The establishment where the business activities are undertaken is called business enterprise. The business enterprise may be owned by an individual or by more that one individuals. The following are some of the essential characteristics of the business enterprise:
- The business enterprise should have an entrepreneur who takes the initiative of establishing a business unit.
- The business enterprise requires an organisation who has to co-ordinate the factors of production.
- Business enterprises require finance for their working.
- Business is carried on the anticipation of demand and therefore it should be based on sound forecasting or planning.
- Business is carried on for a purpose of surplus creation or profit. Greater the surplus better will be the business.
- Business enterprise should aim at providing better service to the customers at large.