Generally speaking, the state of being engaged in an activity.
In the business and finance world, active is the modifier for quite a few different terms. A business can be, itself, active, as in up-and-running. A company can participate in active marketing in which marketing team members seek out new connections, making an effort to reach out to new clients. Business owners can be active in day-to-day operations meaning they are hands-on, present, and running the company alongside the employees they hire. Active income is income someone earns for performing or selling a service.
In all of these instances, somebody is putting effort into the operation, function, or outcome of a situation. There is active energy to the performance of the task and the outcome.
Example of Active
Jessica owns an active textile business and has been working the floor since she opened it five years ago. This year, she’s considering how she can grow her business to hire employees who can fill her position so she can take on a more passive role. One day, Jessica decides to move forward with her plan and places a help wanted ad in the paper.
She receives three applicants, one of which she thinks is the perfect fit. However, a week into the new hire, Jessica realizes that the passive role she wanted may not be for her. She enjoyed being a part of the daily operation of the store. She knew exactly how much was in the register, she could maintain the highest standard of customer service, and she could trust that the money in the register would be deposited safely in the bank. But she gives it a few more weeks just to see if these feelings will pass.
A few weeks go by, and she still feels the same way. Jessica returns to her active role in the business and is quite happy to be working once again.
Significance of Active
The term active implies that there is a higher level of effort required than in passive situations. Though “passive” isn’t bad, it is not as energetic or physically/mentally demanding as “active.” So it’s important to look out for job postings, work environments, or work styles that include the word “active” as that one word can give you major insight into how a company functions.
For instance, passive income is income earned through investments—you don’t have to craft something or put in as much physical energy into making that money. Passive marketing is subtle marketing. You still place advertisements for your products, but you put them in places that people would already be looking at. This way, you don’t require customers to put in an effort to clear the advertisement out of their way or running the risk of an ad inconveniencing them. A passive owner isn’t involved in making daily decisions about how the company functions.
If you are a candidate for a job or are looking to own a franchise, you may see a qualification for someone who will be “active” in the business. This means the company is requiring that you take an interest in daily operations. The company expects you to be present every day, asking questions, contributing to problem-solving, and “getting your hands dirty.”