An Overview of How Businesses Contribute to Economic Growth
This post will help you to further understand the relationship between businesses, their goals and economic growth, as part of your Prelim Economics course. Firms are organised in such a way as to establish clear goals that guide business behaviour. With the achievement of business goals, firms grow and expand, contributing to economic growth. Common business goals include:
- Profit maximization;
- Maximizing growth;
- Increasing market share;
- Meeting shareholder expectations; and
- Satisficing behaviour.
The video below looks at what each of these goals means. Check it out!