Objectives of Business or, Business Goals and Objectives of the business is a goal-oriented activity. Certain objectives works behind business activities. The objectives of business may be classified as: economic objectives, general objectives, social objectives.
Economic Objectives
- Earning profit: To earn money or livelihood, human being adopts economic activities. Service or job is limited in supply. So an alternative to earn money is business. Than the prime objective of any business is to earn profit. Profit here is the reward of the entrepreneur. Without profit-motive business can’t survive.
- Resource Utilization: Government sometimes initiates some business to utilize natural resources.
- Defenses Motive: In most of the cases business of defiance weapons and instruments is run by and kept in the governmental hand, which ultimately ensures economic stability and development.
General Objectives
- Investment of capital: Business is a better area of investment of capital. Money makes, money when is a better investment in business. So business is a better field makes money through investment of savings.
- Utilization of labor: Business is better way to employ the labor force of any country. Labor is a valuable perishable resource and the labor can be preserved only through its use in the production process.
- Utilization of Natural Resources: Man can’t create or destroy anything. He only creates utility on the natural resources. Natural resources are valuable divine blessing to the mankind. Thus, preservation of natural resources through appropriate technology is on the objectives of the business.
Social Objectives
Business also serves the society in a number of ways. Business is for the society and the society is benefited by the business in a number of ways. According to Mr. Urwick, Profit can be no more the object of a business than eating is object of living. ‘The social objectives of business are as follows:
- Supply of goods: One of the objectives of business is to supply goods to the society. Society needs commodities. Business provides necessary goods to the society at lower prices.
- protection and Development of Environment: Suitable environment is a precondition to human existence. Business tries to develop environment by utilizing hazardous material and by treatment of detrimental material in some cases.
- Employment Generation: Unemployment is a serves problem for the society. Business provides employment to the labor force, and thus helps the society.
- Creation of Nation’s Resources: Business creates resources for the nation by value addition or utility creation. Thus national income increases, and standard of living becomes higher.
Thus business serves a number of economic and social objectives.