What is Enterprise?

 What is Enterprise?

Enterprise has several different meanings, first is the eagerness to do something new and clever, despite the fact that there are plenty of risks.

The second meaning is similar to the first, although is to do with business; business is enterprise, it’s basically when you aim to make profit. Profit is the difference between what you make and what you have spent on your business, efforts. 

For example: you buy a thick piece of paper for 50c and a pencil for 50c, you would spend $1.00 on the materials you would use to create something to sell. So if you drew something on that thick piece of paper and sold it for $3.00 as a gift card, your profit would be $2.00. You could then buy two pieces of paper for $1.00 and draw two gift cards, sell them, and make $6.00. And the additional $1.00 you didn’t spend, which would make your profit $7.00. The further you take this process, the more profit you’ll make. 

Enterprise is a form of business, commonly when people take the risk of spending money to invest in a small business. There is a process to "enrol" for Enterprise, you will need to ensure that your idea is viable, choose a business name etc, create a Real Me login, get a New Zealand business number, secure your business name, look into regulations, register your company etc.

There are also different types of Enterprise: 

- Sole Proprietorship: Sole Proprietorship is an unincorporated business that has just one owner who pays personal income tax on profits earned from business. Sole Proprietorship is the easiest type of business to establish or take apart, due to the lack of government regulations. This type of Enterprise is very popular among sole owners of business, individual self-contractors, and consultants. Most of these Sole Proprietors do business under their own names because creating a separate business or trade isn't necessary. 

- Partnership: Partnership is an a agreement between two or more parties to manage and operate a business and share it's profits. There are also several types of Partnership arrangements. In particular, in a Partnership Enterprise agreement, all partners share liabilities and profits equally, while in other Partnerships, may have limited liability. There are also so-called "silent partner", in which one party is not involved in the day-to-day operations of the business. 

- Private Limited Companies: A Private Limited Companies are also known as LTDs. LTD is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering. As a result, Private Companies do not need to meet the Securities and Exchange Commission's strict filling requirements for public companies.

- Public Limited Companies: Public Limited Companies are also known as PLC. A PLC designates a company that has offered shares of stock to the general public. The buyers of those shares have limited liability, meaning, they can not be held responsible for any business losses in excess of the amount they paid for for the shares. PLC's operations are regulated and it is required to publish periodic reports to shareholders and prospective shareholders on its true financial health.