Introduction to Business, BBA

1st
Course instructor

GHULAM SARWAR

Management Trainee, Quality Enhancement Cell, UoCH

BBS, Institute of Management Sciences Peshawar
MS, Management Sciences, Pakistan Institute of Development Economics, Islamabad (Quaid
E Azam University, Islamabad)
• ..//

What is
Entrepreneurship?
What is Business

Any lawful and continuous activity with a motive of to earn

some profit.
LAWFUL- A person can not do a business in prohibited goods and services.
CONTINOUS- Buying, selling or manufacturing must continue.
AVTIVITY- Buying, selling, merchandising, hybrid, manufacturing, services and so on
PROFIT- Your business activity must generate some sort of amount in return(profit)
Types of Business

1. Service Business: A service business provides

intangible products, such as accounting, banking,
consulting, cleaning, landscaping, education, insurance,
treatment, and transportation services.
Types of Business

2. Merchandising: A business that purchases finished

products and resells them to consumers. Think of the
last time you went shopping for food, household items,
or personal supplies
Types of Business

3. Manufacturing Business: Any business that uses

components, parts or raw materials to make a finished
good. These finished goods can be sold directly to
consumers or to other manufacturing businesses that
use them for making a different product
Types of Business

3. Hybrid Business: Hybrid businesses are companies

that may be classified in more than one type of business.
A restaurant, for example, combines ingredients in
making a fine meal (manufacturing), sells a cold bottle of
wine (merchandising), and fills customer orders (service).
 Forms of Business

1. SOLE PROPRIETORSHIP: Sole

proprietorship is a business owned by only
one person. It is easy to set-up and is the
least costly among all forms of ownership.

The owner faces unlimited liability;

meaning, the creditors of the business may
go after the personal assets of the owner if
the business cannot pay them.
 Forms of Business

2. PARTNERSHIP : A partnership is a
business owned by two or more persons
who contribute resources into the entity.
The partners divide the profits of the
business among themselves.
 Forms of Business

3. CORPORATION: A corporation is a
business organization that has a separate
legal personality from its owners.
Ownership in a stock corporation is
represented by shares of stock.
 Forms of Business

4. NON FOR PROFIT BUSINESS: A non-profit

business is a tax-exempt organization
formed for religious, charitable, literary,
artistic, scientific, or educational purposes.
Its shareholders or trustees do not benefit
financially. Any money earned must be
retained by the organization and used for
its own expenses, operations, and
programs.
Objectives of Business
Objectives of Business
Objectives of Business
 Objectives of Business

Social Justice: Justice in terms of the

distribution of wealth, opportunities, and
privileges within a society.

Imports Substitution: Import substitution

industrialization (ISI) is a trade and economic
policy which advocates replacing foreign
imports with domestic production. ISI is based
on the premise that a country should attempt
to reduce its foreign dependency through the
local production of industrialized products.
 According to the
Bureau of Labor Statistics, 20% of
upcoming companies and or
businesses fail by end of their first
year of establishment. By the end of
their fifth year, 50% of the
businesses go under and by the
tenth year, the number of failed
businesses often grows to 80%, says
the federal bureau. Same issue is
with the Pakistani business system.
Challenges for Business in
21st Century
 1. CORPORATE SOCIAL RESPONSIBILITY:
Under this head, a company is socially
accountable to benefit society.
Example: 1. Johnson & Johnson (Clean
drinking to society)
2. CocaCola: Coke Studio
3. Microsoft: Polio Vaccination
4. Netflix: 52 weeks of paid
vacations for
employees
In 2010, the International
Organization for Standardization (ISO)
released a set of voluntary standards

Challenges for Business in

meant to help companies implement
corporate social responsibility

21st Century
 2. ETHICS:

Challenges for Business in

21st Century
 Entrepreneurs VS Managers

Entrepreneurship: Who creates an enterprise, by taking financial risk to

get profit
Manager: Who takes the responsibilities of controlling and administering
Basis
the fororganization
Comparison Entrepreneurs Managers
Focus Business Startup Business operations
Primary Motivation Achievement Power
Approach to Task Informal Formal
Status Owner Employer
Reward Profit Salary
Decision Making Intuitive Calculative
Driving Force Creativity and Innovation Preserving status que
Risk Orientation Risk Taker Risk Averse