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Next Unit : Types of Business Entries
What is a Business ?
A business is a decision-making organisation involved in the process of using inputs to produce goods and / or to provide services.
Define Inputs
Inputs are the resources that a business uses in the production process, such as the labour and raw materials.
Define Products
- Products are goods and / or services that are sold to costumers upon purchasing a product that they may need or want.
- Goods are physical products, such as smartphones, clothes, books and food.
- Services are intangible products, such as haircuts, public transport, education and healthcare.
Entrepreneurs
Define Entrepreneurs
- The individual who plans, organise and manages a business and its operations, taking on financial risks in doing so.
- A person who is willing and able to create a new business idea or invention & takes risk in pursuing the success
- Examples: Steve Jobs, Jeff Bezos, Ratan Tata
Roles of Entrepreneurs in a Business
They organise resources
- An entrepreneur must be able to gather and cordinate the resources necessary to start and operate a business
They make business decisions
- Entrepreneurs must be able to make decisions that will determine the Success or failure of their business
- E.g: A restaurant owner may need to decide what type of food to serve, where to locate the restaurant, and what prices to charge. These decisions require a combination of market research, creativity, and business skill
- Making the wrong decision can lead to wasted resource, lost opportunities and ultimately business failure.
They take risks
- Entrepreneurship involves taking risks - financial, personal, or professional.
- They make also take risks by introducing new products or entering new markets
- These risks can pay off with great rewards, but they can also lead to failure and financial loss
