Learn: What a Business Is and Why Businesses Exist

Welcome!Hi there! Today, we're going to learn about what a business is and why businesses exist. You'll discover why businesses are important and what roles they play in society. Let's get started!

What Is a Business?A business is an organisation that produces goods or services to meet customer needs and wants. Goods are physical items like clothes or food, while services are activities provided to you, like haircuts or education.

Why Do Businesses Exist?Businesses exist to produce goods and services that meet customer demands. They also aim to make a profit, create jobs, and contribute to the economy. Many businesses also aim to solve problems or take advantage of opportunities.

Types of Goods and ServicesGoods can be split into two categories: durable goods, like cars and furniture, which last a long time, and non-durable goods, like food and drinks, which are used up quickly. Services can include things like education, transport, or healthcare.

What Drives Entrepreneurs?An entrepreneur is someone who starts and runs a business. Entrepreneurs are usually motivated by profit, independence, and the desire to create something new or solve problems. They often have traits like risk-taking, organisation, and creativity.

Business PurposeThe purpose of a business is to meet customer needs and wants by providing goods and services. For example, a bakery meets the need for food by selling bread and cakes, while a mobile phone company meets the want for communication by selling phones.

Review Time!Great work! You've learned about what a business is and why businesses exist. Now let's test your understanding with a few questions.