To know what a business is we have to start with its purpose. Its purpose must lie outside of the business itself. In fact, it must lie in society since business enterprise is an organ of society.
There is only one valid definition of business purpose: to create a customer.
Markets are not created by God, nature, or economic forces but by businessmen.
The ‘Want’ a business satisfies may have been felt by the customer before he was offered the means of satisfying it.
The ‘Want’ may have been unfelt by the potential customer until these became available.
There may have been ‘NO want’ at all until ‘business action’ created it – by innovation, by credit, by advertising, of by salesmanship.
It is the customer who determines what a business is.
It is the customer alone whose willingness to pay for a good or for the service converts economic resources into wealth, things into goods.
What the business thinks it produces is not of first importance – especially not to the future of the business and to its success.
Markets are not created by God, nature, or economic forces but by businessmen.
The ‘Want’ a business satisfies may have been felt by the customer before he was offered the means of satisfying it.
The ‘Want’ may have been unfelt by the potential customer until these became available.
There may have been ‘NO want’ at all until ‘business action’ created it – by innovation, by credit, by advertising, of by salesmanship.
It is the customer who determines what a business is.
It is the customer alone whose willingness to pay for a good or for the service converts economic resources into wealth, things into goods.
What the business thinks it produces is not of first importance – especially not to the future of the business and to its success.
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