What is Business Administration?

In my opinion, businesses are the ones who must have more power than actual governments. Businesses are the ones who create the wealth and distribute it through products, services and the profits that they generate. Governments must be just the framework that ease the generation of businesses. Nevertheless, it has been the contrary. As my baground degree is in business administration, plus the situation mentioned before, I want to share what is business administration, its concept and its relevance, since managing a business is a core and essential activity that generates wealth to stakeholders and at the end to their nations. 

Hand of a businesswoman is holding a pen pointing at the graph and using a laptop.

Definition of Business Administration

One definition of business administration that I found is the following.

Business administration is the process of managing workers and allocating resources efficiently and effectively by applying microeconomic principles. The goal is to achieve stability, growth and profitability for a business. Business administration is a function of organizational structure, the desired system of task allocation, coordination and supervision. Some businesses choose to have a hierarchical structure, in which stockholders, a board of directors, an executive committee and managers work together through a system of checks and balances to achieve desired objectives. Depending on the organizational structure, some or all of these business administrators work together to apply business principles such as accounting, marketing, finance and management to effectively work toward their common goals.

Functions of administration

There are several functions that a business manager must develop to generate the full concept of business administration.

Business meeting
Entrepreneurial Process Stages


The business manager is responsible to have the vision and prepare the strategy for what will come in the future for the business. Important skills that are required in this function are budget projections, market research and strategic planning.


This function requires to be efficient and obtain results to create an optimal environment in the business. By organizing, the manager will be able to identify responsibilities that must be performed, the tools and human resources that are needed, develop departments and roles to then delegate the tasks and responsibilities.


Managers have to aim and set the proper resources to find the balance between the needs and production to get the most out of it and generate better outcomes. The skills from this function are allocating resources properly, providing a support system that responds to problems quickly, motivate employees and lead them towards a common goal with a strong interpersonal skill so that they can together generate the desired outcome of the project and business.


Managers evaluate the quality of work through the organization. Controlling tasks that are developed are the analysis of business expenses, manage information, measure performance and compare the strategic plan with the used budget.

Importance of Business Administration

Business Administration cannot be just classified into one specific area of a business. There are plenty of management positions that businesses from all sizes and types need in order to achieve success. The importance of business management relies on the need to grow business and this can be reached when managers face the daily problems that businesses have. Business administrators deal with high pressure and they have to remain calm to keep the business on the right track. Business administration allows to set the short and long term strategies to set the course of action of the organization into the future.

African entrepreneur reading financial reports, working in modern office

My experience with a business administration degree

In my opinion a degree on business administration helped to learn on overall the different aspects of a business. It gives you general knowledge, but the actual skills of managing a business, its people, marketing, finance, legal responsabilites you actually learn it by doing. 

I can define that business administration is the control and distribute the resources that an organization is creating in order to make it grow. This brief definition goes in the hand with the function of business administration. In general, the objective of business administration is to grow a business in an ordered way.