Elimination of Hindrances of Business
Business consists of all industries and commerce. It serves to remove several hindrances and solve many problems while facilitating the production and distribution of goods. The various hindrances removed by business are as follows
Manufacturers do not know the place and face of the consumers. It is the retailer who knows the taste, preference and location of the consumers. The chain of middlemen consisting of wholesalers, agents and retailers establish the link between the producers and consumers.
Production takes place in one centre and consumers are spread throughout the country and world. Rail, air, sea and land transports bring the products to the place of consumer.
Consumers want products whenever they have money, time and willingness to buy. Goods are produced in anticipation of such demands. They are stored in warehouses in different regional centres so that they can be distributed at the right time to the consumers.
Proper packaging and modern air conditioned storage houses ensure that there is no deterioration in quality of products. Goods are protected against insects, rats, evaporation etc.
Fire, theft, floods and accidents may bring huge loss to the business. Insurance companies serve to cover the risk of such losses.
Advertising and communication help in announcing the arrival of new products and their uses to the people.
Money functions as a medium of exchange and enable the buying and selling of any product or service by payment of the right price.
Producers and traders may not have the required funds at the time of their need. Banks and other financial institutions provide funds and help in transfer of funds to enable the functioning of business smoothly.
Research and development helps in developing the exact product or service which can satisfy the specific wants of consumers and thus improve the standard of living of the people.
E-Commerce enables the consumer to select the product in the website, place online orders and make payment after receiving the product at the door step.