Crossword Genius

The man goes round a square in Rome where it's busy (4)

Ross

I believe the answer is:

hive

I'm a little stuck... Click here to teach me more about this clue!

'where it's busy' is the definition.
Although both the answer and definition are singular nouns, I don't understand how they can define each other.

'the man goes round a square in rome' is the wordplay.
'the man' becomes 'he' (he refers to a man).
'goes round' means one lot of letters goes inside another.
'a square in rome' becomes 'iv' (I can't explain this - if you can you should believe this answer much more).
'he' enclosing 'iv' is 'HIVE'.

Can you help me to learn more?

(Other definitions for hive that I've seen before include "Apiary abode" , "Home for bees" , "busy scene" , "home of queen" , "Scene of activity" .)

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