The existence and expansion of business are justification of the importance of business. Business provides a lot of services to the human beings that highlight its significance.
Importance of Business:
Supply of Goods and Services: Business provides goods and services to the society. The business produces different products, which are sold or supplied to the society. The Creator creates and creates things, but processing, reprocessing and preservation are done by the individuals or business and ultimately new utility is created. so business provides goods and services to the society.
Harnessing capital and other Resources in production: Business collects the drifts of savings from different individuals, especially through banks and financial institution and employ those in productive activities and thus harnesses capital in economic activates to utility natural resources in utility creation or value addition, and consequently, help production, and resource utilization.
Self-employment and provision of Employment: Business provides employment to the businessmen. Further, in the production, distribution, and services of business large number of individual are employed by the business organization and income generation occurs for them and others.
Preservation of Natural Resources: Business creates a new utility to the natural resources by preservation and values addition Different new products are created by business operation, without which a lot of natural resources would have been wasted.
Resources, Development and Invitations: Business continuously makes research on alternative use of resources, develops new products and makes new innovations.
Income Generation: Business generates income for the individuals. Business utilizes factors of productions likes land, labor capital and organization; and generates income likes wage, rent, interest and profit to factor-owners.
Increasing National Income: Business preserves natural resources, and creates new utility. Consequently, national income, per capita income, gross domestic products, etc. income.
Contribution to Social Development: Business contributes to the social development also. Business growth increases national income, Which contributes to social development. Profitable corporations provide a lot of money as corporate taxes in the hand of government. Which the government uses in the development activities of the country. Besides modern cooperated business contributes a lot for Corporate Social Responsibility which ultimately enhances social welfare.
Contribution to the Development of Equation, Science and Technology: Business contributes toward the development of education, innovates new technology and applies theory of science for better production and human welfare .
Development of International Relation: Business imports necessary commodities and exports new or surplus products to foreign countries. In this way, a foreign relation develops.