LESSON 16.3 What types of businesses exist?
LEARNING INTENTION By the end of this lesson you should be able to: • explain why people start a business • compare different categories of business ownership structure.
Tune in Starting a business involves decisions about its size, number of stores and how it will be run.
FIGURE1 Paciýc Fair Shopping Centre, located on the Gold Coast, houses over 400 businesses.
1. What are some amenities commonly found in large shopping centres? 2. How do large shopping centres impact local businesses? 3. What are the advantages of shopping at a very large shopping centre?
16.3.1 Why businesses exist Starting a business is hard and risky. If it fails, the owner could lose money, so the decision must be made carefully. Businesses are often started by people who want to achieve one or more of the following: • To make a proýt: A successful business can earn the owner more money than a regular job. • To ýll a gap in the market: A gap in the market means a good or service that is not being provided at all or not being provided in the local area. • To meet a social need: Some people start businesses to help with social issues. For example, the owners of Thankyou Water saw that many people didn’t have clean drinking water. They used their proýts to help ýx this. While Thankyou no longer makes single-use water bottles, it still works to end poverty by funding projects through other products.
TOPIC16 How markets work 553
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