Learn: What a Business Is and Why Businesses Exist

Welcome!Today, we’ll learn about what a business is and why businesses exist. By the end of this lesson, you’ll understand the purpose of businesses and their role in meeting the needs and wants of people. Let’s get started!

What is a Business?A business is an organisation that produces goods or provides services to customers. Goods are physical items like clothes or phones, while services are actions like haircuts or car repairs. Businesses exist to meet people’s needs and wants, provide jobs, and create economic activity.

Why Do Businesses Exist?Businesses exist to meet the needs and wants of people. A need is something essential, like food or housing. A want is something people desire but don’t need to survive, like the latest smartphone. Businesses also exist to create opportunities for profit, provide jobs, and contribute to the economy.

Needs vs WantsA need is something essential for survival, such as food, water, and shelter. A want is something that people desire, such as a holiday or a new car. Businesses often focus on meeting both needs and wants to attract a wide range of customers.

Purpose of a BusinessThe main purpose of a business is to achieve its goals. Common goals include making a profit, ensuring survival, and achieving growth. Some businesses also aim to satisfy customers, improve society, or act ethically and sustainably.

How Businesses Help SocietyBusinesses contribute to society in many ways. They create jobs, provide the goods and services people need, and help grow the economy. Some businesses also focus on ethical goals, like protecting the environment or supporting their local community.

Review Time!Great work so far! You’ve learned what a business is, why businesses exist, and how they help society. Let’s review with a few questions.