January 10th, 2018
How governments seek to cooperate with or work against businesses
Governments can cooperate or work against businesses by creating laws and policies that promote or hinder a conducive business environment. For example, where governments reduce the processes that a business requires to get permits and licenses to operate, the resultant environment may spur growth in enterprises. However, where complex and rigorous processes exists to gain entry to a market, many businesses may be unable to operate in such a market. The government may also cooperate with businesses by offering incentives such as lowering tax rates and offering subsidies to encourage businesses to invest in specific sectors of the economy. As alluded to subsequently, governments may have various measures whose implication is either to support or to hinder business activities.