What is a Business?
A business is an organisation that exists to provide goods and services on a
commercial basis to customers.
Goods are physical or tangible products: e.g. consumer electronics,
industrial components, cars
Services are intangible products: e.g. insurance, dental services, cleaning
Customers can be individuals (buying on their own behalf or for households),
businesses or other organisations.
Why Businesses Exist
Businesses exist because they are formed by entrepreneurs and are subsequently
developed if they manage to get beyond the survival stage.
Most businesses exist in order to earn a return for the business owners, and the
potential for profit is a key motive for entrepreneurial activity. However, there are
other potential business objectives, which are explored further during your studies.
Businesses play a key role in wider society. In particular they:
Create and sustain employment & develop the skills of people
Drive innovation through research & development (R&D) and new products
Contribute to the infrastructure of the country
Pay taxes on profits earned & collect taxes on behalf of government
Create wealth by providing returns on investment
Role of Entrepreneurs
Entrepreneurs (and the enterprise that they demonstrate) play a key role in the
formation and development of businesses. In particular, entrepreneurs:
Spot business opportunities
Take (calculated) risks in order to gain possible future returns
Act a catalyst for the creation & growth of new business enterprises
A business is an organisation that exists to provide goods and services on a
commercial basis to customers.
Goods are physical or tangible products: e.g. consumer electronics,
industrial components, cars
Services are intangible products: e.g. insurance, dental services, cleaning
Customers can be individuals (buying on their own behalf or for households),
businesses or other organisations.
Why Businesses Exist
Businesses exist because they are formed by entrepreneurs and are subsequently
developed if they manage to get beyond the survival stage.
Most businesses exist in order to earn a return for the business owners, and the
potential for profit is a key motive for entrepreneurial activity. However, there are
other potential business objectives, which are explored further during your studies.
Businesses play a key role in wider society. In particular they:
Create and sustain employment & develop the skills of people
Drive innovation through research & development (R&D) and new products
Contribute to the infrastructure of the country
Pay taxes on profits earned & collect taxes on behalf of government
Create wealth by providing returns on investment
Role of Entrepreneurs
Entrepreneurs (and the enterprise that they demonstrate) play a key role in the
formation and development of businesses. In particular, entrepreneurs:
Spot business opportunities
Take (calculated) risks in order to gain possible future returns
Act a catalyst for the creation & growth of new business enterprises
