Learn: What a Business Is and Why Businesses Exist

Welcome!Today we are exploring what a business is and why businesses exist. This lesson will help you understand the purpose of businesses and their importance in society.

What is a Business?A business is an organisation that produces goods or provides services to customers. It exists to meet people's needs and wants, such as food, clothing, or entertainment.

The Purpose of BusinessesThe main purpose of a business is to satisfy customer needs or wants. For example, supermarkets provide food, and hairdressers offer styling services. Businesses also aim to make a profit, survive in the market, and grow over time.

Entrepreneurs and Their RoleAn entrepreneur is someone who starts a business. They are often creative, organised, and willing to take risks. Entrepreneurs aim to succeed by solving problems or seizing opportunities in the market.

Types of BusinessesThere are different types of businesses, including sole traders (run by one person), partnerships (owned by 2-20 people), Ltd companies (private limited companies), Plc companies (public limited companies), and not-for-profit organisations, which focus on helping society rather than making profit.

Business Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (specific steps to achieve aims). Common aims include making profit, growing, increasing market share, and satisfying customers.

Review Time!Great work! You've learned about what a business is, its purpose, and different types of businesses. Let's test your understanding with a few questions.