Posted on: Monday, September 18, 2017
The Significance of business may classified into the following four categories; namely :
(1) Significance to National Economy
(2) Significance to Business itself
(3) Significance to Community
(4) Significance from other point for view
(1) Significance to National Economy : The significance of business to a nation may be expressed by the following facts :
(i) Optimum and profitable use of resources.
(ii) Balanced industrial growth.
(iii) Source of national income.
(iv) Faster economic growth in the country.
(v) Contributes of national prosperity.
(vi) Better utilisation of human resources.
(vii) Increase in the standard of living of the people.
(viii) Source for meeting import requirements.
(ix) To meet the obligations of development planning.
(x) Larger creation of employment.
(xi) Eradication of poverty.
(xii) Capital formation.
(xiii) Development of labour and capital markets.
(2) Significance to Business itself : The significance of business from the point of view of business itself, may be stated as below :
(i) Large scale production and efficient distribution.
(ii) Creation of healthy competition.
(iii) Fulfillment of social responsibility.
(iv) Decrease in the cost of production.
(v) Helps to develop managerial skill.
(vi) Greater utilisation of production capacities.
(vii) Development of the undertaking.
(viii) Profitable sales volume.
(ix) Specialisation in production.
(3) Significance to Community : The Significance of business from the point of view of community is discussed below :
(i) Uplifts the standard and quality of life.
(ii) Development of labour markets.
(iii) Human prosperity.
(iv) Creation of employment.
(v) Creates habits of saving.
(vi) Provides goods and services at reasonable prices.
(vii) Advantage of form, place, time and possession utilities.
(viii) Consumer education.
(ix) Attention towards customer grievances.
(x) Appointment of efficient and experienced salesmen.
(4) Significance to other point of view : The other significance of business may be discussed under the following heads :
(i) Promotion of international trade.
(ii) Closer cultural relations between countries.
(iii) Helps in maintaining political peace.