The Business Environment
The Business Environment
The role of business in the economy
A business is an economic system which provides goods and services with the aim of generating revenue. The notion of a possibility of being able to earn a profit itself offers incentive for starting ones own businesses. For growth and development to be achieved in any given economy, the government must strive to ensure that the environment is conducive which induces investments and while at the same time attracting international investments. Business offers an alternative source of employment in the economy (Asli, Inessa & Vojislav, 2006, p. 2969). This reduces the level of unemployment thereby reducing the rate of dependence on the working class of the economy. Additionally, this reduces social crimes like robbery as it provides most people with the means of livelihood. Business enables a country earns foreign exchange from the export of its products in forms of goods and services to other countries in the global market. Foreign exchange is extremely valuable to any country. It is a means of payment for payment of the countries imports and helps to maintain a healthy balance of payment of a countries account. Foreign exchange also helps to make the individual businesses more profitable in the international market thus in the process strengthening the economy of the country. Businesses, especially international business increases the competitive capacity in the economy. The resulting competition encourages innovation in the industry which has long term benefits to the economy of the country. Business plays a vital role in the economy of the country by production of goods and services. Additionally, it fills the gap in the needs of the society and other businesses by the provision of employment technical innovation (Asli, Inessa & Vojislav, 2006, p. 2969). Compare and contrast the roles of for-profit and nonprofit organizations in the economy...
References: Asli, D., Inessa, L & Vojislav, M (2006) Business environment and the incorporation decision journal of Banking & Finance, Volume 30, Issue 11, Pages 2967-2993.
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