Business Incentives

Question 1

Why do Governments provide incentives to businesses.

Answer 1

If companies innovate they better provide what the market wants leading to more profits and taxation to pay for schools and health.

Increased sales overseas lead to an improvement in the trade balance increases GDP. This means more goods and services produced.

More employment and people are happier so it reduces the costs of healthcare and transfer payments of funds to those unemployed.

Question 2

Entrepreneur Program

Answer 2

The government will provide support to programs where business experts will provide support to people to help them establish their businesses. The support can also be financial to help them establish a new type of business idea.

Question 3

Incentives to Research and Development:

Answer 3

This means that investments in new research can gain extra taxation benefits. Also the government has provided incentive for business to invest in new equipment. Items up to $100,000 can be deducted in a year of purchase.

Question 4

Regional Innovation Fund

Answer 4

The government likes business to set up outside the cities as it reduces pressure on the cities’ infrastructure and can provide employment and skills into country areas.

Question 5

Local Council Incentives

Answer 5

To assist small businesses over covid-19, local councils allowed them to use car parks for outdoor seated customers due to indoor sitting limits. They can also give cash grants to help new businesses get established.

Question 6

Mentoring Programs

Answer 6

This is where the government will aim to match leading business experts with new business owners so they can help them to obtain the skills needed to be successful.

Question 7

School Based Business Programs

Answer 7

Large companies like banks will offer to run business programs to schools to help.

Question 8

What to write on the SAC?

Answer 8

Easiest ones:
Mentoring Programs or Entrepreneur Programs

Example:One way that business innovation and entrepreneurship could be fostered in a nation is through the
provision of mentorship programs that are sponsored by the government and business. Rob could
have received mentorship through one of these programs to assist him in setting up Food Connect by
understanding what needs to be done so that it will be successful