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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.

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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.

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