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Role Of Business In The Economy Business Essay

Role of Business in the Economy Business and economic development go hand in hand. In fact, small and large businesses constitute a good part of the economic growth and development of any country. This importance is reflected in the numerous favorable laws and tax breaks that governments all over the world provide for businesses to ensure that they grow.

There are multiple advantages of having sound businesses for any economy. Firstly, it generates employment for the local people, which in turn, increases their spending power and overall quality of life. Secondly, consumers have a wider choice of products and services offered by these companies. The Government, in turn, gets more revenue by way of sales tax and employment tax and they are in a better position to increase the social security and healthcare of the people (Edmiston, 2007).

Another important aspect of businesses is the creativity and innovation that it encourages among entrepreneurs. A favorable business environment is essential for entrepreneurs to start new ventures that in turn can boost economic development. So, they are inter-linked in many ways with businesses being the key for economic development.

Roles of profit and non-profit organizations

Both profit and non-profit organizations have to work in tandem to ensure that economic development is balanced. Non-profit organization, as the name implies, is an organization that does not have profit as its motive for operations. It is rather focused on a mission that benefits the community and the society at large. This does not mean that non-profit organizations do not have profits, all that it means is that profit is not the sole aim of the organization. The non-profit organization helps economic...

So, they use the best strategies and advertising tactics to ensure that their products and services are bought by customers and they employ cost-effective tactics to get the maximum profits. Their role is to boost the economy by increasing employment and by offering products and services at competitive rates.
Impact of current fiscal and monetary policy on the economy

The economy is affected to a considerable extent by the current fiscal and monetary policies in place. The fiscal policy is the set of measures initiated by the Congress or President and includes taxation and spending while monetary policy is the measures taken by the Federal Bank to control the supply of money within the economy.

The monetary policy of decreasing bank reserves tightened the supply of money, thereby making it difficult for banks to lend money to small businesses and individuals. This led to a lot of downsizing including high unemployment rates. As for the fiscal policy, government spending increased during the last few years and this also, has taken money away from healthy businesses and individuals, creating an imbalance in the economy (Genetski, 2008).

Strategy for accessing global markets

Globalization has shrunk the entire world today and has made it easy to cut across boundaries to boost the popularity and competitiveness of any product or service. A good example of a…

Sources used in this document:
References

Edmiston, Kelly. (2007). Role of Small and Large Businesses in Economic Development. Federal Reserve Bank of Kansas City. Retrieved from: http://www.kansascityfed.org/PUBLICAT/ECONREV/PDF/2q07edmi.pdf

Demetrious, Marlen Martoudi; Artistotelous, Cristiana. (Jan 2011). Is a Bank expected to play the role of a non-profit organization? How do stakeholders feel about it? Journal of Institute of Public Enterprise. 34(1/2). p91-108.

No Author. (02/12/2012). iContact Impact Community with Corporate Volunteerism and Giving. PR Newswire U.S.. .

Bhatnagar, Parul. (No Date). Traditional Indian Costumes and Textiles. Retrieved from: http://www.scribd.com/fullscreen/65619463?access_key=key-1i4e4emilphei76vaxgl
Genetski, Robert. (November 12, 2008). The Contribution of Monetary and Fiscal Policies to the Current Financial Crisis. The Heartland Institute. Retrieved from: http://heartland.org/policy-documents/contribution-monetary-fiscal-policies-current-financial-crisis
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