How does government help businesses?

• Providing cheap loans and giving grants.
• Providing advice and information centres for businesses.
• Providing college courses and training programmes for entrepreneurs.
• Offering subsidies or tax reduction to businesses.
• Maintain a stable exchange rate of the currency.

Just a moment…

Why does government help businesses?

• To help small businesses to survive and encourage competition in the economy.
• To encourage firms to export and earn foreign exchange for the country.
• To encourage businesses to set up in underdeveloped regions of the country and create wealth and employment opportunities in these areas.