People in Business

Unit 1

At the end of this topic you will be able

to...

Explain the differences between commercial

and non-commercial businesses
List and explain the stakeholders, with
examples of each
Explain what interest groups are
Explain the different types of relationships that
can occur between the stakeholders in business
List and explain the key elements in a contract

Commercial v non-commercial
businesses

A commercial
business is one which
has the aim of
making a profit, e.g.
Dunnes Stores,
Ryanair, Apple

A non-commercial
business is an
organisation which
exists for some other
reason than making a
profit, i.e. to provide
a service e.g. charity
(Focus Ireland), state
agency (FS)

Stakeholders

Entrepreneurs
An entrepreneur is a person who spots a gap in the
market, takes the initiative to set up a business and
takes the risk involved in setting up in business
Click here for the Top 10 Irish Female Entrepreneurs
Entrepreneur of the Year videos

Too

Service Providers
People or organisations that provide support
services to the business
Examples:
Financial institutions provide accounts, loans,
etc.
Insurance companies provide insurance cover
Solicitor provides legal advice
Electricity companies provide the business with
power

Producers
Turn raw materials into finished products
They enter into contracts with suppliers
They try to make a profit by keeping costs
low and prices competitive
Example Glanbia turns milk into yoghurt
and cheese

Suppliers
Provides the raw materials required by
producers
They compete with other suppliers for
contracts by offering inducements, e.g.
discounts, credit, prompt delivery or free
delivery
Example dairy farmer

Government
Can effect businesses by the decisions they
make, e.g. laws, taxes, etc.

Investors
Investors provide finance or funding for a
business
In exchange, they expect a return on their
money
The greater the risk they take, the greater
the return the expect
Examples of investors include shareholders,
banks, venture capitalists , the Government

Employees
Make or sell the goods and services for the
business in exchange for payment of a wage
or a salary

Employers
Hire employees to perform various tasks

Consumers
A consumer is a person who buys goods and
services for their own use

Consumer v Customer?

What are Interest Groups?

Interest groups represent the interests, views
or goals of the various stakeholders
They achieve results by applying pressure or
lobbying decision makers
Example: Society of the Irish Motor Industry
(SIMI) successfully lobbied the Government
to extend the scrappage scheme in for cars.
Click here for article

Examples of Interest Groups

IBEC Irish Business and Employers
Confederation
ICTU Irish Congress of Trade Unions
CAI Consumers Association of Ireland
IFA Irish Farmers Association
LVA Licenced Vintners Association
ITAA Irish Travel Agents Association
INOU Irish National Organisation for the
Unemployed

RECAP: Stakeholders in
business
1.

Entrepreneur

2.

Investor

3.

Employer

4.

Employee

5.

Government

6.

Producer

7.

Suppliers

8.

Consumer

9.

Service Provider

10.

Interest Groups