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The role of entrepreneurial activity in the economic system of society says Sergey Anokhin

Entrepreneurship is created for profit.

15.Mar.18 12:38 AM
By Natalia Klyachina


The role of entrepreneurial activity in the economic system of society  says Sergey Anokhin
In most Western countries, entrepreneurial activity is a special type of management. There is no bureaucracy, it is innovative. At the heart of entrepreneurship is the search for new ideas and opportunities. This kind of management should always be guided by innovations. To engage in business, you need to be able to use different methods and information. Professor of Entrepreneurship of Kent State University Sergey Anokhin spent a lot of time studying these issues. He is the author of many scientific articles.

Entrepreneurship is free economic management. It can exist in various fields of activity. Entrepreneurship is created for profit. For this purpose, entrepreneurs produce and sell various goods and services. Profit is used to further develop the company's business. Also, profit is needed to fulfill obligations to creditors. You can not completely withdraw profits from activities. This will lead to bankruptcy. The profit should be rationally distributed by expense items. It is necessary for constant development.

Entrepreneurship always implies risks. But this risk can be justified. It is necessary to conduct calculations and make forecasts of the economic situation. This will allow you to be prepared for the circumstances. The risk is of a different nature: financial, economic, state. The entrepreneur is responsible for doing business with all his property.

In business, it is necessary to use effectively all factors of production. This will achieve economic success. Entrepreneurial activity is independent. It should be aimed at the realization of their knowledge and abilities. As a result of the activity, the satisfaction of the needs of other people is obtained. Business is not a one-off deal. This is a permanent workflow. Therefore, you always need to have a business plan.

A great influence on business in any country is provided by the state. Laws, regulatory documents determine the factors of business development. If the government does not support business, then its development in this country is impossible. Entrepreneurship is the key to effective development of the country's economy. Therefore, the state power must create all necessary conditions for this. For example, the conditions: special credit programs for business, tax incentives, subsidy programs. Entrepreneurship pays taxes to the state. This is a positive factor for state power.

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