Business can be defined as any activity that is performed to satisfy human needs and wants through creating and exchanging value between two or more willing parties. The inception of business began at the time when all human were self sufficient. At the beginning people produced everything they need for their day to day survival. However not long they realized that different individuals possess different skills and not everyone could produce everything equally. Also the resources available were rare and not everybody could get hold of all the resources they need. Due to all these problems man created the concept of business. Of exchanging one’s surplus with the other’s surplus. And so the first step of the long journey of business began with the barter system of exchanging goods for goods.
However there seemed to have certain drawbacks in the system of barter as the value of a good could not be accurately measured in terms of another good. Problems arose relating to the perish ability of goods and their mobility. There arose a need for a medium of exchange that is portable, long lasting, generally accepted and which is a common measurement of value. Due to this the use of commodities like salt, copper, pearls and feathers came into use as mediums of exchange. With time these commodities also became poor measurements of value as their intrinsic value was high. As a result “money” or simply notes and coins came into use. With the passage of time, money became the only medium of exchange and in Italy emerged the very first system of banking and insurance. The introduction of the banking and the central banking system made a huge change in business activities as most business processes were made easy and simple. Lending facilities were made possible due to financial intermediation between surplus units of funds and deficit units. There were enough and more credit facilities available for businessmen to help their investment and financing activities.
With the passage of time and developments in technology such as the introduction of the internet, many developments were witnessed in business activities around the world. Online shopping facilities were made available and due to e-banking and mobile banking facilities all businesses activities became simple and less complicating. International trade activities flourished as transportation services and insurance industry expanded. Today doing business has become just as easy as buying a good from the store. There are infinite numbers of opportunities available and new business ventures. But just as the opportunities have increased so have the threats and the malpractices has increased in the field of business. Doing business involves risk. But the satisfaction and the results are even greater due to the endless opportunities that are available.