State and explain the incentives for aspiring entrepreneurs.

      

State and explain the incentives for aspiring entrepreneurs.

  

Answers


Kavungya
Few barriers to entry
This will encourage the upcoming entrepreneurs to penetrate a specific industry with ease.
Competition may be there but with few barriers that could’ve been set up by the already existing
businesses, it becomes possible for the small firms to compete in a fair environment.

Tax Incentives
Businesses that are operating in certain areas or industries could do with some exemptions in the
tax on inputs. This will mean that they will not collect output tax on their products but the incentive
in itself will mean less administrative work

Better regulations
To control the growth of small firms, the government can regulate the issuing of licenses or
require stringent requirements for one to get a license. This will act as an incentive for the new
entrants and will create a conducive environment for healthy competition

Linkages
The Government through the Ministry of Finance can set up forums where investors can meet
with the upcoming entrepreneurs and discuss business prospects where both parties can benefit
from each other. This can be organized in form of seminars and trainings or workshops organized
by the ministry concerned.

Low interest rates on loans
The Government could set up loan schemes through micro finance institutions where entrepreneurs
with a good business prospects can get boosts for their growing ventures in the form of low interest
loans. The interest subsides will be the government investment for the upcoming business that
will eventually contribute to national growth
Kavungya answered the question on April 10, 2021 at 10:47


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