Role of Business in the Socio-Economic development of

Bangladesh

Introduction to Business and its Roles.

Business:

A business is any activity that seeks to cost effectively provide goods and services to others. To
earn that profit, you provide people or other businesses with desired goods, professions, and
services.

Role of Business in socio-economic development of a country:

Businesses provide vital services, products, and tax revenue that directly benefit the wellbeing
of the community, hence encouraging economic stability and growth. It directly affects the
standard of living of a countrys people and the quality of life.

The process of social and economic development in a society is known as socio-economic

development. Indicators used to evaluate socioeconomic progress include Gross domestic
product, living standards, literacy rates, and employment rates.

Establishing Business in Bangladesh's Social and Economic Bandwidth:

Business is a vital part of how modern society operates. They can work in the primary sector,
such as mining, to extract natural resources. Or they gather a variety of agricultural products.
Typically, they create raw commodities that serve as inputs for other secondary sector
enterprises. Some people work in the auxiliary sector. They transform raw materials into
intermediate or finished goods through processing. In order to be transformed into finished
goods and subsequently sold to customers, intermediate items are sold to other companies.
The finished goods, however, do not require any additional processing to reap their benefits;
they are ready for consumption at this point. The tertiary sector is where some companies are
then active. Services are provided. They engage in a variety of business ventures, including
retail and wholesale trading, tourism, and financial services like banking and insurance. In
addition to offering services to primary and secondary sector firms, they also do so for homes.
Urbanization and industrialization are both happening at the same time in Bangladesh. Small-
and medium-scale manufacturing companies grow and operate better when they are close to
rivers or other bodies of water and highways, and the fact that the country is riverine can
partially account for this fact. Although Bangladesh saw consistent economic growth from 6%
to 8% over the past ten years, the COVID-19 pandemic's effects caused the GDP growth rate to
drop to 5.24% in 2019-2020 from 8.15% in 2018-2019.

Role of business in this field are given below-

Improved of Standard of Living:

The buying power of a nation's consumers is typically referred to as the living standard.
Business operations help raise people's standards of living. There are various channels it can
use. First, we can satisfy our wants and needs by using the products and services that the
company produces. Second, we gain income from the jobs that are created. To fulfill our needs
and desires, we can utilize the money to purchase a variety of goods and services. Additionally,
we can invest it to help with future expenses, such as retirement. Then, we can use it to reduce
any potential losses by purchasing insurance. Thirdly, cheaper pricing and higher-quality goods
and services result from competition. As a result the country enjoys a improved standard of
living.

Market Development:

When buyers and sellers meet one another, whether directly or through intermediaries or
institutions, the result is an exchange of products and services. In the strictest sense, markets
are locations where goods are bought and sold. The market, however, is no longer a physical
location in the modern industrial system; instead, it has grown to encompass the entire
geographic region in which vendors compete with one another for clients. When someone
starts a firm, he either does so in an already-existing market and so expands its size or he
establishes a new market where values are traded and economic contributions are made.

Governments Earning Through Tax:

An organization that is profitable must pay taxes to the government from either a portion of its
net income or from the sales it performs. As a result, the government can raise enough revenue
to meet its citizens' needs. A larger business sector increases government revenue, which is
then used to fund social security, infrastructure development, research and education, and
other initiatives that improve the business environment. And the government earns the money
as tax and which can be very much beneficial for the community people of the country as the
money will made economic development of the country.

Integrated Social and Economic Development:

As industry and business grow, so does the public infrastructures that support them, including
transportation networks, healthcare facilities, educational institutions, urban neighborhoods,
and entertainment venues. To manage these infrastructures, more firms are developed.
Therefore, industrialization is a catalyst for a society's healthy development. In this way a huge
number of opportunities are created for the people of the society as there creates large
number of infra-structures.

CSR Activities of Business Organizations:

CSR stands for corporate social responsibilities. Business is connected in certain societies on
which they are committed to take part in the development of societies through different non
profitable works. They are:

1) Establishment of Educational Institutions

2) Giving jobs to qualified unemployed population
3) Development of infrastructures in rural areas
4) Carrying out health related campaigns
5) Working for nature to sustain the environment ecosystem
Employment Generation:

By observing the graph, we can say that, In Bangladesh unemployment rate is quite high among
which a huge number is educated and qualified. But they are not finding suitable jobs related to
their educational field. It is because of lack of Industrialization to every border of the country. In
this regard business organizations and corporations can contribute highly as the business is
increasing day by day. And Bangladesh is very much suitable for different types of business. So
they can provide jobs and career opportunities to the unemployed people. And in this way
unemployment problem will be solved in our country and lots of employment opportunities will
be created and that will result in the socio-economic development of Bangladesh.

Conclusion:

With a domestic market of 170 million people, Bangladesh is an overpopulated nation. As a

result, the government of Bangladesh must encourage its citizens to consume domestic goods
by raising demand for them in order to contribute to economic growth. People need to be
aware of how crucial the domestic market is to be maintaining the economic cycle during
natural disasters like this COVID-19 outbreak. In near future, government assistance for
business owners should be expanded to include production, transportation, marketing, and
sales. To ease contextual policy and infrastructure assistance, SMEs can be divided into
groups based on the number of employees and the technology they employ. To guarantee
the essential funding for SMEs, effective cooperation with various financial institutions is
required. Along with backward and forward connections, advice and support for business
owners could also be offered regarding other crucial concerns including connectivity to the
worldwide market, robust social networking, and efficient and effective outsourcing.
 What are the challenges a business organization faced during the Covid-19

pandemic?

Introduction to Covid-19:

The SARS-CoV-2 virus is the infectious disease known as coronavirus disease (COVID-19). The
majority of those who contract the virus will suffer from mild to moderate respiratory illnesses
and recover without the need for special care.

On March 7, the nation announced the first COVID-19 case to have occurred on its soil.
However, several specialists theorized that nCoV-2 may have reached the nation earlier but had
gone undetected due to insufficient monitoring. As of April 13, there had been 803 COVID-19
cases registered in the nation, with 39 fatalities. However, worries have been expressed that a
severe lack of testing assays may be leaving many instances in the nation undiscovered.
Bangladesh admittedly halted international flights, instituted thermal scanner checks, and
closed schools in reaction to the virus's introduction; nonetheless, businesses continued to
operate according to schedules until the last week of March.

After then different types of restrictions and lockdowns was initiated to control the rapidness of
the virus which results in shutting down of business more likely garments, mills, factories,
markets, and also other business organizations have to follow these shutdowns which results in
massive shortage in different necessary daily commodities due to increase in demand but less
supply.

We will discuss more elaborately in the following:

The challenges that a business organization faced during the Covid-19 pandemic:

Government Lockdown:

At the first wave of Covid, Due to Government lockdown all Government offices, Banks,
Financial institutions gets closed and all forms of official works like contract signing,
registration, dealing, LC’s, gets stopped which results a huge backlog in business and all forms
of trading, export-import gets stucked which created a uncertainty in business sector.
Supply chain disruption:

Planners had to deal with a number of challenges as a result of the extraordinary supply chain
disruption brought on by COVID-19, including-

1) Demand fluctuates per market segment.

2) Supply constraints takes place.
3) Difficulties in placing inventory.
4) Decreased productivity.

Raw Material Shortage due to Import barrier:

In production of different materials industries needs huge amount of raw materials to produce
the final product which will be delivered to the customer through consumer market. But due to
national and international restrictions in import and customs shipping raw materials cannot be
imported and which result in downfall in production and as a result industries faces huge loss.

Disruption in International logistics system:

Manufacturing and logistics activities have been halted as a result of the strict lockdown,
affecting the demand and supply of various products as a result of restrictions imposed on
shopkeepers and retailers. COVID-19 has widespread effects in all types of units from various
sectors. One of the largest manufacturer country of the world China was the main field of
Covid-19 and that’s why all the business with china gets stopped and all the previous shipments
started to get delayed which result in customer dissatisfaction and that’s why business
organizations incurred huge loss and they cant handle these situations and many organizations
had to stop their total business.

Conclusion:

Covid-19 had an unanticipated negative impact on both the global economy and its citizens. It
was a crisis that affected not just the general populace but also the commercial sectors,
which are the backbone of any nation's economy. Though the loss of human lives is
irreplaceable, the world is now moving toward healing, and the losses in the business sectors
are being regained thanks to skillful planning and the deployment of stimulus packages.