The business delivers a higher living standard to the people through its different activities. The business has a vital role in socio-economic development and increasing the standard of living. Business always plays an important role in society as a part of the community. So without society, we cannot think about a Business.
Key Takeaways
- Business creates utilities and modify products to increase the standard of the living
- The introduction of new businesses reduces th3e unemployment problems
- A business is best area of investment of capital because it can accumulates people’s savings and invests them in a profitable venture
- Businesses use various resources to offer higher living standard to the people
- The growth of business increases the development of social infrastructure
The role of business in the increasing of the living standard are described below:
1. Creation Of Utilities: Businesses are leading to the creation of utilities and thus satisfying human wants by modification of product features, size, style, design, etc. As a result, the standard of living is increasing.
2. Employment Of Generation: Unemployment is a severe problem for a country.
In a country, businesses employ the labor force and thus help to the socio-economic development and increase of living standard.
3. Formation Of Capital: Business is a better area of investment of capital. Money makes money when it is invested in the business. So business is a better field to make money through the investment of saving. Business accumulates people’s savings and invests them in a profitable venture.
4. Utilization Of Resources: Businesses utilize our resources such as capital resources (fuel, raw materials, and money), natural resources (oil, natural gas, and water), and human resources (human talent, skills, and competence) available in the nation.
5. Protection Of The Environment: Suitable environment is needed for the existence of human beings. In a country, business uses hazardous materials in different operation of different industry to keep the environment safe.
6. Poverty: In the world, most people are poor. Business always tries to alleviate poverty by the different venture.
7. Contribution To Education: Different business organizations help in the education sector by providing scholarships to students.
8. Development Of Social Infrastructure: Due to the growth of business in different areas transportation facilities and other facilities are created which make a vital role in the development of a country.
9. Research, Development, And Innovations: In the world, businesses continuously making research on alternative uses of resources, develop new products and methods, and make innovations.
So by different activities, the business delivers a higher living standard to the people and make a vital role in the socio-economic development of a country.
References:
1. https://www.investopedia.com/terms/s/standard-of-living.asp
2. https://www.yellowfinbi.com/blog/2013/10/yfcommunitynews-how-can-we-improve-living-standards-with-business-intelligence-analytics-147764
Last Updated on October 18, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
