The term word Business means busy ness, it means the state of being busy and doing something for profit. The word Organization is in the sense of selection of a suitable form, it is very important while establishing a new business unit. Clear understanding of these two terms will enable us to grasp the economic basis of modern social organization.
Starting a business is a not a simple one, harder work and learning capacity are need able. The main characteristics of business are sale, transfer of exchange of goods and services for value, continuity of dealings, profit motive, uncertainty and risks. Production or purchase for one’s own consumption is not a business activity. The exchange of goods and services, it is a continues process. The business organization involves many things. It may have other motives also.
The scope of business is the Industry, Trade and Commerce. The Industry is called “Production of goods and materials, while “Trade and commerce” called “Distribution of goods and materials manufactured”. The Industry can be classified into five types. They are Extractive industries, Manufacturing industries, Genetic industries, Construction industries, Assembly industries. And the Trade and commerce has the two kinds they are Trade and Aids to Trade these involves the Business Organization and Starting Business.
The trade has the two types they are the Inland trade and the foreign trade and the foreign trade has the two kinds they are Import trade and Export trade. The Aids to trade has the five obstacles, they are banking, transporting, insurance, ware housing, mercantile agents. In the Business Organization and Starting Business have an objective they are the economic objectives, social objectives, human objectives, they are give below.
The economic objective shows the creation of customers, and innovating the new commodities. The social objective shows the supply of good quality goods at fair prices, employment opportunities, and fair returns to investors. And the human objective refers the fair deal to employees, developing human resources, job satisfaction to employees. And the essentials of a successful business is as, the objectives, planning, research, location and size, sound organization, adequate finance, effective management, effective distribution system and the maintenance of better employee relationship.
Business Organization and Starting business is not an easy one. The starting business the stage, in the initial there needs to be a low investment, and know the demand of the customers, the next stage is the establishing stage, and this involves increase investment. This is stage takes risk, and tries to fulfill the needs and wants of customers. The next is the growth stage; the stage of the business is well developed stage and the profitability level is high, the customers are satisfied and loyal to their particular firm. And the decline stage face the gradual decrease, due to the competitor’s activity, this stage is called the end stage of the business.