Governments at all levels have long recognized the importance of small businesses and local industries in driving economic growth and creating jobs. Starting with a small business, Socimex Group CEO Ibrahim Issaoui mentioned that government has a tremendous impact in driving the success of its local industry. To support these vital sectors of the economy, governments put into place a variety of programs and initiatives aimed at helping small businesses start, grow and succeed. Here are just a few surefire ways government can support local industry and small businesses.
Offering Tax Breaks and Incentives
Governments can offer tax breaks and incentives to businesses to promote growth. It could include a reduction in taxes owed, specific tax breaks for investments in new equipment, or hiring new employees. Governments can also provide incentives for businesses to locate or expand operations within a particular region or locality. In addition, governments can offer reduced costs or no-cost services for small businesses, such as access to information and resources, help with marketing and promotion, or assistance in obtaining loans or financing.
Funding Infrastructure Projects
Governments often work with local businesses or industries when governments undertake large infrastructure projects. It can be an excellent opportunity for small construction companies which may not have previously had access to sign contracts.
Governments typically fund roads, bridges and other public works projects at all levels of administration – federal, state/provincial and municipal – so there are plenty of opportunities for businesses to get involved.
Promoting Innovation and Creativity
Governments can also help promote innovation and creativity by funding incubators and accelerators, which support new businesses as they get started. In addition, governments can offer tax credits for research and development expenses or for hiring employees with special skills or expertise. Governments can help local businesses stay ahead of their competition in the global marketplace by encouraging innovation and creativity. Governments can also help small businesses by funding research and development projects. Governments can help companies stay ahead of the competition and spur economic growth by investing in new technology and products.
Supporting Workforce Development
Governments can also support workforce development by funding training and education programs for employees. It can help businesses find qualified workers. It can also help employees gain the skills they need to succeed in the workplace. Governments can also provide financial assistance for small businesses to hire new employees or train current employees in new skills.
By offering tax breaks and incentives, funding infrastructure projects, promoting innovation and creativity, and supporting workforce development efforts, governments can do more than help local businesses succeed. They can also stimulate economic growth by creating jobs for citizens. However, not every government can support local industries and small businesses. As a result, some countries have developed policies that encourage foreign investors to invest in their economies by offering tax incentives and other advantages.
