May Web

Education
Businesses Need Resources
Tawnya Hambly
Senior Director, Marketing & Special Events
Junior Achievement of the Heartland
Resources are an important part of business. They are
the building blocks for a successful business. A resource
is something of value that takes care of a need. Without
resources, businesses would not exist. There are three
types of resources. Do you know them?
Natural resources: things provided by nature, such
as air, water, minerals, and trees.
Human resources: people who do the work that a
business needs.
Capital resources: buildings, tools, and machines used
to make a product, including technology.
Can you think of important resources these
businesses need? Write as many resources as you can on
the lines provided below.
Ice cream shop: dairy products, ice cream maker,
freezers, employees
Pizza restaurant: ________________________________
Newspaper: ___________________________________
Manufacturer: _________________________________
Hospital: _____________________________________
As you can see by the exercise above, businesses need
natural, human, and capital resources to make products or
provide services. Yet, resources can be limited.
Have you ever heard of scarcity? Scarcity occurs
when people or businesses cannot have everything they
want because of limited resources. When this occurs,
people and businesses must decide on an alternative.
When a choice is made, there is an opportunity cost for
what is given up.
Opportunity cost is the value of the next best
alternative given up when a choice is made. For example,
you have the choice to go to a movie with your friends
or stay at home and watch a DVD. If you choose to go to
the movie, then you’ve given up the opportunity to relax
at home. Here’s another example: you can earn money
walking the neighbor’s dog or play at a friend’s house. If
you choose to walk the dog, then the opportunity cost is
18 May 2017 - QC Family Focus
playing at a friend’s house.
Every day, businesses make choices based on their
resource needs. Technology has changed how many
business operate. New technology is a capital resource
that allows them to do things faster and sometimes with
fewer workers (human resources).
What would be the opportunity cost if a business
could not afford the latest technology?
______________________________________________
______________________________________________
______________________________________________
______________________________________________
Answer: The business may need to hire more people
to keep up with work, or it may lose customers because it
is unable to produce their product as quickly as customers
want it.
Here’s an activity to do with an adult in your family.
Select an adult to interview about the effects of technology
in their life and what resources are important to their job.
Ask the following questions:
What resources are important to your job?
Are any of the resources scarce? If so, what is the
alternative choice?
How do you use technology in your job?
How has technology changed your business?
Human, natural, and capital resources are vital to
running a business. Human resources are also needed to
invent and improve products and services. You can get
a jump start on becoming a valued human resource by
getting your education and developing the skills you’ll
need to be successful in a job.
Article content is a part of JA Our Nation® curriculum.