Databases play a crucial role in modern businesses for several reasons: 1. Data Management: They allow businesses to store large volumes of data in an organized manner, making it easy to retrieve and manage. 2. Decision-Making: Databases provide valuable insights that help in making informed business decisions. 3. Efficiency: Automated data processes reduce manual errors and save time. 4. Customer Relationship Management (CRM): Databases help manage customer data, improving customer service and retention.