October 23, 2021
Definition of Business

Definition of Business

General Definition of Business

The definition of business is an attempt to meet the needs of humans, organizations and the wider community. Business is concerned with the activities of producing, buying, selling, and exchanging goods and services that involve people and companies. In a narrower context, business is often associated with businesses, companies or organizations that can produce goods and services for profit or profit.

Business actors or referred to as businessmen or entrepreneurs will always see the needs of the community and try to serve them well so that people will be satisfied and happy.

It is from this satisfaction that a business person will get benefits where these profits will be used for business development efforts to make it even wider.

Definition of Business According to Experts

  1. Peterson and Plowman

According to Peterson and Plowman, business is a series of activities that have a relationship with a system of selling and buying goods and services that are consistently carried out repeatedly. According to Peterson and Plowman, the sale of these goods and services only once is not a business. Therefore, an activity to be said to be a business must be repeated several times.

  1. Dicksee

Meanwhile, according to Prof. L. R. Dicksee, business is a form of activity that has the aim of making profits that are used by people who are trying and having an interest in the business activity concerned.

From this understanding, it can be concluded that business is a form of activity or a form of activity for the sale of services and goods that have the aim of gaining profit for those who want to do business directly and continuously.

Business Benefits

The benefits of running a business can of course be profitable. In addition, there are several other benefits of doing business, namely:

  1. Received Recognition

If the business that is being run can be successful and get a lot of profit and is able to develop properly, especially if it can contribute positively to the community, then you will also get recognition and positive feedback from the surrounding community.

  1. Be Your Own Boss

Through business, you can become a determinant as well as a leader of the business you run. The size of the business you run depends entirely on your ability to make decisions and manage your own business.

  1. Determine Your Own Salary

Through business, you can also pay yourself a salary because you have been able to build your own business entity, have your own capital, and finally can determine your own income and income.

Even if your business is large and you have several employees, then you can play a role in increasing the economic standard of your employees through a profit sharing or payroll system that you have implemented yourself.

  1. Set Time

Hours of work for yourself have been set in such a way by yourself as you are running your own business. You don’t have to be bound by schedules and various kinds of rules so that you can more freely run your business.

In addition, you can easily manage quality time with your family because the business you are running can be practiced anywhere. Especially if you already have employees, of course you can relax at home while still occasionally controlling your business and calculating profits and determining various kinds of decisions that must be taken without leaving your family. This kind of business is very suitable for those of you who are housewives.

  1. Mas Bright Front

If the business that you are designing has developed, then coupled with your perseverance and passion in doing business will provide maximum results.

This will indirectly train yourself to continue to be disciplined and to acquire new knowledge that may not be obtained in school. That way, you will have a guarantee of a bright future if the business you are doing is at an advanced level and is always smooth.
Business Purpose

In general, the purpose of holding business activities is to gain profit or be profit oriented. More than that, the business as a whole also has several objectives that basically every businessperson wants to achieve, such as:

Want to make ends meet and meet various needs.
In order to make the family prosperous.
Want to be famous as a businessman or entrepreneur by society.
Want to be someone who is able to continue the family business.
Want to try and take advantage of new things.
Want to take advantage of a lot of free time.
Want to have your own business and business so you don't depend on others.
Want to get sympathy, and so on.

Business Functions

The business function is to create a value or use for a product where the product initially lacks value to become something that can meet various needs of society and consumers.

The amount of utility value created from various business activities can meet the needs of the community which are summarized in the various main functions of doing business activities. The main function of doing business is to create value from a product or service in certain ways involved in the production process. In addition, business also has functions to:

Change the form of business or form utility.
2. Change ownership or possessive utility.
3. Delaying the time of use or time utility.

According to an expert named Steinhoff, there are 3 main functions in doing business, namely:

Serves in the search for raw materials.
Serves in processing raw materials into finished goods.
Serves in the distribution and distribution of finished goods to various scattered consumers.

Types of Business

Judging from the motive, business can be divided into two types, namely:

Profit-oriented or profit-oriented businesses, for example individual companies, CVs, firms, PT, and so on.
Businesses that are not for-profit or are known as non-profit businesses. Examples are foundations, social organizations, non-governmental organizations, and so on.

Judging from the types of activities, businesses can be divided into 4 types, namely:

Extractive business, which is engaged in mining activities by digging mining materials that are contained in the bowels of the earth. For example, cement factories, tin factories, nickel factories, and so on.
Agricultural Business, which is engaged in agriculture, plantations, fisheries, animal husbandry, and also forestry.
Industrial business, which is engaged in the manufacturing industry such as the textile, garment, machinery, and so on.
Service business, which is engaged in the service sector to produce an intangible product such as banking, beauty, and others.

Stakeholders in Business

Owner or owner
Creditors, parties who provide funding loans to your business entity.
Employees or employees, both operational employees and managerial employees, to help achieve the goals set by your business entity.
Suppliers or suppliers play a role in providing raw materials to expedite the production process.
Customers, are the soul of doing business activities. Loyalty from customers will keep the company's business going. Therefore, to keep attracting customers or consumers, business people must continue to improve the quality and affordability of the products they sell.

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