The importance of business and industry: A Case Study of Bostwana Railways

The word business is a broad term and generally, when the word is mentioned, money comes to
our thoughts when in fact business can be a profitable entity or non-profitable organization. A
business is an organization or an entity engaged in a commercial, industrial or professional
activity to make a profit or fulfill a charitable mission(Drucker, 1994; Needle & Burns, 2010).
In other words, a business can buy, sell and distribute goods and or services that meet a certain
standard of quality to satisfy human needs and wants hence making income or it can only aim at
offering charitable services and goods to satisfy human needs without any returns. In this study,
we discuss the importance of business and industry and further explain the relationship between
industry, trade, and commerce. A case study of Botswana Railways is evaluated in this context.

Botswana Railways provides services by moving commodities through the southern district of
Botswana creating a link between South Africa and Zimbabwe. The business is not only limited
to the transportation of goods but it also transports commuters between Botswana and Zimbabwe
hence providing business opportunities to the 3 countries.

In regard, Business is a very important activity that builds and boosts the economy, creates
utilities, utilizes natural resources, creates employment, and generates revenue. Botswana
Railways is one example in this context as it has contributed towards creating employment and
generating revenue hence boosting the economy of the 3 countries. This shows that business is
an economic activity that critical to the growth of the economy. Business is divided into 2
categories being the industry and commerce. Many people think of industry as manufacturing
and distribution of goods when in fact it also includes other commercial activities that provide
goods and services such as agriculture, transportation, hospitality, and many others. It is
classified into 5 different categories which are (1) primary industries that produce raw materials,
(2) secondary industries that buy raw materials and produces finished goods, (3) tertiary
industries that provide services to support all other categories of industries, (4) quaternary
industries that focus on the creation and transfer of information often known as information
industries and (5) Quinary industries that implement laws and policies that regulate the industrial
and government decision making processes.
In regard, Botswana railways is a tertiary industry as it only provides transportation services that
support all the categories of business. For example, the are industries that purchase raw materials
such as soda ash and coal traded as export and raw materials such as flour, wheat, e.t.c traded as
import and all these goods transported through the railway line between South Africa, Botswana,
and Zimbabwe.

On the other hand, Commerce is the process of exchanging goods and services, it can also be
defined as a component of business that includes all activities, functions, and institutions
involved in transferring goods from producer to customers resulting in ownership of goods, so
commerce is an activity of buying and selling especially in large scale (Banda, 2019; Maamar,
2003). This definition brings two parts of components of commerce being production and
manufacturing or trade-in short and aid to trade also known as auxiliary services.
Trade is a commercial activity that refers to the sale, transfer, or exchange of goods but
excluding ancillary functions like transportation, banking, insurance, warehousing, advertising,
etc., which comprises commerce (Maamar, 2003). This exchange of goods can take place within
the country, across national borders or it can involve both as a form of import and export trade
hence making a profit in the process. Auxiliary services which are the other component of
commerce, aid in trading to make sure that services facilitated in trading are safe, efficient, and
convenient both in foreign and local transactions. Botswana Railways services are an example of
auxiliary services
Industry, commerce, and trade are related to each other. For example, the industry provides
goods and services which are distributed through commerce. No commercial activity is possible
in the absence of industry and production(Banda, 2019; Maamar, 2003). At the same time
industry and production can not work unless the goods and services are distributed among
consumers through commerce. Therefore, industry provides the base of commerce and
commerce serves as the backbone of industry. Similarly, trade involves buying and selling
goods. It is the nucleus of commerce because all business activities revolve around transfer or
exchange. Trade provides the solid foundation upon which the superstructure of commerce has
been raised (Banda, 2019; Maamar, 2003). It provides necessary support to the industry and
maintains a smooth flow of commerce. In a nutshell, Botswana Railways cannot commercialize
its services without industry and production, commerce, and trade.
As much said, the world of business has continued to grow, and globalization is the new normal.
Technology in business has also evolved in due course transforming the business into the
modern-day businesses and hence a reason one should consider studying business in the present
era. The formal study of business in the present era will aid entrepreneurs to develop
communications skills, identify and know the market target and learn the basics of accounting to
drive their business performance forward. Moreover, a lot of entrepreneurs study business to
learn to launch their ideas and basic business skills are mostly the foundation of any venture of
the business. A formal study of business provides a good background of what is business, basic
economic skills, how markets are affected by world events, how to assess business performance,
and basic project management skills.

This study appreciates the fact that business is an important factor in the economy hence the case
of Botswana railways. However, there's is no business without industry, commerce, and trade.
Also, the study of business is the foundation of any successful business venture.

References

Banda, N. (2019). Ecommerce.