individual entrepreneurship что это
A private entrepreneur can become a citizen. Upon registration, it acquires not only possibilities and rights but also certain responsibilities. How to become an entrepreneur, what responsibilities you need to perform – all of which is described below in the article.
General definition
Individual entrepreneur – a physical person registered in accordance with the law, leading in entrepreneurial activities without creating a legal entity. Officially a citizen is an individual entrepreneur and can work in this status only after registration in state authorities.
Thus, anyone can become entrepreneurs and to engage in commercial activities. To do this, simply register at the official residence. Thus it is not necessary to have an office.
SP act according to the laws that govern their commercial activities. But they are also subject to a right vested in a legal entity.
Individual entrepreneurs of the Russian Federation are required to abide by the rules of the Civil code, indicating the activity of legal entities, except in those cases where they created separate regulations.
How to register entrepreneur
Registration of an individual entrepreneur includes several steps:
1. Preparing for registration-at this stage you need to determine exactly the types of activity in OKVED, choose the appropriate tax type and pay a fee.
2. The collection of papers. For registration, the entrepreneur must prepare the following documents:
3. Delivery of documents to the registration authority. In response, the organization must issue a registered person and the receipt of required documents and notification on the use of the USN with a special note of the tax service.
Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa.
Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i.
4. The receipt of the documents. The registration authority shall issue a certificate of state registration of an entrepreneur with a number OGRN, the document on assignment of an INN and an extract from egrip.
5. Registration of an individual entrepreneur in compulsory medical insurance Fund and the Pension Fund. The tax inspection itself in the PF sends information on the registration of the new IP.
Law, SP
1. The choice of activities permitted by law.
2. The right to hire employees. The legislation established the number of employees who can be issued by the state of an individual entrepreneur.
3. Individual entrepreneur – a businessman who manages its activities and is responsible for the results.
4. Freedom of choice of partners and product. The entrepreneur himself determines the market segment on which it will develop its business.
5. The right of self-determination of the value of goods and services. However, the final price for products should not be significantly lower than other businesses.
6. SP decides how and how much to pay their employees.
7. The owner has the right arbitrarily to dispose of the profit.
8. SP has the right to appear in court as plaintiff and defendant.
Responsibilities
Individual entrepreneur – a business entity that has certain responsibilities. Namely:
1. All PIS are required to adhere to the norms of the current legislation. Entrepreneur should know tax, pension, antitrust and other legislation to guide legal and open operation.
2. All monetary transactions will be documented. These documents include employment contract contract for the supply of goods, etc.
3. To carry out the licensed business, the entrepreneur needs to obtain a state permit-certificate, patent or license.
4. All employees who are employed by the individual entrepreneur, must be formalized. That is, SP concludes with the person a contract of employment, contract of specific work or other agreements. After the entrepreneur is obliged to make the necessary payments to the medical insurance Fund, Pension Fund and social insurance Fund.
5. If the activities of SP causes harm to the environment, he is obliged to perform measures to reduce negative impacts. If a businessman can not solve this question independently, it must apply to the environmental service.
6. The entrepreneur is obliged to pay taxes to the state Treasury.
7. Individual entrepreneur – is a participant of market relations, which must always respect the rights of the buyer. There are organizations for the protection of the rights of consumers who are considering a complaint.
8. If for some reasons the PI has changed the data (name, place of residence or residence, type of activities), itshall notify the appropriate authorities-tax office, funds and other institutions.
Licensing
The Activities of the individual entrepreneur is strictly controlled by special authorities. They look not only for the payment of the businessman of taxes and required contributions to the funds. There are organizations that control the legality of the actions of SP and the presence of permission to conduct certain types of business.
Under the law, to licensed types of activity include pharmaceuticals, transport of passengers and cargo by sea, rail and air etc. Besides, SP can’t deal with closed businesses such as the development and sale of military products, the production and sale of drugs, poisonous substances and alcoholic beverages. Also, the entrepreneur has no right to engage in insurance, banking, tourism, the production of fireworks, ammunition, manufacturing and repair of military aircraft equipment.
individual entrepreneur
1 ИП
2 ПБОЮЛ
3 Свидетельство о внесении в Единый государственный реестр индивидуальных
4 индивидуальный предприниматель
5 индивидуальный частный предприниматель
6 основной государственный регистрационный номер индивидуального налогоплательщика
7 свидетельство о регистрации в качестве индивидуального предпринимателя
8 индивидуальный предприниматель
9 ИП
10 частный предприниматель
11 ЧП
12 банкротство
заявлять о банкротстве — to file a bankruptcy petition; file for bankruptcy
обвинять кого-л в злостном (фиктивном) банкротстве — to accuse smb of (charge smb with, indict smb for) bankruptcy fraud (fraudulent bankruptcy)
13 предприниматель
14 individual motor drive
15 individual sheet length
16 Galton’s individual difference problem
17 Achievement Via Individual Determination
18 Advanced Individual Training
19 Advanced Lightweight Individual Carrying Equipment
20 Advancement Via Individual Determination
См. также в других словарях:
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individual — <
entrepreneur — An individual who uses the *factors of production to create *wealth. In classical economic theory, a *profit seeking entrepreneur operates in the *private sector, taking *risks to achieve *income. The term is taken from the French, and it… … Auditor’s dictionary
Entrepreneur — An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and… … Investment dictionary
entrepreneur — noun ADJECTIVE ▪ good, great, successful ▪ creative, innovative ▪ ambitious, dynamic ▪ large scale … Collocations dictionary
entrepreneur — An individual who undertakes (from the French entreprendre to undertake) to supply a good or service to the market for profit. The entrepreneur will usually invest capital in the business and take on the risks associated with the investment. In… … Big dictionary of business and management
Corporate social entrepreneur — A corporate social entrepreneur (CSE) is defined as an employee of the firm who operates in a socially entrepreneurial manner; identifying opportunities for and/ or championing socially responsible activity; in addition to helping the firm… … Wikipedia
John Hewitt (tax preparation entrepreneur) — John T. Hewitt (born 1949 in Detroit, Michigan) is a U.S. entrepreneur, the co founder of Jackson Hewitt and sole founder of Liberty Tax Service. As of late 2006 Hewitt served as CEO, chairman of the board and president of the latter. As such,… … Wikipedia
James Caan (entrepreneur) — James Caan Born Nazim Khan[1][2] … Wikipedia
Registration of individual entrepreneur in Russia
Contents:
Can a foreign citizen register as a private entrepreneur in Russia?
Can a foreign citizen registeras a private entrepreneur in Russia? LLC in the Russian Federation or not. The fugures show htat that the business activity of foreigners is higher than that of Russians.
As part of the Global Entrepreneurship Monitor (GEM) international project, a study was conducted that showed that foreigners in Russia are much more focused on their own business than Russians.
The level of entrepreneurial activity among foreigners is almost two times higher than among the local population – 7.4% versus 4%. But, foreigners believe in themselves more and generally are optimistic – 90% of them highly appreciate the possibilities of own business and their ability to create a really successful company.
Therefore we can say, that foreigners have do want to register a business in Russia, and they believe in own success and talent. But what about the options they have? There are no significant obstacles for foreign citizens when registering a business in Russia – the laws provide the same rules for everyone.
Legal requirements for foreigners begining a business
To register acompany, a foreign citizen must meet several conditions.
Choosing a business form: a private entrepreneur or LLC
Individual entrepreneurship (IE) and a limited liability company (LLC) are the most popular forms of business organization. With these two legal forms you can register a business as quickly as possible, and your are required a minimum of documents and financial expenses.
The IE status enables one to conduct business while not registering a company. That is the easiest way to register and run a own business, regardless of a person’s citizenship. Here are the main benefits of a private entrepreneurship:
In case every document required is made up correctly, the whole process of opening a new private entrepreneur takes about five days (considering weekends). Besides, they believe that the best taxation option for a private entrepreneur is a simplified system (STS). According to this system provides an entrepreneur pays either six per cent of the income, or up to fifteen of own profit (depending on a specific region).
But even individual entrepreneurship has its drawbacks. A private entrepreneur takes responsibility with all his/her property. This means that creditors potentially are able to sue a car, real estate, equipment, etc. for debts.
Another popular option for foreigners to start a business is a limited liability company. LLC is already a legal entity, therefore all procedures, in this case, are more complicated. However, there are advantages here as well. LLC allows several people to conduct business together, which means they can combine their financial, organizational, and other resources. If debts arise to creditors, they won’t claim the personal property of the founders of the LLC, but just the value of their shares in the authorized capital.
How can a foreign citizen register as a private entrepreneur
So, we found out that the easiest way for a foreigner to register own business in the Russian Federation is to register as a private entrepreneur. Let’s figure out what one has to do when deciding to register as a private entrepreneur.
As we have noted above, a foreigner must get a temporary residence permit (TRP), or a residence permit. Otherwise, the registration process for a private entrepreneur is the same for all the people, both native and foreigners. In fact, it consists of submitting documentation and paying all the fees.
So in order to open an individual entrepreneurs in Russia, do the following:
The registration for a private entrepreneur is 800 RUB. But in case you are going to pay it online, the registration cost is 30% cheaper. Besides the documents in foreign languages must be translated into Russian in a certified bureau. And the translated documents are to be certified by a notary.
So, this is what a foreign citizen has to do to register an IE. Considering the fact that documents are made up as they should, after five days you can obtain a certificate of state registration of a private entrepreneur.
Registering a private entrepreneur with Valen company
VALEN lawyers are experienced specialists. They will assist you with the registering IE in Russia, and all the issues concerning the process itself and with preparing for it. Please, feel free to leave your request on our website or contact our lawyers via telephone to get the first consultation. Or you can visit our office in Moscow.
Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)
Research Article: 2018 Vol: 21 Issue: 2S
Individual Entrepreneurship in Russia and Abroad: Social and Legal Aspects
Elvir Munirovich Akhmetshin, Kazan Federal University
Kseniya Evgenievna Kovalenko, Altai State University
Viktoriya Viktorovna Ling, Industrial University of Tyumen
Elmira Arsenovna Erzinkyan, State Academic University for Humanities (GAUGN)
Gulnaz Minnulovna Murzagalina, Sterlitamak Branch of Bashkir State University
Angelina Aleksandrovna Kolomeytseva, Moscow State Institute of International Relations (MGIMO)
Abstract
The purpose of the article is to study the issues of the concept and place of individual entrepreneurship within the framework of modern economic realities of the development of society, and also to highlight the main features and trends in the development of individual entrepreneurship in accordance with the new legislation and its impact on the state economy. The methodological basis of this study includes the dialectical method of knowledge, based on a system of general scientific and private-scientific methods: a logical method (in the formulation of the material, the formulation of conclusions); historical method (in the process of studying the evolution of ideas about entrepreneurship); and statistical method (in the process of analysis and synthesis of the material); content analysis (analysis of individual provisions of legislative acts, scientific works), the method of system analysis and others.
Entrepreneurship in modern reality remains one of the most effective forms of realization of the initiative and self-organization of citizens in the context of the innovative development of the Russian state and society.
Many researchers and specialists note that the main reason for the specific image of Russian entrepreneurship and its participation in the management of social relations is the institutional environment for the formation and development of domestic entrepreneurship, especially small business.
Keywords
Individual Entrepreneurship, Professional Competencies, Educational Program, Entrepreneurial Practice.
Introduction
The relevance of the research topic is that the development of entrepreneurship is one of the most accurate indicators of the economic and social level of the state, as entrepreneurship provides:
1. The creation of new jobs, ensuring employment of the working population.
2. Ensuring social stability and poverty reduction. The development of entrepreneurship contributes to the growth of monetary receipts in the budget, as well as reducing unemployment and so on.
3. Increase tax revenues.
4. Growth in the share of gross domestic product created by organizations engaged in the field of entrepreneurship.
5. Increasing the size of the middle class, therefore, improving social and political stability.
6. Interaction of small and large business, which helps giant enterprises to survive in the current market conditions, give impetus to the development of newly created private and small enterprises.
Entrepreneurship is built on the principle of cooperation between large and small enterprises, and large enterprises are oriented not towards suppressing small businesses, but, on the contrary, towards mutually beneficial cooperation with them. Therefore, large and small enterprises complement each other, especially in the field of specialization of individual industries and in innovative developments (Simonova et al., 2017).
LITERATURE REVIEW
Introducing the historical direction, Ding Li proposes his definition of economic (entrepreneurial) activity. The scientist points out that this is a socially useful activity of members of society and their unions (associations). The author considers it necessary to note that this activity is aimed at the production of goods, the performance of work, the provision of services for the purpose of their sale for a fee as a commodity. It is important, writes Ding Li, that entrepreneurship is based on the combination of private and public interests and is carried out professionally (Li, 2016).
Kaliszczak and Szara, being a representative of economics, conducted an analysis of the literature and identified a number of signs of entrepreneurial activity from the standpoint of economics. Signs of entrepreneurship include the following: ownership of capital, a focus on making profit, combining and combining factors of production, capitalization of income, involvement in market relations, economic freedom and autonomy, particular production management, as well as willingness to take risks, initiative and creativity, the ability to overcome resistance Wednesday (Kaliszczak and Szara, 2005).
However, the scientists noted two, on their opinion, the most necessary signs of entrepreneurship-economic freedom (based on private property) and innovation (organizational and economic innovation) (Kaliszczak and Szara, 2005).
The point of view of the economist Adam Smith, which was developed in the work “Study on the nature and cause of the wealth of nations.” The author analyzes the problems of economic development, while focusing on the personal interest of individuals who are engaged in the production of goods, works and services (Smith, 2008).
Netherlands economists Boermans and Willebrands (2017), as a functional characteristic of entrepreneurship put forward risk. He explained his position by the fact that an entrepreneur makes decisions and satisfies needs in the face of uncertainty, respectively, all his decisions are risky in nature (Boermans, and Willebrands, 2017).
Another well-known British economist Frank A. Heller. He recognized the economic agent who is able to combine factors of production, “dragging” resources from the sphere of low productivity and profitability in the areas in which they can give the greatest result, expressed in profit, income (Heller, 1969).
Hizrich and Peters suggested their own original understanding of entrepreneurial activity, which most accurately reflects the essence of the category in question. Entrepreneurship, according to scientists, is “the process of creating something new with value; a process that absorbs time and effort and assumes financial, moral and social responsibility; a process that brings cash income and personal satisfaction achieved” (Hizrich and Peters, 1993).
In 20th century Schumpeter, called entrepreneurship the «main phenomenon of economic activity» executing innovative function (Schumpeter et al., 2003).
The legislator recognizes entrepreneurial activity as a civil legal category, enshrining its concept in Art. 2 of the Civil Code of Russian Federation.
Among the signs that make up the concept of entrepreneurship, it is necessary to name, first, independence; secondly, the risk nature; thirdly, the focus on systematic profit; fourthly, the entrepreneur must be registered in the manner prescribed by law. Of course, these signs are important characteristics of entrepreneurship, but they do not reflect the essence of legal definition.
So, American scientist Dove expresses doubt in securing independence as a mandatory sign of entrepreneurial activity. Justifying the facultative nature of this feature, the scientist gives an example of the implementation of this activity by people held criminally liable (Dove, 2015). The author considers autonomy in the material and organizational aspects. The property independence, according to the scientist, may be complete and limited, whereas organizational independence is manifested in making independent decisions in the business process, starting with the decision to engage in the specified type of activity, the choice of organizational and legal form and ending with the decision on voluntary termination of activity.
In turn, Tarkan Cavu?o?lu and Oguzhan C. Dincer, notes that such a sign as “autonomy” indicates a volitional source of entrepreneurial activity carried out by his power and in his interest organized by a person at his own discretion not directly managed by any authority. The scientist writes that the legislator considers the right to entrepreneurial activity as an element of the legal capacity of a private person who is ensured by the duty of others to refrain from unlawful interference. Thus, according to the author, the legislator understands by independence a certain measure of freedom and the integrity of an entrepreneur as an individual (Cavusoglu, and Dincer, 2015).
Currently, there are many different interpretations of entrepreneurship, as various researchers focus on various aspects of this phenomenon. This is a sign that the problems of entrepreneurship are being actively discussed in scientific circles. As is known from economic theory and practice, an entrepreneur is a subject that combines economic resources with the goal of their optimal use and profit in conditions of economic uncertainty and in the process of independent decision-making in the course of running a business, and also responsible for the results of management. In addition, an entrepreneur, as a rule, is trying to introduce into business practice new production technologies, a combination of economic resources, management and organization of business, that is, to act as an innovator. The listed characteristics reflect mainly economic aspects of entrepreneurial activity. However, entrepreneurship can be considered as an activity of social and managerial nature. In this regard, we point out the following points.
First, entrepreneurship is traditionally associated with economic activity, the purpose of which is to make a profit. However, as well-known researchers believe, entrepreneurial structures tend to maximize profits not solely for selfish reasons. In modern society, instead of a Smith economic man with his extreme egoism and individualism, a sociable person acts, firmly aware that his entrepreneurial success largely depends on the success of partners and the economy as a whole. In other words, often the structure of the motives of entrepreneurial activity is set by the established institutions and the social practices they cause. Acting as constraints, institutions not only streamline business activities, but also encourage entrepreneurs to transform them.
Secondly, entrepreneurial activity is caused not so much by economic factors as by the institutional environment in which it operates. Therefore, from an institutional point of view, entrepreneurship is not so much a combination of economic resources, as the creation of orders of evaluation, contracting and institutionalizing the benefits that can be obtained from interaction with the external social environment.
Thirdly, entrepreneurship, being associated with the extraction of benefits, in its content is a management activity to a greater extent than economic. From this point of view, “entrepreneurship is a management aimed at acquiring and overcoming the risks associated with it”.
The civil legislation of the Russian Federation regulates relations between persons engaged in entrepreneurial activities or with their participation, on the assumption that entrepreneurial activity is an independent, risk-taking activity aimed at systematically receiving profit from using property, selling goods, performing work or rendering services. Persons engaged in business activities must be registered in this capacity in the manner prescribed by law, unless otherwise provided by the Civil Code.
From the legal definition of entrepreneurial activity, Article 2 of the Civil Code of the Russian Federation, we highlight the characteristic features, namely: independence, activities carried out at your own risk, systematic profit. At the doctrinal level, there are additional features: autonomy, independent property liability of an entrepreneur, legalized character, professionalism, etc.
To a certain extent, entrepreneurship also reflects the political situation in the country. On the one hand, the conditions and factors of its development depend on the political situation in the country (favorable or unfavorable), and on the other hand, business associations, unions themselves influence the formation of the political situation in the country, taking part in the political activity of the state.
Many researchers and specialists note that the main reason for the specific image of Russian entrepreneurship and its participation in the management of social relations is the institutional environment for the formation and development of domestic entrepreneurship, especially small business.
Methodology
Theoretical and methodological basis of the research includes the leading domestic and foreign papers in the field of individual entrepreneurship, including monographs, articles, and analytical reviews.
The research is based on common methods, like methods expert assessments, statistical assessments and comparative assessments, a system approach, synthesis, expert assessments and graphical data visualization techniques.
Results & Discussion
However, there are a number of problems of small business development in Russia.
Becoming a small business is extremely difficult for the following reasons:
Limited Finance
The finances of finances affect the volume of production, the marketing budget, investments, and so on. According to expert estimates, only about 30% of entrepreneurs get loans. In this case, banks can also be understood, because entrepreneurs do not have sufficient collateral for loans and, accordingly, banks have additional risks associated with lending to small businesses.
Administrative Barriers
It is sometimes more difficult for small businesses to obtain licenses, patents and permits for certain types of activities from the state than for large firms. At the same time, entrepreneurs feel the excessive state regulation and the participation of control and supervision bodies, which is expressed mainly by conducting numerous checks before obtaining the necessary permits.
Taxation System
Entrepreneurs must have either professional knowledge, or additionally involve specialists in accounting and taxes for a fee. When setting tax rates, it is necessary to take into account their impact on production, on the elimination of conditions conducive to the legal departure of the taxpayer from paying taxes. Also a negative factor is the constant review of rates and the use of various kinds of benefits. Reporting that individual entrepreneurs should provide is becoming more and more complicated and confusing: ignorance entails mistakes, and mistakes must be paid for-and so the vicious circle turns out: either to pay fines or increase the costs of qualified accounting and tax specialists, and more recently. The cost of these services is growing. With the introduction of a simplified tax system and a special tax regime for the payment of a single tax on imputed income, the tax burden on small businesses has been significantly reduced (Darnihamedani et al., 2018).
Entrepreneurship in modern reality remains one of the most effective forms of realization of the initiative and self-organization of citizens in the context of the innovative development of the Russian state and society.
In Western countries, at present, entrepreneurship is characterized as a special, innovative style of management, which is based on a constant search for new opportunities, a focus on innovation, the ability to attract and use resources from a wide variety of sources to solve the set problem (Shaver and Davis, 2017).
In our opinion, external factors affecting the development of individual entrepreneurship:
• Social and cultural.
To internal factors affecting the development of individual entrepreneurship:
• Development of property relations.
• Clear definition of property rights.
• Development of ownership forms that ensure capital mobility.
• Features of the internal organization of business firms-the scale of the organization.
• The form and nature of the management of the organization.
The greatest impact on the activities of organizations has the price of raw materials, materials and other production costs. Obviously, inflation, growth of tariffs for services of natural monopolies and housing and communal services seriously affect the cost of goods and services and require business to constantly optimize their activities, while being virtually outside the control area of the business community.
Small business is closely connected with the development of self-employment (enterprises without the use of employees, most often individual or family enterprises). According to official data, the number of self-employed in the United States was 13.9% of the total number of people employed in the economy (Caballero, 2017). Unfortunately, in the Russian economy, self-employment is sometimes more likely a form of survival for socially vulnerable groups of the population (young people, the unemployed, people with incomes below the subsistence minimum, the unemployed, the disabled) (Pham et al., 2018).
To date, more than 20 million small companies have been registered in the United States, with at least 1 million more new ones opening each year.
Small business is a large layer of small owners who, by virtue of their mass character, largely determine the socio-economic image of the country. This business sector forms the most extensive network of enterprises operating mainly for the mass consumer of goods and services.
In the definition of the term «small business» theorists do not yet have a common opinion. In general, entrepreneurship is a sphere of economic activity in which an entrepreneur realizes himself-a subject seeking and implementing new opportunities and objects of labor application, capable of promoting and developing new products and services for consumers, generating new needs and ways to meet them. It should be noted that this definition can be attributed to both small and medium-sized enterprises. If we are talking about small business, then the proposed definition should be added «entrepreneurship in the field of small business.»
The processes of formation and development of small business as a system must be managed.
1. Not to abandon the fate of business entities, but to provide them with support, while at the same time determining priority business directions. Inertness in the actions of political power adversely affects economic practice. It leads: firstly, to the regional business entities blindly copying everything that is considered fashionable in the center and gives a quick income; secondly, to the disappearance of the dominant of the economic system, i.e. most important business area for the region.
2. Consolidation of efforts of the state and business is necessary, but not “interpenetration”. (The situation when the officials are in the «share«, and businessmen «in power«).
Small business is closely related to the development of self-employment. Self-employment is, on the one hand, a normal form of employment, and on the other-a means of survival or additional income for many people in need of work.
In the economic literature there is often a confusion of such concepts as “small business” and “self-employment”. According to the authors, “self-employment” is a broader economic concept than “small business”. At the doctrinal level, formal self-employment and informal self-employment are conditionally distinguished.
Formal self-employment is a traditional employment in small business organizations, characterized by the involvement of employees.
Informal self-employment refers to officially unregistered economic activities that do not pay taxes.
In contrast to foreign legislation, there is no legal definition of self-employment in Russian legislation, but it should be considered as a form of individual entrepreneurship.
Let us dwell on the definition of the concept “self-employment”, namely “self-employed citizen”.
This term is commonly used for individual entrepreneurs who do not have employees and conduct private activities. In fact, these are those who work «for themselves.»
Foreign lawyers define self-employment as the state of work for themselves, not for the employer (Warr, 2018). As a rule, tax authorities will consider a person as a self-employed person if the person decides to be recognized as such or creates income, so the person must file a tax return in accordance with the legislation of the relevant jurisdiction. In the real world, a critical issue for tax authorities is not whether a person trades, but whether a person is profitable and, therefore, can be taxed. In other words, trading activity is likely to be ignored if profits are not present, so administrative actions are usually ignored, and economic activities based on hobby or enthusiasm are usually ignored. In some countries, governments (for example, the United States and the United Kingdom) pay more attention to explaining whether a person is self-employed or engaged in disguised employment, often described as a pretext for contractual industry relations to hide the otherwise simple relationship between employer and employee.
It is interesting to note that the growth in the number of self-employed is also observed in foreign countries. By the way, in Canada over the past two decades, the number of self-employed has increased by 68% (Schuetze, 2015). Similar processes occur in the United States. However, the level of «informality» of self-employed, according to foreign authors, is difficult to estimate. This is explained by the fact that citizens who officially report on their status in a tax return sometimes shelter a part of their income from regulatory authorities, the amount of which is determined by the specifics of their activities. This is a situation of “partial” informality arises (Figure 1).
Figure 1: Number Of Legal Entities, Individual Entrepreneurs And Peasant (Farmer) Farms, Information About Which Is Contained In The Unified State Register Of Legal Entities And The Unified State Register Of Individual Entrepreneurs Of The Russian Federation (Except For Those Who Ceased Their Activities), (Million Units)
In 2016, a record number of enterprises closed in Russia (Figure 2). The number of companies that ceased operations due to the exclusion from the Unified State Register of Legal Entities by decision of the Federal Tax Service of the Russian Federation in 2016 was a record 780,982 units, which is 2.3 times more than in 2015 (338,258 units), this is evidenced by presented on the website of the Federal Tax Service of the Russian Federation (Federal Tax Service, 2018). Since the end of 2005, the tax authorities of the Russian Federation have been working on an on-going basis to exclude non-operating legal entities that have not submitted reports for 12 months and have not carried out banking operations, most of which are one-day companies created to evade taxes, as well as for the transfer of kickbacks, bribes, illegal withdrawal of funds abroad, financing of terrorist activities (Interfax, 2017). In order to hinder the activities of already established “one-day firms”, the tax authorities are granted the right to make entries about the inaccuracy of information about the legal entity itself, without a court decision and statements of legal entities. Starting from 2017, the number of legal entities that have ceased operations during the year begins to decrease, and by January 1, 2017, this figure has decreased by 17.1% over the year. At 11.11.2018, this indicator decreased by 20.7%.
Figure 2: Number Of Legal Entities, Individual Entrepreneurs And Peasant (Farmer) Households That Ceased Operations During The Year (Thousand Units)
The essence of the US tax system is to maximize the use of objectively operating market regulators of economic development.
The main types of taxes are: income tax, which accounts for more than 40% of federal budget revenues and about the same for state tax revenues; deductions to social insurance funds, which are equally made by the employer (legal entity-business entity) and workers (this payment of the population makes up more than 15% of federal budget revenues).
The US tax system involves highly complex, but well-regulated procedures for assessing taxable income. In the US, a much more favorable tax climate for business and households than in other developed countries.
The tax system of Japan has exceptional flexibility and high adaptability, responsive to all noticeable changes in both the economic and social spheres. The current tax system in Japan is characterized by a moderate level of tax burden (the share of taxes in Japan’s national income is 26%, whereas, for example, in the UK it is 40%, and France is 34%). In Japan, about 50% of profits are withdrawn from enterprises. The negative impact of such a fiscal focus on profit taxation is compensated here by conducting an active industrial policy of the state.
Each state regulates and forms its own tax system in different ways. Tax systems in different countries differ from each other: in structure, collection of taxes, methods of their collection, tax rates, fiscal powers of various levels of government, tax base, tax benefits. This is natural, since tax systems have evolved and continue to take shape under the influence of various economic, political and social conditions.
Conclusion
Individual entrepreneurship today is an integral element of the modern market economic system, without which the economy and society as a whole cannot effectively develop. The development of individual entrepreneurship is a necessary component of the modern model of a market competitive economy. It as an important component of the modern economy in many respects contributes to maintaining its competitive status in it, forms a layer of entrepreneurs. In the context of global changes in the economy, regionalization processes and market reforms, the development of individual entrepreneurship takes on a new form, which is of paramount importance both for Russia as a whole and for its regions. However, despite the proclaimed course of full-scale state support, individual entrepreneurship in Russia is developing slowly and controversially. At the same time, the role of individual entrepreneurship in ensuring the sustainable growth of the development of the regional economy has not been fully realized until now.
A unique feature of individual entrepreneurship in the conditions of the modern labor market is that, thanks to this form of labor relations, the entrepreneur provides himself and others with a workplace with all related government payments and savings to a pension fund. At the same time, by and large, there are no restrictions (except for age and capacity) for the population to register and start activities as an individual entrepreneur.
Individual entrepreneurship is one of the main elements of a market economy, one of the factors of its normal functioning, therefore, the economic and social development of Russia should be associated with an increase in the number of people involved in entrepreneurial activity. Entrepreneurship is a free economic management in various areas of activity (except those prohibited by law), carried out by market relations entities in order to meet the needs of specific consumers and society in goods (works, services) and generate profits (income) necessary for self-development of their own business (enterprises) and ensuring financial obligations to budgets and other economic entities. According to part one of the Civil Code of the Russian Federation, an individual entrepreneur is an individual registered in accordance with the law and engaged in entrepreneurial activity without forming a legal entity, on his own behalf, under his property responsibility, the purpose of which is to make a profit.
As we see from the study, small and medium-sized businesses abroad are successfully developing and constantly improving. In economically developed countries, the state is not a brake on the development of small and medium-sized businesses, but an active supporter and assistant in its improvement. Small and medium-sized businesses are provided with significant support at the state level, a lot of various benefits are provided. Governments of economically developed countries are developing various programs to support such entrepreneurship, which have successfully proved their effectiveness in practice. In any foreign country there are pros and cons in the development of small and medium enterprises. And any experience will be very useful for the development of small and medium-sized businesses in Russia and for the modernization of the economy as a whole.
The factor of availability of financial resources is important for the development of entrepreneurship. This is primarily an opportunity to receive credit funds and investments for business development. Today, banks are actively developing loans to small and medium-sized businesses. Lending institutions place serious demands on the financial condition of enterprises and the availability of liquid collateral, which is difficult for most small and medium-sized companies, especially start-up entrepreneurs.
Thus, half of the representatives of small and medium-sized businesses noted the extreme difficulty of obtaining a bank loan in the presence of a high-quality business plan, but in the absence of collateral. Thus, we can talk about the current unavailability on the part of banks to change the current practice of lending to small and medium-sized businesses and increase the volume of unsecured loans. This is the strongest deterrent to financing and prospective development of small and medium businesses.
In third place among the factors that have the greatest influence on the development of entrepreneurial activity is the availability of human resources. The personnel problem is noted as relevant for most industries, and it is important for entrepreneurs to have qualified specialists on the labor market, whose skills would be adequate to the current tasks of the enterprise.
Administrative barriers (corruption and bureaucracy), as a factor seriously affecting the business environment. Despite the fact that the influence of this factor is decreasing, the level of corruption in Russia still remains very high.
In fifth and sixth places-factors of accessibility of infrastructure (offices, warehouses), as well as the possibility of applying innovations and new technologies.
Separately, it should be said about the attitude to innovation. Subjects of small and medium business do not consider their implementation a priority factor in the development of their own business. First of all, this situation can be attributed to the low employment rate of entrepreneurs in the business services sector. When providing business services, competition is based on knowledge and technology, so it is impossible to imagine the development of an innovative economy without increasing the share of companies with high quality and growth potential in this sector.
The criminal situation in relation to business also worries only entrepreneurs.
Thus, having considered the results of monitoring the entrepreneurial climate in Russia and some foreign countries, it can be concluded that the external factors prevail in the business environment, the subject of the formation of which is, above all, the state. The state, by sending a factorial effect on business, should form a favorable business environment, competently, balancedly supporting entrepreneurship, regulating it, but not restricting its freedom.
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