Learn: Business in the Real World

Welcome!Today we'll learn about business in the real world, including its purpose, types, stakeholders, and more. This will be a great foundation for understanding how businesses operate and succeed.

What is the Purpose of Business?A business exists to produce goods or services that meet the needs and wants of its customers. Needs are essential items like food, clothing, and shelter, while wants are things people desire but can live without, like entertainment or luxury goods.

EntrepreneurshipAn entrepreneur is someone who starts and runs their own business. Entrepreneurs need traits such as being organised, hardworking, and willing to take risks. They are often motivated by goals like earning profits, achieving independence, or pursuing personal passions.

Types of BusinessesThere are different types of businesses, such as sole traders (owned by one person), partnerships (owned by two or more people), private limited companies (Ltd) (privately owned), public limited companies (Plc) (shares sold to the public), and not-for-profit organisations (focused on social or environmental goals).

Business Aims and ObjectivesBusinesses set different aims and objectives, such as making a profit, surviving, growing, increasing market share, satisfying customers, and acting ethically. These goals help guide a business's decisions and strategies.

StakeholdersStakeholders are people or groups who have an interest in a business. Examples include owners, employees, customers, suppliers, and the local community. Each stakeholder has different aims, which can sometimes lead to conflicts.

Location FactorsWhen choosing a location, businesses consider factors like proximity to the market, availability of labour, access to raw materials, competition, and costs. These factors affect the business's ability to attract customers and operate efficiently.

Business PlansA business plan outlines the goals, strategies, and financial details of a business. It includes sections like market analysis, financial forecasts, and organisational structure. Business plans help reduce risks and attract investors, but they can be time-consuming to create.

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