Needs, Wants and Demands

The terms needs, wants, and demands have been interchangeably used in the field of entrepreneurship. All these suggest a
necessity that will satisfy a requirement. But in economic terms, needs, wants, and demands have their own technical
definitions.
A need is something that is necessary for survival. The lack of need may result in a definitely negative outcome. Needs
may be in physical forms, such as food, shelter and clothing. They can also be in subjective forms like respect, self-
esteem, and self-actualization. Needs are dictated by society or environment but they are also inherent in man’s natural
make-up.
Want is simply anything that a person desires to have whether necessary or not. Unlike a need, the absence of want will
not cause any harmful physical effect. However, being denied of a want can sometimes result to setbacks in self-
fulfillment. In the field of entrepreneurship, many business people cater on serving the wants of the market because it is
limitless.
Despite their basic differences, needs and wants have one thing in common-they are both examples of the overall concept
of demand which refers to the level of desire or need for a particular good or service. It will be helpful to remember that a
want becomes a demand when an increasing number of people acquire the purchasing power to buy it. Computers used to
be a want due to the continuous lowering of their prices and people’s growing dependence on their applications, they have
turned out to be the most in demand commodities nowadays.
A business becomes successful when it has the ability to continuously meet the needs and preferences of its target market.
On the other hand, the entrepreneurs must always find creative and positive ways on how to keep their products or
services available to maintain the market’s demand stable.
Need is defined as something that is necessary for survival while want is simply anything that a person desires to have
whether necessary or not. Despite their differences, both needs and wants are examples of overall concept of demand
which refers to the level of desire or need for particular goods or service.
Example: Food is a need but soft drinks and juices are wants.
Shelter, clothing and medical care are needs but a bungalow in a first-class subdivision, designed and branded clothes,
facial care and beauty treatments are wants.

Needs, Wants and Demands

The terms needs, wants, and demands have been interchangeably used in the field of entrepreneurship. All these suggest a
necessity that will satisfy a requirement. But in economic terms, needs, wants, and demands have their own technical
definitions.
A need is something that is necessary for survival. The lack of need may result in a definitely negative outcome. Needs
may be in physical forms, such as food, shelter and clothing. They can also be in subjective forms like respect, self-
esteem, and self-actualization. Needs are dictated by society or environment but they are also inherent in man’s natural
make-up.
Want is simply anything that a person desires to have whether necessary or not. Unlike a need, the absence of want will
not cause any harmful physical effect. However, being denied of a want can sometimes result to setbacks in self-
fulfillment. In the field of entrepreneurship, many business people cater on serving the wants of the market because it is
limitless.
Despite their basic differences, needs and wants have one thing in common-they are both examples of the overall concept
of demand which refers to the level of desire or need for a particular good or service. It will be helpful to remember that a
want becomes a demand when an increasing number of people acquire the purchasing power to buy it. Computers used to
be a want due to the continuous lowering of their prices and people’s growing dependence on their applications, they have
turned out to be the most in demand commodities nowadays.
A business becomes successful when it has the ability to continuously meet the needs and preferences of its target market.
On the other hand, the entrepreneurs must always find creative and positive ways on how to keep their products or
services available to maintain the market’s demand stable.
Need is defined as something that is necessary for survival while want is simply anything that a person desires to have
whether necessary or not. Despite their differences, both needs and wants are examples of overall concept of demand
which refers to the level of desire or need for particular goods or service.
Example: Food is a need but soft drinks and juices are wants.
Shelter, clothing and medical care are needs but a bungalow in a first-class subdivision, designed and branded clothes,
facial care and beauty treatments are wants.
Activity 1

Categorized the items listed below. On the table provided, write the item on the column where it belongs to clearly see the
difference. Refer to the first item as an example.
1. Manicure 2. Foods 3. Shelter
4. New pair of shoes 5. Education 6. Cell phone
7. Signature clothes 8. Body massage 9. Accessories
10. Car

Needs Wants Demands

1. What is the difference between “wants” and “needs”? How do these terms relate to “demand”? Do you think
having a job is a need or a want? Explain.

2. With your partner, identify products or services your or your family have purchased before. Identify whether each
product would be classified as a “want” or “need”.
Product or Service Want Need

Activity 2.
List down 10 successful businesses in your community. As there are many businesses in the community,
concentrate on the businesses that interest you the most.

Activity 1
Categorized the items listed below. On the table provided, write the item on the column where it belongs to clearly see the
difference. Refer to the first item as an example.
2. Manicure 2. Foods 3. Shelter
4. New pair of shoes 5. Education 6. Cell phone
7. Signature clothes 8. Body massage 9. Accessories
10. Car
Needs Wants Demands

3. What is the difference between “wants” and “needs”? How do these terms relate to “demand”? Do you think
having a job is a need or a want? Explain.

4. With your partner, identify products or services your or your family have purchased before. Identify whether each
product would be classified as a “want” or “need”.
Product or Service Want Need

Activity 2.
List down 10 successful businesses in your community. As there are many businesses in the community,
concentrate on the businesses that interest you the most.