Why Governments Support Business Start-Ups
Governments usually encourage entrepreneurs to start new businesses because of the benefits they bring to the economy:
1. Reduce Unemployment
New businesses need workers.
Hiring more people helps reduce unemployment levels in the country.
2. Increase Competition
More firms in the market means consumers have more choices.
Competition forces businesses to improve quality and lower prices.
3. Increase Output
When more businesses produce goods and services, total output in the economy rises.
Higher output helps economic growth.
4. Benefit Society
Some entrepreneurs create social enterprises that help communities.
They may support disadvantaged groups, protect the environment, or provide essential services.
5. Potential for Future Growth
Big companies like Apple or Amazon also started small.
Supporting small start-ups today may create future large, successful businesses that boost the economy.
