The following point depicts the significance of Business:
1. Satisfaction of Wants:
For any business to function, it understands the needs of the customers. Measuring customer satisfaction provides an induction of how successful the organisation is at providing and \or services to the marketplace. The wants of people are growing day by day.
Their expectations from the business are continuously increasing. When one want is satisfied, another crops up. Business helps in satisfying the growing needs and wants of the consumers by providing them better quality goods and services.
Peter Drucker, the renowned management Guru has said to satisfy the customer is the mission and purpose of every business. Customer loyalty is a major contributor to sustainable profit and business growth. It is rightly said that no consumers-no business.
2. Higher standard of living:
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A huge amount of money is spent by the business firm on research and development to improve the quality of the product. It maintains continuity in the flow of goods and services to the customers.
In these manner consumers get better quality products at reasonable price resulting into improving their standard of living.
3. Goodwill:
Every business entity strives to create a good corporate image in the market to enhance its financial and social status. Consistent business practices ensure the business organisation to acquire goodwill and reputation in the market.
Good reputation helps the firm to survive and expand the business. The business can earn goodwill by satisfying the growing needs of the consumers.
4. Increase in profit:
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Profit is important in any business. Profit is the main objective of every business. Satisfaction of consumer wants helps the business firm to achieve the well-defined objectives of earning profit and creation of wealth.
This profit is provides sustainable revenue to the government, which in turn utilised for administrative and social developmental purpose.
5. Employment opportunities:
Business provides employment to lakhs of people. It generates employment opportunities in various sectors. People are involved in various activities such as production, distribution, marketing and promotion of products. Hence business is a source of livelihood to the people.
6. Rapid economic growth:
Business organisation satisfies consumer needs by offering them products of their choice. It results into growth, expansion and diversification of business. The firm enjoys economies of large-scale production and distribution, which results into set up of new industries thereby accelerating economic growth.
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Business brings about industrial and economic development of the country. Creation of employment opportunities and globalisation has led to rapid economic growth.
7. Revenue to the Government:
Business provides assistance to the government by paying taxes and revenue on profit. This revenue is again utilised by the government for the well-being of the society by undertaking various developmental activities. Government support can enhance the business growth.