Question

what do you think a small government should do to promote entrepreneurship? Or if you think the government shouldn't do anything, please explain why.

Answer 1

Promoting entrepreneurship means expanding the growth of the economy through innovations and creating more job opportunities.The government can promote entrepreneurship in the following ways.-1)Freedom of entry and exit.Less regulations and restrictions by govt will lead to growth.The govt should encourage competition with foreign companies which will promote growth in domestic companies with increase in innovative ideas.If a new start up company wants to close down its business, the govt should allow to do so and give freedom to make a new product.2) government should encourage easy access to market so that companies can sell their product in domestic and foreign market.3)Taxes should be imposed on profit only after the company prospers.4)The government should encourage risk taking which is an important function of entrepreneur.5) The government should try to avoid corruption.6) The govt should ensure that the environment is friendly enough for entrepreneurial work.