Obviously not all businesses can afford to have their workers being remote. But for those who can it means, first off, not having to pay an office rent or all the infrastructure to have people in cubicles or desks.
The other reasons I believe they should do it is because people ( not all, but a lot) become more productive, and in many more cases more engaged to their job. When you work from home, or a coworking space, or wherever, your job becomes a huge part of “your story” and if someone is proud of the work they do they have a completely different psychological approach to it. It’s not the same when you “have to go to work” than when you “have to work”.