Marketing Management

Marketing Management

Role of Business in the Economy

Economy characterizes as one of the basic fuels to run the businesses of any state or country. Besides every other resource needed for managing the states, economic and financial stance of the state matters the utmost for its global standing. For this reason, states strive and struggle to better their economy and fight for the most balanced financial positions among its competitors (Edmiston, 2007).

Various factors act as contributing ones towards the economic development of the states. Of the many such factors businesses run by the people of the country contributes the most in the development. Businesses run by a state, whether large scale or small ones, create opportunities for employment. Higher the employment rates, higher are the productivity chances of any organization. Businesses contribute towards the economy by engaging more and more people in the work; which in turn flourishes the financial stance of the workers; the more stable the people of any state are, the more are the progress chances in the society.

Businesses also provide economic and job security. Studies show that economic conditions and job security is one of the prime reasons of the economic, political and social development of people and their nations (Atasoy et al, 2007).

Role of For-Profit and Not-For-Profit Organization in Economy

Economic backup of a country depends upon the organizations working under its banner. Organizations working in the state contribute greatly to economic development by producing capital and establishing opportunities for the people of the state. Economic development and growth of any society runs in a vicious circle. This cycle entails the input in the organizations by the stockholders and investors and ends at the society being benefited from the capital produced by the organizations and other pro-bono activities by the companies.

Nonprofit organizations are given much less attention by the economists as being a profitable factor to the economics of the state; yet, the nonprofit sector is extraordinarily provides the local community with various positive factors other than the monetary gains.

These organizations are spread over a large area of the community and provide benefits to the economy through their help and provision of higher education, health services and hospitals. The nonprofit organizations cost less than the for-profit ones and in turn help people lessen burdens on their pockets (Sobolewski, 2010).

Impact of Fiscal and Monetary Policy on Economy

According to the influential works of ...