The Power of Productivity

In developed countries, virtually all economic production is done by companies; if there were no businesses, we would have virtually no goods or services. Business is hugely important in a country’s economy because it is the main economic engine for the country.
Businesses are a very important part of the circular flow of any market economy. They buy resources from households in the resource market and sell to households in the product market. This makes them indispensable to the economy.
Businesses also allow the economy to work more efficiently. When businesses compete with one another, they improve their efficiency and help the economy grow. They also help the economy grow through innovations of various sorts. No market economy can thrive without businesses.
Business is important to a country’s development because business can improve a country’s economy and, thereby, help with the process of development. However, businesses can, at times, harm a country’s development.
We must remember that “development” does not typically refer simply to economic output. Instead, it refers also to things like quality of life. As a country becomes more developed, its people come to have higher literacy rates, lower infant mortality, more telephones, a less corrupt government and other such things that are not exactly economic development.
Business can help or hinder these sorts of development. Business can bring more money and more economic activity to a country. It can employ more people. This will mean that more people have the money to send their children to school. It means they will have the money to afford medical care for pregnant women and the children that they bear.
However, business can harm a country’s development. If the business is not conducted properly, it can do things like leading to more corruption in government. Bribes can be paid to government officials. The money then goes to help entrench political systems that retard development.