A business is defined as any enterprising entity or company engaged in commercial, productive, or financial activities for profit. Companies may be for-profit or non-for-profitable entities that conduct business to meet a social purpose or further a socially progressive cause. The activities of a business may be local or global, and include manufacturing, processing, marketing, banking, distributing, and trading. Although most businesses are formally registered with the state, it is possible for unincorporated organizations to engage in business. Unincorporated businesses are subject to the laws of each state in which they conduct business. While some states have a provision in their corporate laws for limited liability protection and others provide protection against creditors’ liens, there is very little protection for the rights of employees, customers, and stockholders in the event that a business goes out of business or is taken over by another corporation.
Some countries have developed a tradition of nurturing new small businesses as a way to produce economic growth. Countries such as Sweden have long been renowned as a haven for innovative businesses and a center for international trade. Other countries have seen little growth in start-up business activity and an even fewer number of start-ups exceeding $5 million per year. While there are no clear reasons for this trend, it is worth exploring the possibility that countries lacking significant industrial base may be less likely to take advantage of innovations and technological advances made available through modern market research techniques. It also makes sense that developing countries may not have the same kind of technological infrastructure that developing countries with higher per capita income levels.
One main reason why corporations are able to use market research in order to make better decisions regarding their businesses comes from the fact that this process can help determine how much a company will need to invest in order to get a profit. Market research can help companies determine what kinds of products and services they should offer, what markets they should enter, how large their potential customer base should be, and how much money they should risk in order to achieve their goals. Without market research, companies may choose to do business in areas that do not have adequate demand, drive the prices of their goods and services up, or provide customers with products and services that do not meet their needs. This can mean sacrificing profits, as well as the welfare of the local economy.