Business is an important economic activity for human beings. It is the source of prosperity in modern societies. Business is the basis of economic development of a country. It leads to higher standard of living of people. Some major importance of business are satisfaction of need, creation of utility, utilization of resources, creation of wealth, employment generation etc.
Significance or importance of business can be described as follows:
1. Need Satisfaction
Business is important to satisfy human needs. It produces and markets products. business ensures supply of quality products t reasonable price. It supplies new products to meet the changing needs of customers.
2. Utility Creation
Utility creation is another importance of business. Industries create form utility by converting raw materials into finished goods. Commerce creates time utility by storage of goods for future use. It also creates place utility by transporting goods from place of production to place of consumption. Utilities add value for customers because they provide more benefits than costs.
3. Resource Utilization
Business is very important to make efficient use of resources. It avoids waste of resources. It promotes use of local resources.
4. Wealth Creation
Income is the source of livelihood. Wealth is the symbol of prosperity of people and the country. The creation of wealth is important for economic development.
5. Employment Generation
Another notable importance of business is employment generation. It creates self-employment for business owners. Business also creates employment for employees at managerial, technical and clerical levels. Business expansion generates more employment. Business also creates employment opportunities in rural and backward areas.
6. Foreign Currency Earnings
Business is important for foreign currency earnings. Foreign trade is done in foreign currencies. Export earn foreign currency. It helps balance of payment of the country.
7. Revenue Generation
Business pays income tax, value added tax (VAT) and customs duties. It also pays royalties, fees, fines and charges. Government revenue is needed to carry out development works.
8. Economic Development
Business is important for economic development of the country. It develops entrepreneurship and brings high standard of living for people. Industries and commerce are the engines of economic development. They utilize natural and human resources. They provide employment opportunities. They create investment opportunities.
9. International Relations
Business people establish contacts with people of various countries. Good business relations develop good international relations. People-to-people contacts develop and cross cultural exchanges take place. Therefore, business is important for establishing international relations.
Significance or importance of business can be described as follows:
1. Need Satisfaction
Business is important to satisfy human needs. It produces and markets products. business ensures supply of quality products t reasonable price. It supplies new products to meet the changing needs of customers.
2. Utility Creation
Utility creation is another importance of business. Industries create form utility by converting raw materials into finished goods. Commerce creates time utility by storage of goods for future use. It also creates place utility by transporting goods from place of production to place of consumption. Utilities add value for customers because they provide more benefits than costs.
3. Resource Utilization
Business is very important to make efficient use of resources. It avoids waste of resources. It promotes use of local resources.
4. Wealth Creation
Income is the source of livelihood. Wealth is the symbol of prosperity of people and the country. The creation of wealth is important for economic development.
5. Employment Generation
Another notable importance of business is employment generation. It creates self-employment for business owners. Business also creates employment for employees at managerial, technical and clerical levels. Business expansion generates more employment. Business also creates employment opportunities in rural and backward areas.
6. Foreign Currency Earnings
Business is important for foreign currency earnings. Foreign trade is done in foreign currencies. Export earn foreign currency. It helps balance of payment of the country.
7. Revenue Generation
Business pays income tax, value added tax (VAT) and customs duties. It also pays royalties, fees, fines and charges. Government revenue is needed to carry out development works.
8. Economic Development
Business is important for economic development of the country. It develops entrepreneurship and brings high standard of living for people. Industries and commerce are the engines of economic development. They utilize natural and human resources. They provide employment opportunities. They create investment opportunities.
9. International Relations
Business people establish contacts with people of various countries. Good business relations develop good international relations. People-to-people contacts develop and cross cultural exchanges take place. Therefore, business is important for establishing international relations.
