Chap…1 People in Business

People and their relationships in Business 1.ENTREPRENEURS Have the ability to spot and evaluate business opportunities Use initiative and enterprise to gather resources necessary to take advantage of opportunities Are highly motivated people who take calculated risks to achieve their goals

2.INVESTORS Provide finance to entrepreneurs to start up and develop business. Investors maybe Shareholders buying shares in a company – share capital A bank or building society investing in the form of loans

3. PRODUCERS Combine the use of machinery, labor, finance to transform raw materials into a finished product to sell to consumers 4. SUPPLIERS Supply the raw materials and machinery required for production to producers Supply answers with finished goods

5. SERVICE PROVIDERS Provide a wide range of services, telecommunications, distribution, financial, professional services 6. EMPLOYERS Hire employees to produce goods or supply services. They reward employees with wages 7. EMPLOYEES Work for employers in the production of goods and services, they get wages in return for this

8. INTEREST GROUPS Wish to influence the political decision-making process but are not part of the accepted political structure of the country. (e.g.) IBEC, irish business & employers confederation IMI, irish management institute ICTU, irish congress of trade unions Chamber of commerce=promotes business SIMI, society of irish motor industry ITAA, irish travel agents association 9. THE DYNAMIC RELATIONSHIP The relationships between parties in Business are constantly changing and is said to be dynamic.

Sometimes this relationship is co-operative: they help one another at other times it is competitive, which may cause conflict. RELATIONSHIPS BETWEEN Entrepreneurs and Investors Producers & interest groups Consumers & businesses Employer & employee Consumer & producer