Video: Who Are They?

Producers, Consumers, and Entrepreneurs

She’s a producer.

They are consumers.

What does it mean to be a producer or a consumer?

A producer is a person or company that makes, grows, or supplies goods or services.

The baker is a producer who makes cakes.

A consumer is a person who purchases goods or services.

The customers are consumers who are buying the cake.

Let’s review. The producer makes it. The consumer buys it.

Producer

Consumer

Producer

Consumer

What is this person? A producer or consumer?

She’s a consumer! She buys the good, or ice cream.

What is this person? A producer or consumer?

He’s a producer! He makes and sells the good, or ice cream.

Producers can be entrepreneurs. Entrepreneurs are people who start and operate a business.

These food truck owners are entrepreneurs. The food truck is their business. They are also producers. They make the goods, or food, for their customers, or consumers.

Look at these other entrepreneurs. What are the businesses they started?

We are all consumers. We have to buy goods from people.

But did you know you have probably been a producer, too? Have you ever had a lemonade stand? Or a bake sale? These are ways we can be producers. We are making a good for people to buy.

Have you ever done a chore for money? Like doing the dishes, taking out the trash, or raking the leaves. As this type of producer, you are doing a service for others instead of making a good. But you’re still a producer.

Next time you go shopping, think of the connection between entrepreneurs, producers, and consumers.

Maybe you’ll have the next great business idea!