Hộ kinh doanh là gì? Những vấn đề lý luận về hộ kinh doanh ở Việt Nam

Household business models are economic units and production and business activities are mainly based on capital and labor of each household. This economic sector is gradually developing and increasingly asserting its role in the multi-sector economy. So What is household business? What are the characteristics and roles of a business household? Let’s find out more details with Thesis 99 through the article below.

What is the concept of household business?

In the Vietnamese economy, up to the present time, household businesses are one of the largest business entities and are recognized by the state by the law. Under each period, each business household angle will be referred to by different names such as individual household, individual business household, etc. However, the essence remains unchanged.

About household business conceptfollow Clause 1, Article 79 of Decree 01/2021/ND-CP of the Governmentbusiness household is defined as follows:

“Household business is registered and established by an individual or members of a household and is responsible with all his/her assets for the household business. In case household members register as business households, they shall authorize one member to act as the business household representative. Individuals who register as business households, the person authorized by household members to act as the business household representative is the owner of the business household.

From the above definition, we can understand that household business is a name to refer to individuals and households trading in goods and services with the simplest form of business structure, relatively easy to establish. easy and inexpensive way in which one individual runs and owns the entire business. Behalf of household business ownerthe individual will be legally responsible for all aspects of the business.

What is a household business?

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➢ What is personal income tax? Contents of personal income tax in Vietnam

What are the legal characteristics of business households?

Household business without legal personality: Household business is usually established by an individual or a representative of a group of people, having the nature of an individual doing business, so it cannot be a legal entity. All assets of the business household are the assets of the individuals who create the business household and enjoy all profits and bear all related obligations. The individual business registration representative for the household business can be the plaintiff or the defendant in legal cases related to production and business activities of the household business.

Household business is a form of small-scale business: This feature comes from the form of business and production activities of household businesses. Accordingly, household businesses employing less than 10 employees shows the extent of the size of the number of employees in the household business. However, in practice, this regulation is not really necessary for business people, with some where a larger number of workers can be used.

The owner of the business household is responsible for the debts of the business household: Being a professional business entity, but the business household does not have the status of an enterprise, so when participating in transactions, individuals or household representatives act on behalf of that person but not in the name of the business household. currently doing business.

Basically, the business household representative is responsible with his/her personal property for all debts arising from the household’s business activities.

Features of business activities: Business households’ production and business activities are regular occupations and their legitimate incomes arise from business activities. Business households have small form and scale but have a wide distribution range, can operate in remote areas and areas where economic and social conditions are still difficult and their professions Business households are sometimes small, rudimentary industries, processing and service sectors, etc. Business households are considered as distributors of products and goods of businesses to people. As a result, household businesses have the advantage of flexibility, easily changing products or changing business directions and locations to suit production and business activities when needed.

Business capital of household business: The source of capital for business households is usually their own capital and loans borrowed from friends and relatives or from other credits in the society to individuals. Household businesses direct their business activities in the fields of service to life, so it is easy to mobilize resources of the society, capital sources that are still hidden in society.

About competitiveness: The business market of household businesses is also quite large, but the competitiveness of business households is still limited, and their spontaneity is high, so when they are not able to invest in innovation, it is easy to fall behind. Business households also face difficulties in market penetration and product distribution.

About the workforce, human resources: Household business has a small number of employees (less than 10 people), a small scale of labor, and not a high skill level. Manual labor is mainly, the management team is the individual representative of the business registration, lack of qualifications and management skills, mainly based on experience.

Executive management capacity: The management ability of business households is weak, especially in financial management because business activities are income-generating for individuals who register to do business, so capital sources, revenue, income and ideas have not been separated. compliance with laws and regulations is not high. The ability of business households to connect is also limited, they do not want to share business experiences and customers with others. Household business representatives can hardly be assessed as a business administrator.

What are the legal characteristics of business households?

What is the role of the household business?

Contributing to the overall growth of the economy: The development of the private economy is a factor that ensures maintaining a high GDP growth rate, generating revenue for the state budget and participating in solving social problems such as job creation, hunger eradication, poverty reduction, etc. In addition, household businesses also help increase GDP and state budget revenue, making an important contribution to stimulating consumer demand and supply, circulation of goods, etc. contribute to social work.

Exploiting and making good use of local resourcesBusiness households present in most regions, regions and localities have been able to make good use of and exploit local resources, make full use of social resources, and have many advantages in exploitation. rich potential from the people. Business households also use the financial resources of the people in the area, raw materials in the area for production and business activities.

Economic restructuring: Increasing the number of business households and creating stimulation for business households to transform business models will promote economic restructuring in terms of economic regions, economic sectors and sectors. economy.

Create jobs for workers: Household businesses create jobs for people, attract a significant labor force, help solve employment problems for the society, especially with jobs that do not require professional qualifications or skills.

Forming and developing a dynamic business team: Business households must always have high flexibility in management and administration, enterprising and accepting risks, and the ability to seize business opportunities that will affect the operation of each business household. Therefore, this will create a dynamic business team, creating a dynamic economic structure that is flexible with the market.

Contributing to urban development: Developing household businesses in rural areas also contributes to reducing the disparity in life between urban and rural areas, promoting urbanization in rural areas, and limiting the situation of rural people moving to urban areas. generate many complex social problems.

Preserving national cultural identityThe advantage of business households is the potential of experience in management, production organization, and traditional production know-how accumulated from many generations, allowing the promotion of traditional industries to create products and services. social and export needs. In addition, household businesses doing business in handicrafts also contribute to maintaining and developing handicraft industries, preserving the national cultural identity.

Limitations of this type of household business

First, the conflict of personal interests and social interests. That is, when profits are high, personal interests are valued, but social benefits will be overlooked.

Monday, the establishment of household businesses is small, with limited capacity and low operating capital. Lack of capital for production and expansion is a common phenomenon that hinders business households from developing. Outdated machinery and equipment, and low labor skills, the ability to grow is not much.

Tuesday, business households operate spontaneously, which is demonstrated by not having business registration and not paying taxes. Sir, household businesses do business in the wrong line of registration, violate tax laws, pollute the environment, do not ensure labor safety, and trade in poor quality goods that affect people’s lives. of people.

WednesdayThe product consumption market is also an obstacle to the development of household businesses. Business households have limited access to the world market, mainly focusing on the domestic market.

What are the limitations of this type of household business?

What is State management for business households?

The concept of State management for business households

State management of business households is the means of influence of the State on individuals and business households in the form of business models through a system of laws, regulations, methods, etc. Business households operate and comply with the socio-economic objectives set by the State.

Contents of State management for business households

Formulate strategic orientations, master plans, plans and policies for the development of business households locally and nationally: It is necessary to define the mission, strategic orientation, plans and policies to develop the household business model on the basis of analyzing opportunities and challenges from the environment as well as the potentials and advantages of the territory. It is necessary to arrange appropriate resources to develop household businesses to ensure a reasonable balance between economic fields and territories.

Building a system of legal documents on business households: The State needs to build a complete and synchronous legal system including laws, decrees, circulars, etc. in order to create a solid legal corridor for them to do business and operate and for the State to supervise and inspect the process. household business activities.

Management, inspection and supervision after business registration: Inspection, supervision and handling of violations in order to detect violations of the law, shortcomings in production and business activities and problems arising during the operation of business households and take measures to handle and overcome shortcomings to ensure reasonable development.

The organization of the State management apparatus for business households: The State management apparatus with business households must be organized into a system to form a synchronous whole in order to perform the state management function and build the State management apparatus for business households. It is necessary to improve the capacity and professional qualifications of the staff and overcome the situation causing troubles and discrimination against business households compared to enterprises.

Developing the number of business households will bring many benefits to society and economic development, but it also has many potential limitations. Therefore, it is necessary to have policies to support capital, provide legal advice and provide information on the market and investment for the development of household businesses to be sustainable. Hopefully the knowledge revolves around What is the concept of household business? Thesis 99 mentioned in the above article will be useful for readers.