Fundamentals of

Project Management&
Entrepreneurship
Chapter Two
The definition and nature of business
projects
Under the supervision of Dr. Elsayed Maher Khalaf
Instructor in the Department of Business Administration
Faculty of Commerce
University of Sadat City
(2023)
Prepared by Khloud Khalifa
Introduction:-
First: The definition of the business project.
Second: The characteristics of the business project.
Third: The reasons for the existence of business projects.
Fourth: Types of business projects.
Fifth: Some modern forms of business projects in Egypt
- Multinational companies.
- Joint projects (partnership).
Third: Reasons for the existence of business projects:
There are many reasons for the existence of business projects,
including:
1) The existence of organizations or business projects is a
natural matter consistent with the existence of man and his
social nature, and therefore he resorts to forming organizations
to achieve his goals.

Accordingly, we find that the main problem of business

organizations is the same as what economists call the reform of the
economic problem, which is at the same time the main problem of
man, and this problem is the attempt to satisfy unlimited needs with
a limited amount of resources.
There are some differences in how each deals with the
same problem, and these differences can be mentioned as
follows:

1- That business organizations aim to satisfy human needs in return

for the profit they obtain.
2- Business organizations seek to satisfy human needs as long as they
are able to do so.
3- When business organizations try to satisfy human needs, they
behave logically, but the individual is often illogical.
2) Business organizations are a means of overcoming the
restrictions that limit individual work, when two people work
together to move a stone, they actually increase their personal
strength over the method of assembly.

3) There are social reasons for the existence of organizations.

Man is a social being and he always seems to be in need of
relationships with other people.

4) Man also organizes for non-personal material reasons.

Through organizations, he can do three things that he cannot do
alone: he can develop his abilities.
5) A person is organized for material reasons, including the
following:

A) Capacity development; the first material reason for the

existence of organizations is that they develop the capabilities of
individuals.
B) Reducing time, time is an important factor in accomplishing
many, if not most, human goals, and the total time spent can be
saved through specialization.
Fourth: Types of Business Projects:
The organizational forms that have emerged to achieve the goals and
objectives of business activity are business organizations, and
therefore, business organizations are economic units that aim to
satisfy some human needs and desires through the production or
distribution of a commodity or service.

In general, projects can be classified into two main groups:

The first group: economic projects.
The second group: Non-economic projects.
 Economic projects

1 2 3
Product Type field of activity Product Type
(private, public) (industrial - commercial) goods and services
In general, projects can be classified into two main groups:
The first group: economic projects:
They are productive business projects (the field of study) that is, that
use production factors (from materials - labor - capital) with the
intention of producing a commodity or providing a specific service,
in order to achieve the maximum possible profit, and these projects
can be classified using many bases, including:
1) Product type:-
A) Projects that produce various commodities, such as food and
electrical commodities.
B) Projects for providing services for a fee, such as special
education, economic treatment.
2) Field of activity:
According to this basis, business projects can be classified into three
types:
a) Industrial projects, which can be classified into:
- Extractive industries: These are industries that aim to provide the
product without making a fundamental change in its natural
properties.
- Transformational industries: These are those industries that lead
to fundamental changes in the shape of the raw material, and the
most important of these industries are metallurgical, engineering,
chemical, spinning and weaving, food industries....etc
b) commercial projects:
These are projects that mainly carry out purchases for the purpose of
selling and making profits, such as wholesale and retail trade, import
and export projects.

c) Service projects:
These projects work to provide certain services to the public, and
seek to make profits from providing those services.
3) Type of ownership:
According to this basis, economic projects can be classified into two
types:
a) Private projects, which are projects owned by individuals and persons,
whether they are natural or legal persons, such as institutions, bodies and
companies.

b) Public projects, which include all projects in which the government

owns all or part of its capital,
The second group: Non-economic projects:
It is noted that the most important feature that distinguishes these projects is that
they do not aim to make a profit, as they are considered state-owned projects, and
in general, government service agencies in Egypt can be listed as follows:
1) Organizations that perform public services to the public; they
are represented in the devices or organizations that provide their
services to citizens, without the individual bearing a direct cost.
2) Organizations from which a certain group of people benefits
free of charge; Examples of these organizations are the social
security agencies and social affairs.
3) Charitable Organizations; These are organizations that aim to
provide charitable works.
There are some basic differences between economic
projects and other non economic projects, the most
important of which are the following:
1) The primary goal that economic projects seek is to achieve profit,
while service projects aim to provide service to the largest number
of beneficiaries without obtaining profit.
2) The main activity of economic projects is focused on the
production of tangible goods, while non-economic projects focus
more on the production and marketing of services than on tangible
goods.
3) Many non-economic projects, especially those affiliated with the
state, have a monopoly on the production and marketing of services,
meaning that most of them are monopolistic organizations.
Thank You For listening