About Business Studies

Definition of Business Studies

The subject Business Studies deals with the knowledge, skills, attitudes and
values critical for informed, productive, ethical and responsible participation
in the formal and informal economic sectors. The subject encompasses
business principles, theory and practice that underpin the development of
entrepreneurial initiatives, sustainable enterprises and economic growth.

Business Studies four main topics

1. Business Environment
2. Business Venture
3. Business Roles
4. Business Operations

Business Studies Principles

Business studies principles are the essential, underlying factors that form the foundations of the subject.
They focus on the theoretical and practical aspects of business activities. The principle provides a
framework for the study of Business Studies.
The principles give coverage of the core principles of business and management. They provide learners or
aspiring managers with a clear and concise text that covers all aspects of the business creation and
management. It considers strategic implications of economic theories and principles on business decisions
and organizations.
1. The Business Environment
1. Internal Micro Environment
2. Market Environment
3. External Macro Environment including Strategic planning

2. Organizational Principles
1. The Nature / form of Business
2. Establishing a business / Entrepreneurship

3. Business sectors
3. Business Functions
o Marketing principles, e.g. 4 Ps / 7 Ps.
o Production principles, e.g. product planning and control.
o Financial principles, e.g. capital requirement, etc.

4. Principles of Management :
Management principles are statements of fundamental truth. These
principles serve as guidelines for decisions and actions of managers. They
are derived through observation and analysis of events which managers
have to face in practice.

Business Environment
A business is an open system, which interact in two main ways with its
environment. It takes in resources from the environment, converts them into
goods and/or services, and returns outputs to the environment in order to
satisfy needs.
Environment

Business

Environment

Money
Machinery
People
Technology
Materials
Business venture

Conversi
on

Goods
Services
Informati
on
Waste

A business venture is a start-up enterprise that is formed with the

expectation and plan that a financial gain will result.
It is a vision of a new product or a new service as a viable business entity; a startup business requiring an
entrepreneurial spirit. Many refer to a business venture as a small business, since it normally starts
out with an idea that begins with a small amount of capital or finances. Most business ventures are backed
by one or more investors with the hope that the business will be profitable
Business idea

Business idea entails a business concept. A good business idea could be

an invention, a new product or service, or an original idea or solution to an
everyday problem.
It might also be: a gap in the market that you can fill a business related to the work you do already an
interest or hobby that you can turn into a business
Wants
Thing (goods and services) that a person desire to consume and can live
without Wants are unlimited because there is no limit to the amount of goods
or services people would like to consume.
For example:
TV set
Luxury car
Mansion house, etc.
Needs
The basic products that people need in order to survive.
For example:
Food;
Drink;
Shelter; and
Clothing.
Entrepreneurship
Entrepreneurship involves the ability to organise, plan and combine the other
three factors in order to supply the goods and services. The entrepreneur

must act in order to encourage the involvement of the other production

factors.
The manager:

Organizer
Planner
Leader
Controller
Delegator
Communicator
Motivator
Coordinator

Entrepreneurs
People who run and own their own business. Entrepreneur is a person who
takes initiative for establishing a business unit and he recognizes the need
for a product or service
Examples of entrepreneurs:
Mark Shuttleworth founder of Ubuntu project - high quality desktop and
server operating system
Steve Wozniak - Apple Computers
Bill Gates Microsoft
Bill Hewlett Hewlett Packard

The Importance of Business studies as a subject :

Business activity affects the daily lives of all human as they work, spend,
save, invest, travel, and play. It inuences jobs, incomes, and opportunities
for personal enterprise. Business has a significant effect on the standard of
living and quality of life of human, and on the environment in which they live
and which future generations will inherit.
Eventually, all students will encounter the world of business, whether they
work in urban or rural areas. They must be prepared to engage in business

activity with confidence and competence. Young people need to understand

how business functions, the role it plays in our society, the opportunities it
generates, the skills it requires, and the impact it can have on their own lives
and on society, today and in the future.
This subject will build a strong foundation for those who wish to move on to
further study and training in specialized areas such as management,
international business, marketing, accounting, information and
communication technology, or entrepreneurship. It will also provide practical
skills for those who wish to move directly into the workplace. Engaging in the
world of business involves studying individuals, communities, and
organizations, assessing their needs and problems, and generating
solutions.
Business studies provides students with a new, practical context for many of
the subjects they studied at the elementary level, including mathematics,
science and technology, language, and social studies. It helps students to
recognize the relevance of these subjects as they are applied in the world of
business for example, in the study of individuals and diverse
communities; in helping people with their needs, challenges, and problems;
and in creating products and services that help to improve the quality of life.
Business studies clearly demonstrates how a variety of areas of study can be
combined in productive activity that affects the lives of millions of people.
Courses in this discipline provide knowledge and skills that can help students
make a successful transition to secondary education, training programs, and
the workplace.