Learn: Purpose of Business

Welcome!Today we'll learn about the Purpose of Business. This topic explores why businesses exist and what they aim to achieve. Let's get started!

What is the Purpose of Business?Businesses exist to produce goods (physical items like clothes) or services (activities like haircuts). They aim to meet people's needs (essential items) and wants (luxuries).

EntrepreneurshipAn entrepreneur is someone who starts and runs a business. They are often risk-takers, organised, and creative. Entrepreneurs are motivated by factors like earning profits, gaining independence, or pursuing a passion.

Types of BusinessBusinesses can take different forms, such as sole traders (one person owns and runs the business), partnerships (two or more people share ownership), Ltd (private limited companies), Plc (public limited companies), and not-for-profit organisations (focused on helping society).

Business Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (specific steps to achieve goals). Common aims include profit, survival, growth, market share, and customer satisfaction. Ethical aims focus on doing what's right for society.

StakeholdersStakeholders are individuals or groups affected by a business, such as owners, employees, customers, suppliers, and local communities. Each stakeholder has different aims, and conflicts can arise between their interests.

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