Importance and Function of business

Important of Business

Business is one of the most important human activity. It has been playing an important role in the economic development of the nation and for the upliftment of living standard of the people. All the developed European countries, USA and Japan are developed today due to a development of the business. The important function of business are as follows:

• Fulfillment of human wants

Human wants and desires are boundless and unlimited it keeps on changing. The business provides high-quality goods and services to the people for the satisfaction of their wants and desires at reasonable prices. In the absence of business activities, human wants remain unfulfilled.

• Improvement of quality of life

The quality of life means a level of enjoyment, comfort and health in one's life. Business improves a quality of life in two ways. Firstly, it provides high-quality goods and service to the people required for their enjoyment, comfort and health. Secondly, a business offers employment opportunities to the people by which they can generate income and improve the quality of life.

• Utilization of natural resources

Natural resources are the free gift of nature. For the utilization of natural resources business has been playing an important role. Some countries are rich in natural resources, some mineral resources, others in human and science and technology. The business utilizes such manner that the whole kind of human kind is benefited.

• Employment generation

Business is the sources of employment. It creates employment opportunities for a large number of people in any country. Various types of employees are required both in management and technical jobs of business. The development of industry and commerce is helpful to solve the employment problems of the nation.

• Economic development of country

Business is playing a vital role in the economic development of the country. It is highly defined by the development of industry and commerce. Industries utilize the various natural and other resources available in the country. Similarly the development of commercial activities contributes to the exchange of goods and services at national and international levels. It fulfills needs of the people of the country and contributes to earning foreign currency by exporting the products to the foreign countries.

• Earning of foreign currency

Business is an important source of earning foreign currency. Foreign currency can be earned by exporting goods to foreign countries. The development of industry and commerce is helpful for the production of goods and services. The development of export trade brings favorable balance in payment and surplus. Foreign currency can be used to import machinery equipment for developmental works.

• Increase in government revenue

Business is an important source of government revenue so the business activities contribute to the government revenue in the form of taxes such as excise duty, sales tax, income tax, proper tax, entertainment tax and so on. It also helps to develop our country.

• Self-Sufficiency

The development of industry and commerce is helpful to fulfill the needs of the society. The development of business in the country ensures self-reliance, self-dependence and self -respect. A self-sufficient country has distinct prestige and status in international level.

• Fostering International relation

Business is the most important medium for the development of international relation. The development of business in a country attracts a foreign capital, labor, technology and other goods and services. It is also helpful to exchange culture and tradition among the peoples of friendly nations

Function of Business

Business is an economic activity, which is concerned with production, distribution, and exchange of goods and services with an objective of earning the profit by satisfying the unlimited wants of human beings. The major important function of business are as follows:

• Production function

Production of goods and services is one of the important function of business which is concerned with inputs like men, machine etc. Manufacturing concerns are involved in a production of goods. The production function involves various activities like product, planning, procurement of raw materials, storage of raw materials and proper layout of plant and machinery, a delegation of authority and responsibility to employees, quality control etc.

• Organizing function

The organizing function is concerned with management and planning different activities. It is accumulation and co-ordination of required resources such as men, material, money and machine etc. To produce the goods and services, the business organization must coordinate and control all these factors of production.

• Financing function

Finance, it means capital is the lifeblood of the organization. It is the task of providing money for a business. A business needs adequate capital to acquire different factors of production. It includes an estimate of required budget, finding out the appropriate source of capital, allocating fixed and working capital etc.

• Distribution function

The distribution function is another important function of business. Supply of goods through different channels from the place of production to the hands of final consumption is known as distribution function of management. It involved various functions like buying, selling, storing, risk bearing etc. All the function should be done to distribute the goods to the goods to the right place at the right time.

• Marketing function

One of the important function of business is the marketing function. This function is done to satisfy the consumers. Marketing function includes distribution of goods and determination of the reasonable price, advertising, transportation, warehousing, insurance and obtaining market information.

• Employment function

The creation of employment opportunity is the main objective of business. Business concerns are involved in various economic activities like production, management services, trade and auxiliaries of trade. People get an opportunity of employment in a different organization on the basis of their academic qualification, skill and experience. They create employment opportunities to the members of society. So, they are helpful to solve the unemployment problems of the nation.

• Research and development function

Research and development are necessary for every business organization to make itself up to the date with the changing environment of market and society. It facilitates to develop the new design, model, size of the product to satisfy the customers. Research work is required to conduct a study about an expectation of customers.

References:

Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.

Pant, Prem R., et al. Business Studies. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.