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Why does the government encourage small businesses?

Just curious...

Why would they not want to? :confused:

Reply 2

scorpion95

20

to increase competition, stop monopolies, to benefit the country etc etc

Reply 3

JW92

18

So the little people have something to do with their time.

Reply 4

Shinedown

Reduce unemployment, increase GDP, increase competition, and perhaps have the hope that the businesses will be run well and develop into larger ones.

Reply 5

morecambebay

16

Its easier to encourage people to start their own business than it is to get their rich friends to pay decent wages.

Reply 6

Anonymous0155

10

small business's are far more numerous than big ass companies like tescos. theres around 300,000 of them in the UK alone. 10-15% corporation tax on them sounds juicy

Reply 7

freddy11

OP

2

Anonymous0155

small business's are far more numerous than big ass companies like tescos. theres around 300,000 of them in the UK alone. 10-15% corporation tax on them sounds juicy

But isnt that just as benificial as taxing 300 thousand people recruited in other companies?
Not all small businesses make a substantial profit, a lot of sole traders just operate to pay the bills, earning pretty much what they would working for someone else

Reply 8

a.posteriori

Because, you know, big companies are evil! :rolleyes:

The distinction has always puzzled me a little bit, too.

Reply 9

a.posteriori

morecambebay

Its easier to encourage people to start their own business than it is to get their rich friends to pay decent wages.

Why should a firm pay its employees more than their labor is worth?

Reply 10

Anonymous0155

10

freddy11

But isnt that just as benificial as taxing 300 thousand people recruited in other companies?
Not all small businesses make a substantial profit, a lot of sole traders just operate to pay the bills, earning pretty much what they would working for someone else

that's not the point. the big companies can eget away with paying less tax; firm abroad or w/e.

but the UK is like the leading country in innovation and enterprise. 95% of employees in the UK now work in businesses with less than one hundred staff.

Reply 11

morecambebay

16

a.posteriori

Why should a firm pay its employees more than their labor is worth?

I didnt say pay them more than theyre worth. I said pay them decent wages.

Most big companies in the uk (and america) exploite their staff.

Reply 12

a.posteriori

morecambebay

I didnt say pay them more than theyre worth. I said pay them decent wages.

Most big companies in the uk (and america) exploite their staff.

By definition, they pay them what their labor is worth. They don't pay them less; if they did, the employees would work at other firms. They don't pay them more; if they did, their competitors would run them out of business.

Reply 13

morecambebay

16

a.posteriori

By definition, they pay them what their labor is worth. They don't pay them less; if they did, the employees would work at other firms. They don't pay them more; if they did, their competitors would run them out of business.

No, they definately do not pay them what their labour is worth.

If a man owns a company and he spends all of his time sat on a yacht whilst other people run his company for him, at the end of the year he will recieve profit which has been worked for by other people.

Reply 14

rajandkwameali

2

small businesses make up much of the economy

and no business starts big as such, they grow until they become large.

Reply 15

angelrose

The Government doesn't encourage small businesses,most small businesses fail. The Government does give grants to small businesses that have a long established history.