Entrepreneurs who are interested in starting a new business may have wide range of decisions to make before they begin. It is whether to enter the for-profit or Not-for-profit organisation.

• For-profit organisation:  A for-profit organisation is generally formed to earn more money than it spends. Owner can decide to keep all the profits for themselves or may re-invest or may spend some of the profits for employees.

          Examples: Apple,Google,Facebook,BMW and so on...

• Not-for profit organisation:   A nonprofit organisation exists to provide particular service. Not-for profit doesn't mean loss to the organisation.

          Examples: ' AKSHAY PATRA'- In June 2000, The Akshaya Patra Foundation started the   mid-day meal programme in Bengaluru, Karnataka.

       The programme embraced the vision that –
            “No child in India shall be deprived of education because of hunger.”

Business has two components:

• Industry and
• Commerce.

Industry and Commerce are subsets of business.

• Industry: Production of goods or providing of service in an economy. Industry is a subset of sector. A group of companies that operate in the same segment of the economy or share a similar business type. 
  Industry is further divided into two types:

1. Primary and
2. Secondary.

 Primary industry: This is the basic level and it is of two types.

• Extractive: Concerned with extraction of natural resources from below the surface of earth. It includes extraction of oil,gas and coal.
• Genetic : Reproducing and multiplying certain species of plants and animals. It includes farming and fishing.

Secondary industry: Conversion of raw materials into semi-finished or finished goods. Secondary industry is what uses primary as input or Processing of primary goods. Output of primary is input for secondary.

Examples: Extracted coal is used as a input to generate power.

Singareni collieries company(telengana)  is the second largest producer of coal in India.

• 70% of employment in India is generated through micro,small and medium scale industries.
• 80% of german economy is controlled by small and medium scale industries.

•  Commerce:  Group of industries . Transfer of good from the place of production to some other place.It is classified into two :

1. Trade and
2. Aids to trade.

Trade is of three types.

• Home trade/ Domestic trade
• External trade
• Entre port trade: A place which divides home land and foreign land. ( SEZ'S or Export processing zone)

Aids to trade includes advertisements,agents,Transportation, logistics( tangible and intangible) and so on.

Sector is classified into three:

• Primary sector
• Secondary sector and
• Territory sector.

 

By AMRUTHA KAMALI