Entrepreneurs would really do with a bit of encouragement for them to succeed in their businesses.
This comes in the form of incentives from the local and the central authorities. The incentives could come in a form that enables them to carry on their businesses with little interference.
Globally, there are some forms of incentives that can help the entrepreneur also keep up with other businesses in other countries. The incentives can come in any of the following ways.
Few barriers to entry
This will encourage the upcoming entrepreneurs to penetrate a specific industry with ease.
Competition may be there but with few barriers that could’ve been set up the already existing businesses, it becomes possible for the small firms to compete in a fair environment.
Businesses that are operating in certain areas or industries could do with some exemptions in the tax on inputs. This will mean that they will not collect output tax on their products but the incentive in itself will mean less administrative work
To control the growth of small firms, the government can regulate the issuing of licenses or require stringent requirements for one to get a license. This will act as an incentive for the new entrants and will create a conducive environment for healthy competition
The Government through the Ministry of Finance can set up forums where investors can meet with the upcoming entrepreneurs and discuss business prospects where both parties can benefit from each other. This can be organized in form of seminars and trainings or workshops organized the ministry concerned.
Low interest rates on loans
The Government could set up loan schemes through micro finance institutions where entrepreneurs with a good business prospects can get boosts for their growing ventures in the form of low interest loans. The interest subsides will be the government investment for the upcoming business that will eventually contribute to national growth