What is Business?

 Definition of Business 

Everyday, we hear of business. But have you ever asked yourself what business really is? If yes, then we've got you answered.

Business is any economic activity that involves the exchange (buying and selling) and production of goods and services with a particular purpose.

Reasons for Starting a Business 

Before starting any business, it's important to find out why you want to start the business. Therefore, different people start business with varied reasons and aims.

Some of these reasons for starting a business are;

a) To make profits- This is one of the main reasons for starting business. Whichever business it is, the owner aims at making profits. Profits are important for they ensure the continuity and expansion of a business. 

b) To provide goods and services- Business exists because of the provision of goods and services. Hence, before starting a business, one has to bear in mind that the whole scheme is about providing goods and services to consumers.

c) To create employment- some people venture into business inorder to create employment opportunities for others or even themselves.

d) To be an own boss- It's obvious that some people may dislike jobs managed by other people due to different reasons. Maybe due to low pays or generally unfavorable working conditions. Therefore, individuals decide to start their own businesses to feel comfortable and manage their own source of income.

e) To invest their surplus- Some people decide to venture into business inorder to invest their surplus resources. Take for example, when you have extra bags of maize but don't want them to go bad. The best you can do is to start selling the extra bags. That's business.

f) To pursue one's passion and hobbies-  Different people have different hobbies. Some decide to invest on these hobbies for business. For example, Rachael who likes knitting for leisure, may decide to start knitting sweaters and selling them.