Any legal activity to earn profit is called business. Today’s technologies, creations, inventions, and innovations are the outcomes of business. Business is a crucial part of country’s economy. It provides many services to people that highlight its importance. These services are discussed below.
1. Production of Goods
In the olden days, a man produced goods for himself or for his family members. Things are not bought or sold. When the business came, then goods are produced for everyone. Business makes the best possible use of scarce resources such as men, machines, and materials for production of goods. It produces different types of products such as computers, refrigerators, fans, mobile phones, vehicles which are supplied or sold to people.
2. Preservation of Natural Resources
Business provides utility to the natural resources of the country by preservation and value addition. Business organizations utilize these natural resources to produce new products instead of wasting them. These products are again utilize after using, to manufactured new products such as wood and metal products.
A large number of individuals are employed by the business organizations for production and distribution of goods and services. The employees generate income by providing services to organizations and the organizations trained them for better performance. Many organizations also provide their employees heath and education facilities.
It is the success of any enterprise to come up with new ideas to keep products and services fresh. Business continuously makes research on alternative uses of resources to introduce new and modern products. Today’s luxury and comfortable life is the result of new discoveries, creations and innovations which business organizations made it possible.
5. International Business
Imports and exports are important for the growth and development of national economy, because no country has sufficient resources and skills required to produce certain goods and services. Therefore, every country is involved in foreign trade to satisfy their needs. In order to regulate international trade the World Trade Organization (WTO) was founded in January 1, 1995. In short, the business of today has made it possible to buy anything, no matter where it was produced.
6. Social Development
Business corporations pay huge amount of taxes to government, which is used in the development activities of the country. Business organizations also contribute to Corporate Social Responsibilities (CSR) which ultimately improves social welfare. Big organizations provide facility of free education and health to the children of their employees and society at large.
7. Industrial Revolution
Industrial revolution was the change of hand manufacturing to machine manufacturing in the period from about 1760 to 1830. The change was taken place in textile, agriculture and metal industries. This technological change and industrial revolution was a major turning point in history and can only be attributed to business.
8. Standard of Living
Standard of living is the amount of money, comfort and material goods available to a person or community. The business does not only create wealth and prosperity for their owners but also for their employees, customers and society at large. The business contributes to economic activity which leads to increase in standard of living.