- Economic development: Business is important for economic development. Concept of true business is used in industries and commerce. Industries use men, money, materials, methods and machines and help to create employment. Commerce is the concept of exchange goods/services at national and international levels. It helps to earn foreign currency by export business too. Therefore, business helps in economic development
- Utilizing natural resources: Every country has diverse natural resources. Business must be directed towards proper and efficient utilization of resources. Business utilizes the resources like water, minerals, ores and so to achieve its own goals. But resources must be utilized without exploitation.
- Creation of utility: Business creates place and time utility. It helps to satisfy the needs of human beings. Financial utility is to be maximized.
- Employment: Business helps to provide job to people. It provides various types of managerial or technical job. Many types of business houses like hotels, industries, and transport companies are established for business which helps to solve the unemployment problem.
- Revenue generation: Business is the source of revenue generation. It pays taxes, royalties, fees, custom duties, and other things which help to generate government revenue.
- Earning foreign currency: It is the source of earning foreign currency. Business can earn foreign currency through exporting the goods and services.
- Development of country: Development of industries helps to utilize natural resources, create time and place utility, provide employment opportunities, help in revenue generation and earning foreign currency. All these things help in the development of the economy of the country and the economic development is the major factor that can develop the nation to a wider sense.
- Provide investment opportunities: Establishment of new industries and commercial fields are the major source of investment. Further the profit owned by the investors after the successful operation of business helps to ensure larger amount of saving which can be invested in the newer future for pension of current business or establishment of newer business. Thus business helps in providing investment opportunities.
- International relations: Business is the medium for development of national and international relationship. It helps to maintain harmonious relation among the various countries. There can be mutual understanding and better diplomatic relationship among the countries. Import and export is the major base for international relationship.
- Self sufficiency: It helps in achieving countries and individuals self sufficiency. It also helps in improving the living standard of people by reducing the dependency.
- Supply of Goods and Services: Business provides goods and services to the society. Business produces different products, which are sold or supplied to the society. The creator created and creates things, but processing, the individuals or business does reprocessing and preservation and ultimately new utility is created. So business provides goods and services to the society.
- Self-employment and Provision of Employment: Business provides employment to the businessman. Further, in the production, distribution and services of business a large number of individuals are employed by the business organization and income generation occurs for them and others.
- Preservation of Natural Resources: Business creates new utility to the natural resources by preservation and value addition. Different new products are created by business operation, without which a lot of natural resources would have been wasted.
- Research, Development and Innovation: Business continuously makes research on alternative uses of resources, develops new products and methods, and makes new innovations.
- Contribution to Social Development: Business contributes to the social development also. Business growth increases national income, which contributes to social development. Profitable corporations provide a lot of money as corporate taxes in the hand of the government, which the government uses in the development activities of the country. Besides, modern corporate business contributes a lot for Corporate Social Responsibility (CSR), which ultimately enhances social welfare.
- Contribution in the Development of Education, science and Technology: Business contributes toward the development of education, innovates new technology and applies theory (s) of science for better production and human welfare.
Importance of Business
The economic growth of a country is produced by business. Business provides services, goods and incomes for both, employees and business holders.
The development of a country is sustained by multinational corporations, medium and small sized businesses. This development is usually perceived as being supported by the multinational corporations, but mostly the family businesses and individual entrepreneurs are the greatest contributors to this development.
While small size, local businesses are of great importance in the development of a country, offering an income to the majority of people, the multinational corporations are of great importance in global economy. Many multinational corporations rely on local small size business through outsourcing and not all small businesses remain at this level. They could grow and while growing, the local economy is stimulated, because the headquarter of a company which has developed, will not change the location and community.
