Economic growth in modern times is a crucial element part of global development. Even small businesses can impact how people abroad spend their hard earned money. Businesses thrive when they are able to provide a product people want. People create their living situations based on resources available and what they can afford. Businesses offer a number of elements highly important to a country’s economy such as employment, productivity and a form of financial security. Think of it this way; when a business is doing well they are likely contributing to a country’s economy that makes it beneficial for everyone involved.
So what happens when a business underperforms or does not meet expectations of its market? This is when the economy can be affected. When people lose their jobs they may not be able to buy what they want. The economy would not see the same activity as it did when it was stronger. People may not decide to make bigger purchases like a house or vehicle. They may not want to travel or take vacations. So, an underperforming business may not hire more people, give raises to their employees, or offer better benefits to their marketplace.