019, August 08). GradesFixer. Retrieved May 16, 2022, from https://gradesfixer.com/free-essay-examples/the-classification-of-entrepreneurial-activity-as-the-purpose-or-scope-of-activity/
“The Classification of Entrepreneurial Activity as the Purpose Or Scope of Activity.” GradesFixer, 08 Aug. 2019, gradesfixer.com/free-essay-examples/the-classification-of-entrepreneurial-activity-as-the-purpose-or-scope-of-activity/
The Classification of Entrepreneurial Activity as the Purpose Or Scope of Activity. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-classification-of-entrepreneurial-activity-as-the-purpose-or-scope-of-activity/> [Accessed 16 May 2022].
The Classification of Entrepreneurial Activity as the Purpose Or Scope of Activity [Internet]. GradesFixer. 2019 Aug 08 [cited 2022 May 16]. Available from: https://gradesfixer.com/free-essay-examples/the-classification-of-entrepreneurial-activity-as-the-purpose-or-scope-of-activity/
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