Purpose of business
Jaap talks about being a self-employed carpenter and about business success, profit and independence
The reasons for starting a business
There are a number of reasons that an entrepreneur may start a business. These are:
- to produce a A product that can be touched., eg Coca-Cola and Cadbury
- to provide a Something a business provides that is intangible, ie not able to be touched., eg Premier Inn and Talk Talk
- to distribute products, eg Tesco and Asda
- to benefit society, eg charities and social enterprises
- to fill a A gap in the market refers to a place in the market where there is demand for a product or service that is not currently being met., eg opening a hair salon in a village which has no other hairdresser
- to fulfil a business opportunity
Goods and services
Goods are Something that can be touched and physically held, for example, a book. items that can be used and stored. Businesses make goods and sell them to customers, who then own them. This includes computers, food and clothes.
Services are Without a physical presence and therefore unable to be touched. actions that cannot be stored. Businesses provide services to customers, who have access to them for a period of time. Examples include hairdressing, train journeys and internet access.
Wants and needs
Wants are things that people would like to have but can survive without. Wants are unlimited, and might include event tickets, designer accessories, holidays, laptops, mobile phones and cars.
Needs are things required in order to survive. These life-essential things include clothing, food, shelter, warmth and water.
