Title: Why are businesses so important to a country's economy? - eNotes.com
Headings: Why are businesses so important to a country's economy?
Economics
Why are businesses so important to a country's economy?
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On a most basic level, business provides a means of income for a population. People need money to not only survive, but to enjoy their lives. In exchange for their labor, businesses give money to people which they can then use to purchase everything from food to vacations. This helps a population survive and thrive. Businesses also foster innovation and competition. By having multiple similar businesses in a market, healthy competition can create better goods and services. Consider a small town which has two quaint coffee shops. If one shop creates a new holiday brew, the other shop will likely follow with a similar new treat to avoid losing holiday customers.