Learn: Purpose of Business

Welcome!Today we'll explore the purpose of business. Understanding why businesses exist is key to learning how they operate and grow.

Why do businesses exist?Businesses exist to produce goods or services that meet people's needs and wants. Needs are essential things like food and shelter, while wants are things people desire but don't need to survive, like new clothes or gadgets.

Goods vs ServicesGoods are physical items, like cars or books, that businesses sell. Services are non-physical activities, like haircuts or teaching, provided by businesses.

Entrepreneurs and their roleAn entrepreneur is someone who starts and runs a business. They take risks to create goods or services and aim to make profits or achieve independence. Entrepreneurs are often organised and willing to take risks.

Meeting needs and wantsBusinesses aim to meet customers' needs and wants by offering products or services. For example, a food shop meets the need for food, while a phone company appeals to the want for communication devices.

Review Time!Great work! You've explored the purpose of business, including goods, services, and how they meet needs and wants. Let's test your understanding now.

Lesson Complete!Well done! You've learned about the purpose of business, including goods, services, and entrepreneurship. Keep practising to deepen your understanding.