Why Businesses exist

There are many businesses in the world of all different kinds in all sorts of industries.

Businesses are organisations that provide goods or services to customers. Most businesses start when someone decides they can make goods or services people are willing to pay for.

  • Created by: mary9
  • Created on: 08-02-15 12:40

Why Businesses exist

Different people start up businesses for different reasons.

1). Financial reasons - for example making a huge fortune from the firms profit or just a steady income.

2). Personal reasons - e.g the independence of being their own boss, difficulties finding a job or perhaps a desire to see their own ideas in practise

3). To help others - by starting a charity or other none profitable organisation 

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Why Businesses exist

Businesses can have different aims, 

they may aim to achieve different things, however most businesses have one main aim 

1). The most important aim for the vast majority of businesses is to make a profit in order to survive, if a businesses doesnt make a proft then it will cause the business to go broke.

Businesses will usually have other aims aswell...

2). Some will try to be the biggest in their market

3). Others may try to provide the highest quality product possible

4). Some might focus on expanding the business as much or as quickly as they can

5). Other possible aims may include satisfying customers, or trying to limit enviromental damage

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Why Businesses exist

Some businesses won't try to make a profit though (least not for their owners)

This is either because they are a 'not-for-profit' organisation (e.g charity) or they are in the public sector which means they are owned by the government.

Not-for-profit organisations and public sector businesses need to earn enough income to cover their costd, any surplus is then placed back into the business

some profit-seeking businesses exist to achieve social objectives such as providing help for the homeless, or farmers in poorer countries . they're called socail enterprises or 'more-than-profit' organisations. This is because their main aim is to use the profit that they make for the benefit of society.

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