A business is an organisation that exists to provide goods and services on a commercial basis to customers
• Goods are physical or tangible products: e.g. consumer electronics, industrial components, cars
• Services are intangible products: e.g. insurance, dental services, cleaning
Businesses play a key role in wider society. In particular they:
• Create and sustain employment & develop the skills of people
• Drive innovation through research & development (R&D) and new products • Contribute to the infrastructure of the country
• Pay taxes on profits earned & collect taxes on behalf of government • Create wealth by providing returns on investment
what is the role of entrepreneurs?
• Spot business opportunities
• Take (calculated) risks in order to gain possible future returns
• Act a catalyst for the creation & growth of new business enterprise
Primary Business Sector
-Extraction of natural resources
Mining, farming, energy extraction
Secondary Business Sector
-Production of finished goods and components
Manufacturing, food processing, component assembly, raw material processing
Tertiary Business Sector
-Providing services to consumers and businesses
Personal services, retailing, household franchises
Quaternary Business Sector
-Providing information and ICT
Software development, financial services, data processing
Added Value
The process of creating value by transforming the inputs into business activity so that the value of what is created is greater than the costs involved
