What is the role of business in the economy?

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Murl Larson eNotes educator | Certified Educator

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Business employs people within an economy. Without jobs, people cannot purchase goods and services. People employed in businesses also create goods and services for others to purchase. Sometimes this can include selling directly to the consumer, such as a hamburger chain selling food to a patron. Other times, businesses can sell to other businesses, such as when wholesalers sell goods out of a warehouse to grocery stores. All of these businesses operate under the laws of supply and demand where businesses compete by a combination of offering superior products and lower prices.

Business also...

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learjet2 | Student

QUESTION: WHAT IS THE IMPORTANCE OF BUSINESS IN A COUNTRY'S ECONOMY?

ANSWER:

The most important role of any business, in a country's economy is job creation. The diginity of work empowers every citizen to know that they are able to provide for their family today, and in the future.

When people are not able to provide for their family, a country is at great risk for political instability because they don't have anything to lose.

Business also produces the necessary goods and services that people both in that country and in other countries need, providing even greater financial stability globally through international trading.

Anyone can learn how to take their great idea and turn it into a sustainable business, that may one day raise the standard of living around the world.