By Harshvardhan, Subject Matter Expert at Edumarz
Solution: Busines is an economic activity that focuses on supplying goods and services to all human beings wherever they are to satisfy their needs. The GDP or the Gross domestic product of any country is the value of all final goods and services produced between an accounting year in any country, Thus, we can see that the GDP Only recognises Economic Activities like Business. Now the income generated by the various business units like a shopkeeper, a company or a partnership from the business activities are further spent on their needs and wants like education and health. Now Economic development of any country is the progressive change in any country’s socio-economic structure.
So we can say that business plays a very important role in any country’s economic development.People who are engaged in Business earn their income in the form of profit. That profit is either Re-invested in the economy or saved. Either way the money gets to the Productive sectors of the economy which then kindles economic growth and development.
As seen in the above diagram, Business has two main verticals- Industry and Commerce, both of which are essential parts of any economy.