Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word ‘business’ or ‘businessman’ directly or indirectly. Business has become essential part of modern world. However, Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.
All of us need food, clothing and shelter. These needs are the basic human needs. We also have many other household needs that are to be satisfied in our daily lives. We meet these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman.
Lewis Henry defines business as, “Human activity directed towards producing or acquiring wealth through buying and selling of goods.”
In short, all those economic activities which are concerned with earning profit and creating wealth through the production and exchange of goods and services is called business.