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
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
3
Q
What does the Red Tape Challenge aim to do?
A
decrease regulation, particularly for small businesses