Role of business in society

• Natural resources available for production

  Land
• The people employed by a business, the workforce, to make a product.

  Labour
• The man made resources that are needed to male a product

  Capital
• The entrepreneur combines all factors of production.

  Enterprise
• What is an entrepreneur

  • A person who sets up a business or businesses, taking on financial risks in the hope of profit.
• Skills of an entrepreneur

  • Confidence
  • Problem Solving
  • Motivator
  • People/Social Skills
  • Determination
  • Creativity
  • Ability to sell 
• What are examples of basic needs

  Food, water, clothing and shelter
• People can’t survive without having basic needs met, and businesses provide basic needs!
• What are wants

  Things we would like to have but don’t need to survive. 
• Examples of wants

  Mobile phone, holidays, chocolate
• What is a good

  A good is a thing
• What does tangible mean

  Something you can touch
• What is a service

  A service is something that is done
• Examples of a service

  Hairdressing, concert, hotel
• Durable can describe a product which is long lasting, kept and lasts for a lengthy time period.
• Non-durable goods are the opposite, products are bought and used up instantly or in a short time frame. 
• Wealth creation

  Businesses ADD VALUE to a product as it is produced. 

  As a product goes through stages of production, WEALTH is CREATED. 
• Sectors of industry

  Primary, secondary, Tertiary
• Primary

  The primary sector of the industry is concerned with the extraction of raw materials or natural resources from the land
• Secondary

  The secondary sector of industry is concerned with MANUFACTURING. 

  This involves taking the raw materials from the primary sector and converting them into new products. 
• Tertiary

  The tertiary sector of industry is concerned with providing a service. 

  Services are activities that are done by people or businesses for consumers. 
• Sectors of economy

  Private, public, Voluntary
• Private sector of economy

  The Private sector is made up of businesses large and small that belong to/are owned by an individual. 
• Sole trader, partnerships, private limited companies (Ltd)

  Private sector of economy
• Businesses who aim to make a profit

  Private sector of economy
• Business owned by one person

  Sole trader
• Business owned by 2-20 people

  Partnership
• A company owned by people who have been invited to buy shares

  Private Limited Company (Ltd)
• Public sector of economy


  Public sector organisations are owned and controlled by the Government. They aim to provide a service to the public and are funded by taxes. 
• Third/Voluntary

  Organisations within this sector are NON-PROFIT making.
• Social enterprises, charities, voluntary organisations

  Third/voluntary sector of economy
• NHS, schools, social work

  Public sector of economy