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

Business is extremely important to a country’s economy because businesses provide both goods and services and jobs. Businesses do these things much more efficiently than individuals could on their own.

Businesses are the means by which we get most of the goods and services that we, as consumers, want and need. You will presumably be reading this answer on a computer that was produced by a business. You are buying internet access from a business. Almost everything that you use in your everyday life was produced by a business and sold by yet another business. Without these businesses, it would be very hard for us to get the things we need. Imagine, for example, how hard it would be for one person to build and sell their own computers from scratch.

A business often exist like an individual being who has goals some of the business goals are to make profit, to grow or expand , to survive, to expand its capacity.As business are formed they have the goals as illustrated before but in meeting these goals there end up giving a lot of advantages to the economy in which the are operating or even beyond.This makes businesses important to a country's economy .

Now lets look at these elements that makes businesses important to an country's economy.Before will look at the more general important issues lets us agree that business contributes to an a country's exchange rate.An exchange rate is the price of one currency in other foreign currency.If an economy has no or poor business activities it means that that economy is depending on imports so local citizens require more of foreign currency to meet their foreign expenditure on imports therefore the local currency loose strength.This implies that an economy with strong business players are capable of maintaining a strong economic exchange rate.

Businesses contributes to improve a countries international appeal by improving GDP of a country.A country with very productive businesses often has attractive international accounts as it has a high GDP.A high GDP often mean that a country has adequate provision of goods and services for citizens.

A country with business often improve the government treasury.Business in tells a taxable base for the government that is the government can tax business and provide for areas which can not be provided by private business for example national defense.

In meeting business goals such growth and increasing capacity or even starting business activities there is need for manpower this gives an economy significant advantages as businesses help to reduce unemployment as they employ people to provide workforce.This will also improve a nation's treasury as government can now tax more employed workforce.

In conclusion businesses are essential to an economy to survive.

The Advantages of Businesses in the Local Economy

Local economies realize distinct benefits from the activities of local small businesses. Small businesses, in turn, can realize competitive advantages by employing a local focus in their service and marketing activities. Major benefits of business in the local economy include a boost in employment and discretionary income in the community, tax income increases for local governments and a loyal customer base for businesses.


Local Employment
One of the most personal advantages of businesses in the local economy is the boost in employment in the region. Employment levels influence a range of other standard-of-living metrics, such as disposable income, home foreclosure rates and new small business startups. Employing people in the local community can stimulate word-of-mouth advertising for a company as well, assuming the company treats its employees well enough to get positive mentions.

Local Tax Income

Businesses pay a significant portion of all taxes in the United States, including income tax, property tax and employment tax. Having more businesses in the local economy can boost tax income for local governments, bringing in more money to repair roads, develop schools and improve public services.

Access to Services

Along with the standard-of-living increases inherent in raising local employment, the presence of many business types can raise the standard-of-living further by providing a wider range of services and amenities in the local area. Adding a movie theater to a small town, for example, can add an entertainment option to local residents while bringing in money from outlying communities.

Political Advantages
Businesses with strong ties to a local community can lend a hand in community-focused political actions. Businesses can help to fund and organize campaigns for lobbying, letter-writing and other political activities to influence legislators on issues that affect the local community. A local business can help to convince a presidential candidate to hold a campaign speech in the town, for example, by making sizable campaign contributions.

Loyal Customers

Businesses with a local focus have the advantage of cultivating a loyal customer base, especially when their services are not threatened by big-box chain stores in the area. While this may not influence company growth, it ensures a certain level of financial sustainability, and helps to ensure the company maintains a positive reputation in at least one region.