Importance and necessity of business. Or, Discuss the role of business in the socio-economic development.

Importance and necessity of business.

Or, Discuss the role of business in the socio-economic development.

 

The role of business is so important in the economic development and social development. Now the importance of business in economic and social development can be discussed by the following ways-

1. Economic importance’s:

The economic importance of business includes the followings-

(i)                 Proper utilization of resources.

(ii)               Formation of capital.

(iii)             Increase Standard of living.

(iv)             Development of international relation.

(v)               Social Advancement.

(vi)             Urbanization.

Now short description of these is given below-

(i) Proper utilization of resources:

            Business plays important role in the economic development of a country by ensuring proper utilization of available and natural resources.

(ii) Formation of capital:

            Business collect and formate capital and invest that in production activities, Business collect small amount of money from different sources and then make it as capital.

(iii) Increase standard of living:

            Business helps to increase standard of living by creating employment opportunities and providing goods and services according to needs and wants.

(iv) Development of international relation:

            One country is dependent on another country. This dependency create inter national business, And international business helps to make international relationship with one or more countries.

(v) Social Advancement:

            Business also plays role in social advancement and cuture advancement and it ultimately develop the economic structure of a country.

(vi) Urbanization:

            Urbanization is the result of business, Because urban area develops with the development of business activities.

            So, these are the economic importance’s of business.

2. Social Importance:

The social importance of business includes the followings-

(i)                 Supply of goods and services.

(ii)               Employment opportunity.

(iii)             Development of transportation.

(iv)             Division of labor.

(v)               Increase research and Development.

Now Short description of these is given below-

(i) Supply of goods and services:

            Business provides goods and services according to the needs and warts of customers. Demand of the consumers are unlimited and business always try to fulfill this demand by supplying new goods and services.

(ii) Employment opportunity:

            Business creates large opportunities of employment. Because with the development of business, commerce and industry also increase. And it create large number employment opportunities.

(iii) Development of transportation:

            Business plays important role in the development of transportation of a country. Because business activities requires transportation and communication.

(iv) Division of labor:

            At present business activities follows the principle of labor division. As a result all business activities are divided in different division. And it helps to implement activities properly.

(v) Increase research and development:

            Business helps to increase research and development with the expansion of trade, commerce and industry, competition also increase. To protect the competition and development activities.

            So these are the social importance’s of business.