Startups

Question 1

Startup

Answer 1

a startup is a company typically in the early stages of its development. These entrepreneurial ventures are typically started by 1-3 founders who focus on capitalizing upon a perceived market demand by developing a viable product, service, or platform”.

Question 2

Why do government want to support startups

Answer 2

Why do governments want to help new start-ups?
They provide employment to a lot of people
They contribute to the growth of the economy
They can also, if they grow to be successful, contribute to the exports of the country
Start-ups often introduce fresh ideas and technologies into business and industry

Question 3

How do government support businesses

Answer 3

Organise advice: provide business advice to potential entrepreneurs, giving them information useful in starting a venture, including legal and bureaucratic ones

Provide low cost premises: provide land at low cost or low rent for new firms

Provide loans at low interest rates

Give grants for capital: provide financial aid to new firms for investment

Give grants for training: provide financial aid for workforce training

Give tax breaks/ holidays: high taxes are a disincentive for new firms to set up.
Governments can thus withdraw or lower taxation for new firms for a certain period of time