Undoubtedly, the role of business in a market economy is huge as well as important. In fact, businesses propel the engine of an economy, by offering employment opportunities from which people can generate money to buy goods and services. According to the economists, without business, the economy will be in peril. The aspect of concurrent economics happens in a cycle. In any economic condition, especially in the most primitive economies, people need to work in order to get money and thereby can buy goods or services. Any business, whether tiny, small and large promote the formation of the capital.  Such a type of financial activities brings some value addition and creation of wealth which are considered to be highly essential for the economic development of the nation. Findings have proved that a nation’s economy is directly determined by the growth of small industries.

Complement each other

Since these industries enjoy some benefits more and more people are attracted to make investments based on their skills. Interestingly, even the large-scale industries help to the growth of small industries through business processes outsourcing the key items for their production process. In fact, such small industries are located very near to the large industries and the job opportunities improve further. Both these types of industries complement each other.

To be precise, every business offers both these needs. If a person opens a restaurant, he or she needs to hire cooks and other staffs. By this, an employment opportunity is created. Simultaneously, people come to the restaurant and thereby sale of goods in the form of food is happening and brings a profit to the owner. Ultimately, the owner gets his or her ROI (Return On Investment) over a period of time.  Such a process operate the economy at a micro level and imagine the same can happen at the macro level wherein large businesses, government investor enterprises come into the picture. Every business whether it is small or large plays a crucial role in the country’s overall economy.

Monetary system

Imagine an economy wherein people need to make themselves the goods they require without a transaction.  People cannot make clothes or even mobile phones on their own as such actions need skills. Hence there is a need to approach a person who makes these needy things like clothes or cell phones. It is here the concept of business comes in and plays a significant role in operating the economy. Thanks to the modern economics which has eliminated the good old barter system, which eventually resulted in the monetary system wherein coins and currencies play a big role in the field of macroeconomics.

By using advanced technologies and the web world, now it is possible for small businesses can able to expand its market to the regional and global markets. In this way, these enterprises can able to contribute directly to a region’s productivity and earnings. Such a direct contribution enhances the revenue of the region as well strengthen the overall economy to a great extent. This scenario leads to the development of the overall welfare of the regional population.