Business is the activity of making one's living or making money by producing or buying and selling goods or services. Simply put, it is any activity or enterprise entered into for profit. It does not necessarily entail a company, corporation, or partnership or any such formal organization; rather, it can be used to describe anything from a street peddler to a conglomerate. The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

The primary purpose of business is to create wealth through production and/or trade. Businesses provide goods and services at affordable prices, aiming to generate profits while satisfying customer needs and wants within the given framework of the economic system prevalent in the country where the business operates. Such an undertaking requires entrepreneurs who are willing to take risks as well as investments from individuals seeking returns on their investment capital, either through equity capital (shares) or debt instruments (loans).

In essence, businesses exist because there are products and services available that people need or want in order to lead comfortable lives. Businesses help reduce poverty levels around the world, both directly through the creation of employment opportunities and indirectly through the stimulation of local economies. Additionally, businesses generate tax revenues that governments use to fund various programs, including infrastructure development projects. Successful businesses should strive to be profitable while also contributing positively to the overall welfare of society.

There are many types of businesses, ranging from small family-owned enterprises to large publicly traded companies with thousands of employees across multiple countries operating under complex organizational structures. Each type faces unique challenges in running day-to-day operations efficiently and effectively. In terms of legal structure, the most common forms of organization are Sole Proprietorship, Partnership, Limited Liability Company, and Corporation.

Irrespective of the organizational structure, the key aspects of business management remain the same: setting clear goals and objectives, defining strategies, executing plans successfully, monitoring progress, making course corrections when necessary to achieve desired results, and managing financial risks. Good management practices coupled with a strong team spirit and values play a pivotal role in ensuring success and sustainable growth prospects for future generations.