Business enterprise is a very general term that describes businesses that are attempting to enter industries or create new markets. The numbers and success of business enterprises in an economy are sometimes used to gauge economic activity. Business enterprises must deal with specific taxes and can sometimes struggle to find enough funding to succeed.
A business enterprise is simply a business started to make a profit. This is distinguished from some other businesses, which owners create to supply themselves and others with jobs. A business enterprise revolves around a single idea, a mission which the owner intends to use to create a viable company for the purpose of making a profit and succeeding in the business world.
Business enterprises are begun by entrepreneurs who have the knowledge required to start a business, and a key idea about a product or service and how it can be used to create a customer base and turn a profit. The entrepreneur creates a detailed business plan outlining what the business needs to start, what its marketing techniques will be, how it will deal with competition, and what its first few years of growth will look like. With this plan, the entrepreneur tries to find funding to start the enterprise.
The more enterprises that are being started in an economy, the more individuals are having ideas and finding enough capital to begin their own businesses. This is generally considered a good economic sign. A low number of yearly enterprises may be a sign that entrepreneurs cannot find financing, or that small businesses are being choked out by large corporations.
A business enterprise tax is required of certain enterprises, specifically those that have $150,000 or more in gross business receipts. This tax is 0.75 percent, but can add up to a significant amount. Business owners must pay estimated enterprise taxes four times every year.
Business enterprises fail very easily, most because of inexperience and funding problems. To help these enterprises survive, many organizations offer special funding for specific types of businesses. Some organizations specialize in funding for enterprises run by women or other minorities, while government agencies help small businesses through loans and advice.