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Personal Growth: Starting and running a business helps you learn new skills, like problem-solving and
managing money. This can help you grow both personally and professionally.
SESSION 5 Business Activities and Its Types
Entrepreneurship and business are closely linked. Entrepreneurship involves coming up with new ideas and taking
risks to create products or services. Business provides the structure and resources needed to turn those ideas into
real companies. Together, they form a cycle of innovation and growth that drives success in the economy.
BUSINESS
A business is an activity where people work together to make and sell products or offer services to earn
money. The main objective of a business is to provide something that people need or want and to make a
profit from it.
The main goals of a business are to:
Meet Needs: Provide products or services that fulfil the needs or wants of customers.
Generate Profit: Earn money by selling goods or services at a price higher than the cost of producing
them.
Operate Efficiently: Organise resources like money, people, and materials effectively to ensure smooth
operations.
Business Activities
Business activities are the essential tasks that keep a business running smoothly. This includes planning what
the business will do and setting goals, marketing to attract customers, and sales to sell products or services.
Finance involves managing money and operations and handling daily tasks like inventory and production.
Each activity is crucial for the business’s success and helps in achieving its goals.
SESSION 6 Product, Service and Hybrid Businesses
Product, service, and hybrid businesses represent different ways to offer value to customers. A product
business focuses on selling physical goods, while a service business provides intangible services. A hybrid
business combines both, offering products and related services for a broader customer experience.
Product Business
A product business is all about selling physical items or goods. This involves either creating products from
scratch or buying them from other sources and then selling them to customers. For instance, a bakery
that bakes and sells cakes, or a store that sells electronics like smartphones are both examples of product
businesses.
There are two main types of product businesses:
Manufacturing Business: This type of business makes products from raw materials. For example, a
company that produces smartphones or a factory that makes toys is a manufacturing business. They
handle everything from creating the product to finishing it and preparing it for sale. Let’s understand this
in detail with the help of the case study given below:
84 Information Technology Play (Ver 1.0)-IX

