Business Economics

Business economics is that part of economic theory which focuses on business organisations and deals with the study of economic issues and problems related to these enterprises. Business economics also studies the factors relating to the management of businesses and business strategy.

The study of Business economics covers the following issues:

• Different variety of organizational structures and their significance
• Relationships of a business enterprise with labour & capital involved and its product markets
• Existence / emergence / expansion of different type of businesses & firms
• Role of businessmen and entrepreneurs in a business and entrepreneurship
• Relationship of business firms with its employees,
• Relationship of business firms with the government
• Relationship and interaction of business firms with the overall business environment of a particular society

The term Business Economics is often used synonymously with some of the other sub-disciplines of Economics such as Industrial Economics, Industrial Organisation, Managerial Economics and Economics for Business. Out of all these, the study of Business Economics is found most closely related to the study of Industrial Economics but, still, with a few distinctions. Business Economics has a broader scope than Industrial Economics as it is concerned not only with "Industry" but also with businesses in the service sector.