Learn: What a Business Is and Why Businesses Exist

Welcome!Today we'll explore what businesses are and why they exist. Understanding this is key to learning about the world of business and entrepreneurship!

What is a Business?A business is an organisation that produces goods or provides services to meet people's needs or wants. It can be a small shop or a large company, but its goal is often to make a profit or achieve other objectives like customer satisfaction.

Why Do Businesses Exist?Businesses exist to fulfil opportunities, create products or services, and meet the needs and wants of consumers. They also provide jobs, contribute to the economy, and solve problems for society.

Goods vs ServicesBusinesses can provide goods, which are physical items like food or clothes, or services, which are activities like haircuts or car repairs. Some businesses offer both!

EntrepreneurshipAn entrepreneur is someone who starts a business. Entrepreneurs are often creative, willing to take risks, and good at organising resources to achieve their goals. They are motivated by profit, independence, and making a difference.

Business TypesBusinesses can be organised in different ways: sole traders (one owner), partnerships (two or more people), Ltds (private limited companies), Plcs (public limited companies), or not-for-profit organisations (focused on social goals).

Business ObjectivesBusinesses set objectives to guide their activities. Common objectives include making a profit, surviving, growing, gaining market share, satisfying customers, and acting ethically.

Review Time!Great work! You've learned about what businesses are, why they exist, and their objectives. Now let's test your understanding with a few questions.