Chapter 1 - People in business

• a commercial business provides goods and services to consumers and aims to make a profit
• a non-commercial business puts people and the community first, ahead of profit. They tend to provide a service for people and are run like a business
• stakeholders are individuals and organisations that are affected by the actions, objectives and policies of a business
• an entrepreneur is a person who spots a gap in the market and comes up with an idea to turn into a business
• investors are the people or organisations that provide the entrepreneur with the capital (money) needed to establish and operate the business
• an employer recruits staff to enable the organisation to carry out its business. They are responsible for providing safe working conditions for employees and paying the agreed wage/salary for work done
• employees are recruited by the employer to work in the business in return for a wage/salary
• a producer takes raw materials and transforms them during the manufacturing process into finished products
• consumers are people who buy goods and services for their person use
• a manager is responsible for the day to day running of the business and ensures that the firm achieves its goal
• suppliers are firms that provide raw materials to the business
• a service provider provides services needed by the business to operate successfully - tend to operate in the services/tertiary sector of the economy
• the government is the body of people that govern the country - it imposes taxes on business used to invest in infrastructure
• the local community consists of individuals, households and organisations that are located close to the business
• co-operative relationship - work together towards a common goal - helps to ensure better results than if the shareholders worked independently or against each other - creates win-win scenario
• competitive relationship - work towards different goals - each stakeholder wants to achieve a particular objective at the expense of the other - win-lose
• dependent relationship - stakeholders need each other for success - one stakeholder is not able to achieve their goals without the help of another stakeholder
• dynamic relationship - constantly changing between the stakeholders - at times it can be co-operative or dependent or other times competitive
• an interest group (pressure group) is a group of people who meet and campaign for a common goal
• ibec (Irish business and employers confederation) aims to influence decision-makers such as the government, society and the European union on issues that affect its members eg. taxation and transport
• isme (Irish small and medium enterprises association) represents the views of small and medium-sized business owners in Ireland - lobbies on issues that affect its members eg. the impact on business if the government raises the minimum wage
• SIMI (society of the Irish motor industry) represents the views of the motor industry - dealerships, retailers and vehicle testers - campaigns to the government, media and the public on issues affecting the motor industry
• trade unions eg. SIPTU (services, industrial professional and technical union), represents the views and interests of employees in particular industries - aim to protect and improve their members pay and working conditions
• IFA (Irish farmers association) represent the interests of Irish farmers in Ireland and Europe - lobbies and campaigns to improve farm income and conditions for farming families