Busyness and its environment. Introduction. Velma?
Yes? Did I hear you say that you are up to the task? Yes, Uncle. Then in that case, we can indulge into busyness and its environment. By all means.
Nice. First things first. We already said that a busyness is any activity carried out with the aim of making a profit, remember? Yes, I remember.
Now, business can be carried out by either an individual or an organization. Noted. Be advised that not any kind of activity passes as a business activity. Please elaborate. Well, if I am farming so that my family can get food to eat, that is just an activity.
However, if I am selling the produce from my farm so that I can get a profit, then definitely. This is a business activity. Thanks a lot.
Now I get the point. Now that you get the point, can you be able to mention any business activities that you have noticed around you? I have seen plenty. Farming, as you mentioned, is one of them. Others include banking, shopkeeping, manufacturing, and so on.
And not forget services such as tailoring, hairdressing, etc. etc. Let me ask you another question. Shoot. If I began a charitable organization for orphans, would I be doing business? The answer is no, and that is because the aim is not to make profit.
Correct. Now, such non-profit activities also include religious services or activities, as well as services provided by the government. Like the ones we access at Huduma Center?
Exactly. As well as the free education program. You should also note that businesses are of different magnitudes depending on the ability of its owner the more money they can afford to invest the bigger the business becomes yes some of them operate in more than one country and such a business is referred to as multinational business whether they operate locally or internationally businesses are all about provision of either goods or services goods and services yes i have heard of these terms before.
However, I am not so sure I know what they are about. Well, the difference is pretty simple. One can be seen, the other cannot be seen. Let me guess. It is the goods that can be seen, right?
My mother always talks about going to the shop to buy some goods. Then she appears with a loaf of bread, milk, sugar, and such. Then your mother has made my work easier. On the other hand... Services are intangible things that satisfy human wants.
In other words, they are actions rather than objects. Correct. Are you sure you even need me because I think you are figuring these things out pretty much by yourself. The only reason why I am figuring them out is because you are guiding me. So yes, I do need you.
Okay then. You mentioned before that businesses are out to make profit. Yes. What does that mean? It means that business must earn more money than what it spends to provide the goods and services.
So if I was selling tea, for example, by the time I am done selling my tea, I should be able to deduct the cost of milk, sugar, water, fuel, and any transport in card and still remain with some money. Very well explained. And what if this was not to be the case?
Then I would be having a loss. That's right. Now, If you are spending more than your income in the business, then definitely you are suffering a loss.
Be advised that the main reason why people do start businesses is so that they can make profit, not losses. Of course, that will be my aim when I get to start my business. But I will also be doing the locality a great favor of providing essential goods and services.
And you will be creating employment for yourself. Sounds great! Not just for me. but also for anyone who I will employ to work together with me. True again. Now, sometimes a business can be started to make use of locally available raw materials.
For example, if you come from the shores of Lake Victoria where there are papyrus reeds, you can start a business of making and selling mats, as well as chairs made from papyrus reeds and twigs. And that would be a whole lot cheaper than having to source for these materials from far off places. Good observation.
A business can also be started to utilize waste materials. Wait a minute. I thought waste materials are unwanted.
So, who would want to buy them again? Well, it may be waste in its current form, but can be recycled into something else. You see? Take scrap metal, for example. They can be collected and sold to Juwa Kali artisans who will transform them into very beautiful suffereas, pans, spoons, jicos and so on.
Point well taken. A business can also exist to produce and sell new products from new inventions or simply to become your own boss. Oh, I would very much like to become my own boss. That way I get to plan the day-to-day running of my business myself. Nice.
I am sure... almost everyone would want that. By the way, did you know that while I was still a lecturer, I also made a fish farm?
Were they paying you too little money at the university? Not really. I was simply making use of the spare time that I found myself having. You see, in the university, I could have three or four lessons per week.
So, I decided to do something on the side. And the fish farming business was really good, by the way. That is very good to hear.
Finally, I Studying a business utilizes extra resources which would have otherwise been left idle. I get it. Now, let us now examine the various types of business activities. I'm listening. Now, let's start with trade.
We already said that it involves the buying and selling of goods and services with the aim of making a profit. You have stated it correctly. The people involved in such activities are known as traders. We also have processing.
I know nothing about that. In processing, the raw material is changed in form without combining it with any other good. Wait a minute.
How can a raw material change into form? I want to answer your question with another question. Do you usually take ugali at home? Yes, I do. How or where does the flour come from?
The flour comes from maize, which is ground in a poshomini. Great. In that case, the maize grain is the raw material and we have...
processed it into flour by grinding it. Now I get it. Yes, processing should not be confused with manufacturing. And what's the difference? In manufacturing, different raw materials are combined to come up with the final product.
I see. Here we have different raw materials coming together unlike in processing where the raw material is just one. That is it. Another business activity is extraction. Whenever I hear the word extraction, Mining is the first thing that comes to my mind.
Well, that is just but one form of extraction. Any activity that is performed to get goods from their natural environment is referred to as extraction. Understood.
Others may include quarrying, forestry, fishing, and lumbering. And what is lumbering? Lumbering is the occupation of cutting down trees for their timber.
Take note that if it is done extremely without planting new trees it may cause deforestation which in turn has had bad effects such as drought true cutting down of trees may also lead to the extinction of some animals which depend on the forest cover as their habitat well said we also have provision of services as a business activity this is where we have provision of health services teaching library services insurance and so on hmm i can see You understand this one very well, so I don't need to elaborate. Let us get to construction as another business activity. My friend's dad constructs houses for people. Then he is a good example in this case. Other construction works include building of bridges, ports, airports, railway lines, so on.
Aren't we done yet? What do you think? I think we have exhausted all possible types of business activities. Aren't you forgetting something?
What am I forgetting? How do goods reach the consumers from their point of production? Oh, I see.
You are talking about distribution. Yes, a very important business activity because unless the manufactured good can find their way into the consumer's hands, there is no business taking place. Next time, I will not be so forgetful.
Great. I need you fully alert because we have a long, long way to go. I told you I am up for the task.
That has not changed. Glad to hear that.