Can you imagine a world without businesses? Probably, you can’t. Just like how a human being needs food and air to survive, a country’s economy needs businesses to survive. Businesses are vital to a country’s economy for its economic growth. They can tell whether a country is progressive or not. The impact of businesses in a country’s economy is so big that it will not survive if it does not have active continuous trades.
The main purpose of businesses is to supply the goods and services that people need. They can provide this more efficiently and more effectively than an individual person can because of the special rights and privileges given to them. Everything around you has something to do with business. You might be reading this article because a business produced it. The internet you use to access this article is also provided by a business. The food you ate came from a food business. Everything in your wardrobe is made by a clothing business. You purchased your car in an automotive business. The electricity and water service in your house is provided by a service company.
Another reason why businesses are important is because they create job opportunities for people. They need people to sell their goods and services to consumers. Every country has its own labour force. You may be an employee from a certain company. Jobs are important to people because these are the main source of their income. They rely on their salaries to buy their necessities and the services they need. Without a job, an individual will have to create his or her own living which is rather difficult.
Businesses are the growth drivers of the economy. They are the economic engines which drive the country to its progress. They say if you want to know whether a country is progressive or not, have a quick check on its businesses. Investors invest their money on good businesses so as to earn profit. Businesses also affect the circular flow of market economy. They hire people to sell their goods and services and in turn provide salaries which the people can use for their necessities. Businesses allow the economy to work more efficiently. When businesses compete, they improve their efficiency and help the economy to grow.
Businesses also contribute to social development. They increase the national income through the corporate taxes they pay. Profitable businesses usually shed a lot of money for their corporate taxes. The government then uses this in the development activities of the country. Most government projects are funded by the taxes paid by businesses.
Businesses also improve international relations. Some businesses export their goods to other countries while some business import raw materials they need. In this way, foreign relations are built and developed.
There is no denying that businesses have a great impact on a country’s economy. Every day you deal with a certain kind of business. The unending cycle of buying and selling is what drives the economy to the progress it needs.