What is a business?

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A business is anything where the activity of providing goods
and services involving financial, commercial and industrial aspects
takes place.




Businesses – formal or informal

Businesses can be divides into two groups, formal or informal. This devision is based on the way the business operates.

Formal businesses
The formal economy includes reported payroll items, income taxes, employee taxes and any other official economic factors. Examples are Pick 'n Pay, BP, Spur, PriceWaterhouseCooper, Sanlam etc.
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Informal businesses
The informal sector refers to businesses that are not taxed, regulated or monitored. Examples are flee markets, hawkers, door to door sellers etc.
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Different types of businesses
After a business is classified as formal or informal it can be futher devided into three groups; trading, manufacturing and service.

Trading
A business is seen as a trading business when it sells ready-made product, as in trading products for money.
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Manufacturing
These are businesses, like factories, that make and produce the products that trading businesses sell.
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Service
These are businesses, like hairdressers and plumbers, that deliver a service. You pay for an action and not a product.
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