What is a Business? Introduction, Meaning, and Definition

A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses as a form of economic activity are prevalent in capitalist economies, where most of them are privately own and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be social non-profit enterprises or state-owned public enterprises charged by governments with specific social and economic objectives.

What is a Business? Introduction, Meaning, and Definition.

Businesses owned by multiple individuals may form an incorporated company or jointly organized as a partnership. Countries have different laws that may ascribe different rights to various business entities.

An organization or economic system where goods and services are exchanging for one another or money. Every enterprise requires some form of investment and enough customers to whom its output can sale consistently to make a profit. Businesses can privately own, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while mom-and-pop catering businesses a private enterprise.

An enterprise is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transacts enterprise activities through the production of a good, offering of a service or retailing of already manufactured products. An enterprise can be a for-profit entity or a nonprofit organization that operates to fulfill a charitable mission.

Nature:

The term business comes from busyness or the state of being busy—any ac­tivity a man is busy about. Businesses an economic activity with the object of earning an income i.e. profit and thereby accumulate wealth. The eco­nomic activity must be regular and continuous.

It involves:

• Production of goods to sell them at a profit or
• Merely purchase of goods to resell at a profit.

The real object of any enterprise, as pointed by Peter Drucker is to create a customer and to ensure repeat sale which is possi­ble only when the customer can get due service and satisfaction in the market place where the exchange takes place in monetary terms.

Concept:

The following concept below are;

History of Concept:

In the old days, the enterprise was conceiving merely in terms of busi­ness. The enterprise of business is business. In those days the sole and exclusive objective of busi­ness was the maximization of profit at any cost.

The business began merely as an institution for the pur­pose of making money. So long as man-made money and kept himself out of jail he was considering successful.

He felt no particular obligation and acknowledge no responsibility to the community. As he was the owner of the enterprise he thought he has the perfect right to do with it what he, please.

Modern Concept:

The modern busi­ness enterprise is a social and economic institu­tion. It does not live in a vacuum. Enterprise by it­self is not an end but a means to achieve an end – i.e., public welfare. Urwick has rightly pointed out that profit can no longer be the main objective of a business than eating is the main objective of living.

According to Peter Drucker, the objective of the business is to create a customer.

The first business of every business is to se­cure customers. The customer is the master and to serve him well is the only purpose of business. An enterprise cannot survive without customers. Mod­ern business aims at a profit through service.

Basic Definitions:

• A person’s regular occupation, profession, or trade, an activity that someone engages in a person’s concern, work that has to finish or matters that have to attend to.
• Commercial activity, trade considered in terms of its volume or profitability, a commercial house or firm.
• A situation or series of events, typically a scandalous or discreditable one, a difficult matter. Action on stage other than dialogue. A very enjoyable or popular person or thing.

Definition of Business:

According to well-known professors William Pride, Robert Hughes, and Jack Kapoor, business is,

“The organized effort of individuals to produce and sell, for a profit, the goods, and services that satisfy society’s needs.”

A business, then, is an organization which seeks to make a profit through individuals working toward common goals. The goals of the business will vary based on the type of business and the business strategy being uses. Regardless of the preferred strategy, businesses must provide a service, product, or good. That meets a need of society in some way.