6 Vital Ways a Government can Help Small Businesses

Some entrepreneurs, especially the beginners are having a hard time focusing on how to grow their business. They need the assistance of the government in order to develop. Governments need more businesses in place as they contribute to the economy. Here are the 6 ways on how the government can help small businesses:

Economic development

Government creates specific programs to help businesses start and expand. They can offer startup incentives and financial assistance. The government shall also be concerned with creating a business-friendly environment for all the entrepreneurs. Moreover, they can offer worker training, free location rental, infrastructure improvement, low-interest loans and tax credits, among others.

Financial Assistance

Businesses need money to grow their business and continue their operations. Government agencies could support them through providing business loans with lower interest rates than banks and other financial corporations. The loan should help entrepreneurs in purchasing resources or expanding their branches.

Education and Training

There are hundreds of aspiring entrepreneurs who do not know how to start a business. The government should provide training and programs to these individuals that shall educate them on how to manage and grow a business. The government can tap trade schools, colleges and universities to provide free training. The program shall involve strategies and techniques in growing a business and how to handle a business that is falling to bankruptcy.

Infrastructure Improvement

The government can help businesses improve their services by helping them improve their infrastructure as well. The government can support businesses in modernizing their factories and equipment to make the production of goods more efficient. Further, the government can also build buildings and improve bridges rail lines, seaports, and airports beneficial to the location of the businesses. Lastly, the government shall improve the energy transmission and lines and telecommunication systems.

Research and Development

The government shall grant support to academic institutions to conduct researches for the development of new technologies that will benefit the industry of small businesses. Moreover, the government shall initiate of businesses exploring new products and services that will improve the living of the citizens, and certain areas in the economy including energy, transportation, and communications.

Marketing and Promotion

The government shall provide free marketing services to these businesses. The government shall help entrepreneurs make their brand recognizable and establish their company. The government shall partner up with these businesses in their projects and programs.

Businesses make it more convenient for the people to avail goods and services, thus, they are vital for the everyday living.

10 Largest Economies in the World

The United States remains to be the largest economy in the world. It has proven to be on top of other key players in terms of gross domestic product. Check out these top 10 economies in the world.

United States


The U.S. economy still remains the world’s largest economy in terms of nominal GDP. 25% of the gross world product is the U.S. economy which is $19.42 trillion. The United States is notable as an economic superpower that is highly advanced in technology and infrastructure and has rich natural resources.

China


China has achieved economic growth averaging 10% annually and lifted almost half of its population out of poverty, making the leading economy in Asia. China overtakes the U.S economy as number one when measured in terms of FDP based on PPP. China’s GDP is $23.19 trillion exceeds the U.S. GDP of $19.42 trillion.

Japan


Even if facing hard times since 2008, Japan managed to become the third best economy in the world. Its economic growth is positive, to about 1% in 2016 and further to around 1.2% in 2017; but, it is forecasted to stay below 1% during the next five years.

Germany


Germany is the largest and strongest economy in Europe. Germany is known for its exports of vehicles, machinery, household equipment and chemicals. Its nominal GDP is $3.42 trillion, while its GDP in terms of purchasing power parity is $4.13 trillion.

United Kingdom


The United Kingdom has $2.5 trillion GDP making it the world’s fifth largest. The economy of the UK is mainly driven by services, as the sector gives more than 75% of the GDP. Manufacturing is U.K.’s second most important contributor to GDP.

India


India is the sixth largest economy with a nominal GDP of $2.45 trillion. India ranks third in GDP in terms of purchasing power parity at $9.49 trillion. Their GDP is highly dependent on agriculture compared to western countries.

France


France has a nominal GDP of $2.42 trillion making it the seventh largest world economy now. France has a low poverty rate and a high standard of living. France is also considered among the top importers and exporters in the world.

Brazil


With $2.14 trillion nominal GDP, Brazil now ranks as the eight largest economy in the world. Brazil’s GDP is dependent on manufacturing and agricultural sectors. Brazil was projected to be one of the fastest growing economies in the world.

Italy


Italy has a $1.81 trillion economy in terms of nominal GDP, making it the ninth largest. Italy is one of the prominent economies of the Eurozone, but it has been obstructed by the debt crisis in the region. Apart from huge public debt, their economy is also facing high unemployment.

Canada


Canada took over Russia as the tenth largest economy. It has nominal GDP of $1.6 trillion and is expected to reach $1.9 trillion by 2022. Their economy is dependent on manufacturing and the oil and petroleum industry.

The nominal GDP of the 10 largest economies adds up to over 68% of the world’s economy. The remaining 172 countries create less than a quarter of the world’s economy.

8 Common Signs of an Improving Economy

Economy refers to the area of the production, distribution, and consumption of goods and services in a country. The status of the economy can tell how good a country is and how its people are more likely to survive. In the world, there are countries with an outstanding economy which makes them considered as first world countries.

Here are some of the signs that the economy of one nation is improving:

Rise in Expensive Equipment Sales

The sales increase is a positive sign for the economy, especially if it is the sales of high-end equipment. These kinds of sales increase are very important not only because they portray the financial capacity of companies to purchase major technology, but also because they represent a positive economic activity of the country.

Increase in Housing Prices

House is considered to be one of the most important assets of an individual, which can also represent the financial capacity of a person. Housing prices are an important indicator because the majority of an individual’s wealth is tied to the value of the house. The higher the housing price is, the more capable are the citizens to purchase one.

Growing Advertising Sales

Advertising is considered one of the most important industry – magazines, TV, newspapers, and Internet. The percentage of advertising activities indicate the status of the economy. In 2009, advertising spending in the United States fell 7% and grew just 1.5% in 2010. When advertising spending decreases, it indicates a slowing down economy.

Increase in Factory Production

Increase in factory production generally means that a country has the capacity to purchase high-end equipment and advanced technology. Also, it indicates that the people can also purchase the outputs of these factories. Gains and losses in manufacturing can make an economy unstable.

Rise in Corporate Profits

If more corporations earn, the country earns a lot too. Businesses and companies contribute to the government fund in terms of tax. More profitable businesses mean more successes in a country which can help in maintaining the stability of the economy.

Increase in Retail Sales

Increase in retail sales means that more consumers are financially capable of purchasing goods and services. Reduced consumer spending hurt retailers as well as the employees. An increase in retail sales is a good sign that the economy is doing good.

Decrease in Unemployment

High employment indicates that an economy is out of terrible danger. People who are working are earning money to purchase goods and services. More jobs also mean that more companies and businesses are investing in a country. Employment rate predicts the success of an economy.

There are many factors on how to look at the economy of a country. It also varies from place-to-place. Economists are the right individuals to tell if the economy if one nation is really doing well. One of the factors that contribute to a good economy is how the government manages its resources and its people. The government shall promote more investments and more businesses.

5 of the Richest Men in the World

In all our passions, we manage to bring out the entrepreneurs inside us. We make money out of the things we love to do. Some of them surpass the billion mark which makes them very prominent in the world for being among the richest and the wealthiest. Forbes magazine creates an annual list of the World’s Billionaire. Now, let us take a look at some of the richest individuals in the world.

Bill Gates


For four consecutive years in a row, Bill Gates managed to top again Forbes’ magazine list of the world’s richest billionaires. Bill Gates is the co-founder of Microsoft Corporation. He also chairs the Bill & Melinda Gates Foundation which is the world’s largest private charitable foundation. Gates has been on the list for 18 out of the past 23 years. He has a fortune of $86 billion, up for $11 billion since last year.

Amancio Ortega


Ortega remains to be the richest person in Europe and the richest retailer in the world. Ortega typically makes more than $400 million in dividends a year. He has financed an ever-expanding real estate portfolio, which includes buildings in London, Chicago, Miami, Madrid, Barcelona, and New York. As of August 2017, he has a net worth of $84.2 billion.

Jeff Bezos


Jeff Bezos is the Amazon’s chief who is very notable for his quick surge to the top of billionaires. Bezos earned $30 billion more than last year as his online retailer’s stock increased. He owns almost 17% of Amazon. He attended Princeton and worked at a hedge fund before deciding to quit to sell books online. Bezos bought The Washington Post in 2013 for $250 million. As of August 2017, Bezos has a $80.7 billion net worth.

Warren Buffett


Known as the “Oracle of Omaha”, Warren Buffett is one of the most successful investors of all time. He first bought stocks at age 11 and first filed his taxes at age 13. Together with Bill Gates, he launched The Giving Pledge which asks billionaires to donate from their wealth. Buffett has nearly given $32 billion to charity. He has a net worth of $77.3 billion as of August 2017.

Mark Zuckerberg


The ever famous Mark Zuckerberg is the cofounder, chairman and CEO of the ever famous social media platform Facebook. After dropping out of Harvard, he founded Facebook in 2004 at the age of 19 which help him skyrocket to the list of billionaires. He took Facebook public in May 2012 and owns about 17% of the stock. As of August, Zuckerberg has a net worth of $69.2 billion.

If you want to see the full list of Forbes’ World’s Billionaire in 2017, you can check this link. Forbes also ranks the richest men and women of various countries.

4 Major Reasons Why Entrepreneurs are National Assets

Entrepreneurs are the masterminds of businesses that offer products and services. They invest their money in businesses to generate income and profit. They are considered national assets because of their huge contribution to the economy. Businesses are very important for the success of a country.

Here are 4 major reasons why entrepreneurs are very important:

Creates New Businesses


Entrepreneurs are the brain behind the businesses that provide the citizens easy access to quality goods and services. These businesses can also generate employment to the citizens which can support their family. Thus, we need these business-minded individuals to create an avenue to support the survival of the citizens. Apart from they need income, entrepreneurs make it convenient and accessible for citizens to obtain their needs and wants. Entrepreneurs open food stores and hardware shops. They are also behind call center companies, network maintenance corporations, and educational facilities, among others.

Contributes to National Income


Entrepreneurs start businesses to create income. However, they are not focused on their personal growth only, they are also huge contributors to the success of the national economy. Businesses regularly pay their taxes to the government. Their taxes are a huge portion of the government’s budget for various projects including road construction, building improvement and more. Further, products and technologies from entrepreneurs allow new markets to be developed, thus new wealth will be created. Businesses help to boost national income.

Promotes Social Change


Entrepreneurs are brilliant individuals who make living easy for individuals. They think for new ways, new systems with the latest technology to better their goods and services. Through their unique offerings, entrepreneurs break away from conventional systems and embrace modernizations. This results in a more improved quality of life, greater morale and economic freedom. During obsolete times, people have to collect water from afar, but now, there is automatic and low-cost flow-based pump that can fill home water containers instantly. Everything now is instant. Service providers can do errands for you. Thus, entrepreneurs promote social change.

Develops Society


Entrepreneurs do not just end up making themselves rich. But, they are also concerned with developing communities. Most entrepreneurs venture into community projects and provide financial support to foundations and local charities. They love to give back to what they have been blessed. This is how they express their gratitude to the loyalty and the trust of their customers. Apart from the help they provide, this can also promote their business more and establish it as a community-oriented organization. Some prominent entrepreneurs including Bill Gates use their money to finance good causes such as education and public health.

To cut it short, the more entrepreneurs mean more outlets of quality goods and services. They also provide jobs for the people. Businesses have a huge impact on a sound and stable economy. In return, the government shall also promote and maintain their relationship with entrepreneurs. They should assist start-ups by providing financial assistance. Start-up is where all large corporations started. Thus, the government should take good care of the young entrepreneurs.

6 Advantages of Businesses in the Local Economy

A state that is livable is a state with easy access to various products and services. Thus, the role of businesses is very vital to the survival and existence of the local citizens. It is important to promote good business setting and environment in one state or locality. Here are the advantages and benefits of businesses for the local economy:

Local Employment

If there are many businesses in one state or country, there will be more jobs available for the citizens. A family can be stable if at least two members have a stable and good-paying job. Employment is a major factor of success as it influences standard-of-living metrics including disposable income, home foreclosure rates, and small business start-ups. When people are employed, it means that they are paid off their services which can support their respective families.

Local Tax Income

One major source of income for the local government is the tax. Businesses pay a huge portion of all the taxes, including income tax, property tax, and employment tax, among others. Since businesses are required to pay taxes to continue their operations, the government’s income will become stable. This taxes will be used for the improvement of state facilities including road repair, building construction, and government programs.

Local Goods

Businesses provide a wide variety of products. More product businesses mean that it will be easier for locals and citizens to purchase goods. They will no longer have to travel distant places to avail a good or purchase outside their state or country. Further, businesses can support the local produce of the farmers including fruits, accessories and other products. Individuals in the local economy are able to sell their products at a local business which will benefit everyone.

Access to Services

Same with products, services will be more accessible if there are more businesses in an area. A state or country with heterogeneous types of businesses can raise the standard-of-living of the area. Services include home repair, auto maintenance, plumbing, HVAC repair, lawn care, movie theaters and beauty salons, among others. Locals will no longer have to go to other states just to avail a service.

Political Advantages

Businesses are strong partners of the government with their programs and projects. Businesses with a strong connection to the community can lend a hand in community-focused political actions. The business can support financially or even help in organizing the programs which will also benefit the people. Further, service providers can be contracted by the government to accomplish certain projects. Further, businesses can take an active part in political campaigns.

Loyal Customers

Local businesses can attract customers to love local products and services. The more local businesses, the more loyal customers which can generate more income. The more profitable a local business is, likely it is to be successful to regularly contribute to the government’s income. Customers are the most valuable component of a business as they are the source of their income.

It is important to support our local businesses as they contribute a lot to the local economy. Local businesses also bridge the gap of consumers to a wide variety of goods and services.