Business is hugely important in a country’s economy because it is the main economic engine for the country.
Businesses are a very important part of the circular flow of any market economy. They buy resources from households in the resource market and sell to households in the product market. This makes them indispensable to the economy.
Businesses also allow the economy to work more efficiently. When businesses compete with one another, they improve their efficiency and help the economy grow. They also help the economy grow through innovations of various sorts. No market economy can thrive without businesses.