Test-driven development (TDD) can benefit both business and development teams. TDD involves writing automated tests before code, which leads to cleaner code, more reliable products, and increased developer skills and satisfaction. Studies show TDD can reduce pre-release defects by 40-90% and initial development time by 15-35%, while increasing code quality. However, fully adopting TDD can be challenging due to issues like increased perceived time investment and breaking old habits. Overall, TDD allows for flexibility, customer satisfaction, risk reduction, efficient code, and stronger teamwork.