Entrepreneurship is a risky activity for the purpose of generating income

Entrepreneurship is one of the most popular types of human economic activity. Based on the principle of generating income through the use of its own resources and own capital, it is conducted by such business entities as entrepreneurs (individuals and legal entities). As a rule, an individual can only act as an individual entrepreneur. A huge number of existing organizational forms gives the legal person the opportunity to choose the most suitable.

Entrepreneurship is classified based on various signs. So, by size of activity, large, medium and small businesses are distinguished . State and private entrepreneurship is the main classification of this type of activity by forms of ownership. In addition, activity of this kind can be classified on the basis of legality: legal, illegal and pseudo-entrepreneurship. If the second type differs from the first in the absence of the necessary documents and licenses, the third one sets the goal of extracting profit or other interest without doing business as such.

Entrepreneurship is a type of activity that can be classified by scale: local, regional, national, international and world. The composition of the founders is also a sign of classification: at the present stage, women's and youth economic activities are distinguished.

Entrepreneurship is a type of economic activity based on the classification of which one can set the growth rates of profitability (highly profitable and low-profitable), the size of economic risks (high-risk, medium-risk and low risk) and growth rate (fast-growing and gradually increasing growth rate).

Today, it is necessary to classify this economic activity from the point of view of introducing innovations in the process of creating a product or service. Based on this feature, we can distinguish traditional and innovative entrepreneurship.

The number of people participating in the activity can also serve as a classification factor. So, by the number of participants, individual and collective entrepreneurship is distinguished. The mechanism of creation and the established management processes of the organization underlie the classification of business organizations into simple and complex ones.

Entrepreneurship is an exclusively independent activity that provides the opportunity to work in a variety of ways. Economic risks related to this economic activity also fall entirely on the shoulders of the entrepreneur. It is this factor that leads to responsibility. Based on this concept, companies that bear full, joint or subsidiary liability are distinguished .

At the same time any company, any organization or individual directs all efforts to a single channel, which includes two basic principles:

- receipt of the planned income;

- effective use of all available resources (labor, financial, material and technical, etc.).