Th3.6: ^^ Promotion of Small Business Flashcards

1
Q

What can the government do through tax incentives or subsidies?

A

give training and grants to new entrepreneurs and encourage small businesses - this will increase competition since there will be more firms within the market and will offer a chance for more firms to join

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2
Q

How is the promotion of small business good?

A

it increases innovation and efficiency since new firms are likely to provide new products and incumbent firms will no longer be able to be X-inefficient

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3
Q

What does the Red Tape Challenge aim to do?

A

decrease regulation, particularly for small businesses

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