Commerce and business have in practice since time immemorial but with the advent of industrial revolution, it developed more systematically. Commerce and business are overlapping but commerce is a wider term and it includes business too. Let’s describe commerce and business separately.
Business is anything that keeps us busy and we remain busy to earn our livelihood. Business is the practice of making money out of money. Whereas commerce according to academicians and experts, all the activities which are necessary for transferring goods from the producers to the consumers are commerce. It includes services such as insurance, banking, transportation, warehousing, communication, etc. with the help of business and commerce the hindrance of place and time is removed. The goods produced tone place can be made available at the other place for sales or consumption.
Commerce and business are of utmost importance for the development and growth of a country. Business activities are required to generate goods and services for consumption and the GDP of a country is nothing but the monetary value of all the goods and services produced in the country during a financial year. It helps in reducing the problem of poverty, unemployment, hunger, etc. because when a person becomes an entrepreneur, he creates jobs for himself and also for others. If a person does to want to work as an employee, he may find an idea and start his own business. He conceives an idea and turns it into a productive activity.
Innovation is the essence of today’s commerce and business. Every day there is new innovation or improvement in existing goods and services. This is the era of cut-throat competition, in order to grow and survive a business has to maintain and attract new customers. This is possible by offering a good quality product at reasonable prices. In commerce and business, it is essential to identify the unfulfilled need of customers and then developing the product and services according to them. In today’s business, the customer is placed at the center, they are treated like the king and worshiped like god and customer relationship management is practiced like religion.
Another aspect of commerce and business is the involvement of risk. We cannot think of a business without risk, it is the part and parcel. Any person makes the investment and devotes his energy and time for the reward of profit, he desires for certain level of return or compensation. But business activities operate in a dynamic environment with each day new rules and regulations getting implemented. There can be variability in the rate of return, this is a risk. In order to earn a profit, the person should follow disciplined approach, bear patience and be consistent because if there is no pain, there is no gain. Each day so many players enter the market, there are failures but a person should dream big and dare to fail. He should learn from his mistakes as failures are not permanent. The person in the field of business should always adopt upgraded technology as it will reduce the cost of production as they have to compete with multinational companies.
The government has also understood the impact of commerce and business on the growth of an economy and thus they are providing various subsidies, tax exemptions, tax holidays, etc. the government is trying to develop a strong support system and good business climate for business activities. They promote start-ups. The government had set up various institutions for providing technical and managerial assistance to start-ups. One such institution is SIDBI, headquartered in LUCKNOW and had also various other initiatives.
The persons involved in commerce and business is given respect in the society and seen as an innovator with the caliber and skills to forecast future demand and brings new ideas and goods. For the proper functioning of a business, there is a requirement of funds which can be arranged from self-financing, Venture capital, angel funding, etc. there is also stock exchanges working for providing flexible funds and supporting businesses. Through commerce and businesses, the ideal saving of people is channelized into productive uses.
The businesses which earn handsome profits, contribute towards the betterment of society through opening schools, colleges, hospitals, sanitation and drinking water facilities, etc. they do charity and philanthropic activities for the development of employees and other stakeholders like creditors, suppliers, customers, NGO’S, agencies, etc. is regarded as responsibility.
Thus we can conclude from above-mentioned facts that business and commerce is the backbone of any country and in developed countries, the share of commerce, industries, and service sector is much greater than the share of agriculture. It can take the nation to the path of progressive development and thus there is a need for government to ease the environment of doing business and attract foreign direct investment in various sectors.