Trade is an economic activity that seeks to make a profit by selling or trading different kinds of items. It may involve one or more stages of chain production, such as using natural resources, production, distribution, storage, sale, or resale. The word business is sometimes used to describe business locations that sell a product or service, such as a restaurant, clothing store, pharmacy, etc.
Types of business
Businesses can be of different types:
· National or international: business can be national or international depending upon whether the goods are supplied out of the country or in the country.
· Physical or online: business can be physical or online depending upon whether things are sold using the physical space in the market or by using the digital platform.
Pros and cons of business
Pros of business
· High motivation: Business teaches a person composure, punctuality, work for quality, and self-improvement. The success of the enterprise and the earnings of the business owner directly depend on his actions and achievements.
· Personal time: Business requires effort but allows you to plan your work schedule independently. A rarely hired employee can boast of this. The workload of an entrepreneur depends on the chosen field of activity and circumstances. In the initial stage, a businessman has to work outside the schedule; as the enterprise stabilizes, it becomes possible to normalize working hours and even reduce them.
· Raising the standard of living: Income growth occurs as the enterprise develops. It is not worth waiting for your business to bring money quickly.
· Opportunity to earn high income even in times of crisis: Here, however, an important role is played by the direction of activity and the ability of the entrepreneur to adapt his business to changing conditions quickly. Thus, the corona virus pandemic caused a rapid growth of companies operating in online trading, online education, and construction. Pharmaceutical and IT companies received a significant income.
· The flexibility of small businesses: They can be repurposed or stabilized when problems arise, expanding the range of services offered.
Cons of business
People in business may encounter non-standard situations when working with staff and clients, inspections by regulatory authorities, blocking a current account, and others.
· Lack of stability: The business operates in a continually changing environment. A person who is used to a stable job with a limited list of responsibilities can find it difficult to adapt to a new rhythm of life.
· The difficult financial situation in a number of areas, which worsened after the start of the COVID-19 pandemic: The pace of financial enlargement has slowed down; the income level of India’s population has decreased, along with it, the demand for certain goods and a service has fallen.
· High level of competition in small businesses: According to market research, up to 29% of entrepreneurs are forced to compete with network companies. About 4% of small businesses face competition from aggregators or online stores.
