Importance of Business in Modern Society

The existence and expansion of business are justifications of the importance of business. Business provides a lot of services to the human beings that highlight its significance. These services are as follows:

1. Supply of Goods and Services: Business provides goods and services to the society. Business produces different products, which are sold or supplied to the society. The creator created and creates things, but processing, the individuals or business does reprocessing and preservation and ultimately new utility is created. So business provides goods and services to the society.
2. Harnessing Capital and other Resources in Production:  Business collects the drifts of savings from different individuals, especially through banks and financial institutions and employs those in productive activities and, thus, harnesses capital in economic activities to utilize natural resources in utility creation or value addition, and consequently, helps production, employment and resource utilization.
3. Self-employment and Provision of Employment: Business provides employment to the businessman. Further, in the production, distribution and services of business a large number of individuals are employed by the business organization and income generation occurs for them and others.
4. Preservation of Natural Resources: Business creates new utility to the natural resources by preservation and value addition. Different new products are created by business operation, without which a lot of natural resources would have been wasted.
5. Research, Development and Innovation: Business continuously makes research on alternative uses of resources, develops new products and methods, and makes new innovations.
6. Income Generation: Business generates income for the individuals. Business Utilizes factors of production like land, labor, capital and organization; and generate incomes like wage, rent, interest and profit to the factor-owners.
7. Interesting Natural Income: Business preserves natural resources, and creates new utility. Consequently, national income (NI), per capita income(PCI), gross domestic products (GDP), etc, increase.
8. Contribution to Social Development: Business contributes to the social development also. Business growth increases national income, which contributes to social development. Profitable corporations provide a lot of money as corporate taxes in the hand of the government, which the government uses in the development activities of the country. Besides, modern corporate business contributes a lot for Corporate Social Responsibility (CSR), which ultimately enhances social welfare.
9. Contribution in the Development of Education, science and Technology: Business contributes toward the development of education, innovates new technology and applies theory (s) of science for better production and human welfare.
10. Development of International Relations: Business imports necessary commodities and exports new or surplus products to foreign countries. In this way, a foreign relation develops.