1.5.3 Business Objectives

🔑 Reasons why people set up businesses

• Financial Motives 🔗 Earning more money than they would if were employed by someone else. Allow them to live comfortable lives with a high standard of living

  • Profit maximisation 🔗 Make as much profit as possible in a given time period

  • Profit satisficing 🔗 Making enough profit to be satisfied. May choose not to maximise profits due to extra responsibility and working hours

• Non-Financial Motives 🔗 Motives that are not driven by financial rewards

  • Ethical stance 🔗 Setting up a business in support of a moral belief (E.G Vegetarian restaurant if you believe killing animals is wrong)

  • Social Enterprise 🔗 Non-profit organisations with the aim of improving human/environmental well-being. Generate most income by donations or trade and aim to give back to the community

• Independence 🔗 Setting up a business to 'be your own boss' and having the freedom to make decisions.

• Home working 🔗 Setting up a business to work from home. E.G Plumbers, decorators, electricians.