Introduction to people

in business

Unit 1 Chapter 1
 Learning Intentions
By the end of class students should be able to:

Define the term Business

Distinguish between a commercial business and a
non-commercial business
Name the main parties in business (8)
Explain the role of these 8 parties in business
 What is Business?
A business is any organisation set up to provide goods and services
Businesses can be commercial or non-commercial
Commercial: provides goods and services to make a profit for the
owners. E.g. local shops, large supermarkets chains- Dunne stores
and banks.
Non-commercial (not-for-profit businesses): exists to meets needs
and provide services other than making a profit. E.g. Charities such
as trocaire, sporting organisations such as the GAA
 1. Entrepreneurs (Risk-takers)
Sets up new business
People who take the initiative to turn an idea into a business
Success makes profit
Fails loose money invested

However, not every entrepreneur has a profit motive.

Non-profit-organisations e.g. a local sports club
 2. Investors
Often entrepreneurs dont have enough money to start a business
Investors=People who provide a business with the finance it needs
- Bank loans (repaid with interest)
- Grants ( doesnt have to be repaid once certain
conditions are met)
- Private investors (may require shares)
 3. Consumers
Consumers purchase good and services for their own use which is
provided by entrepreneurs.
Consumers provide entrepreneurs with a market and possible
profits

4. Producers/ Suppliers
Producers- businesses that make products to sell to customers.
Example- Jacobs produce biscuits
 5. Employers
As soon as entrepreneurs recruit people to work for them
they become employers
Employers employ staff to perform different tasks.

6. Employees
Employees work for their employers and carry out the tasks
given to them in return for a wage.
 7. Service Trader or Service Provider
Firms that offer service required by entrepreneurs e.g.
- Financial Services e.g. Banks
- Distributions Services e.g. retailers
- Info Services e.g. market research firms
- Legal Services e.g. Solicitors
 8. Interest groups
Interest groups are organisations representing people who
share a common interest/goal.
Also known as pressure groups
Role: influence decisions made by organisations by
1. Boycotting firms
2. Encourage consumers not to support certain firms
3. Lobbying- influencing decision makers by promoting a
particular point of view
 Stakeholders

Stakeholders are the different groups of people who are

directly effected by how a business is run
A decision by one stake holder can affect the interest of
another
So for a business to succeed co-operation is vital by all
stakeholders