What is the difference between common entrepreneurship and equity investment?

Venture capital is translated from the English Venture Capital (VC) for short. When VC was first introduced to China, it was translated as "venture capital" and remained in use until the end of the 20th century, when it was later translated as "venture capital" according to an encyclopedia. "Venture capital" focuses on investors' risk awareness and investment impulse, "venture capital" emphasizes the entrepreneurial characteristics of the invested enterprise, which is two aspects of the same thing, in the first release of the "National Medium and Long-term Science and Technology Development Plan Outline (2006-2020)" and supporting policies, for the first time the two meanings of "venture" are written into the first document.

To this end, the large-scale survey report jointly launched by the Ministry of Science and Technology, the Ministry of Commerce and the China Development Bank has also been renamed the "Report on the Development of China's Venture Capital" from 2006. At this point, the official interpretation and expression gradually moved towards unity. PE (Private Equity) is a concept closely related to venture capital, which is directly translated as private equity investment.

PE and VC are consistent in the following ways: both are privately offered to investors; Both are equity investments. PE and VC have the following differences:

There are differences in the investment stage. The investment stage of PE is generally a pre-listed company or even a listed company, but the investment stage of VC includes projects in the seed stage, growth stage, expansion stage and maturity stage. The scale of investment is not the same.

The scale of PE investment is generally large, especially in listed companies; Most of the projects invested by VC are developing enterprises, and their demand for capital is not too large, and in order to diversify risks, the investment amount of a single VC project will not be too large. There are differences in investment philosophies. Some PEs are not simply to obtain profits through the operation of the capital market, but to integrate the industrial chain to obtain high profits.

The difference between investment and entrepreneurship is reflected in the following three aspects:

First, the concept is different.

1. Investment refers to the process in which the state, enterprises and individuals sign agreements with each other for specific purposes to promote social development, achieve mutual benefit and transfer funds.

2. Entrepreneurship is a process in which entrepreneurs optimize and integrate the resources they have or the resources they can have through efforts, so as to create greater economic or social value.

Second, the fields involved are different.

1. The fields involved in investment include many types, such as: physical, **, and bank short-term wealth management product investment.

2. Entrepreneurship is a huge project, involving financing, options, site selection, marketing and many other aspects.

3. The people involved are different.

1. The personnel involved in the investment are those who have abundant self-owned funds.

2. The people who start a business include the following:

Middle- and upper-class and college students should stay in the city to engage in industry and commerce, and engage in the management of the middle and high-end tertiary and secondary industries, so as to prosper the urban economy, promote employment, and create a prosperous and developed urban economy.

Migrant workers and migrant workers: because they do not have strong personal ability, lack of resources, do not have much capital, and have poor ability and conditions in all aspects, they will soon be eliminated in the fierce market competition, and generally learn and master various skills, find a job with a fixed salary, or return to the countryside to return to their hometowns to engage in the planting and breeding of higher value-added cash crops.

Returnees: Start a company and start your own business.

Summary. Hello dear, now for you to answer the difference between investment and entrepreneurship? The most fundamental difference is that one makes money by labor and the other makes money by capital. The specific behaviors of making money through labor include part-time work and entrepreneurship; And to make money with capital is to make investments.

Hello dear, now for you to answer the difference between investment and entrepreneurship? The most fundamental difference is that one makes money by labor and the other makes money by capital. The specific behaviors of making money through labor include part-time work and entrepreneurship; And to make money with capital is to make investments.

Entrepreneurship is to create wealth through labor. If you want to obtain a lot of wealth through entrepreneurship, you must invest a lot of labor to obtain, therefore, the key to entrepreneurship lies in execution, the stronger the execution, the longer the labor time, the higher the labor efficiency, the more money you can make. Making money through labor is self-employment.

Income = Labor efficiency x Labor hours. There are no bad jobs and projects, only people who don't make money, and at this stage of making money by labor, if you want to make more money, you can only put in a lot of labor, and there is no other choice.

Investment is different from entrepreneurship, entrepreneurship makes money by labor, investment makes money by capital, and the core competitiveness of entrepreneurship is to export a large amount of labor in exchange for more wealth. The core competitiveness of investment is to output correct judgments, correct future value trends of investment targets, and then cash out at a high level. The market is changing rapidly, today's market is completely different from yesterday, investors need to have a solid basic knowledge to do a good job, need to have enough understanding of the dynamics of the market, and collect a lot of market information to make a correct judgment.

Every investment target is different, every investment decision is different, although the investment thinking and style can be fixed, but the investment decision can not be standardized, entrepreneurship is mostly repetitive work, investment is creative work. The behavioral logic of investment is different from that of entrepreneurship, investors do not need to do a lot of repetitive work, and execution is not the core ability of investors. The core quality of an investor is the ability to make correct judgments.

Behind it, it is necessary to collect a lot of information (project research) and think a lot (process information) before you can make the right judgment.

1. First of all, we must understand the concepts of "venture capital" and "private equity investment";

1) The so-called "equity investment" in China is called "private equity investment" in foreign countries or textbooks, also known as PE.

So, equity ** = equity investment ** = private equity investment **.

2) The so-called "venture capital" in China, that is, the "venture capital" called in foreign countries or textbooks, also known as VC.

3) Equity investment and venture capital are different and related, and they are both "equity investment" enterprises. The investment stage of venture capital should be a little more advanced, and equity investment should be a little later; However, the law does not require this to be done.

4) Equity investment institutions, including equity investment enterprises and equity investment management enterprises, equity investment management enterprises refer to enterprises entrusted with the management of equity investment ** (enterprises). The same is true for venture capital firms.

There are four types of equity investments:

1. Control refers to the right to decide the financial and operational policies of an enterprise, and to obtain benefits from the business activities of the enterprise;

2. "Joint control" refers to the common control of a certain economic activity as agreed in the contract;

3. Significant influence refers to the power to participate in the decision-making of an enterprise's financial and operational policies, but does not determine these policies; Mausoleum clan.

4. No control, no common control and no significant impact.

Legal basisArticle 35 of the Measures for the Administration of Equity of Insurance Companies stipulates that investors shall not directly or indirectly obtain the equity of insurance companies through the following funds:

1) Borrowings related to insurance companies;

2) Funds obtained with deposits or other assets of insurance companies as security;

3) Improper use of the financial influence of the insurance company or improper association with the insurance company to obtain funds;

4) Funds obtained in other ways prohibited by the China Insurance Regulatory Commission. and losses.

It is strictly forbidden to misappropriate insurance funds, or to make revolving capital contributions to insurance companies with funds obtained from insurance companies' investment trust plans, private placements, equity investments, etc.

Article 71 of the Company Law of the People's Republic of China.

The shareholders of a limited liability company may transfer all or part of their equity to each other.

The transfer of equity by a shareholder to a person other than the shareholder shall be subject to the consent of more than half of the other shareholders. Shareholders shall notify other shareholders in writing to solicit consent for their equity transfer, and if other shareholders do not reply within 30 days from the date of receipt of the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; If you do not purchase it, you will be deemed to have agreed to the transfer.

For the equity transferred with the consent of the shareholders, under the same conditions, other shareholders have the right of first refusal. If two or more shareholders claim to exercise the right of first refusal, they shall negotiate to determine their respective purchase ratios; If the negotiation fails, the right of first refusal shall be exercised in accordance with the proportion of their respective capital contributions at the time of transfer.

Where the articles of association of the company have other provisions on the transfer of equity, such provisions shall prevail.