What is importance of business in today's modern world?

Answer 1

The importance of business is that it provides products or services to customers. These products or services in the present day world are provided by entrepreneurswho organize, manage and assume the risk of starting businesses mainly for earning profit. Business makes the best possible use of scarce resources such as men, machines and materials for the production of goods. The importance of business can be judged from the following activities undertaken by the business.

1. Production of goods

The raw material producing industries such as agriculture, mining, forestry, fishing, etc., provide raw materials for the manufacturers of 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 n,ne is a very useful source of power Forestry, provides us timber 'Ahich is needed r the construction of building, furnitures, paper, etc.

Manufacturing uses the raw materials of agriculture, mining, forestry, fishing. etc., and makes a variety of consumer and capita! goods which are needed by the consumers. Without manufacturing, the business will stand idle. There would be no automobiles, no roads! no airplanes, no eleQtr'c 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 thstribution 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 seif-intefest of earning profits, provides goods to the peop'e 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 greaUy 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 facilitate in the production and distribution of goods to the customer& The major services which arc growing in importance with each passing year are banking and finance, insurance, medical and health] Legal, engineering and other professionals, hotS, domestic servants, education, automobile repairs. etc., etc, 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, automation have increased the incomes of those who are directly or indirectly engaged in business. Higher incomes have led to the increase in the standard of living of the people. Business also pays a large share of taxes to a government

5. Creation of customers

The business of today is creating markets for its customers alL over the world by introducing new products, new methods of distribution such as e-corrmerce, tele shopping etc.

Criticism of business.

There isno doubt that modern business has raised material standard of living of the people but it has also created discontentment in the economic and social system. The main criticisms directed towards business are as under:

1. Business of today has become too much profit oriented. The employees are usually exploited by the owners

2. Business is guilty bf polluting air and water which directly affects the health of the people.

3. Human values and worker comforts are ignored by business.

4. Business, due to self-interest, often ignores the welfare of the consumers and supplIes adUfterated goods.

5. The communication media such as television, radio magazines, newspapers. etc.. attempt to sell their goods or services by appealing to ba hurnan emotions, People due to the influence of communication media are losing sight pf spiritual values. They are becoming too much materialistic minded and have lost peace of mind

Conclus(on. We do agree that the modern busness has increased the - comforts of life by supp the desired quality of products but it has obligations towards nation also. Henry Ford is right in saying that, "Business is not mere money chasing but it should also aim in serving the community