Business and economic development

We are so much engrossed in the relation
ofbusiness and profits that we neglect the maj or part it plays in economic development.
It is found that countries that have a good business class contribute to development
of a country. Business adds not only to the economic development but it renders
social services making living more tolerable. Business involves value addition at every
stage of working. It has to add value to make money. Thus, it is constantly looking for
bettering its goods and services and converting its value to price. This it does by
producing new goods and services, in terms of time and areas. Umbrellas are
manufactured the whole year and then made available in rainy season. Business,
makes apples in Kashmir available in Mumbai by creating the need of packing services
and transportation. Thus, business adds to utility and its value.
Business locates human needs and then marches to service it through production and distribution of goods and services. Take a neighbourhood grocery store that collects many items from different sources, and then make it available at one place. Imagine what running around and cost would have been involved, if we had to go to manufacturer of these one by one to satisfy one's needs.

Another aspect we must appreciate is that each of the business activity provides employment. Increase in business leads, adds to increase in an organization, and increase in organizations needs increase in managerial personnel. Business requires resource mobilization such as money, people, equipment etc. and thus work for developing these resources. Through mobilizing resources, it also adds to economic development.