importance of business in points

Since the industrial Revolution, there is a tremendous growth in the productivity of business. There is an all round improvement of the activities directed towards production and distribution of goods and services. The man of today is well off and enjoys a much higher standard of living due to the business efficiency in the various sectors of the economy. We now briefly discuss the importance of activities undertaken by business for profit and services objectives.

#1) BUSINESS PRODUCES USEFUL GOODS:

The raw material producing industries such as agriculture, mining, forestry, fishing etc., provide raw materials for the manufacturing consumer and producer goods.

For instance: agriculture provides food such as grains, vegetables. Mines provide metals which are used in factories and firms. Coal, another product of a mine is very useful source of power. Forestry provides as timber which is needed in the construction of building, furniture, paper, etc.

MANUFACTURING:

Manufacturing uses the raw material of agriculture, mining, forestry, fishing etc. and makes a variety of consumer and capital goods which are needed by the consumers. Without manufacturing, the business will stand idle. There would be no automobiles, no roads, no airplanes, no electric power, etc.

To sum up, the industrial occupations which are concerned with the growing, extracting and manufacturing of material goods are cornerstone of business.

#2). DISTRIBUTION ASPECT OF BUSINESS:

The business aspect of business is very complex. The goods which are produced should reach the consumers at the right place, right time and at right price also. Business due to self-interest of earning profits provides goods to the people both within and outside the country. The transport industries facilitate the movement of goods from one place to another where they are wanted. Finance, banking and insurance greatly contribute in the financing of business. Without banks investment and insurance companies, commerce and industry would not have developed on an extensive scale.

#3). BUSINESS SUPPLIES SERVICES:

Services occupy an important place in business life. Though the service organizations do not contribute directly in the production of goods but they facilities in the production and distribution of goods to the customers. The major services which are growing in importance with each passing year are banking and finance, insurance, medical and health, legal, engineering and other professionals, hotels, domestic servants, education, automobile repairs, etc., etc. All the services which perform simple or difficult tasks for earning money are regarded an important part of business.

#4). BUSINESS HAS HELPED IN RAISING STANDARD OF LIVING:

Business has helped people to earn a living either as owners of business or as employees. The mass production of standard goods, specialization, and automation has increased the incomes of those who are directly or indirectly engaged in business. Higher incomes have led to the increased in the standard of living of the people. Business also pays a large share of taxes to a government. 

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