Th3.6: ^^ Promotion of Small Business

Question 1

What can the government do through tax incentives or subsidies?

Answer 1

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

Question 2

How is the promotion of small business good?

Answer 2

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

Question 3

What does the Red Tape Challenge aim to do?

Answer 3

decrease regulation, particularly for small businesses