IMPORTANCE OF BUSINESS

Importance of Business By Various Types: 

1). Production Of Goods:

             It is the only business that gave rise to production on commercial basis. In the olden days man produced goods for his own consumption. Things were not bought and sold. He milked cow, churned butter and spun yarn and sewed clothes for his use only. He used home remedies for treating the disease. He, however, could not produce complex and sophisticated goods like cars, TVs, airplanes, computers, ships and carryout large scale manufacturing that are the fruits of business. 

2). Distributing Goods:

             Business activity is not confined to production. It includes distribution and goes even beyond it in the form of guarantee or warranty, after sales services and making available spare parts.
       Distribution helps the manufacture reach customers directly or through middlemen as wholesalers, retailers, brokers. For reaching customers air, sea and land transportation is used. Warehousing and advertising too play  a pivotal role in the distribution of goods produced on large scale. The whole distribution system is a part of marketing.

3). Satisfying Consumer Needs:

                 It is the blessing of business that human needs are satisfied easily. You just name a thing and get it no matter it was produced in as far as the U.S. right from convenience goods to specially goods are all easily available to satisfy consumer's needs.

4). Success Of Invention and Innovations:

             The success of inventions count on business. New inventions are speedily coming up. Today's invention gets obsolete tomorrow. Drop business, they all will fail. Today's luxury and comfortable life is the outcome of new discoveries, creations and innovations. Satellite programs, LCD TVs' remote control systems, computers are just to name a few. The motivating factor working behind them is nothing but business.

5). Success Of Industrial Revolution:

          The success of Industrial Revolution that began in the late seventeenth century can be attributed only to business. The main theme of the revolution was some new inventions in the textile sector and got succeeded because they were successfully traded on local and international markets. 

6). International Business:    

                     Business activities developed international business. Today goods and services are traded across the border around the word worth trillions of dollars. Any barriers to import and export around the world will cease to exist in 2005 under the agreement of the World Trade Organization. International business has made it possible to buy anything no matter where it was produced and with the help of shipping industry and insurance international business has made the world a global village. To boost foreign trade economic and trade blocks as SAARC, ASEAN, OPEC, EU, NAFTA, SAFTA, SAPTA have been formed by trading countries.

7). Standard Of Living And Wealth:

                 Business creates wealth that increases standard of living. In the past life was difficult because the consumer had to make things on his own and could not produce everything. Business made it possible for the consumers to get desired products on the market. Business has created  competition, made goods available in abundance, increased income, reduced cost of production and hence prices, all necessary factors to raise standard of living.

8). Employment:

          The more the production the higher will be the employment rate. Higher production also results in lowering overhead costs that brings the prices down. Low prices increase demand for the product. High demand and consumption pushes up the production resulting in greater number of workers.

9). Growth Of Higher Education:

                      Today's business has become rather complex. Business complexities have emerged from competition, development of new production and marketing techniques, compound promotional activities and increased human faculty. An average and ordinarily educated person cannot analyze the situation. understand and solve problems, forecast the future, innovate and update his business and lead his firm to a yellow brick road and prosperity. To survive in the complicated environment one must have higher education in business administration. Even the doctors and engineers are going in for business administration to enrich their professional degrees. 

10). Change In Status:

                          Business has made it possible to break with the poor past. Until Industrial Revolution change in the status was not possible. The poor was always poor. Poverty in the family ran through generations. But now with the help of quality education one can get a career job with high salary and attractive perks and fringe benefits in a large local or multinational company.