Why is business so important to a country's development?

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Business can be a way for a country to generate revenue through taxing business activities. This revenue can be used towards the country's infrastructure or social programs. Business can also employ millions within the country and provide people a way to support themselves. Business also provides a way for a...

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Business can be a way for a country to generate revenue through taxing business activities. This revenue can be used towards the country's infrastructure or social programs. Business can also employ millions within the country and provide people a way to support themselves. Business also provides a way for a country to tap its natural resources for economic gain.

Business can also hurt a nation. Without regulation, business can lead to a growing rift between the rich and the poor; sometimes, these rifts can lead to political turmoil. Business can also lead to poor management of a nation's resources. This can lead to pollution which makes the country harmful to everyone. Business can also lead to corruption such as when business leaders take control of the government and use the government to support their business's needs at the expense of the people.

Business can be a driving economic factor within a country; yet, it can also lead to a country's constant instability.

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Business is important to a country's development because it determines the amount of revenue that the government collects from taxes. People create governments to take care of public needs. However, the government cannot work without money.

Taxation is one of the ways in which governments are able to collect revenue and fund public projects. Therefore, more businesses mean more revenue for the government, and the more money the government has, the more it can spend on the country's development.

Businesses also generate employment, which helps improve people's living standards. High employment levels translate to a larger GDP, which is a sign of positive growth. The employed individuals are also taxed, creating another source of revenue for the government.

A business also encourages innovation, which can lead to an increase in the overall output of a country. Businesses compete with each other for a share of the market. In the process, some businesses come up with new methods of production because they want to reduce costs, increase the overall revenue, and stay ahead of the competition.

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Business is important to a country’s development because business can improve a country’s economy and, thereby, help with the process of development.  However, businesses can, at times, harm a country’s development.

We must remember that “development” does not typically refer simply to economic output.  Instead, it refers also to things like quality of life.  As a country becomes more developed, its people come to have higher literacy rates, lower infant mortality, more telephones, a less corrupt government and other such things that are not exactly economic development. 

Business can help or hinder these sorts of development.  Business can bring more money and more economic activity to a country.  It can employ more people.  This will mean that more people have the money to send their children to school.  It means they will have the money to afford medical care for pregnant women and the children that they bear. 

However, business can harm a country’s development.  If the business is not conducted properly, it can do things like leading to more corruption in government.  Bribes can be paid to government officials.  The money then goes to help entrench political systems that retard development.  In these ways, business can be very important to a country’s development in either good or bad ways.

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