Learn: Business in the Real World

Welcome!Today, we'll be exploring the topic of Business in the Real World. By the end of this lesson, you'll understand why businesses exist, different types of businesses, and key factors that influence them.

Why Do Businesses Exist?Businesses exist to produce goods or services that meet the needs and wants of customers. They can also create opportunities for entrepreneurs and provide employment.

EntrepreneursAn entrepreneur is someone who starts and runs their own business. Entrepreneurs often take risks and need to be organised, determined, and creative.They are motivated by factors like profit, independence, or the desire to create something new.

Types of BusinessesThere are different types of businesses, each with unique features:Sole trader - One person owns and controls it, with unlimited liability.Partnership - Owned by two or more people, who share risks and profits.Private Limited Company (Ltd) - Owned by shareholders, limited liability.Public Limited Company (Plc) - Shares sold to the public, limited liability.Not-for-profit - Focuses on helping others rather than making a profit.

Business Aims and ObjectivesBusinesses have specific aims and objectives that guide their decisions. Common aims include:Profit - Earning more money than they spend.Survival - Continuing to operate, especially during challenges.Growth - Expanding the business or increasing sales.Market share - Gaining a larger percentage of customers in a specific market.Customer satisfaction - Meeting or exceeding customer expectations.Ethics - Acting responsibly and sustainably.

Business StakeholdersStakeholders are individuals or groups affected by a business. Key stakeholders include:Owners - Want profits and success.Employees - Seek job security and fair pay.Customers - Expect good quality and prices.Suppliers - Rely on businesses for regular orders.Local community - Interested in how the business impacts the area.Conflicts can arise as stakeholders may have different priorities.

Location FactorsChoosing a location is important for a business. Factors include:Market - Being near customers.Labour - Availability of skilled workers.Raw materials - Access to necessary supplies.Competition - Being near or away from rivals.Cost - Affordability of rent or facilities.

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