Learn: What a Business Is and Why Businesses Exist

Welcome!Today we'll explore what a business is and why businesses exist. This lesson is designed just for you, so let's dive in step by step!

What is a Business?A business is an organisation that provides goods (physical items) or services (actions or activities) to customers. Businesses exist to meet people's needs and wants, such as food, clothing, or entertainment.

Why Do Businesses Exist?Businesses exist to solve problems, fulfil opportunities, and improve people's lives. They aim to make a profit, provide jobs, and contribute to the economy by producing goods and services.

Types of Goods and ServicesGoods are physical products like cars, books, or phones. Services are activities such as teaching, haircuts, or delivering parcels. Businesses may focus on goods, services, or both.

EntrepreneurshipEntrepreneurs are people who start businesses. They are often organised, creative, and risk-takers. Their motivations may include making a profit, gaining independence, or solving a problem in society.

Business StructuresBusinesses can be set up in different ways depending on their size and goals. Common types include sole traders, partnerships, private limited companies (Ltd), public limited companies (Plc), and not-for-profit organisations.

Business Aims and ObjectivesBusinesses set aims, such as making a profit, surviving, growing, increasing market share, or satisfying customers. Objectives are specific steps to achieve these aims.

Review Time!Well done! You've learned about the purpose of businesses, types of goods and services, entrepreneurship, and business structures. Let's test everything you've learned.