1.7 Government Support for Enterprise and Entrepreneurs

Business enterprises have a positive effect on the economy in several ways:

• New business start-ups provide new products and services to the economy
• The alleviate the unemployment problem and create new jobs
• They reduce the welfare budget by reducing unemployment
• These businesses generate revenue for the government through the payment of tax
• They improve our exports
• They encourage the best minds from around the world to come to the UK and work

Governments are always keen to offer help and advice to entrepreneurs as it benefits the economy by reducing unemployment and receiving tax from the business.

There are several organisations set up to assist the needs of various businesses by providing information, funding, support and advice and also trachings on how to be more competive.

In 2007, the departments for Business, Enterprise and Regulatory Reform (DBERR) was established which is responsible for the creation of conditions for businesses to succeed. Since the formation of this department, new laws have been implemented which aim to simplify the process of starting up and running a business.

This department has now replaced the Department for Trade and Industry (DTI). Prior to its establishment, DTI was responsible for business enterprise and innovation.

At its inception, DBERR included a number of renowned entrepreneurs including Sir Alan Sugar, Sir Richard Branson, the executive of Tesco and others.

The Department of Innovation, Universities and Skills (DIUS) is also another major initiative specifically designed to promote business research, propelling enterprise and efficiency, and the creation of new products and services.

Regional Development Agencies (RDA) were established with statutory objectives which they are required to provide by law. Their requirements are:

• The enhancement of business competitiveness and efficiency
• Promote employment
• Constitute to significant economic development
• Foster the development and applicstion of skills which are relevant to employment
• Promote economic development and regeneration

With the above initiatives established, the governement still strives to promote entrepreneurial capablities through several organisations which offer profound support for new businesses. One of such is Business Link which works in conjunction with businesses on a local, regional and national level, in the provision of practical advice and support for various business types.

Government departments and agencies

The government is also responsible to ensure that enterprises are well regulated and informed as to the best business actions that would derive the best results to both the business and the economy. For example, it's in no one's best interest to create products or services which increase pollution or can endanger lives and the environment in any form.

Hence in order to achieve the optimum benefits of businesses, the government provides:

• Specific business support for enterprises involved in the exportation of products and services
• Training programmes which provide enlightenment and information on a wide variety of business issues
• Grants aimed at promoting development, especially in deprived regions with high unemployment rates

Activity - Why do you think governments seek to support entrepreneurs?

Governments seek to support entrepreneurs for a number of important reasons. Entrepreneurs and business enterprises have many beneficial factors to the economy, such as creating jobs which helps reduce unemployment, they also generate revenue for the government through paying tax. On top of that, the more entrepreneurial minds there are in an economy, the more their attitudes will brush of on others, which in turn will create more business and more jobs. It's essential for entrepreneurs to surface and start businesses as without them, the economy can't continue to climb.