IMPORTANCE OF BUSINESS
Business is an important part of a society. It is basic and systematic activity for earning profit. The modern society cannot exist without business Our welfare and national security are closely linked to the health and strength of our business system. The importance of business can be elaborated by the role it plays in society. The following points may be helpful to elaborate the importance of business
BETTER LIVING STANDARD:
Business creates wealth and source of employment. It improves the buying capacity and living standard of people. In the past life, it was difficult because consumer had to make things on his own and could not produce everything. Business made it possible for the consumer to get variety of goods in the market easily.
EMPLOYMENT OPPORTUNITIES:
The production of goods increases with the increase in business activities. It causes to create more employment opportunities to people and they earn livelihood. Business grows with the passage of time and creates new jobs and accommodates large number of works.
PRODUCTION OF GOODS:
It is the business that produces variety of goods according to the demand of people. In olden days, man produce goods only for his own consumption. Things were not bought and sold. He milked cow, churned butter, spun yarn and sewed clothes for his use only. Nowadays, good are produced on commercial basis.
TRADE:
Trade is essential part of business. It facilitates exchange of goods and services. By international trade we sell/export our excess production and import gouds of our need.
INTERNATIONAL STANDARD:
Business provides international quality goods by import. It also produces goods of international standards. By providing international standard goods and services businesses tries to improve the living standards of people.
RETURN ON INVESTMENT:
Business provides investment opportunities and better return to the investors on their capital investment. It also provides opportunities to grow and expand the business. Appropriate returns on investment improve the business conditions and develop a good capital market.
NATIONAL INTEGRATION:
Business promote social interests of people of different areas by cooperation and enhance trade in the country which enable people of different parts of the country to exchange their culture, traditions and practices. By this business promotes national integration.
EXCHANGE OF CULTURE:
Business facilitates exchange of culture among the people of different nations and different area of the country and promotes international harmony and peace. By the exchange of culture we can understand the needs and wants of different areas and cultures throughout the world.
NEW TECHNOLOGY:
Business helps in the development of science and technology. Business adopts new emerging technologies and improves the production facilities. It also spends large amount of money on research and development. Hence many innovative products and services are developed through industrial research.
GOVERNMENT INCOME:
Business becomes the best source of government income. Government generates income by imposing various taxies and duties like income tax, wealth tax, sales tax, excise duty, custom duty, fee and fines and different other forms. If there is less business activities the government faces difficulties in finding out the new sources of income and would be unable to fund new projects of public welfare.
ECONOMIC DEVELOPMENT:
Business improves the living standards provide funds for education and health facilities. Business helps to expand transportation and communication facilities. Business provides funds in shape of taxes for social development and expansion of basic needs to people.
UTILIZATION OF RESOURCES:
Every country is blessed by God in shape of different types of natural resources like oil, gas minerals, electricity, coal and iron. These resources are utilized in various business activities for useful purpose. In this way, national income and employment ratio of the country is increased. The living standard of people is improved.
CREATION OF COSTUMER:
The business of today is creating markets for its customers all over the world by introducing new products, new methods of distribution and the provision of standard quality of goods at reasonable price.Business continuously makes research on alternative uses of resources, develops new products and methods, and makes new innovations. It helps to increase the attraction of consumers.
CONTROLLING SOCIAL EVILS:
Business activities helps in controlling different kinds of social evils. Sometimes people do crimes just to meet their basic needs. Business provides jobs opportunities to the people of society. As business activities are increased. More job opportunities are announced.
GROWTH OF HIGHER EDUCATION:
Today's business has become rather complex. An average and ordinary educated person cannot analyze the situation, understand and solve problems, forecast the future, innovate and update his business. One must have higher education in business administration to survive in the complicated environment.
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