Last Updated on 03/11/2019 by Ochoche David
In our previous post, we shared the definition and meaning of entrepreneur. Today’s post is an in-depth definition of business and the meaning of business.
Not only that you will come across features of the business, type of business, the objective of business and the purpose of business.
So the article is worth reading from the beginning down to the end.
In our daily lives, we look for the food we eat, the water we drink, the clothes we wear and we even need a vehicle to move us from one place to another.
As a result of these needs, a human being can’t satisfy themselves, they need to depend on others to be satisfied and live a harmonious life. Which bring business activity to live.
With the help of businesses in communities, it makes life easier, better and meaningful.
Community with higher numbers of quality business are called develop community, city or nation.If you want to be rich, get a white-collar job. If you want to be wealthy become an entrepreneur and at the same time investor. Click To Tweet
I hope everyone has his/her own definition of business or meaning of business, but as far as life is concerned, it ideally to learn other’s views about a particular topic(s) too.
That’s the essence of this article. You will discover the definition of business by different authors and a lot more views about business.
what is a business?
Business is the act of producing and distributing goods and services.
When a person or group(s) of people agreed to produce goods or to trade goods and services to meet the particular needs of people, it called business.
Definition of business by difference authors
Here’re a few definitions of business by different authors and their perspectives.
1. Gariffin and Ebert (1996); Business is an organization that provides goods and services in other to earn profits.
2. Symons and Adams (1993) define business as an organization that is formed to produce and supply goods or satisfy the need of people.
3. Hopper (1961) Referred business as the whole complex field of commerce, the basic industries, processing, and manufacturing industries, the network of ancillary services, distribution banking, insurance, transport and so on, which serve and interpenetrate the world of business as a whole.
4. Olabisi (2009) Says that business is any institution or place of work where an economic activity is organized to produce goods and services required by the people.
5. Hodgets (1981) states that business is an organized approach used by individuals for the purpose of providing goods and services to people.
6. Bitten (1980); Business deals with an activity that satisfies human needs and wants by providing goods and services for private profits.
7. Business is the use of one or more scarce resources during a specific period of time for the purpose of producing some economic returns or output.
8. Business is a creative activity that relates to the productions of goods and services for the satisfaction of human wants, which is primarily pursued with the objectives of earning profits.
- Manufacturing business
- Wholesale business
- Retailing business
- Services business
- Transportation business and
- Distribution business
The list above is the real types of business, any other than that are forms of business and classification of business.
I wrote an in-depth article on types, forms, and classification of business, read it here.
Features of business
With the various definition of business above, it is easy to point out some features of business.
1. Profits motive: One of the most reasons people start a business is a desire to earn profits. Profit is very important, it gives the entrepreneur the courage to continue in the business. It makes the business to survive, grow, expand and get more recognition.
2. Production and exchange: Business is carryout when goods and services are produced and exchanged for money or its equivalents. If goods and services are produced for self-consumption it’s not a business. Businesses must involve the act of buying and selling.
3. Continuity and steady activities: Business activity must be steady continue or regular. If someone sold his car, that’s not business. When it’s business is when he/she started buying and selling regularly.
4. Element of risk: Risk in business is the occurrence of loss in the process of doing business. In business, lost can occur in two categories;
- Calculate-able risk (Fire, death, theft, sickness, etc)
- Uncalculated-able risk (market change, change of fashion, etc)
For more feature of business, check this page on owlgen Q&A site
Objectives of business
Here’re few objective of business
- To make profits
- To meet consumers demand
- To supply quality goods and services to the community
- To provide employment opportunities to the people
- To innovate
- To serve the purpose of consumers continually
- To explore new markets and creating new costumers
- Ensure fair returns to the investors
- Growth and expansion of business operations of the firm.
- To maintain steady income and higher income.
For more objective of business, you can read this page on owlge Q&A site.
The purpose of businesses
There are various purposes of business which are also known as secondary objectives of business, here’re a few of them.
1. National development agent: The main aim of a business is to provide goods and services, create employment opportunities for both learned and unlearned workers, providing educational and health facilities, by paying taxes and royalties, etc.
Business is contributing so much to national development.
2. To provide the needed goods and services by individual consumers.
And a lot more to coin from the definition of business above.
Many authors define business base on their perspectives and how they view the activities of the business around them.
So you may have your own definition of business.
What is your definition of business? Or the meaning of business?