Apr 13, 2009

The purpose of the businessman

Correctly to understand a word meaning it is especially actual during an epoch of information wars. Far not all definitions of business so are harmless, as seem at first sight. Criteria of correct definition of business are: independence, ecological compatibility, a practicality. Business is the term meaning a kind of human activity, conducted in the conditions of limitation of the resources, competitive struggle and uncertainty of a situation. Its purpose - achievement of the greatest possible personal well-being, by means of satisfaction of needs and requirements of associates by means of the various blessings (the goods and services), created, advanced, exchanged and used by means of various organizational-legal forms.

Each word matters

Correctly to understand a word meaning it is especially actual during an epoch of information wars.

Distortion of a meaning, substitution of values, emphasis on insignificant details - we it see pretty often. Swindlers of all colours name black white, dead live, invented by the real. Results are awful. The user misled, receives illnesses instead of health, poverty instead of riches, problems instead of decisions, imitation instead of creativity.

Not all definitions are equally useful

We take, for example, the term "business". What does it mean?

Definitions set. I will result the most popular:

  1. Activity at own risk, directed on extraction of profit,
  2. The mechanism of social responsibility,
  3. System of spiritual perfection,
  4. Innovative activity.

But, even if not all yoghurts are equally useful, why we should consider, as if all definitions of business possess identical value. Far not all definitions so are harmless, as seem at first sight.

The first - pushes the businessman on illegal activity as connects in a single whole risk and profit. And you know, what branches most risky / profitable - drugs, contraband, currency frauds.

The second - substitutes activity of the businessman by job of the politician. Businessmen defend private interests (not the, and private), and politicians public (not job lots, and public). If businessmen undertake the decision of public questions, that, excuse, than politicians will be engaged?

The third - substitutes activity of the businessman by religious practice. Business can be the tool of religious practice (as it has occurred in Protestantism), but not the practice of religion. A way, but not sense. The form, but not the maintenance.

The fourth - substitutes enterprise activity by job of the scientist-inventor. Excuse, but to think out new and to combine available are a little various kinds of activity.

As you can see, incorrect, inexact, false definition can result the user for a lattice, in a policy, in sect, in a science.

Want for a lattice? And in sect?

Then listen to correct definition of business.

Criteria of good definition

Before you receive directly definition, I will tell about criteria to which it corresponds.

  1. First, independence - not reducibility to other kinds of activity.
  2. Secondly, ecological compatibility - absence of harm for the user.
  3. Thirdly, a practicality - the maximum simplicity of use.

This is very good criteria.

Business is …

Attentively listen to business definition. Such you will not find neither in one encyclopaedia, nor in one dictionary.

Business definition

Business is the term meaning a kind of human activity, conducted in the conditions of limitation of the resources, competitive struggle and uncertainty of a situation.

Its purpose - achievement of the greatest possible personal well-being, by means of satisfaction of needs and requirements of associates by means of the various blessings (the goods and services), created, advanced, exchanged and used by means of various organizational-legal forms.

The important details

Let's walk on definition substantive provisions that at you its correct understanding was generated.

Business is a term

Business is a special word which has quite certain value. That you will put any other, "special" sense in concept "business" you will suffer first of all. Because shoe polish does not become edible that it name bread.

Kind of human activity

You know what kinds of human activity?

Sports, medicine, engineering, painting, … - in general is a lot of. One only trades is more than twenty thousand, and there is still a hobby, household chores, and idle idleness cancelled nobody.

For activity any kind three aspects are characteristic:

  • Practice - process of direct development and transformation of objects.
  • Science - set of laws of a universe which have essential value.
  • Art - skill degree, level of possession of a subject.
  • Business is one of activity kinds. As it is an especial kind of activity (see, even the word special exists) it is characterised by own logic, the internal maintenance and original forms.

  • Practice are various procedures, decisions, an estimation of risks, search of investments, development of strategy.
  • Science - various economic, social and innovative laws.
  • Art - professional growth, abilities to increase riches, ability to start more scale projects.
  • Seized three aspects of activity becomes the perfect businessman.

    Conditions of limitation of the resources, competitive struggle and uncertainty of a situation

    Limitation of resources - a fundamental economic law. At people boundless quantity of requirements, but the limited quantity of possibilities for their satisfaction.

    Competitive struggle - a basis of economic interaction. The limited resources aspire to receive all. But owing to objective laws receive them some can only. Between people (the unions, parties) struggle inflames.

    Uncertainty of a situation - a severe economic reality. Set of accepted decisions force a situation to vary continuously. As nobody in a status to supervise the decisions accepted by all subjects, the economic reality by definition is not clear, and, hence is connected with risk.

    Well-being - the purpose of the businessman

    Well-being is a set of useful and valuable subjects.

    1. Advantage - ability to satisfy human requirements.
    2. Value - desire surrounding to receive it for personal use.
    3. Subject - any object existing in a reality.

    Satisfaction of needs and requirements of associates by means of the various blessings (the goods and services)

    Requirements of people are boundless. As soon as one are satisfied, on change the new appear it. People cannot satisfy requirement "from anything", various resources or "blessings" are required.

    The blessings we name all kinds of products - the goods and services - which are connected with well-being, that is are useful, have the price, are concrete.

    Created, advanced, exchanged and used by means of various organizational-legal forms

    The blessings not only do not appear "from anything", they also are not created "in itself". That the person could satisfy the requirement by means of its this or that blessing it is necessary to create, advance physically on the market, to exchange for money or other valuable resources and to use for the designated purpose. All these aspects are in sphere of conducting the businessman.

    For a long time cooperation - associations of people - allowed them to achieve much more essential results, than if they operated alone. Now various forms of co-operative interaction it is accepted to name "organizational-legal forms".

    I am assured, that after such digression you will have a correct impression about enterprise activity.

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