What is business: a conversation on concepts

The known is not at all known

Hegel

Personally, for the first time I heard the word “business” in my early youth. I belong to the generation that grew simultaneously with the development of a market economy in our country. And the words “business”, “businessman” were already used everywhere.



When choosing a profession, I myself also already understood that I really want to be a “businessman”. I want to have my own business and work for myself. That is why my interest in everything connected with the business arose already at the very beginning of the 2000s.



And the first thing I encountered was the lack of a clear understanding of what the word “business” means. I searched for definitions in books, later on the Internet. But even now it is extremely difficult to find a clear, simple and unambiguous definition. We use these words, we are used to them. And we do not notice that we often use them not quite correctly.

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When studying Western professional literature, there are also some difficulties in understanding words and their meanings. When reading in English, they write “business” everywhere. "Businessman", "business analysis", "business processes". Until recently, the translation sounded like a “business”, a “business man” and some completely incomprehensible “business processes”.



A few years ago this word was used with some caution, in many cases even avoided it, replacing it with synonyms. Now everyone has gone to the other extreme. Now the word "business" is used wherever possible and impossible. This is especially evident in sales, where the word “business” can be added to any product in order to increase sales. As a result, confusion arises. Focusing on the name with the prefix "business" most people generally do not understand what is at stake. And everyone who can answer will give very contradictory definitions. Moreover, if the same people are interviewed in a few days, they may already say something completely different.



The reason is simple - people do not understand what the word "business" actually means. It is used as usual, and each puts some meaning into it. And if you do not know the exact meaning of the term, then it is impossible to use it correctly and with maximum benefit for yourself.

The history of the word "business"

In Western countries, whence the word “business” came to us, it is not the first century that life is very much subject to business and entrepreneurship. And therefore the word "business" has received very wide application.



Make deals people or companies among themselves - this is a business. The relationship between company and state is also a business and so on. Almost all discoveries, inventions were also made in the business environment in the interests of business.



In Russia, the concept of entrepreneurship and entrepreneurial activity came into being on November 19, 1986, when the USSR Law “On Individual Labor Activity” came into force. Following the word "entrepreneur" the word "business" came into use. Before that, it was not in demand and practically was not used as unnecessary. Therefore, we can assume that the word “business” appeared relatively recently in our country.



Based on this, the word “business” in our country is not yet sustainable. It is used when it comes to entrepreneurship and everything connected with it. Moreover, most often the word “business” is used in order to increase the value and significance of a certain concept, product or organization.



Personally, I became particularly interested in the exact meaning of the word “business” when I started writing articles about business processes. The translation from English of this phrase turned out to be extremely complicated and always not entirely accurate. And to understand the essence of the term, it is very important to understand the meaning of the phrase and every word in it.



For example, I saw a lot of businessmen with my own eyes. Like, I think, and most people. But what is a “business process”? It is impossible to see visually and “touch” with your hands. Therefore, the accuracy of the term is especially important here.

Labor and Labor Activity

So, in our country until the end of the 80s of the last century, the word “business” was practically not used, because in our country, unlike in Western countries, entrepreneurship was not just not common, it was banned. We lived in a socialist state - the USSR. And instead of entrepreneurship or business, there was a broader concept - “labor” or “labor activity”.

Labor is a rational activity of a man, during which he uses the tools of labor to influence nature and uses it in order to create use values ​​necessary to satisfy his needs. Karl Marx

As can be seen from the definition, labor appeared much earlier than business or entrepreneurship. At the same time, labor does not necessarily have to be profitable. It is possible to work both for the public good and for the personal, both personal and alien.

The concept of "business" in modern Russia

The meaning that is put into the word “business” in modern Russia is based on the combination of the term “work activity” familiar to many generations born under the USSR and the understanding that “business” should be accompanied by profit making. Unlike labor itself.



Now there are several meanings for the word "business":

1. Business in relation to man.
2. Business in relation to the object.

Business in relation to the subject (person)

In relation to people, the word "business" is used as follows:

• Designation of a person engaged in the field of entrepreneurship (businessman, businesswoman).
• Business related professions: business consultant, business analyst, business coach, etc.

In our country, a businessman is an entrepreneur, i.e. a person who works in a particular area, and all his activities are aimed at making a profit. I will not discuss here in detail such concepts as value added, etc. This can all be studied in the special literature. Much simpler and clearer is precisely this approach - an activity aimed at making a profit.



In this case, a businessman may engage in labor, one does not exclude the other. But his work should also be aimed at making a profit. Otherwise it is no longer a business.



By the way, it is for this reason that phrases like “social business” or “socially oriented business” do not make sense. The words "business" and "social" are almost the opposite in meaning. In the first case we are talking about profits. In the second - about payments and helping people. Such phrases are nothing more than marketing moves based on the illiteracy of people.



Similarly defined and professions related to business. If the analyst studies business (entrepreneurial activity) and the consultant advises a businessman, they can call themselves a “business analyst” or a “business consultant”. In all other cases, the prefix "business" is inappropriate.



By the way, a vivid example of such misuse is a large part of “business coaches”, since in fact, they do not work with businessmen or businesses. They work with ordinary people, who in rare cases can be called future businessmen. It would be more correct to call such a specialist a teacher or trainer in the specialty “Business”. But, again, marketing based on the illiteracy of people gives its results. And therefore applied.

Business in relation to the object

When the prefix “business” is used to an object, i.e. an inanimate object or phenomenon is also very important to understand what is at stake.



For physical objects, in fact, the prefix “business” carries practically no value and is a marketing ploy. For example, the concept of “business center” means a building where adapted for business activities. In fact, it can rent space and any other organizations that are not related to the concept of “business” as entrepreneurship and profit. Therefore, it would be more accurate to say that this is a center for various types of labor activity.



Similarly with other physical objects. When it comes to any type of commercial real estate (nonresidential fund), very often they say “business premises”. Yes, in most cases, these objects are used exactly by businessmen for commercial activities. But with the same success there may be located (and are located) offices of politicians, public organizations, charitable foundations, government agencies, etc. Those. in this case, all objects are intended for the conduct of work. Not only for entrepreneurship, i.e. business as it is understood in modern Russian.



Objects in business can also be called a variety of non-physical phenomena and concepts. For example, “business analysis”, “business plan”, “business system” are all also objects. In most cases, they are associated with the management of the company and the optimization of various types of work. I write a lot about these objects in my articles. For example, you can read about it in one of my latest publications, “We're dealing with the concept of BPM. What is business process management ?, where I consider business modeling from the point of view of their necessity and spheres of application.



When studying the majority of business objects, it becomes clear that in fact, it would be more accurate to say that these objects can describe any work activity, both “business” and work that is not aimed at directly earning a profit (for example, government agencies).

Business processes: the essence of the concept

I decided to speak about business processes and process modeling of business separately. These concepts are very important for a real understanding of what BPM, BPMS, BPMN are, where and how you can use these solutions in practice, and why they are needed at all.



In the article “ What is a business process and a description of a business process ” I have already defined the business process, I will quote it again:

A business process is a logical sequence of actions of a person (or several people) in a team. The purpose of describing a business process is to analyze and regulate certain actions in a team.

Please note - except for the term itself, the definition does not mention the word business anywhere. Instead, I chose the word "collective". The reason is that, in fact, business processes describe the efficiency of labor and work activity. And whether the goal is to relate to business, creativity or the effective management of some government body - it does not matter at all.



The reason for the prefix “business” in this case is that the term, like the process approach itself, came to us from the West. And there, as I wrote above, historically, the word “business” has an extremely widespread use. And, most importantly, they do not separate "business" and "labor" separately. Since the development of Western countries followed the capitalist model for centuries, they did not build socialism, did not abandon entrepreneurship for the sake of other development models, their “work” and “business” are not separated. These are actually synonyms.



And when the word “business” came to the Russian language, it became synonymous with entrepreneurship, and the concept “work” in our language is much more extensive.



Those. in fact, it would be more correct to translate the “business process” as a “work process”. Therefore, the process approach can be effectively applied in any sphere of human activity, including the one where the result (goal of work) is in no way connected with profit.



The process approach to work organization has shown its effectiveness both in state institutions and in charitable organizations. Those. most of these concepts are associated not so much with the business, as with the case, which necessarily brings profit, but rather with the organization of labor. This phrase is much clearer to our compatriots than the mysterious "business processes". But the terminology has already developed. That is why it is necessary to use what is. But you have to constantly explain these concepts.

Summary

Summing up. I would like to repeat once again that the term “business” in the Russian language does not carry any intrinsic value. And its use is often either a marketing ploy, or a thoughtless borrowing of English terminology.



Therefore, it makes sense every time you encounter an object (product, system, phenomenon) that starts with the prefix “business” it makes sense to figure out what exactly this is about. In most cases, it turns out that this object can be used for both business and many other purposes. And its value is determined by the essence.



In many cases, a deeper understanding of what is at stake is obtained if the word “business” is replaced with our domestic concept of “labor”. And you should always remember that this attachment to an object does not carry not only values, but also restrictions. And the majority of tools, physical objects or phenomena are quite suitable, including for any non-commercial activity.



Best regards Ramil Kinzyabulatov.