What are business resources?
Business resources are inputs used in creating the entity's output (product or services). Without them, a business cannot achieve its objectives. These resources are referred to in economics as factors of production. However, it is broader than a mere four factors of production.
An entity cannot start business activities if these resources are not available. However, some types of resources might be more important to some entities than others. In this article, we look at six types of business resources.
Business resources such as natural resources, IT, and humans have remained the living force of all striving entities. -- Jeremiah
Types of Business Resources
Natural resources
Resources from the earth that cannot be made by man but as an act of God are referred to as natural resources. A good example in Nigeria is oil and gas. No human can claim that they make them. But they are there as a result of God's creating the Earth. These business resources serve as input in the production of other goods and services. In many cases, a single resource might be converted to several by-products.
Government resources
The government provides infrastructural facilities and, in some cases, funding to businesses. They also ensure stability in the country to avoid violence and, of course, allow the free flow of production of goods and services. It is the responsibility of the government to ensure a stable economy in terms of foreign exchange and inflation. However, the government sets regulations that may have a positive or negative impact on a business.
Information technology resources
Information technology (IT) continues to remain a force that makes jobs easier for businesses and their employees. Technology advancement on computers and mobile phones has changed the way people work.
These resources have made work faster and better. For example, in the 1990s and below, accountants work their backs out to ensure ledgers are balanced, and financial statements are prepared. However, since the introduction of MS Excel and accounting software, and now AI, accountants spend less time doing these jobs and focus more on the strategic function of an organisation.
Human resources
Humans remain the primary resources of any business. Despite the innovation of agentic AI, the human factor cannot be left behind. Scientists have proven without doubt that the human brain has not been used to its full capacity despite the invention of supercomputers.
Businesses cannot exist in the first instance without human resources. In other words, no activities can take place in a business, whether it has a physical or online presence, without engaging humans.
Capital resources
These come in the form of money, inventories, property, plants, and equipment. Capital is man-made resources. Information technology is also a form of capital. Because of its effectiveness, it has to be discussed separately.
It is through these business resources that the entity's output is formed. For example, in a bread-making business, it is through the various baking tools and equipment that are used to bake bread. Also, in a furniture-making venture.
Entrepreneurship
The entrepreneur as a business resource is known to be the driving force behind all other resources. It's planned, organized, controlled, and funded by other resources of an organisation. An entrepreneur sees opportunities and strategizes methods to use available resources to achieve the desired goals and objectives.
