Business Economics

Business Economics, when I heard the term Business Economics in 2010 (during my MBA days) I was a bit confused coz for me business and economics were two different aspects, but as the course moved forward I understood the link between Business and Economics. 

So, what is Business Economics.

Business Economics is a field of applied economics which uses economic theory and quantitive methods to analyze business enterprises and the factors contributing to the diversity of organisational structure and the relation of firms with Labour, Capital, and product markets. Business Economics is an integral part of traditional economics and is an extension of economic concepts to the real business situations. It is an applied science in the sense of a tool of managerial decision-making and forward planning by management. In other words, business economics is concerned with the application of economic theory to business management. It is based on microeconomics in categories Positive and Normative. 

The term business economics is used in a variety of ways. Sometimes it is used a synonymously with industrial economics, industrial organisation, managerial economics, and economics for business. If focuses on the economic issues and problems related to business organisation, management, and strategy. Issues and problems include

- an explanation of why corporate firms emerge and exits

- why they expand horizontally, vertically, and specially

- the role of entrepreneurs and entrepreneurship

- the significance of organisational structure

- the relationship of firms with employees, providers of capital, customers, and government

- interaction between firms and the business environment

Business Economics in:

1. Managerial Economics: It is a field of study within business economics that focus on the microeconomic factors that influence the decision-making processes with an organisation. The strategic decisions of corporations result in either a profit or a loss for the company. Managerial economic principles are intended to influence and guide corporate strategy and decision towards the best outcomes for a company.
2. Non-profit organisations: While nonprofit organisations and for profit organisation may have difference goals, both of these types of organisation perform similar business functions and require similar expertise. In addition, they must also strive to limit waste and maximise the overall usefulness of their available resources in order to maintain their visibility as enterprise. Both have to maintain necessary capital to continue working within the economy, this requires them to use many of the same principles. For example, al types of organisations engage in advertising, community, or customer support and need leadership to make appropriate strategic decisions.
3. Special Consideration: There are various  organizations associated with the field of business economics. In the U.S., the National Association for Business Economics (NABE) is the professional association for business economists. NABE is the largest international association of applied economists, strategists, academics, and policy-makers committed to the application of economics; the mission of the organization is "to provide leadership in the use and understanding of economics."