One very critical reason that business is important to the overall economy is that the business sector provides goods and services to consumers that the government either does not provide or feels it should not provide. Business and commerce generally are driven by economic and profit incentives. If a company finds that it can make a profit by selling widgets, it will manufacture, market, and sell widgets.
Businesses also are driven by competitive motivations to innovate and adapt, thereby creating improvements based on consumer feedback and shifting consumer patterns of behavior. Mobile devices are an example of a product that has revolutionized the ways people consume many services and information and business, in turn, responds to changing consumer behavior. Mobile phone adoption has outpaced the adoption of most other electronic products. Given rising mobile penetration, there has been a shift in how people connect to the internet, as people increasingly rely on their mobile devices instead of their desktop computers. This has facilitated the mobility of the consumer population and, in turn, also changed how people engage in commerce, driving businesses to online at growing rates. All of this change is predicted on the role that commerce plays in an economy.
In an economy such as ours, government cannot be the ultimate source of all the goods and services that people demand and consumer. The government does not have the bandwidth, and it is not the government’s role to supply all consumption needs. Businesses step in and assume this role. Companies produce food products, clothing, and discretionary items because consumers want these items and are willing to pay for them. However, because companies are motivated by profit incentives, there are many times that government regulations need to provide a framework to ensure that companies behave in appropriate ways.