According to the economic growth theory, economic growth has a huge impact on businesses. Economic growth tends to affect the living standards as there is an increase in the average standards of living in the country. It also causes an increase in the overall profits that the nation acquires. Economic growth also leads to the creation of more employment opportunities for the people in a country and thus tackles the problem of low employment rates. Due to economic growth, there is also an increase in government tax revenues. This can lead to better services in the government and more funding opportunities as well. Apart from that, economic growth also has a role to play in the increase of capital investment as well as technological innovations in a country.