Knowee
Questions
Features
Study Tools

How do businesses contribute to the economy of a country? 

Research Question

How do businesses contribute to the economy of a country? 
🧐 Not the exact question you are looking for?Go ask a question

Academic Insights

Businesses contribute to the economy of a country by fostering innovation, creating jobs, and enhancing economic resilience, particularly through the activities of small and medium-sized enterprises (SMEs) and the digital economy.

Key Insights

  • Job Creation and Economic Diversification:

    • Private sector enterprises, especially SMEs and micro businesses, play a crucial role in job creation and economic diversification, which is vital for the resilience of rural communities .
    • The dynamic nature of employment patterns, such as increased self-employment and part-time work, helps rural areas adapt to socio-economic changes .
  • Innovation and Technological Advancement:

    • The supply chain economy, which includes industries that provide goods and services to other businesses or the government, is a significant driver of innovation, particularly through high STEM job intensity and patent generation .
    • Digital economic activities and specialized knowledge significantly impact regional economic growth, highlighting the importance of technological evolution in modern economic development .
  • Impact of Broadband and Digital Economy:

    • Faster broadband speeds have a positive effect on business growth, enabling innovative business models and providing competitive advantages .
    • The digital economy, through platforms like the sharing economy, contributes to urban regeneration and socio-economic development, although its long-term sustainability remains under scrutiny .
  • Policy and Regulatory Environment:

    • Effective business regulations and a conducive business environment are essential for attracting foreign direct investment (FDI) and promoting economic growth .
    • Policy uncertainty can negatively impact business expansion and economic activity, particularly affecting small businesses and entrepreneurship .

Conclusion

Businesses significantly contribute to the economy by driving innovation, creating jobs, and enhancing economic resilience. The digital economy and effective regulatory environments further bolster these contributions, although challenges such as policy uncertainty and the sustainability of new business models need to be addressed.

2

The contribution of rural businesses to community resilience

77 citations | Local Economy: The Journal of the Local Economy Policy Unit | Artur Steineret | 2014Cite
3

A New Categorization of the U.S. Economy: The Role of Supply Chain Industries in Innovation and Economic Performance

6 citations | MIT Sloan School of Management Working Paper Series | Mercedes Delgadoet | 2017Cite
6

Economic Growth through the Lenses of Education, Entrepreneurship, and Innovation

28 citations | Administrative Sciences | Simona-Andreea Apostuet | 2022Cite
10

Exploring the Impact of COVID-19 in the Sustainability of Airbnb Business Model

Journal of Smart Economic Growth, 2020 | Rim Krouket | 2021Cite
11

Economic contribution of active sport tourism: The case of four sport activities in Messinia, Greece

13 citations | Journal of Sport & Tourism | Panayiotis Drakakiset | 2014Cite
12

Organizational culture processes for promoting innovation in small businesses

29 citations | Euromed Journal of Business | Ronen Harelet | 2020Cite
13

The role of institutional and family embeddedness in the failure of Sub-Saharan African migrant family businesses

34 citations | The International Journal of Entrepreneurship and Innovation | Dieu Hack‐Polayet | 2020Cite
14

The Role of Internal and External Environment For The Sustainability of MSMEs

4 citations | J-CEKI : Jurnal Cendekia Ilmiah | Vinsensius Widdy Tri Prasetyoet | 2023Cite
17

Impact of Foreign Direct Investment on Economic Growth in Nigeria

102 citations | Journal of Management, Economics, and Industrial Organization | E. Oyegokeet | 2021Cite
20

Family Businesses’ Contribution to the U.S. Economy: A Closer Look

963 citations | Family Business Review | J. Astrachanet | 2003Cite
24

The Economic Contribution of North Dakota Cooperatives to the North Dakota State Economy

5 citations | Agribusiness & Applied Economics Report | Gregory Mckee | 2011Cite
26

The Impact of Development and Government Expenditure for Information and Communication Technology on Indonesian Economic Growth

14 citations | Journal of Business Economics and Environmental Studies | Neli Agustinaet | 2019Cite
27

Under COVID-19 Pandemic Impact: Do Internal Mechanisms Play Fundamental Role in Corporations’ Outcomes

43 citations | Business Ethics and Leadership | T. Alabdullahet | 2022Cite
30

Role of Small Businesses in the Agricultural Sector of the Region

8 citations | Mediterranean journal of social sciences | M. Panasyuket | 2014Cite

Related Questions

  • What are the main roles of businesses in economic growth?
  • How do small businesses impact local economies?
  • What is the relationship between employment and business success?
  • How do businesses influence government policies?
  • What are the economic benefits of entrepreneurship?

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.