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                                                                   ENTREPRENEURIAL


                                                                                SKILLS-I











                 After climbing up the ladder of your education, you need to focus on your inner strengths and find out what are
                 the real long-term plans of your life. You may have to decide whether you should go for a job with a fixed salary
                 that you will be getting every month or you should go for business. If you decide to do business, then you might
                 have to further decide whether doing a family business will be a good option for you or you want to try your luck
                 and skills in your own startup. Both paths have their own advantages and disadvantages. This chapter is all about
                 giving you an insight into different types of business around us.


                         Definition of Business

                 A Business is a state of being busy as an individual or as an organisation in a profit earning economic activity. It
                 is also defined as a continuous money-making activity by producing, buying or selling products or services. It is a
                 commercial activity of providing goods and services for earning profits.

                 Nowadays, along with profit, customer’s satisfaction is equally important for a successful business. A business can
                 be small-scale, owned by a person or its family members, with profits or losses shared among them. Examples
                 of small businesses include selling flowers grown on their own farms, operating eateries or cafes in local markets,
                 and selling ready-made garments locally. Another category can be a large-scale business with its chains all over
                 the country or across the world, with its profits shared amongst the owners and its employees. For example, pizza
                 food chain, ready-made apparels chain etc.


                         Types of Business Activities


                 There are majorly three types of business activities:


                 Product business
                   A business that is involved in the production and sale of any product. This type of business involves activities
                 related to the manufacturing, distribution, and marketing of a product. For example, a sports shop, furniture shop.
                 There are two types of product-based businesses:

                    • Manufacturing: This kind of business uses raw materials, labour, technology, capital and other resources for
                   the production of finished goods. It follows a step-by-step approach of putting together raw materials, parts
                   and components, moving from one workstation to the other with the help of technology, machinery, robots,
                   computers, and labour.

                    Finished goods are sold to the wholesalers, who in turn sell them to retailers. The consumers generally purchase
                   these finished goods from the retailers. Some of the examples of manufacturing businesses are that of food,
                   beverages, apparels, furniture, mobile phones, laptops, cosmetics and many more.


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