Business is an integral part of modern society. It is an organised and systematised activity for profit. It is concerned with activities of people working towards a common goal. The modern society can not exist without business. The need and importance of business in society can be described as follows:
1. Improvement in standard of living:
Business helps people in general to improve their standard of living.
2. Proper utilization of resources:
It leads to effective utilization of the scarce resources of society.It provides facility of mass production.
3. Better quality and large variety of goods and services:
It involves production, purchase and sale of goods and services for price. Customer’ satisfaction is the backbone of modern business. Services such as supply of water, electricity etc. may be considered highly significant for the community.
4. Creates utilities:
Business makes goods more useful to satisfy human wants. It adds to products the utilities of person, time, place, form, knowledge etc. Thus, people are able to satisfy their wants effectively and economically.
5. Employment opportunities:
It provides employment opportunities to large number of people in society.
6. Workers' welfare
Business organisations these days take care of various welfare activities for workers. They provide safer and healthier work environment for employees.