It is said that some of thefederal governments of the United States have acquisition budgetsthat exceed the budgets of some whole countries (Baten,2016). Topof the state’s budgets plans is to provide security, health,and welfare to their citizens and to some extent facilitate economicdevelopment. In the United States, there are multibillion industriesand companies that might greatly undermine the small startupbusinesses. It important to note the importance of small businessesto the economic development of the USA. Job creation and increasedoutput are among the many benefits of empowering the smallbusinesses. Even though the government offers to help the smallbusinesses and startups, not all businesses are eligible to apply forthe grants. While profit making organizations are not eligible toapply for grants, the non-profit making organizations, such asschools, are eligible to apply and are given access to the grants.
Noone can deny the advantages of the government issued grants. However,there are some key concerns over the issuance of the grants. Forinstance, whenever businesses are issued with the grants, they aresupposed to carry out some specific activities or they must includesome activities into their program. This at times will reduce thecontrol of the money the company has. Another issue arises when itcomes to reimbursing the grants. Some companies may encounterhardships in the process especially if the organization is cashstrapped. However, the advantages far outweigh the disadvantages ofgrants issues and small businesses have a chance of growth andcompeting with the big and well established companies. Inconclusion, what other ways and means do you think the state andlocal government can use to encourage or facilitate small businesseconomic development or rather help incentivize growth and investmentin specified areas?
Baten,Jörg (2016). AHistory of the Global Economy. From 1500 to the Present.Cambridge
UniversityPress. p. 95
No related posts.