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Business is an economic activity consisting of production, distribution, exchange and auxiliary functions to satisfy the changing needs and demand of customers to meet the economic goal of business. The business of present stage has been developed from the very beginning of human civilization. It has been evolved from self-sufficiency stage of a modern technological stage. Industry and commerce are the two major components of business which is related to earning the profit and generating wealth. The evolution of business can be studied into two parts:
As we know that, Industry includes all those activities that produce goods or services by the use of human and mechanical power. Agriculture development contributed a lot to develop the industry up to the present stage. The development of industry can be explained through the following five stages:
In the earlier stage, people were self-dependent. They used to produce goods and service they need by themselves. The concept of commerce was developed gradually when people started to live in the river bank and engaged in agriculture farming. Those who were skilled in one activity and have resources produce certain products. The evolution of commerce and the stage of economic development is explained with the help of the following points:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.
Pant, Prem R., et al. Business Studies. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.
The evolution of business can be described as:
Commerce includes all those activities, which are concerned with the distribution of goods and services. The concept of commerce was developed gradually when people started to live in the river, bank and engaged in agriculture farming. It has passed through a number of stages to reach the present level. Following are the stages in the evolution of commerce:
5. National Economy
In this stage, buying and selling of goods and services were done within the country. The gradual development of production and distribution lead to expansion to expansion and growth of a business. The division of work and specialization helped producers to concentrate on few products only. There was also development in banking, advertising, insurance, warehouse, and other auxiliaries,
6. International economy
The mass development of industry has led to the development of commerce at international level. It is not possible for a country to produce all demanded goods according to needs and wants. Therefore the countries started to import the goods and other countries exported. Communication, net facilities, and modern transportation mean like road, seas, air transportation has played an important role in the development of an international economy.
The stages of evolution of industry are:
The stages of evolution of commerce are:
_________is the primary stage of the evolution of industry.