Question

Explain How Business Development, specifically Small Business Express and Minority Business Advising programs  addressing local opportunities/threats in communities

Answer 1

Introduction:-

Over the years, rapid economic development has taken place across the globe, and we live in an environment which is ever changing, rapidly expanding and are seeing large scale populations receiving benefits from globalization and increase in capital flow in terms of jobs in the economy.

As a result, the overall state of most countries in terms of the infrastructure it has, and the critical facilities such as housing, education, healthcare etc. are easily reaching most sections of the society.

However, the problem still looms high for those countries which have small businesses and which want to expand these and require critical government intervention. In countries which have low growth, or which are on the verge of development such as India, China etc., economic development has been limited to bigger towns and cities and the opportunities available in the smaller towns and cities relatively is lower whereas the threats remain constant.

Case Specifics:-

The opportunities and threats for small business owners tends to be different from bigger ones, since the overall capital availability tends to be different, and competition can be tackled effectively by the bigger enterprises. Thus Business development by the industry and by governments of small and minority business owners in the form of programs to help them is very critical.

The following are the ways, in which programs help in increasing the opportunities available to minority business owners, and reduce the overall threat which may take place.

Opportunities:-

To facilitate opportunities in the economy and to encourage growth of small business owners, the basic hurdle of capital requirements need to be fulfilled so as to increase the opportunities available and to ensure that a major chunk of the population get work. The basic advantage of small scale business owners is that they allow for employment of those who have relatively lesser skills i.e. they tend to be labor intensive in their approach.

Therefore, to increase their earnings and opportunities the government undertakes various programs for facilitation of capital requirements for the business owners. These include low cost loans which have a relatively lower interest rate and tax rebates to smaller firms which engage in business.

Further, to increase the opportunities available, skill development and training is also carried out across the globe as an effective program and measure to increase skills of labor force and make them more productive in the long run respectively.

Threats:-

The major threat to small business owners and producers is the high competition which they receive from bigger enterprises which results in lesser returns and ultimately may even be taken over by bigger companies.

In a market which is rapidly developing and consumer expectations are extremely high, elimination of these threats is beyond the control of small business owners. As a result, countries eliminate the threat by unionization of these small firms into one bigger unit and take a cut in operations. Other techniques include laws that keep a check on monetization of the market structure.

Conclusion:-

We can reasonably judge from the above arguments, that small business owners must be protected and provided active advice with to allow them to grow and develop themselves. This allows major portion of the labor force to become employed and enjoy modern facilities and services. The development of the economy thus becomes inclusive in nature. To achieve this, active participation by the government becomes necessary and is rapidly undertaken by most countries to eliminate or reduce threats which should be and to increase the overall opportunities available for business.

Please feel free to ask your doubts in the comments section.