Role of stakeholders in business activity

Stake
"Stake" typically refers to a financial or personal interest in the success or
outcome of a project, venture, or business and the person who holds that
financial ownership or interest is known as stakeholder.
Business stakeholders:
People who have direct or indirect interest in business activities and
performance.
Types of stakeholders:
 Internal or external
 Primary or secondary
 Direct or indirect
Internal stakeholders as the name suggests, stakeholders that exist inside a
business. E g owners, employees.
External stakeholders are those who have an interest in the success of a
business but do not have a direct affiliation with the projects at an
organization.
Primary stakeholders
 (also known as key stakeholders) have the highest level of interest in the
outcome of a project. E g MD, CEO.

Secondary stakeholders
 also help to complete projects, but on a lower, general level. E g legal
team, finance team, accountant, supervisor etc
Direct stakeholders
 are involved with the day-to-day activities with a project. E g employees
Indirect stakeholders
 pay attention to the finished project outcome rather than the process of
completing it. Indirect stakeholders concern themselves with things like
pricing, packaging, and availability. E g Customers
Objectives of stakeholders
Owners and stakeholders: They invest money in starting and expanding a
business.
OBJECTIVES
 To earn profits on their investments

Managers: They take important decisions to run a business successfully.

OBJECTIVES
 To grow the business which can give them more power and status.

Employees: They are employed by a business to produce, test, develop, sell

goods and services etc.
OBJECTIVES
 To get good wages, salaries and working conditions

Creditors: They lend money to a business or sell goods and services on credit.
OBJECTIVES
 To increase the demand for their products and get involved with a
well established business that is able to repay its debts.

Grants and Aids:

Grants:
 Funds that are given out by one party to another. Generally government
departments, Trusts, Foundations and Corporations are the funding
agents that give grants.
 The grants are mainly given for non-profit entities such as educational,
cultural and health purposes.

Aids:

Aid is basically the transfer of resources or funds from one country to another
for various purposes like flood relief.