Importance of Business
The importance of business is that it provides products or services to customers These products or services in the present day world are provided by entrepreneurs who organize, manage and assume the risk of starting businesses mainly for carning, profit Business makes the best possible use of scarce resources such as men, machines and materials for the production of goods. The importance of business can be judged from the following activities undertaken by the business Importance of Business
1.Variety of Products:
Due to business, there are varieties of products in the market. Business provides choice to the consumers for purchase of goods as per taste and purchasing power.
2. Source of Employment:
Business provides employment to skilled and unskilled workers. The companies can provide jobs to millions of people in every field. It is beneficial for the people who
are willing to work for their family Revneotout.
3. Increase in National Income:
Business of today is providing revenue to the state with which the government maintains law and order, undertakes defense and carries welfare and development activities.
4. Better Living Standard:
Due to business, the availability of cheap and high quality goods improves the
standard of living, promotes savings and increases the incomes of the people
5. Provision of Credit:
In the modern world, the commercial banks and other specialized credit institutions are providing credit to the agriculturists, traders and manufacturers for producing goods and doing business on large scale
6. Insurance facilities/Risk coverage:
The various types of business risks which may happen due to fire, theft, flood,
earthquake, strikes etc. can be insured and the loss if any arising out of the risks can be recovered. (Insurance has given stability to the business now which in the earlier days was not available
7. Quick Communication and Transportation System:
(The fast developed means of communication and transportation in these days are helping the traders in providing goods to the customers at the right time, right place and right price. These aids to trade have helped in the expansion of business
8. Investment Facilities:
Businesses are going to provide investment facilities to general public .The idle
money can be invested in business to earn profit. So banks and other financial institutions are helping to do this.
9. Foreign Exchange Earnings:
With the help of export business can earn foreign exchange exchange can be used for import of capital goods, like modern technology) Such foreign
10. Urbanization:
As business is expanding, it is helping in urbanization. The growth of cities has changed the social life of man. His vision has been broadened Education facilities have increased
11. Expansion of Market:
In the modern world, goods are produced by business according to the needs and expectations of the customers. The customers want goods and services of requisite quality, at reasonable price and at right time (Markets, therefore, have expanded consumption of goods due to increase in number of customers all over the world
12. :Innovations
The business of today is all the time busy in making improvements by introducing new products, for example, credit cards, digital diary, mobile phones etc)
13. Introduces Saving Methods:
The business owners introduce saving methods to general public. The sales
promotion methods include extra product, price discount, premium, complimentary
goods and personal gifts
14. International Relationship:
With the help of business, like international trade, friendly Dfaho foreign relationship can be develop to promote the peace in the world.
15. Change in Consumer Mind:
Business is going to change the mind of the customers with the passage of time The products which we are using now are quite different from those of thirty years back
