Learn: What a Business Is and Why Businesses Exist

Welcome!Today we’re learning about what businesses are and why they exist. This is a key topic in AQA GCSE Business, and understanding it will help you see how businesses operate in the real world.

What is a Business?A business is an organisation that produces goods or provides services to meet the needs and wants of customers. Businesses exist to solve problems, fulfil opportunities, and create value for people.

Why Do Businesses Exist?Businesses exist to achieve specific purposes, such as making a profit, providing employment, or serving communities. They aim to meet customer needs and wants, and may also create opportunities for innovation or growth.

Needs and WantsNeeds are things people must have to survive, such as food, clothing, and shelter. Wants are things people desire but don’t necessarily need, like mobile phones or holidays.

Goods and ServicesGoods are physical products, like cars or laptops. Services are actions done for customers, like hairdressing or teaching. Businesses can provide one or both.

EntrepreneurshipAn entrepreneur is someone who starts and runs their own business. Entrepreneurs often take risks, organise resources, and aim to achieve goals like profit or independence.

Why Customers MatterCustomers are the people or organisations that buy goods and services. Businesses rely on customers to generate revenue, which helps them survive and grow.

Review Time!Great work! You've learned about what a business is, why it exists, and the key terms like needs, wants, goods, services, and entrepreneurship. Let’s test your understanding now.