Importance of business ?

A business can be valued either on the basis of its assets and/or possible future earnings or a combination of both. Valuing a business on the basis of its assets means just that - make a list of all the assets, land, building, machinery, tools, stocks, receivables etc. Receivables and stocks are valued at its current cost, Machinery and tools are valued at its replacement cost based on its condition, life expectancy etc. Land and Buildings are valued on the basis of current market values. Intangibles such as goodwill are valued on a basis of x number of years earnings potential. A business may also have a customer list that it has nurtured over the years. This can also be valued on the basis of possible earnings using that list to continue and sell the same products.

The importance of business is that it provides products or services to customers. These products or services in the present day world are provided by entrepreneurs who organize, manage and assume the risk of starting businesses mainly for earning profit. Business makes the best possible use of scarce resources such as men, machines and materials for the production of goods. The importance of business can be judged from the following activities undertaken by the business.

1. Production of goods
The raw material producing industries such as agriculture, mining, forestry, fishing, etc., provide raw materials for the manufacturers of consumer and producer goods. For instance, agriculture provides food such as grains! vegetables. Mines provide metals which are used in factories and firms. Coal, another product of n,ne is a very useful source of power Forestry, provides us timber ‘Ahich is needed r the construction of building, furnitures, paper, etc.

Manufacturing uses the raw materials of agriculture, mining, forestry, fishing. etc., and makes a variety of consumer and capita! goods which are needed by the consumers. Without manufacturing, the business will stand idle. There would be no automobiles, no roads! no airplanes, no eleQtr’c power, etc. To sum up, the Industrial occupations which are concerned with the growing, extracting and manufacturing of material goods are cornerstone of business.

2. Distribution aspect of business
The thstribution aspect of business is very complex. The goods which are produced should reach the consumers at the right place, right time and at right price also. Business due to seif-intefest of earning profits, provides goods to the peop’e both within and outside the country. The transport industries facilitate the movement of goods from one place to another where they are wanted. Finance, banking and insurance greaUy contribute in the financing of business. Without banks, investment and insurance companies, commerce and industry would not have deveLoped on an extensive scale.

3. Business supplies services
Services occupy an important place in business life. Though the service organizations do not contribute directly in the production of goods but they facilitate in the production and distribution of goods to the customer& The major services which arc growing in importance with each passing year are banking and finance, insurance, medical and health] Legal, engineering and other professionals, hotS, domestic servants, education, automobile repairs. etc., etc, the services which perform simple or difficult tasks for earning money are regarded an important part of business.

4. Business has helped in raising standard of living
Business has helped people to earn a living either as owners of business or as employees. The mass production of standard goods! specialization, automation have increased the incomes of those who are directly or indirectly engaged in business. Higher incomes have led to the increase in the standard of living of the people. Business also pays a large share of taxes to a government

5. Creation of customers
The business of today is creating markets for its customers alL over the world by introducing new products, new methods of distribution such as e-corrmerce, tele shopping etc.

Great points! Not a lot of people focus on just enjoying the business as opposed to doing it for the money, if they did many would still be in business

Business makes the national ecomony and helps to get profits for the country and for the individual. We can't do without business.

The business deal with the interaction between the customer and dealers .
If the relation are stronger the good opportunity will be avail in the business . The focus on the market and dealing with the customer made the business better.

Originally Posted by dagaul101

Great points! Not a lot of people focus on just enjoying the business as opposed to doing it for the money, if they did many would still be in business

Actually i read some articles that explains that if you ever want to be a successfull businessman you really has to have the energy that goes along with it . And energy here doesn't mean working hard , cause people can work very hard on something which will never work or success. It's all about the mental , and positive energy , if you enjoy doing something then you will surely get the required positive energy to make your business thrives

Importance of business is to provide products or services to customers. These products or services in the world today is supplied by entrepreneurs who organize, manage and assume the risk of starting their own business before making a profit. The most important aspect to launch a new business is networking with other business owners. The network not only allows you to promote their products and services to others, but also allows you to increase awareness of the unique aspects of your business and put them in finding new prospects and potential customers.

Business is really an important now a days and its not only for money but it would be to present your skill in practical manner.

Business owners and managers on their own will likely have considerable knowledge about different aspects of running a business. However, when you can put together a business management team for your company that consists of top members, you will have a better chance at success for your business. With a team of top members, you will also be able to better guide other teams within your business.


Managers will be able to more easily analyze their own potential and what they can offer the business team. An individual manager can work on evaluating themselves based on the performance of others and their own personal standards as well. They will also want to figure out what they will be able to offer the management team that others cannot. While evaluating themselves, managers will be able to enhance skills that will be valuable to the management team and to the business. They will also be able to pinpoint any skills that might be weak. Those members of the business team within your company will be able to lead other teams around your company as well. These managers can keep an eye on the performance of other teams and team members to ensure that the projects are being completed efficiently and properly. Any manager you choose to be a team leader should have impeccable leadership skills. Those who have the best leadership skills will be great for your business management team and any other team within your company. Managers with great leadership skills are able to keep other team members on task and can motivate them to do the job well.


Overall business management can be greatly improved by a great team. Once you have the right business management team in place, you will notice an improvement in overall business. Of course, it may take up to three months to see the full effect of your business management team, but it will be well worth the wait. Working on the business management of your company is very important and a great team can always make things easier.