Role of profit in business 

For long survival 

Profits alone help a business to continue to exit for a long time. In the absence of profit the establishment of a particular business losses its justification. Generally, it has been observed that businesses where the profit is very little or no profit at all close down very quickly. If we look at the whole scene, we find that for that from the social point of view only business meets the requirements of the people. In this way we can say that the business are an absolute necessity and profit has a great role in keeping them alive.

For rapid growth

Every Businessman wants that his business should flourish. It means that business should continue rising in the scale of development. There is no denying the fact that all the Businessman want their business to develop. But the question is: how this development can be possible? The answer to this question is: sufficient capital can make it possible. Now, the all important question arise where will this money come from? The simple answer to this question is that there are many sources of getting money. These shows include the issuing of shares, issuing of debentures and ploughing back of profits. The more is the profit in a business, the more re-investment became possible. Consequently, the business makes more progress or development.

For increasing efficency 

There is no power other than self interest which can get a work done by people. Here self interest means profit. It means that profit is that power which motivates or encourage people to work more and in a better way.  In order to run a business the owner and the workers are the two parties concerned. The owners want that they should get the maximum profit. Therefore, they try to do more and better work. On the other hand, the workers want that they should get the maximum bonus they therefore try to increase profit by working more and in a better way. In short profit is that power which motivates both the parties. It finally helps in increasing the efficiency of business.