Learn: Business in the Real World

Welcome!Today we'll explore 'Business in the Real World', an essential topic in AQA GCSE Business 8132. Let's learn about the purpose of business, entrepreneurship, and more!

Purpose of BusinessBusinesses exist to provide goods (physical items like clothes) and services (tasks like haircuts). Their goal is to meet customer needs (essential items like food) and wants (optional items like holidays). They also aim to seize opportunities and provide value to society.

EntrepreneurshipAn entrepreneur is someone who sets up a business, taking risks to achieve rewards. They need traits like creativity, determination, and organisation. Entrepreneurs are motivated by factors such as financial profit, independence, and the desire to make an impact.

Types of BusinessBusinesses can operate in different structures. A sole trader is owned by one person, while a partnership involves two or more people. Larger businesses may be Ltd (private limited companies) or Plc (public limited companies). Some businesses are not-for-profit, focusing on social or charitable goals.

Business Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (short-term targets to achieve aims). Common aims include profit, survival, growth, market share, customer satisfaction, and ethical practices. For example, a new business may prioritise survival before focusing on growth.

StakeholdersStakeholders are groups or individuals with an interest in a business, such as owners, employees, customers, suppliers, and the government. They often have different aims, which can lead to conflicts. For example, owners may want higher profits, while employees may want better pay.

Location FactorsChoosing a business location depends on factors like market access, availability of labour, raw materials, competition, and costs. For example, a factory may choose a location near raw materials to reduce transport costs, while a retail shop may prioritise foot traffic.

Review Time!Great work! You've learned about the purpose of business, entrepreneurship, types of business, aims and objectives, stakeholders, and location factors. Let's test your understanding with a few questions.