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.
3. Employment
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.
4. Innovations
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.
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