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Personal Growth: Starting and running a business helps you learn new skills, like problem-solving and Aisha, the Custom T-Shirt Designer
managing money. This can help you grow both personally and professionally. Aisha loved designing unique t-shirts with creative patterns and messages. She started making custom
t-shirts at home, using fabric paint and transfers. Her friends admired her designs and began asking if they
could order t-shirts with their custom designs.
SESSION 5 Business Activities and Its Types
Seeing the enthusiasm, Aisha decided to turn her hobby into a small business.
Entrepreneurship and business are closely linked. Entrepreneurship involves coming up with new ideas and taking She began taking orders for personalised t-shirts from friends, family, and
risks to create products or services. Business provides the structure and resources needed to turn those ideas into local customers. Aisha set up a small corner of her room as a workspace
real companies. Together, they form a cycle of innovation and growth that drives success in the economy. where she could design and print t-shirts to meet the growing demand.
BUSINESS Her custom t-shirts became popular for special events like birthdays and
A business is an activity where people work together to make and sell products or offer services to earn team outings. Through her t-shirt designing business, Aisha was able to
share her creativity and provide people with unique clothing that reflected their style.
money. The main objective of a business is to provide something that people need or want and to make a
profit from it. Trading Business: Trading businesses buy products from manufacturers or suppliers and then sell them
The main goals of a business are to: to customers or other businesses. This could be through a retail store, an online shop, or a wholesale
Meet Needs: Provide products or services that fulfil the needs or wants of customers. operation. For example, a store selling various brands of electronics or a shop offering clothes from
Generate Profit: Earn money by selling goods or services at a price higher than the cost of producing different suppliers are trading businesses.
them. Service Business
Operate Efficiently: Organise resources like money, people, and materials effectively to ensure smooth A service business is all about offering help or expertise instead of selling physical items. Instead of products,
operations. it provides services to meet people’s needs. For example, a salon gives haircuts and beauty treatments, and
Business Activities a consulting firm offers advice on various topics. Key tasks in a service business include understanding what
Business activities are the essential tasks that keep a business running smoothly. This includes planning what customers need, providing the service well, and keeping good relationships with clients. The success of a
the business will do and setting goals, marketing to attract customers, and sales to sell products or services. service business depends on how well it helps customers and makes them happy.
Finance involves managing money and operations and handling daily tasks like inventory and production. Hybrid Business
Each activity is crucial for the business’s success and helps in achieving its goals.
A hybrid business combines selling physical products with offering services. This means that instead of just
selling items, it also provides additional help or support related to those items. For example, a store that sells
SESSION 6 Product, Service and Hybrid Businesses smartphones and also fixes them is a hybrid business. Another example is a coffee shop that sells drinks and
snacks but also provides a comfortable place to relax and free Wi-Fi. By offering both products and services,
Product, service, and hybrid businesses represent different ways to offer value to customers. A product a hybrid business can attract more customers and provide extra value.
business focuses on selling physical goods, while a service business provides intangible services. A hybrid Difference between Product and Service Business
business combines both, offering products and related services for a broader customer experience.
The difference between product business and service business can be observed with the help of the table
Product Business given below:
A product business is all about selling physical items or goods. This involves either creating products from ASPECT PRODUCT BUSINESS SERVICE BUSINESS
scratch or buying them from other sources and then selling them to customers. For instance, a bakery Visible and Tangible Products are physical items that you can Services are intangible, meaning they
that bakes and sells cakes, or a store that sells electronics like smartphones are both examples of product see and touch, like a smartphone or a can’t be seen or touched. For example,
businesses. book. Customers pay for the actual item a massage or a tutoring session is
There are two main types of product businesses: they receive. something you experience rather than
Manufacturing Business: This type of business makes products from raw materials. For example, a hold. Customers pay for the experience
company that produces smartphones or a factory that makes toys is a manufacturing business. They and help they get.
handle everything from creating the product to finishing it and preparing it for sale. Let’s understand this Storage Products can be made ahead of time Services cannot be stored or kept for
in detail with the help of the case study given below: and stored in a shop or warehouse. For later. They are provided on demand. For
example, a toy store can keep toys on example, you can’t store a haircut; it’s
the shelves until customers buy them. given when someone visits the salon.
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