Business Definition, Objectives, Functions, Types, and Benefits Obtained

We often hear the word 'business'. Historically, the word 'business' was adapted from English business, from the root word busy which means 'busy' in the context of an individual, community, or society.

In a simple context, business is busyness in doing an activity or job that provides benefits to someone.

While in the context of the entity, the definition of business is an organization or other entity that is engaged in commercial, professional, or industrial activities, to earn a profit.

In other words, business is an activity carried out by individuals or organizations that involves the process of making, buying, selling, or exchanging goods or services with the aim of making a profit.

To get a more complete explanation about business, you can listen to the discussion below, reported from the Maxmanroe and Salamadian pages.

Understanding Business According to Experts

1. Understanding business according to experts

Hughes and Kapoor

The definition of business is an organized individual activity to produce and sell goods and services in order to make a profit in meeting the needs of society.

Brown and Pretello

The definition of business is an institution that produces goods and services needed by the community and all things that include various businesses carried out by the government and the private sector, regardless of pursuing profit or not.

Jeff Madura

The definition of a business is a company that provides products or services that customers want.

L.R. Dicksee

The definition of business is a form of activity whose main purpose is to gain profit for those who seek or have an interest in the occurrence of these activities.

Big Indonesian Dictionary (KBBI)

Business is a commercial enterprise in the world of commerce; business fields; trading business.

Business Concepts and Goals

2. Concepts in business

In general, in a business concept there are several main components, namely:

Core strategy, namely the vision and mission of a business which includes the ideals expected from the business.
Strategic resources (strategic resources), which are all related to the main competencies, core processes, and strategic assets.
Customer intermediaries (customer interface), which is all related to information, support and fulfillment, relationship dynamics, and pricing structures.
Value network, namely all value networks that can strengthen and complement the company's resources.

3. Business goals

Some of the business objectives are as follows:

To gain profit from business activities.
To procure goods or services needed by the community.
To achieve the welfare of the owners of factors of production and society.
Create job opportunities for the community.
To show the existence of a company in the long term.
To improve the progress and economic growth of society in general.
To show prestige and achievement.

Business Functions and Benefits

4. Business function

Some of the business functions are as follows:

Form utility, which is a production function where a business produces a good or service that is needed by society. For example, furniture companies, financial services companies.
Place utility, which is a distribution function where a business distributes a product or service to the nearest location that consumers can reach.
Possessive utility, namely the sales function in business where a company sells a product to consumers who need it, be it goods or services.
Time utility, namely storage and marketing functions in business, where goods at that time are less useful to be issued later when the goods are more useful.

5. Business benefits

Running a business provides many benefits for the perpetrators. By owning a business, you will experience the following benefits:

Get awards and recognition.
Be your own boss.
Pay yourself.
Can manage time freely.
Have a bright future.