The Importance of Business
The implication of the business cycle is that the inputs required by business are themselves products of business. A car bought and used in transport
business, for instance, is made by business, the car manufacturing plant. A canned food relies on the farmers who produce the crop or meat converted into the canned food. Farming, of course, is a form of business. Not only does business provide raw
materials for itself, it provides food for mankind and generates employment for the teaming population. In fact, business is said to be the world's largest employer of labour. Take, for instance, in a certain country. Consider the number of businesses operating; from small scale, medium scale to large scale; from agriculture, manufacturing, construction to service; from informal business to the formal. Think of the number of people who are engaged in these strands of economic activities: the artisans; the engineers, the managers, the accountants, the sales people and so on. Add to this number similar persons in other countries with which they trade with. In fact, think of the world at large. The importance of business both in terms of the materials it supplies and the jobs it creates becomes clear. But business people face enormous challenges and limitations which go to make business unique. For quick reference, I will summarize the importance of business in the following statements:
- Provision of food for mankind.
- Provision of inputs for industry.
- Generation of employment.
- Bedrock of every economy.
- Generation of satisfaction, if successful.
- Time consuming.
- Risky adventure.
- Requires commitment.
- Requires enabling environment.
I will will elaborate the above points in my next article …