Question

In what ways can the government assist small businesses to thrive, What are the obstacles to achieving this actions?

Answer 1

The businesses which have limited capital and low sales turnover are small-scaled. Such numbers are very high in the country; therefore, small scale businesses have huge economic significance. Government of the country always wants to boost-up this business by assisting them. These are as below:

No.1) Consultation: This is the free service provided by the government to small businessmen. There are governmental small business offices or departments in various areas those who are advising small businesses how to do the business or ways of improvements; like how to get tax incentives, what are the export regulations, etc.

No.2) Market research: Agencies of the government do market search invariably for any topic or product. It helps new businesses making their plan. There are free search on agencies’ websites in order to get data.

No.3) New market: Government offers tenders for small businesses if certain criteria are fulfilled. Therefore, it becomes a great help for them. Online search is required in this regard.

No.4) Media attention: A local politician may inaugurate the business, creates attention of the media. The business gets a kicking start that helps increasing sales.

Obstacles:

No.1) Consultation: They usually provide only routine consultations which are now available in web search too. Therefore, there is no real help for achieving business target.      

No.2) Market search: They provide information out of past market research. They may not have answer for a new topic or a product.

No.3) New market: Getting a government tender is not easy – it requires channel and source in the administrative level.

No.4) Media attention: This facility may not sustain in the long-run, since people or consumers may forget the past incidence.