Characteristics Of Business. Discover the key characteristics that contribute to the success of a business. From strong leadership to effective marketing, learn what sets successful businesses apart.
Characteristics Of Business In Life, Economy And Country.
- Entrepreneur
There must be some one to take initiative for establishing a business. ‘The person who recognized the need for a product or service is known as entrepreneur, ‘the entrepreneur is a key figure in the process of economic growth. • The quality of entrepreneurship existing in any region determines to a large extent the development of that region. The entrepreneur visualizes a business, combines various factors of production and puts them into a going concern.
- Economic Activities
Business Includes only economic activities. All those activities relating to the production and distribution of goods and services are called economic activities. These activities are undertaken with economic motive. Business is carried on with a profit motive. Any activity undertaken without economic consideration will not be a part of business. So, business covers only economic activities.
- Deals In Goods and Services
Business always deals in goods and services. The goods include both consumer goods like clothes, shoes, tooth paste, and industrial goods like raw material, tools and machinery. The services refers to Intangible items. The banks, insurance companies and transporting companies are good example of services.
Deals of Business
Goods; Services
Consumer ; Industrial goods
- Risk
The business involves a greater element of risk and uncertainty. In fact, a businessman tries to foresee the future uncertainties and plan his business activities accordingly. The factors on which business depends are never certain, so the business opportunities will also be uncertain There may be a shift in demand, strike by employees, floods, war fall in prices, fluctuations in money market etc. If a businessman is able to foresee future uncertainties and is also able to bear them, then he will be successful, otherwise he may be forced out of business. The risk element in business keeps a person vigilant and he “tries to work off risks by executing his policies properly.
- Profit:
Profit is the most important character of business. Business is started for purpose of earning profit. Profits is driving force of every business activity.
The incentive of earning profits keeps a person in business and is also necessity for the continuity of the business. This does not mean that there will be no chance of losses in business.
- Production:
Business always deals in production of goods and services. The object of business is to provide goods and services to society for the purpose of earning profits. The goods must be produced or manufactured so that these can be sold in market. The economics activities which are related in the promotion or distribution of goods and services for profit purpose. *
- Sales:
Sales are related with the transfer of values. The production for personal use does not come under the scope of business. For example if a shoe maker makes a pair of shoes and wear himself, his act is not treated as business. If a person makes a pair of shoes for the purpose of selling, now his act is treated as business.
A business must involve exchange of goods and services. The goods to be exchanged may either be produced or procured from other sources. The exchange of goods and services Is undertaken with a profit motive. Production or purchasing of goods and services for personal consumption do not constitute business.
8 Finance:
Finance is another important character of business. No businessman can start business without finance. Finance is the lifeblood of every business organization. In the absence of finance the volume of business activities goes down. A proper capital structure is helpful for success in business.
Business enterprises cannot move a step without finance. The finance is required for providing fixed and working capital.
Creating a guide in tabular format to outline various business characteristics can be a useful tool for understanding and comparing different aspects of businesses. Here’s a basic template to get you started:
| Characteristic | Description | Examples/Notes |
|---|---|---|
| Business Type | Type of business entity (e.g., sole proprietorship, partnership, corporation) | Sole Proprietorship: Individual ownership |
| Industry Sector | The sector or industry the business operates in | Technology, Healthcare, Retail |
| Size | Scale of the business in terms of revenue, employees, or market share | Small, Medium, Large |
| Market Scope | Geographical reach of the business (local, national, international) | Local: Serving nearby communities |
| Target Market | The specific group of customers the business aims to serve | Teenagers, Professionals, Seniors |
| Revenue Model | How the business earns income | Product Sales, Service Fees, Subscription Model |
| Value Proposition | The unique value or benefit the business offers to its customers | High-Quality Products, Affordable Prices, Custom Solutions |
| Growth Stage | The current phase in the business lifecycle | Startup, Growth, Maturity, Decline |
| Funding Source | Primary source of financial support | Self-funded, Venture Capital, Bank Loans |
| Competitive Advantage | What sets the business apart from its competitors | Innovative Technology, Exceptional Customer Service, Strong Brand |
| Regulatory Environment | Regulations and laws affecting the business | Compliance with FDA regulations for healthcare products |
| Technological Integration | Use of technology in business operations | E-commerce, Automated Manufacturing, Data Analytics |
This table serves as a starting point and can be expanded or modified to suit specific needs or focus areas. Each business might have unique characteristics that could be added to this table.
In conclusion, the characteristics of a successful business encompass various aspects such as clear vision and goals, strong leadership, customer focus, innovation and adaptability, effective marketing and branding, strong financial management, and continuous learning and improvement