Learn: What a Business Is and Why Businesses Exist

Welcome!Welcome to your personalised lesson on businesses and why they exist. This topic is essential for understanding how businesses operate and their purpose in society. Let's dive in!

What is a Business?A business is an organisation that produces goods or provides services to meet people's needs and wants. Businesses exist to fulfil opportunities, create value, and generate income for their owners.

Purpose of BusinessesThe main purpose of a business is to produce goods or services. Businesses solve problems by meeting customer needs, creating jobs, and contributing to the economy. For example, supermarkets provide food, and mobile phone companies offer communication services.

EntrepreneurshipAn entrepreneur is someone who starts a business, often by taking risks. Entrepreneurs need traits like creativity, organisation, and the ability to solve problems. Their motivations might include earning profit, gaining independence, or pursuing a passion.

Why Do Businesses Exist?Businesses exist for several reasons, such as to generate profit, provide employment, and solve problems. They also help communities by improving the quality of life through goods and services. For example, a bakery meets the need for food while earning money for its owners.

Review Time!Great work! You've learned about what a business is, its purpose, and why they exist. Let's test your understanding with some questions.