Busniess Idias

The Business Idias

What Is a Business? Understanding Different Types and Company Sizes

Read about types of businesses, how to start one, and how to get a business loan

By Adam Hayes Updated May 15, 2025

Reviewed by Margaret James

Fact checked by Melody Kazel

Definition

A business is an entity that provides goods and/or services to interested parties in exchange for financial payment.

What Is a Business?

The term "business" refers to an organization or enterprising entity that engages in commercial, industrial, or professional activities. The purpose of a business is to facilitate some sort of economic production of goods or services.

Businesses can be for-profit entities or nonprofit organizations fulfilling a charitable mission or furthering a social cause. Businesses range in scale and scope from sole proprietorships to large, international corporations.

Business also refers to the efforts and activities undertaken by individuals to produce and sell goods and services for profit.

Key Takeaways

The concept of a business begins with an idea and a name, and extensive market research may be required to determine how feasible it is to turn the idea into a functioning business.

. 1.Affiliate marketer

Affiliate marketing is a performance marketing tactic where a business pays people to promote products. Every time an affiliate brings in a new customer, they receive a commission.

Affiliates can promote products on their blogs, social media accounts, or websites, or in their communities. For many, affiliate marketing is a low-cost way to earn passive income.

To start affiliate marketing:

Find an affiliate program.

Choose offers you want to promote.

Get an affiliate link.

Promote that link across your assets.

Get a commission for every signup or purchase.

Commission rates vary by company and product. You could earn as little as 5% or as much as 50% for each sale. Some affiliate programs offer a flat rate instead of a percentage.

2. Digital freelancer

With a digital freelance business, your time is your inventory and your biggest investment. That makes it easy to get up and running if you have in-demand skills and spare hours.

If you have expertise in graphic design, search engine optimization, or web development, you could offer your skills as an ongoing service. To start, create a website and promote your services on platforms like LinkedIn.

If you use Shopify, an appointment scheduling app from the Shopify App Store will let prospective clients book time with you directly from your website.

3. Content creator

Content creators share videos, stories, and content on social media to build audiences and make money. If your content is received positively, consider turning your social media presence into a business by partnering with brands or by making and selling merch.

4. Influencer

The ability to capture and keep attention is an asset businesses will pay top dollar for. You can become an influencer with a modest amount of followers if you have an engaged niche audience.

Whether you choose to grow your following on YouTube, Instagram, TikTok, or a blog (or, ideally, on a combination channels), you have many avenues for monetizing your influence.

Taking an audience-first approach to your small business idea means playing the long game—it might be months until you’ve figured it out. But you don’t need millions of followers to get started.

5. Social media management consultant

If you’re social-media-savvy but don’t want to create content full-time, consider freelancing as a social media manager or consultant. A social media manager creates and analyzes content for brands’ social accounts. 

Depending on the client’s needs, you might help create content, brainstorm content ideas, facilitate partnerships with social media influencers, create a social media content calendar, or formalize a social media