The country needs small and medium-sized companies now more than ever,
Discuss.
When we read the newspapers, it seems like the world is made up of large multinational companies, such as Starbucks, Apple and Google. Although these certainly
contribute to the economy on a large scale, we should not underestimate the long-term value of small and medium-sized enterprises. After all, these might become
the international brands of the future, while helping to maintain the economy in the
meantime.
It is this argument which is the reason for the many schemes and the different forms
of help that the government has traditionally provided for start-ups, completely new
businesses operating at a local level. They provide, for example, financial incentives, low
business rents and help with writing a business plan. Other examples are the provision
of business consultants who help with the initial market research, the analysis of
competitors' products and prices, and advise on company structure. At a time where
government money is drying up, it is important that this support continues.
It is especially in a recession that we need brave people with big ideas, who are
willing to take a risk to fill a gap in the market or to respond to a growing consumer
need. These entrepreneurs are people who provide employment to their local
community. In other words, they promote economic growth by investing in others as
well as themselves.
If local and national governments are prepared to invest in new businesses, they are
also investing in the economic growth of the country. The better the support, the
more likely it will be that the business will become one of the 40% of companies that
survive their first five years in business. Surely that is exactly what is needed in these
times of economic downturn.
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