Definitions Of Business And Reasons Why People Go Into Business?


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Arianna Vaccaro answered
According to the, business is an "economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth."

All businesses need to follow a business model which will include the long term plans of the company, including investments and expansion plans. When setting up a business, some type of investment will need to be made upfront before seeing some return in the form of profit.

So why do people go into business?
This is a very general question to ask as those going into business may be doing so for different reasons. It is like asking a questions such as "why do people work?" - that said, some typical reasons people may choose to go into business may include;
  • They have some money to invest and want to see a return in profits. This is probably the main reason people choose to go into business as they want to make money.

  • Some people like to be their own bosses and work for themselves.

  • Owning your own business will help you have a more flexible approach to work. This may be useful if you have a family and want to spend more time with them. You can employ someone to manage your business instead of you being there 24/7.

  • Perhaps they want to give something back to the local community by creating new jobs.

  • Some people want to be able to create something unique and original.

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