BUSINESS CONTRIBUTIONS TO SOCIETY – INNOVATION AND ENTREPRENEURSHIP CHAPTER 3 BUSINESS CONTRIBUTIONS TO SOCIETY – INNOVATION AND ENTREPRENEURSHIP

Contributing to the economic wellbeing of a nation Businesses of all sizes contribute to the economic and social wellbeing of a country. Australia has a mixed market economy, which means it has both public sector and privately owned businesses.

Contributing to the economic wellbeing of a nation Businesses provide employment, contribute to gross domestic product, provide taxation revenue, build infrastructure and provide research and development. Small and medium businesses employ approximately 70 per cent of the total workforce.

Contributing to the economic wellbeing of a nation Gross domestic product (GDP) is the main way that economic growth is measured. It is the total market value of production in a country over a period of time minus the costs of production. Economic growth is important as it is usually tied to increases in living standards.

Contributing to the economic wellbeing of a nation International trade provides access to more markets (for exports) and a greater range of goods and services (for imports). The level of trade between two countries can be measured by the balance of payments (BOP).

Contributing to the economic wellbeing of a nation Businesses contribute to the broader public through the tax that they pay. This allows the government to provide public goods and services. Businesses, both public and private, contribute infrastructure to the community.

Contributing to the economic wellbeing of a nation Research and development (R&D) by business has led to many technological advances. For example, R&D in science and medicine has led to increases in wellbeing.

Building a culture of innovation and entrepreneurship A culture of innovation and entrepreneurship encourages employees and businesses to take risks and improve processes. This leads to better products and businesses, which contribute to greater economic wellbeing.

Building a culture of innovation and entrepreneurship Innovation and entrepreneurship can be encouraged in a number of ways.