The Meaning, Benefits and Purpose of Business You Need to Know

Purpose of Business – The increasingly modern age makes many people who develop a business starting from a home business to a business that has expanded to several regions. A business built by a person or group can be said to be a business venture. Business activities that are carried out in earnest will experience development, so that the profits obtained will be more and more.

Therefore, in order for a business to grow, it is best to first understand the meaning of business, the benefits of business, the purpose of business, and other things related to business. Some of these things need to be known by many people, especially for those who want to start a business. In fact, not only knowing some of these things, we also need to understand these things.

By knowing and understanding things related to business, then the spirit of developing and expanding the business will increase, so that we will find various ways to develop the business that is being developed or pioneered. Businesses that are growing will be able to compete with old competitors or new competitors.

The more people who create and develop a business, then the employment field will be wide open, so that the well-being of the community will increase as well. Therefore, never hesitate to build a business even if you have to face various obstacles.

If you want to know business matters, such as the meaning of business, the benefits of business, the purpose of business, you can read this article to the end, Reader. So, read this article immediately, Reader.

Meaning of Business

The word “business” comes from the English language, namely business , while the word business itself comes from the development of the word busy which means busy. “Busy” in this case can happen to individuals, communities, or society. Business if interpreted in a simple context can be interpreted as a busyness in doing an activity or job that can provide profit to someone.

Meanwhile, business if interpreted in the context of an entity can be interpreted as a business entity or organization that performs a movement in a professional, industrial, or commercial activity. All these activities are done with the aim of making a profit.

This is in line with business in the Big Indonesian Dictionary (KBBI) business is a commercial venture in the world of trade or business or business venture. In building a business, the business owner will definitely try to get enough profit because with that profit a business can be developed into a bigger business.

In short, business is an activity or activity carried out by an individual or a business entity with the aim of making a profit by doing various things, such as manufacturing, distribution, selling, and purchasing. Therefore, many people say that business is related to economic activities and can build economic growth.

However, in building a business, it is not as easy as flipping the palm of the hand, so whether it is an individual or a business entity, you should try to think about making a mature plan. This needs to be done so that the business that is built can last a long time, and even have the ability to compete with competitors.

The Meaning of Business According to the Experts

After knowing the meaning of business based on KBBI, now is the time to know the meaning of business according to the experts. Taken from several sources, the meaning according to experts is as follows.

1. Brown and Petrello

Brown and Petrello stated that business is an institution that can make a production result, either in the form of goods or services that can be used to meet business needs and can meet the needs of businesses that have been carried out by the government or the private sector with the aim of achieving a profit or no.

2. Jeff Madura

According to Jeff Madura, business is an institution built by individuals or groups with the aim of forming an enterprise that can be utilized or useful to provide services or production products that are liked by customers or society in general.

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3. Hughes and Kapoor

Hughes and Kapoor said that business is an activity of an individual or a group of individuals that is planned with the aim of creating a product or service that can be sold to consumers in order to gain profit while also being able to meet the needs of the consumer himself.

4. Steinford

According to Steinford, business is an institution or business entity that can create goods and services that can be used to meet the needs of society. If, the needs of the community are increasing, then the goods and services produced by business institutions will also increase in order to meet the needs of the community while also getting more profit.

5. Hooper

Hooper said that business is all the complex things that exist in various fields, such as sales and industry, basic industry, processing and industry, manufacturing and network, distribution, banking, transportation, insurance, and others that then all those fields enter the business world as a whole.

6. Merriam Webster

According to Merriam Webster business is an activity, such as the manufacture, purchase, and sale of goods and services that are then exchanged for money. In addition, he also said that business can be interpreted as an activity that includes part of the job as well as some activities that have been completed by companies, shops, factories, and so on.

7. Griffin and Ebert

Based on what was expressed by Griffin and Ebert, business is an institution or organization that provides or produces goods or services with the aim of making a profit.

8. LR Dicksee

According to LR Dicksee, business is a form of an activity carried out in order to obtain profit or profit from a business activity carried out.

9. Prof. Owen

Prof. Owen said that business is a company that is closely related to production and distribution of production to be traded or sold to the market or consumers by giving a price for each service.

Business Benefits

A business built by a person or a business entity must have several benefits, namely:

1. Be a Leader and Boss

In creating and developing a business, we can be leaders or bosses. What’s more, if the business that is built is owned by yourself and not owned by the group. By being a leader as well as a boss, then we can make policies that suit our desires. However, it is even better if the policy is taken based on the joint decision of the employees of the business, so that communication between employees and leaders can be well established.

For some people, becoming a leader and boss has been an ambition since childhood, so they will try as hard as possible, but some other people become leaders and bosses because of their exceptional performance in the company. From wherever the desire to be a leader and boss is important to have the ability to develop a business venture.

2. Manage Time Well

The next benefit that can be felt from business activities is being able to organize well. That is, we can arrange when to work and when to rest. However, things like this happen more often in businesses built by individuals rather than groups.

If the business is developed as a group, it is best to arrange the time with the agreement of the group members. This needs to be done so that there are no misunderstandings between group members, so that the business that is being pioneered can grow and last longer. A business that is growing indicates that the business that is being carried out is making enough profit.

3. Increase Self-Confidence

Increasing self-confidence is very important in a human life. Basically, there are many ways to increase self-confidence, one of which is to build a business venture. Business activities turn out to be able to build self-confidence because we have confidence that production results in the form of goods and services can sell well in the market.

The more self-confidence increases, the more ideas to develop business ventures. Therefore, the benefits of business should be maximized as best as possible.

4. Getting Appreciation

For those of you who build a business venture, either as a group or individually, then you can get benefits in the form of gaining appreciation. The appreciation given can be for the company and can also be for the individual. The more awards received, the greater the consumer’s trust in the company or individual itself.

Consumer trust is very important for the sustainability of a business. In other words, consumer trust is the key to the success of a business.

5. Awaken the Spirit of Entrepreneurship

The benefit of the next business venture is to awaken the spirit of entrepreneurship. This spirit of entrepreneurship is very necessary in developing and expanding business ventures. Without an entrepreneurial spirit, it will be very difficult for a business to grow. In this modern age, developing an entrepreneurial spirit is necessary because we can open up jobs.

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6. Adding Experience and Insight

The last benefit of building a business is adding experience as well as insight. The more experience we have in our lives, the more solutions we find to solve problems. Similarly, by building a business, the problems in the business will be easier to overcome when we already have a lot of experience in the business.

Business Purpose

Basically, the main purpose of a business is to make a profit. However, in reality, the purpose of business is not only that, but there are other purposes. Therefore, in order to make it easier to understand the purpose of a business, the purpose of business is divided into two, namely the purpose of business in general and the purpose of business for business actors.

Business Purposes in General

1. Making a Profit

As many people already know that the main purpose of building a business is to make a profit. Almost all companies and entrepreneurs will seek profit from the business that is built. For this reason, business owners must be smart to find ways so that the business that is built can be developed well and profits can be achieved.

2. Progress and Development for Business Enterprises

Every business that is built by an individual or a group, must really want the business to continue to experience progress and development. The more advanced and developed a business is, the greater the profit obtained and the more jobs there are.

3. Gain Performance

Who does not want to get a performance, every business that is built must have a purpose to get a performance. This is because performance is a form of acknowledgment that the business is trusted by the community and that its goods and services have superior quality from competitors.

4. Provide Community Needs

In addition to making a profit, a business is also built with the aim of providing for the needs of the community. Community needs will be difficult to meet if there is no one to make goods and services needed by the community. Therefore, the community and the company will be interconnected. The company will make a profit from the goods and services sold, while the community can meet its needs.

5. Increase Community Economic Growth

Economic growth in the community should be increased so that the community becomes more prosperous. In addition, economic growth is also needed by the country to advance the life of the nation and the country. Economic growth can be obtained through the formation of a business venture. In short, when we build a business, the business must have the purpose of increasing economic growth, whether it is the economy of the community or the economy of the country.

6. Creating Jobs

The more jobs there are, the more people’s lives get closer to prosperity. Increasing employment can be done by building and expanding a business. The purpose of this one business can be said to be very good, because it can provide income or income to other people, so that the person can live a better life.

7. Showing Enterprise Existence

The existence of the company is the purpose of a business. Without the existence of the company, the trust of society and consumers will decrease, so the company will have difficulty growing.

Business Purposes for Entrepreneurs

1. To Meet the Needs of Life

For business people, businesses must have a purpose to earn income from the business they pioneered. For this reason, business people will look for various ways to get profit from sales so that the needs of life can be well met.

2. Enriching Family Life

Entrepreneurs who already have families will rely on business as income or income. With that income, the entrepreneurs can provide for their families.

3. Continuing the Family Business

For some businesses that exist in Indonesia are the result of previous generations, so there are not a few entrepreneurs who aim to continue family businesses that have been established for a long time. By continuing the family business, the business that has been built for a long time will not disappear.

4. Making Innovation and Adding Experience

The purpose for the next business actors is to develop innovation while adding experience in the business world. Innovation in business is very necessary to be able to compete with other companies. In addition, with the emergence of an innovation, it means that the ideas owned by business actors are quite a lot.

5. Want to Own Your Own Business

For entrepreneurs who build their own business, they must be very proud because they can build their own business. What’s more, businesses developed individually will be free to determine a policy.

Conclusion

Businesses that are built and developed individually or with groups, actually have many benefits that can be felt. In addition, in building a business, we also need to know the purpose of building the business. This needs to be done so that the business that is built does not lose its direction and continues to experience progress and development, so that it can provide benefits for oneself, the community, and even the country.