How the Govt. Creates a Climate for Business
1. Govt. Expenditure
capital expenditure
current expenditure
Why Govt. Encourages Entrepreneurship
2. Govt. Agencies
IDA Ireland
LEOs
Enterprise Ireland
gives export assistance
helps with R & D
provides funding support
helps trade fair events
provides data on Ireland
conducts research on suitable locations
networks with local industry
develops third-level links
training programs & advice
business networking
mentoring programs
financial supports
3. Govt. Taxation & Policies
taxation - see economic variables mindmap
help create a stable & more predictable economic environment, encouraging businesses to expand, by talking to unions about pay
4. Govt. Grants
can be used for R&D, feasibility studies, buy machinery, pay for taining, expansion
if T&Cs are adhered to; doesn't have to pay any money back
sum of money, given to business, for certain purpose
5. Govt. Regulations
consumer laws
employment laws
enviromental laws
data protection laws
reduced reliance on FDI
improved balance of payments
increased Govt. revenue
reduced social welfare
increased employment
Positive Impact of Business Activity
employment
standard of living
tax revenue
community development
Negative Impact of Business Activity
environment
social costs
inflation
more competition