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What is the concept of Business?

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The term business is derived from the

word ‘busy’. Thus, business means

being busy. However, in a specific

sense, business refers to any

occupation in which people regularly

engage in an activity with a view to

earning profit. The activity may consist

of production or purchase of goods for

sale, or exchange of goods or supply of

services to satisfy the needs of other


In every society people undertake

various activities to satisfy their needs.

These activities may be broadly

classified into two groups — economic

and non-economic. Economic activities

are those by which we can earn our

livelihood whereas non-economic

activities are those performed out of

love, sympathy, sentiments, patriotism,

etc. For example, a worker working in

a factory, a doctor operating in his

clinic, a manager working in the office

and a teacher teaching in a school—

are doing so to earn their livelihood and

are, therefore, engaged in an economic

activity. On the other hand, a housewife

cooking food for her family or a boy

helping an old man cross the road are

performing non-economic activities

since they are doing so out of love or

sympathy. Economic activities may be

further divided into three categories,

namely business, profession and

employment. Business may be defined

as an economic activity involving the

production and sale of goods and

services undertaken with a motive of

earning profit by satisfying human

needs in society.