Busyness and Its Environment - Lecture Notes

Introduction to Business

• Definition: Any activity carried out with the aim of making a profit.
• Participants: Can be conducted by individuals or organizations.
• Distinction: Not all activities qualify as business activities.
  • Example: Farming for family consumption (not business), selling produce for profit (business).

Types of Business Activities

• Profit vs. Non-Profit:
  • Businesses aim to make a profit.
  • Non-profit examples include religious services, government services (e.g., Huduma Center, free education).

Scale of Businesses

• Magnitude: Depends on the owner's investment capability.
• Multinational Businesses: Operate in more than one country.
• Local vs. International: All about the provision of goods or services.

Goods and Services

• Goods: Tangible items (e.g., bread, milk, sugar).
• Services: Intangible actions (e.g., tailoring, hairdressing).

Business Objectives

• Profit: Earn more money than is spent on providing goods/services.
• Loss: Occurs when spending exceeds income.
• Additional Benefits:
  • Provides essential goods/services to the community.
  • Creates employment.

Starting a Business

• Utilizing Local Resources:
  • Example: Making mats from papyrus reeds.
• Waste Material Utilization:
  • Example: Recycling scrap metal into household items.
• Becoming Your Own Boss:
  • Allows for personal management of business operations.

Types of Business Activities

Trade

• Definition: Buying and selling goods/services for profit.
• Participants: Traders.

Processing

• Definition: Changing form of raw material (not combining).
  • Example: Grinding maize into flour.

Manufacturing

• Definition: Combining different raw materials into a final product.

Extraction

• Definition: Obtaining goods from the natural environment.
  • Examples: Mining, quarrying, forestry, fishing, lumbering.

Provision of Services

• Examples: Health, teaching, library services, insurance.

Construction

• Definition: Building infrastructure (houses, bridges, ports, etc.).

Distribution

• Importance: Ensures manufactured goods reach consumers.

Conclusion

• Importance of understanding various business activities and their impact on the economy and society.
• Encouragement to be alert and prepared for further learning.