The Economy: Where Money Matters
Sayonnia D. Viner
Professor Kimberly Hayes
Introduction to Business
November 03, 2012
The Role of Business in the Economy
The role of business has always been to act as a vehicle for economic progress. As businesses are able to grow and expand so does the economy. This growth directly affects us all and can raise the standard of living. In contrast when businesses are stifled, unemployment rises and the economy suffers greatly. In the United States we subscribe in most part to the free market system, where private ownership is paramount. It provides endless opportunities for individuals to become entrepreneurs and obtain success that otherwise would have been unattainable. The free market creates competition that encourages businesses to offer the best goods and/or services at the lowest prices. The United States is also representative of a mixed economy, where departments of the government owns enterprises like schools, museums, libraries and the military to name a few. Believe it or not nonprofit organizations make up more than twenty percent of the economic activity in our country. Businesses contribute large sums of money to government through taxation, which allows it to properly function and run these large enterprises. Needless to say, a healthy economy is in the best interest of all parties. Many people today also underestimate the contribution of small businesses to our economy. While it is grossly understated at times, small businesses are invaluable to a thriving economy. In 2004 there were approximately twenty four million small businesses in the United States. Small companies with less than five hundred employees make up about ninety nine percent of the twenty four million businesses referenced. “Small businesses create more than half of the nonfarm private gross domestic product, and make up 97.3 percent of all U.S. exporters. In recent years,...