• At its core, a business seeks to satisfy human needs and wants through a variety of activities.
• Real-World Example: Imagine a bakery (business). They use flour, sugar, and other ingredients (inputs) to make delicious cakes and pastries (output) to satisfy your sweet tooth (a want)!

• Producing or extracting: Growing crops or mining raw materials.
  • Example: A farm growing strawberries or a company mining gold.
• Creating products: Manufacturing and assembling goods.
  • Example: A factory making toys or gadgets.
• Providing services: Offering non-tangible assistance or activities.
  • Example: A hair salon giving haircuts or a gym offering fitness classes.

• Single Activity Businesses: Focus on one type of activity.
  • Example: An olive farm.
• Multi-Activity Businesses: Engage in multiple related or unrelated activities.
  • Example: A farm that grows olives and also produces its own olive oil.

• Businesses take resources (inputs) and process them to generate products or services (outputs).
• By doing this, they add value to the inputs. That's how a raw apple is turned into a yummy apple pie!
• The reward? Revenue from sales and recognition!

• Not all entities that operate like businesses are traditionally seen as businesses.
• Charities, religious organizations, clubs – they all operate with business principles.
  • Example: A church may need financial resources for renovations or a charity might sell merchandise to fund its causes.

• Needs: Essential for survival like food, water, clothing.
  • Example: Bread, water bottles, jackets.
• Wants: Desirable but not essential.
  • Example: A PlayStation, designer shoes, gourmet chocolates.
• Both needs and wants drive businesses, even unconventional ones!

• Human: The workforce!
  • Example: Engineers in a tech company or chefs in a restaurant.
• Physical: Materials, machinery, space.
  • Example: Computers for an IT company or ovens for a pizzeria.
• Financial: Money to make it all happen.
  • Example: Investments, loans, or profits to fund operations.

• It's the business idea and determination to succeed.
• Not limited to fancy high-tech firms! Even the local lawn-mowing service is backed by enterprise.

• Capital-Intensive Processes: Heavy reliance on land/machinery.
  • Example: A car factory with massive assembly lines.
• Labour-Intensive Processes: Heavy reliance on human labor.
  • Example: Artisans handcrafting jewelry or a call center.

• Goods: Tangible products.
  • Example: Apples from a farm or the latest smartphone.
• Services: Intangible offerings.
  • Example: Attending a yoga class or getting a massage. You can't put these in a bag!

Businesses come in all shapes and sizes, from single to multi-activity, aiming to meet our needs and wants. They use a mix of human, physical, and financial resources, fueled by the spirit of enterprise. They create value through capital or labor-intensive processes and offer goods, services, or a mix of both!

Study Tip: Imagine running your own business. What will it look like? This will help you relate to these concepts better! 🍋🧁📱🧘‍♀️🚗💼🚀