Businesses come in many different forms and sizes. But no matter how small or how big, they operate with the purpose of making a profit for their owners. A business is an organization that produces or sells goods or services to satisfy the needs, wants and demands of consumers for the purpose of making a profit.
A business can also be described informally by
- The type of ownership. For example, businesses that have two or more owners, or partners are called partnerships.
- The goods it produces or services it offers.
- The different functions that it performs in its community.
- The types of jobs it provides. A meat packing company, for example provides jobs to farmers, inspectors, packaging manufactures and truck drivers.
Think about what business has done for you today. For example, the food you eat for lunch is a product of the combined efforts of farmers, food processors, retail outlets, and perhaps cafeteria workers. People who take a risk and start businesses to solve a problem or to take advantage of an opportunity are called entrepreneurs. Often, entrepreneurs go into business to satisfy a need that is not being met in the marketplace. They recognize that an unsatisfied need Is an opportunity for a business venture. Businesses cannot exist without the people who start them. But, without people to buy their goods or services business would have no need to produce anything.