How A Business Is An Organization Or Economic System

Small businesses create new jobs, foster entrepreneurship and innovation, and supply goods and services needed by larger businesses.

A business is any activity that seeks to provide goods and services to others while operating at a profit.

This report offers a briefing of SME (Small and medium sized enterprises). Defines SME in terms of employee numbers and turnover. Explains to the reader why small business are important for UK economy and what impact SME has on it. Report opens up and helps to understand the advantages and disadvantages of creating the business, explains the risks entrepreneur must take in order to make it successful. It is useful for people who is thinking to open up their own business because report shows sides of the industry that never been consider and helps to understand what is required in case to succeed and drive the business into the global market. Enlightens three main ways of business that individual can start and shows both sides of the coin.

A business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing return in the form of dividends, lower costs or other economic benefits directly to the investors or other owners, members or participants.

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

In original, business is a system by which it produces goods and services for the satisfaction of wants, by using several inputs, such as, raw material, capital, labour etc. from the environment.

The specific business I will use is Tesco and how they satisfy their customers. Tesco is a multinational company which sells items at their stores to gain a profit, they have a website and additional things informing people of what Tesco has to offer such as them offering advice to customers and listening to their suggestions to enhance their service. Tesco is one of the many multinational businesses which have went far but there is a lot more than what you think about Tesco, some may think it’s just a store, no big deal, but it actually is a lot more complicated than just a store.

Business models also provide a business design and outlay that defines how the particular company can convert the various payments received into profits, and help the company to excel as an innovation and as a business model, as well as to understand the different business design options according to the customer needs and the various technological advances. To develop a successful business model, one has to ensure that the competitive advantage of the company remains a permanent part of it and that this model is difficult to duplicate and redo.

When starting a business it is very important to identify the business model needed to increase the chances of its success. But first, the concept of business model should be understood. In general, the business model is clear about how a company generates revenues and where it is positioned in the value chain. Most definitions emphasize on how a firm makes money, some go beyond this and discuss creating value. The strength of a business model is that it tells a story about the business, focusing attention on how pieces of the business fit together, describing how the firm differentiates itself and deals with competition (Weill, et al., 2005).

As the business world expanded, there developed a need to categorize businesses into various organizations. Business organization forms were hence established by law and are regulated in their operations. There is a wide range of these business organizations, but the major ones are sole-proprietorship, limited liability companies, corporations and partnerships (Baron & Shane, 2008, p. 244).

The sole proprietor is his own boss and need not consult others while making any decision. He exercises exclusive control over the affairs of the business. Therefore, he can take quick decision and implement them without any delay.

‘The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.’(Extract of Article 2 of the annex to Recommendation 2003/361/EC).

It is necessary that people should support the small business because it helps in growth of economy for state or country. Small business has better quality of fruits, vegetables and milk products while compare to big company. It is very reliable and easy to shop near your home which save lot of time but this big company need large space in the city and suburbs. One of the best quality of small businessman is customer service which is essential part of the business by which customer loves to shop from you store. Many small businesses help to generate employment opportunities and serve as building block of the state. For

Business is an organization that provides goods or services to their clients in order to get money (BBC, 2014). In this world there are lots of different types of businesses like banks, shopping centres, schools, restaurants, jewellers, warehouses and etc.

Small businessmen can get corporate status while remaining independent. They can be the sole owner and manager of their business, without requiring to find a dummy partner of any sort.